Avnet 2012 Annual Report Download - page 97

Beneficiary shall be entitled to receive, in lieu of a benefit under Section 4.1, a lump sum payment equal to 200% of the
amount of the Participant’s Death Benefit Earnings (the “ Death Benefit ”) within 90 days following the Participant’
s
death (and the Beneficiary may not determine the calendar year when the lump sum payment is made); provided,
however, that if an Offset Plan exists, such Death Benefit shall be reduced by the Participant’
s Offset Plan Amount
(expressed as a lump sum payable on the same day as the Death Benefit). The Company may maintain an insurance
policy (or policies) on the life of the Participant to pay the Death Benefit. Any payment of insurance proceeds to the
Beneficiary (whether paid directly by the insurer or otherwise) shall be treated as a payment made under the Plan and
shall count toward satisfying all obligations under the Plan. If the proceeds under any insurance policy exceed the
amount of the Death Benefit (or any other benefit) payable under the Plan, the excess proceeds shall first be applied
toward payment of the Participant’
s benefit under the Avnet Restoration Plan (as if such excess had been paid under the
Avnet Restoration Plan) and any remaining proceeds shall be paid to the Company.
4.5
Disability Benefit .
An Active Participant who becomes unable to work due to Disability may be eligible to receive a Disability
Pension (as defined below). To be eligible to receive a Disability Pension, a Participant must have:
(a)
completed at least five (5) Years of Service as a full-time employee of an Employer;
(b)
ceased working for the Company due to Disability before his or her Normal Retirement Date or, if
applicable, Early Retirement Date; and
(c)
filed an application for disability benefits under the Avnet Pension Plan, any disability plan sponsored or
maintained by an Employer or, for Participants who are not covered under any such plan and reside in a country other
than the United States of America, a disability program established or maintained under the national laws of his or her
resident country.
A Participant’s annual “ Disability Pension ”
shall be equal to 13% of his or her Death Benefit (determined as if
the Participant had died on the date he or she is first considered to be Disabled under the Plan). If the Participant’
s
Disability qualifies as a Section 409A Disability, his or her Disability Pension will be paid over a ten (10) year period
(120 monthly payments) commencing on the first business day of the month on or after the Participant’
s Disability date.
If the Participant’
s Disability does not qualify as a Section 409A Disability, his or her Disability Pension shall be paid at
the time and in the form prescribed by Sections 4.2(b) (Retirement on or After Final Section 409A Effective Date) and
4.3 (Early Retirement). If an Offset Plan exists, each Disability Pension payment shall be reduced by the applicable
Offset Plan Amount.
If a Participant dies prior to receiving all of the monthly payments required by this Section 4.5, the remaining
payments shall be paid to the Participant’s Beneficiary as follows: (i) if the Participant’
s Disability qualifies as a Section
409A Disability, in a lump sum equal to the Actuarial Equivalent of the remaining monthly payments, within 90 days
following the Participant’
s death (and the Beneficiary may not determine the calendar year when the lump sum payment
is made); or (ii) if the Participant’s Disability does not qualify as a Section 409A Disability, in accordance
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