Big Lots 2009 Annual Report Download - page 100

C-3
3.24. “Unforeseeable Financial Emergency” means a severe financial hardship to a Participant within
the meaning of Treasury Regulation §1.409A-3(i)(3) resulting from: (a) an illness or accident of the
Participant or the Participant’s spouse, Beneficiary, or dependent (as defined in IRC section 152, without
reference to IRC sections 152(b)(1), (b)(2) and (d)(1)(B)); (b) loss of the Participant’s property due to
casualty; or (c) other similar extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant.
4. ELIGIBILITY AND PARTICIPATION
4.01. Approval. Each key employee of the Company or an Affiliate who is approved for participation in the
Plan by the Committee (or under the authority conveyed by the Committee) shall be a Participant as of
the date designated. Notwithstanding the foregoing, any key employee of the Company or an Affiliate
who was participating in the Plan as of the Restatement Effective Date shall remain a Participant as long
as the key employee is in an Eligible Position.
4.02. Termination of Approval. The Committee may withdraw its approval for participation for a Participant
at any time. In the event of such withdrawal, the key employee concerned shall cease to be an active
Participant as of the date selected by the Committee. Nothing in this Section 4.02 shall permit distribution
of amounts credited to a Participant’s Deferred Bonus Account before the time specified in Section 6.04.
4.03. Transfers In, Out of and Between Eligible Positions.
(a) A key employee may be approved for participation during a portion of a Fiscal Year.
(i) With respect to employees who are not Covered Associates, an employee newly hired or
transferred into an Eligible Position shall have his/her participation prorated during the first
Fiscal Year provided employment or transfer occurs at least two months prior to the end of
the Fiscal Year.
(ii) An employee (other than a Covered Associate) transferred out of an Eligible Position may
receive a prorated Bonus at the discretion of the Committee provided he/she served in the
Eligible Position for at least two full months during the Fiscal Year.
(iii) With respect to Covered Associates approved for participation during a portion of a Fiscal
Year, see Section 5.03 as it would relate to Performance Periods that are not equivalent to a
Fiscal Year.
(b) Participants (who are not Covered Associates) transferring between Eligible Positions having
different Bonus formulas will receive Bonuses prorated to months served in each Eligible Position.
Generally, for Covered Associates transferring between Eligible Positions, Section 5.03 shall apply
to each respective Performance Period applicable to the particular position unless an employment
agreement provides otherwise.
4.04. Termination of Employment.
(a) Except to the extent that the Committee determines otherwise, and notifies the Participant in
writing of this determination, prior to the end of the Performance Period, the The Participant shall
forfeit all rights to a Bonus unless the Participant is employed by the Company or an Affiliate
on the day on which payments determined under Section 6.02 are in fact made (or would have
been made if a deferred payment election under Section 6.04 had not been executed). However,
a Participant shall not forfeit a Bonus for a Performance Period if the Participant is employed
by the Company or an Affiliate at the end of the Performance Period and is involuntarily
Terminated by the Company or an Affiliate without cause or Terminates by reason of retirement,
disability, or death, after the end of the Performance Period, but before the Bonus payment date.
Notwithstanding the foregoing, a Covered Associate who Terminates by reason of retirement
during a Performance Period shall be entitled to a pro rata portion of any Bonus that the Covered
Associate would have been eligible to receive for the Performance Period in which his or her
retirement occurs had his or her retirement not occurred at all.
(b) The Company shall have discretion to provide a pro-rated Bonus to a Participant whose
employment with the Company or an Affiliate Terminated by reason of retirement, disability, or
death during a Performance Period.