Napa Auto Parts 2010 Annual Report Download - page 104

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“4.05 Form of Payment.
(a) Optional Forms of Payment. The amount of the Participant’s Account shall be paid to the Participant either in a lump sum or in a number of
approximately equal annual installments designated by the Participant on the Election Form. Such annual installments may be for 5 years, 10 years
or 15 years. If a Participant elects to receive a distribution of his or her Account in installments, the Committee may purchase an annuity from an
insurance company which annuity will pay the Participant the desired annual installments. If the Committee purchases an annuity contract, the Key
Employee will have no further rights to receive payments from the Company or the Plan with respect to the amounts subject to the annuity. If the
Committee does not purchase an annuity contract, the amount of the Account remaining unpaid shall continue to receive allocations of income as
provided in Section 4.03. If the Participant fails to designate a payment method in the Election Form, the Participant’s Account shall be distributed in
a lump sum.
(b) Payment Form Election for Pre-2011 Bonus Deferral Account .
(1) General Rule. A Participant shall elect one payment form for all Bonus amounts deferred under this Plan and held in the Pre-2011 Bonus
Deferral Account. Such election shall be made on the Participant’s initial Election Form and is irrevocable for all subsequent deferrals and
Election Forms.
(2) Payment Form Elections Prior to January 1, 2007 . Prior to January 1, 2007, a Participant could elect a different payment form for each Bonus
deferred under this Plan. If applicable to a Participant, the Committee shall establish sub-accounts within a Participant’s Pre-2011 Bonus
Deferral Account (to the extent necessary) to identify the portion of a Participant’s Account that will be distributed in the form the Participant
designated in the Election Form.
(3) 2007 Payment Form Election. During 2007, Participants in the Plan were permitted to change a prior Payment Form pursuant to a transition
rule in Code Section 409A. Such elections were irrevocable. The Payment Form in effect for such Participants for the 2007 calendar year shall
apply to all subsequent Bonus deferrals under this Plan and held in the Pre-2011 Bonus Deferral Account.
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