Napa Auto Parts 2012 Annual Report Download - page 75

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In Section 2.04:
The heading “Definition of Earnings” is replaced with “Definition of Earnings (and Related Definitions)” and a new paragraph is added to the end of
such section:
“Impact of Pension Plan Freeze. Effective at midnight on December 31, 2013 (i.e., immediately prior to January 1, 2014), the Pension Plan will no longer
recognize future Earnings for purposes of benefit accruals. Similarly, the Pension Plan will freeze each participant’s Average Earnings and Anticipated
Social Security Benefit as of December 31, 2013. However, for purposes of computing a benefit under this Plan, the Part A Formula will count all
Earnings that a Participant receives on or after January 1, 2014 as if the Pension Plan were not frozen and will determine a Participant’s Average
Earnings and Anticipated Social Security Benefit as if the Pension Plan were not frozen (see Section 5.01).”
4.
Article Four is amended as follows:
In Section 4.01, a new paragraph is added to the end of such section:
“Impact of Pension Plan Freeze. As a result of the Pension Plan Freeze, effective on December 31, 2013, all Key Employees and all Key Participants
ceased to accrue benefits under the Pension Plan (if their Accrued Benefits under the Pension Plan were not previously frozen).”
In Section 4.02, a new paragraph is added to the end of such section:
“Impact of Pension Plan Freeze. As a result of the Pension Plan Freeze, effective on December 31, 2013, Credited Service under the Pension Plan is frozen
for all Key Employees and all Key Participants (if not frozen earlier pursuant to the terms of the Pension Plan). Nevertheless, for clarity, as noted in the
preceding paragraph, a Key Employee’s or Key Participant’s Credited Service under this Plan is NOT frozen. See Section 13.03 for a definition of
Credited Service.”
5.
The Article entitled “PART A FORMULA (Article 5 and Article 6)” is amended as follows:
Two new paragraphs are added to the end of such article:
“Impact of Pension Plan Freeze. As a result of the Pension Plan Freeze, effective January 1, 2014, all NR70 Key Employees will cease to accrue future
benefits in this Plan under the Part A Formula. Instead, effective January 1, 2014, the NR70 Key Employee will have a benefit under this Plan equal to
the greater of (i) the NR70 Key Employee’s benefit computed under the Part A Formula as of December 31, 2013 or (ii) the NR70 Key Employee’s benefit
computed under the Part B Formula reflecting Credited Service and Earnings both before and after January 1, 2014.
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