EXHIBIT 10.03
Symantec Corporation
Section 401(k) Plan
Summary Plan Description
THE SCHWABPLAN(R)
The Charles Schwab Trust Company
One Montgomery Street, 7th Floor
San Francisco, CA 94104
Schwab Retirement Plan Services, Inc.
320 Springside Drive, Suite 350
Akron, Ohio 44333
[GRAPHIC]
(C)2000 The Charles Schwab Corporation All rights reserved.
Schwab Retirement Plan Services, Inc. and Charles Schwab & Co., Inc.
are wholly owned subsidiaries of The Charles Schwab Corporation.
INTRODUCTION
Symantec Corporation has amended your 401(k) Plan as of August 1, 2000. The
amended Plan continues to be for the exclusive benefit of eligible employees and
their beneficiaries.
We all need to plan for the future, especially for our retirement. We hope this
Plan will play a part in helping you to achieve financial security in the coming
years.
This booklet is a brief description of the main provisions and features of the
Plan and of your rights, obligations and benefits under the Plan. Please read it
carefully to obtain a good understanding of the benefits that are being provided
to you.
If you have any questions about the Plan that this booklet does not answer, you
should contact the Plan Administrator for a further explanation.
You may also want to review the complete Plan, which is a lengthy legal
document. The complete Plan document is available for inspection by you, your
beneficiaries, or your legal representative at any reasonable time. In the event
of any discrepancy between this Summary Plan Description and the actual
provisions of the Plan, the Plan document will control.
ELIGIBILITY
You become eligible to participate in the Plan on the first business day that is
administratively feasible following your date of hire.
The following classes of employees are not eligible to participate in the Plan:
- - Collective bargaining employees;
- - Non-resident aliens receiving no U.S. source income;
- - Leased employees;
- - Person covered under any other retirement plan to which the Employer is
required to contribute either directly or indirectly;
- - Temporary workers hired for a specific non-recurring assignment;
- - Individuals who provide services to the Employer as an independent
contractor (even if the individual is later retroactively reclassified as a
common law employee); and
- - Individuals who provide services to the Employer pursuant to an agreement
between the Employer and a temporary agency or other leasing organization.
The Plan recognizes service with each employer from which it hired an employee
in connection with a stock or asset acquisition of the employer and with which
it had contractually agreed to recognize service.
YOUR VOLUNTARY 401(k) CONTRIBUTIONS
You may defer a portion of your pay (calculated before deductions for federal
income taxes are made). This means that you will pay less income tax by
participating in the 401(k) Plan.
You defer in whole percentages from 1% to 20% of your compensation. Generally,
you may not contribute more than $10,500 in the 2000 calendar year.
PAYROLL DEDUCTIONS
You indicate the percentage of your pay you want to contribute. Then, each time
you are paid, the amount you have selected is automatically taken out of your
paycheck and deposited into your 401(k) account. You contribute a percentage of
your pay, not a fixed dollar amount.
CHANGING YOUR DEDUCTION AMOUNT
You may change the percentage you are contributing to the Plan at any time
during the Plan Year. Changes will become effective as soon as administratively
feasible after your election change.
Changes in your deduction amount are made via The SchwabPlan(R) Hotline or
SchwabPlan(R) Website.
SYMANTEC CORPORATION MATCHING
CONTRIBUTIONS
Symantec Corporation will make Matching Contributions equal to 100% of your
Voluntary 401(k) Contributions up to $500 of your compensation, and equal to 50%
of your Voluntary 401(k) Contributions in excess of $500 but not exceeding 3% of
your compensation. Your contributions in excess of 3% of your pay will not be
matched.
Forfeitures of non-vested Matching Contribution account balances will be used to
reduce the Employer's Matching Contribution.
SYMANTEC CORPORATION PROFIT SHARING
CONTRIBUTIONS
Symantec Corporation may elect to make an annual discretionary Profit Sharing
Contribution to your
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account. These Profit Sharing Contributions will serve to increase the value of
your benefit at retirement.
You must be employed on the last day of the Plan Year (December 31) in order to
be eligible to share in any Profit Sharing Contribution made for the Plan Year.
Forfeitures of non-vested Profit Sharing Contribution account balances will be
allocated to participants who are employed on the last day of the Plan Year in a
manner such that all participants will share equally as a percentage of pay.
VESTING
Vesting is your ownership in and right to the value of your account. You are
always 100% vested in your Voluntary 401(k) Contributions and their earnings.
Matching Contributions and Profit Sharing Contributions are subject to the
Plan's vesting schedule, which is:
Years of Service Vesting %
---------------- ---------
Less than 1 0%
1 20%
2 40%
3 60%
4 80%
5 or more 100%
Your service for vesting purposes is counted from your date of employment with
Symantec Corporation. The Plan also recognizes your service with each employer
from which it hired an employee in connection with a stock or asset acquisition
of the employer and with which it had contractually agreed to recognize service.
The vested part of your Employer-funded accounts depends on the number of Years
of Service credits you earn. You earn a Year of Service if you complete 1,000
hours of service during a twelve month period which is the Plan Year. An hour of
service is an hour for which you are directly or indirectly paid, including paid
vacation, sick leave, military leave and maternity or paternity leaves of
absence. However, you will not receive more than 501 hours of service for any
one period of paid absence.
A 1-Year Break in Service will occur at the end of a Plan Year in which you have
not completed more than 500 hours of service. If you terminate service and later
return to work, you will receive credit for your service earned prior to the
termination date if:
(a) Your Years of Service prior to your termination were greater than the number
of your 1-Year Breaks in Service.
(b) The number of your 1-Year Breaks in Service was less than 5; or
(c) You had earned a vested (non-forfeitable) interest in your Employer-funded
accounts prior to your termination date.
DISTRIBUTIONS
You may receive a distribution of your vested account balance when you terminate
employment. Distributions to disabled, retired or terminated participants and
beneficiaries of deceased participants will be made as soon as administratively
possible.
If you are single, the vested balance in your account will be used to purchase
an annuity that provides monthly payments for your lifetime. If you are married,
the vested account balance will be used to purchase a joint and 50% survivor
annuity. This type of annuity provides for a monthly payment during your
lifetime with payments continuing after your death to your surviving spouse
equal to 50% of the monthly amount you received.
However, the vested balance in your accounts may be paid to you in a lump sum
payment, periodic or ratable monthly installment payments, or another form of
annuity or annuity contract provided that if you are married, your spouse agrees
to an alternate form of payment in favor of the 50% joint and survivor annuity,
or, provided that if you are single, you elect to waive the single life annuity
form of payment.
Additionally, when you terminate employment you are permitted to roll over any
outstanding loan balance into another qualified plan if such plan will accept
the loan.
Regardless of your marital status, if your vested account balance is not greater
than $5,000 when you leave your Employer, your account balance will be paid
automatically to you in a lump sum.
PRE-RETIREMENT DISTRIBUTIONS
You may receive a pre-retirement distribution if you have reached age 59 1/2
and are 100% vested in your account from which such distribution is made.
However, any distribution will reduce the value of the benefits you will receive
at actual retirement. This distribution is made at your election.
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If you wish to receive a pre-retirement distribution from the Plan in one
payment, you (and your spouse, if you are married) must first waive the annuity
form of payment.
Your Employer will provide appropriate forms and related information at your
request.
TAXES ON DISTRIBUTIONS
Whenever you receive a distribution from your Plan, it will normally be subject
to income taxes. You may, however, reduce or defer entirely the tax due on your
distribution through use of one of the following methods:
a) The rollover of all or a portion of the distribution to an Individual
Retirement Account (IRA) or another qualified employer plan. This will result in
no tax being due until you begin withdrawing funds from the IRA or other
qualified employer plan. The rollover of the distribution, however, MUST be made
within strict time frames (normally, within 60 days after you receive your
distribution). Under certain circumstances all or a portion of a distribution
may not qualify for this rollover treatment. In addition, most distributions
will be subject to mandatory federal income tax withholding at a rate of 20%.
This will reduce the amount you actually receive. For this reason, if you wish
to rollover all or a portion of your distribution amount, the direct transfer
option described in paragraph b) below would be the better choice.
b) You may request for most distributions that a direct transfer of all or a
portion of your distribution amount be made to either an Individual Retirement
Account (IRA) or another qualified employer plan willing to accept the transfer.
A direct transfer will result in no tax being due until you withdraw funds from
the IRA or other qualified employer plan. Like the rollover, under certain
circumstances all or a portion of the amount to be distributed may not qualify
for this direct transfer. If you elect to actually receive the distribution
rather than make a direct transfer, then in most cases 20% of the distribution
amount will be withheld for federal income tax purposes. If you decide to
directly transfer all or a portion of your distribution amount you (and your
spouse, if you are married) must first waive the annuity form of payment.
Due to the complexities involved with income taxation, you are encouraged to
consult with a professional tax advisor when you receive a distribution from the
Plan.
NORMAL RETIREMENT
You are eligible for Normal Retirement when you reach age sixty-five (65). You
are always 100% vested in your accounts upon attainment of Normal Retirement.
EARLY RETIREMENT
You are eligible for Early Retirement when you reach age fifty-five (55) and
have completed at least five (5) Years of Service. You become 100% vested on
your satisfaction of the Early Retirement requirements.
INVESTMENT FUND OPTIONS
Your Employer makes available various mutual funds from which you may make your
investment selections. These funds will differ in potential investment return
and risk. Your Employer may change the funds available to you from time to time.
You will be notified when any change occurs.
INVESTMENT FUND DIRECTION
You direct the investment of your accounts in multiples of 1%. The investment
alternatives differ in the level of potential investment earnings and risk.
In the future, you may change your investment selections or transfer your
existing balances so that a new "mix" of investments is selected. Future
investment changes may be made at any time. Realignments of existing funds,
among investment options, may be elected at any time. Both future changes and
realignments are executed through The SchwabPlan(R) Hotline or via The
SchwabPlan(R) Website.
A NOTE ABOUT RISK
Symantec Corporation has made available the different investment funds in the
hope of meeting the various savings and investment goals of all participants. As
you make your investment choices, keep in mind that there is risk involved. The
funds differ in growth potential and risk.
Pursuant to Department of Labor Regulation 2550.404(c)-1(b)(2)(i)(B)(1)(i), this
Plan is intended to qualify as an ERISA 404(c) plan that relieves Plan
fiduciaries of liability for any investment losses that result from investment
directions made by Plan participants.
Consistent with the Plan's status as a "404(c) plan", investment instructions
for new participants shall be in written form and directed to the Plan
Administrator. Thereafter, and for all other participants, all investment
instructions shall be made through an automated voice response unit or a website
which is available to all participants. The Plan Administrator shall provide
participants with appropriate procedural instructions needed to
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access and operate the automated voice response unit and website.
The Plan Administrator or its representative will provide, at the request of a
participant who has provided investment instructions, a reasonable and timely
opportunity to obtain written confirmation of such investment instructions.
The Plan Administrator or its designated agents shall be the party responsible
for providing the "Required Disclosures" and "Optional By Request" information
on the available investment alternatives as described by Department of Labor
Regulations 2550.404(c).
EMPLOYEE ACCOUNT STATEMENTS
You will receive a statement quarterly. Your statement will illustrate your
investment choice(s), any contributions received by the Plan during that
quarter, investment gains or losses, ending fund balances and your vesting
percentage.
TOLL FREE TELEPHONE SERVICE
Each participant will be assigned a Personal Identification Number (PIN). Using
your Social Security number and your assigned PIN, you will be able to access
The SchwabPlan(R) Hotline.
Through the ease of touch-tone technology, The SchwabPlan(R) Hotline offers you
immediate access to your account information, 24 hours a day seven days a week.
You can check either your total account balance, or each individual fund
balance. It is also possible to change the manner in which your future
contributions will be invested, or make an investment fund transfer. Participant
loan information is also readily available through The SchwabPlan(R) Hotline.
WORLD WIDE WEB SERVICE
Using your Social Security number and your assigned PIN, you have access to The
SchwabPlan(R) website. This tool allows you to view your account balance,
execute transfers or election changes, access asset allocation and investment
planning tools and many other features. (http://www.schwabplan.com)
FINANCIAL HARDSHIP WITHDRAWALS
The Administrator may direct the Trustee to distribute part or all of your
vested account balance in the event of immediate and heavy financial need. This
hardship distribution is not in addition to your other benefits and will
therefore reduce the value of the benefits you will receive at normal
retirement.
Withdrawal will be authorized only if the distribution is to be used for one of
the following purposes:
(a) The payment of medical expenses (described in Section 213(d) of the Internal
Revenue Code) incurred by you, your spouse or your dependent;
(b) The purchase (excluding mortgage payments) of your principal residence;
(c) The payment of tuition for the next year of post-secondary education for
yourself, your spouse or dependent;
(d) The need to prevent your eviction from your principal residence or
foreclosure on the mortgage of your principal residence.
In addition, a distribution will be made from these accounts only if you certify
and agree that all of the following conditions are satisfied:
(a) The distribution is not in excess of the amount of your immediate and heavy
financial need;
(b) You have obtained all distributions, other than hardship distributions, and
all nontaxable loans currently available under all plans maintained by your
Employer;
(c) Your elective contributions and employee contributions will be suspended for
at least twelve (12) months after your receipt of the hardship distribution; and
(d) You will not make elective contributions for your taxable year immediately
following the taxable year of the hardship distribution, except to the extent
permitted by the Plan.
Since this Plan has significant tax and savings advantages, the Internal Revenue
Service imposes restrictions on withdrawals. Distributions prior to age 59 1/2,
disability or death may be subject to a 10% federal tax penalty. You are urged
to consult with your personal tax advisor prior to requesting a distribution.
PARTICIPANT LOANS
There are various rules and requirements that apply for any loan. These rules
are outlined in this Section. In addition, your Employer has established a
written loan program which explains these requirements in detail. You can
request a copy of the loan program from the Plan Administrator.
Actively employed participants may apply to the Plan Administrator for a loan
from the Plan. Your application must be in writing on forms which the Plan
Administrator makes available via The SchwabPlan(R) Hotline.
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The Plan Administrator may also request that you provide additional information
such as financial statements, tax returns and credit reports.
After reviewing your application, the Plan Administrator may, in its discretion,
determine that you qualify for the loan. The Plan Administrator will then inform
the Trustee that you qualify. The Trustee may review the Plan Administrator's
determination and make a loan to you if it is a prudent investment for the Plan.
Loans will be available to all actively employed participants on a uniform and
non-discriminatory basis. Loans are available exclusively from your vested
account. All loans must be adequately secured. You may use up to one-half (1/2)
of your vested account balance under the Plan as security for the loan.
The minimum loan amount is $1,000. A participant may have a maximum of one
outstanding loan at any time.
The maximum loan amount is the lesser of one half of your vested account balance
or $50,000 reduced by the highest outstanding balance of plan loans during the
prior one-year period.
Loans are repaid through payroll deduction over a maximum term of five years.
Loans which are applied to purchase your principal residence may be repaid over
a longer term not to exceed fifteen (15) years. All loans will bear a
commercially reasonable rate of interest similar to what a bank or other
professional lender would charge for making a loan in a similar circumstance.
Since loans in this Plan are considered a directed investment, your principal
and interest payments will be credited to your account.
If you fail to make payments when they are due under the loan, you will be
considered to be "in default." The Trustee would then have the authority to take
all reasonable actions to collect the balance owing on the loan. This could
include filing a lawsuit or foreclosing on the security for the loan. Under
certain circumstances, a loan that is in default may be considered a
distribution from the Plan, and could result in taxable income to you. In any
event, your failure to repay a loan will reduce the benefit you would otherwise
be entitled to from the Plan.
All costs associated with establishing and maintaining a participant loan will
be charged directly to your account as an investment expense of engaging in a
participant loan (Est. - $50, Adm. - $10 per quarter).
Additional Loan information, including the ability to apply for a loan, is
available by calling The SchwabPlan(R) Hotline.
ROLLOVERS AND TRANSFERS
You may be eligible to rollover or transfer a distribution you received from
another employer's plan into this Plan. Your Employer will provide appropriate
forms and related information at your request.
NAMING A BENEFICIARY
When you enroll, you name a person(s) to receive your account in the event of
your death. You may change your beneficiary at any time by requesting a new
beneficiary form.
If your death occurs while still employed with Symantec Corporation, your
account balance will become 100% vested and be paid to your beneficiary.
Generally, if you are married, your spouse is by law the sole primary
beneficiary unless you designate otherwise and your spouse agrees to a different
beneficiary by signing a notarized statement that is part of your enrollment
forms.
ADMINISTRATION OF THE PLAN
Although Symantec Corporation is responsible for the administration of the Plan,
we have retained Schwab Retirement Plan Services, Inc. to assist us. Schwab
Retirement Plan Services, Inc. specializes in retirement plan consulting and
administration. Schwab Retirement Plan Services, Inc. has experience in
providing services for over one thousand employers nationwide.
Schwab Retirement Plan Services, Inc. provides the recordkeeping, accounting,
toll free telephone exchange and world wide web service features of the Plan.
Schwab Retirement Plan Services, Inc. will also assist us in preparing reporting
forms that are filed each year with the Internal Revenue Service and the
Department of Labor. These government agencies monitor the operation of all
qualified retirement plans.
If the Plan becomes top heavy, certain non-key employees will be provided with a
minimum contribution. Generally, the minimum will be 3% of your compensation for
the Plan Year. The Plan Administrator will notify you if the Plan is or ever
becomes top heavy.
Your benefits are not guaranteed by the Pension Benefit Guaranty Corporation
(PBGC). Benefits are not guaranteed because only certain defined benefit
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pension plans are eligible for PBGC coverage. This Plan is a defined
contribution plan. That means your benefits from this Plan are based on the
value of your account balance.
As a general rule, your account may not be used as collateral, given away or
attached by your creditors. There is an exception, however, that permits a court
to order the Plan Administrator to recognize your obligations as a result of
court-ordered child or spousal support or alimony payments. If such a domestic
relations order is received by the Plan Administrator, all or a portion of your
account may be used to satisfy the obligation.
The Employer intends to maintain the Plan indefinitely. However, it is always
possible that something could happen to make it necessary for the Employer to
terminate the Plan. If this happens, all participants will automatically become
fully vested and entitled to their total account balance under the Plan.
The Employer may amend the Plan at any time provided that the amendment will not
either (a) cause assets of the Plan to be used for purposes other than the
exclusive benefit of participants and their beneficiaries, or (b) cause any
reduction in the amount credited to your account balance.
In order to terminate or amend the plan, the Board of Directors of the Employer
must resolve to do so and advise you in writing of such resolution. Unless
otherwise required by law, any such written notice shall be provided to you
subsequent to the effective date of any such termination or amendment.
YOUR RIGHTS UNDER ERISA
As a participant in the Plan you are entitled to certain rights and protections
under the Employee Retirement Income Security Act of 1974 ("ERISA"). ERISA
provides that all Plan participants shall be entitled to:
(a) Examine without charge, at the Plan Administrator's office and at other
specified locations such as worksites and union halls, all Plan documents,
including insurance contracts, collective bargaining agreements and copies of
all documents filed by the Plan with the U.S. Department of Labor, such as
detailed annual reports and Plan descriptions. In addition, a list of any other
employers who have adopted this Plan and their IRS Identification Numbers is
available on request.
(b) Obtain copies of all Plan documents and other Plan information upon written
request to the Plan Administrator. The Plan Administrator may make a reasonable
charge for copies.
(c) Receive a summary of the Plan's annual financial report. The Plan
Administrator is required by law to furnish each participant with a copy of this
summary annual report.
(d) Obtain a statement telling you what your benefits would be at Normal
Retirement Age if you stop working under the Plan now. THIS STATEMENT MUST BE
REQUESTED IN WRITING AND IS NOT REQUIRED TO BE GIVEN MORE THAN ONCE A YEAR. The
Plan will provide this statement free of charge.
In addition to creating rights for Plan participants, ERISA imposes duties upon
the people who are responsible for the operation of the employee benefit plan.
The people who operate your Plan, called "fiduciaries" of the Plan, have a duty
to do so prudently and in the interest of you and other Plan participants and
beneficiaries. No one, including your Employer, your union, or any other person,
may fire you or otherwise discriminate against you in any way to prevent you
from obtaining a benefit or exercising your rights under ERISA.
If your claim for a benefit is denied in whole or in part you must receive a
written explanation of the reason for the denial. You have the right to have the
Plan Administrator review and reconsider your claim.
Under ERISA, there are steps you can take to enforce the above rights. For
instance, if you request materials from the Plan Administrator and do not
receive them within 30 days, you may file suit in a federal court. In such a
case, the court may require the Plan Administrator to provide the materials and
pay you up to $110 a day until you receive the materials, unless the materials
were not sent because of reasons beyond the control of the Plan Administrator.
If you have a claim for benefits which is denied or ignored, in whole or in
part, you may file suit in a state or federal court.
If it should happen that Plan fiduciaries misuse the Plan's money, or if you are
discriminated against for asserting your rights, you may seek assistance from
the U.S. Department of Labor, or you may file suit in a federal court. The court
will decide who should pay court costs and legal fees. If you are successful,
the court may order the person you have sued to pay these costs and fees. If you
lose, the court may order you to pay these costs and fees if, for example, it
finds your claim is frivolous. If you have any questions about your Plan, you
should contact the Plan Administrator. If you have any questions about this
statement or about your rights under ERISA, you should contact the nearest
Regional Office of the Pension and Welfare Benefits Administration of the U.S.
Department of Labor, or the Division of Technical Assistance and Inquiries,
Pension and Welfare Benefits Administration, U.S.
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Department of Labor, 200 Constitution Ave., N.W., Washington, D.C. 20210.
CLAIMS PROCESS
Benefits will be paid to participants and their beneficiaries without the
necessity of formal claims. You or your beneficiaries may make a request for any
Plan benefits to which you believe you are entitled. Any such request should be
in writing and should be made to the Plan Administrator.
Your request for Plan benefits will be considered a claim for Plan benefits, and
it will be subject to a full and fair review. Claims for benefits that are
insured will be reviewed in accordance with procedures contained in the
insurance contracts and policies. If a claim under the Plan is denied in whole
or in part, you or your beneficiary will receive written notification. The
notification will include the reasons for the denial, with reference to the
specific provisions of the Plan on which the denial was based, a description of
any additional information needed to correct the claim, and an explanation of
the claims review procedure. If we fail to respond within 90 days, your claim is
treated as denied.
You or your beneficiary may file a written request for review of the claim to
the Plan Administrator. ANY REQUEST FOR REVIEW OF A DENIED CLAIM MUST BE FILED
WITHIN 60 DAYS AFTER YOU RECEIVE THE WRITTEN NOTICE OF DENIAL OF YOUR CLAIM.
Any such request should be accompanied by documents or records in support of
your appeal. You or your beneficiary may review pertinent documents and submit
issues and comments in writing. The Plan Administrator will review the claim and
provide, within 60 days, a written response to the appeal. (This period may be
extended an additional 60 days under certain circumstances.) In this response,
the Plan Administrator will explain the reason for the decision, with specific
reference to the provisions of the Plan on which the decision was based. The
Plan Administrator has the exclusive right to interpret the appropriate Plan
provisions. Decisions of the Plan Administrator are conclusive and binding.
OTHER IMPORTANT INFORMATION
Plan Sponsor & Symantec Corporation
Plan Administrator: 20330 Stevens Creek Blvd.
Cupertino, CA 95014
(408) 253-9600
Sponsor's IRS Number: 77-0181864
(The Plan Administrator keeps the records for the Plan and is responsible for
the administration of the Plan.)
Plan Number: 001
Plan Year: January 1 to December 31
Trustee: The Charles Schwab Trust Company
One Montgomery Street,
7th Floor
San Francisco, CA 94104
(415) 403-4519
(The Plan's Trustee has been designated to hold and invest Plan assets in a
trust fund for the benefit of you and other Plan participants. This trust fund
will be the funding medium used for the accumulation of assets from which
benefits will be distributed.)
Service of Legal Process: Plan Administrator
(Service of legal process may also be made upon the Trustee or Plan Sponsor.)
Summary Plan
Description Dated: July 14, 2000
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