EXHIBIT 10.22
ANIXTER INC.
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
EFFECTIVE AS OF
AUGUST 4, 2004
ANIXTER INC.
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
SECTION 1. ESTABLISHMENT OF THE PLAN
1.1 Establishment of the Plan. Anixter Inc. (the "Corporation") hereby
establishes the ANIXTER INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (the
"Plan") effective as of August 4, 2004.
1.2 Description of the Plan. This Plan is intended to constitute a
nonqualified deferred compensation plan which, in accordance with ERISA
Sections 201(2), 301(a)(3) and 401(a)(1), is unfunded and established
primarily for the purpose of providing deferred compensation for a select
group of management or highly compensated employees.
1.3 Purpose of the Plan. In addition to the description of the Plan as set
forth in subsection 1.2 above, the primary objective of the Corporation in
establishing this Plan is to provide supplemental retirement income to
certain employees of the Company in addition to that provided through all
other sources.
SECTION 2. DEFINITIONS
2.1 Definitions. Whenever used in the Plan, the following terms shall have the
respective meanings set forth below, unless otherwise expressly provided
herein or unless a different meaning is plainly required by the context,
and when the defined meaning is intended, the term is capitalized. Other
terms used herein without definition shall have the meanings ascribed to
them in the Anixter Inc. Pension Plan as amended and restated from time to
time or, if no such meaning is ascribed, the meanings attributed to them
by the Committee in its reasonable discretion.
(a) "Beneficiary" means any person or entity designated by the
Participant or otherwise entitled to receive any benefits under the
Plan which may be due upon the Participant's death.
(b) "Board" means the Board of Directors of the Corporation.
(c) "Cause" has the meaning set forth in any employment or other written
agreement between the Participant and the Company. If there is no
employment or other written agreement between the Participant and
the Company, or if such agreement does not define "Cause," then
"Cause" shall mean the Participant's:
(1) repeated material failure to follow appropriate instructions;
(2) material breach of his fiduciary obligations to the Company;
or
(3) commission of dishonest acts that in the reasonable judgment
of the Company makes the continuation of Participant's
employment inappropriate.
In the absence of anything to the contrary contained in a
Participant's employment agreement (if any), the Committee has the
discretion to determine, in good faith, from all the facts and
circumstances reasonably available to it, whether Cause exists.
(d) "Committee" means the Anixter Inc. Employee Benefits Administrative
Committee.
(e) "Company" means the Corporation and any subsidiaries of the
Corporation and their successor(s) or assign(s) that adopt this Plan
with the approval by resolution of the Board.
(f) "Compensation Committee" means the Anixter International Inc.
Compensation Committee.
(g) "Corporation" means Anixter Inc., a Delaware corporation, or any
successor thereto.
(h) "Eligible Employee" means an Employee who is so designated by the
Committee and approved by the Compensation Committee.
(i) "Employee" means a person who is actively employed by the Company
and who falls under the usual common law rules applicable in
determining the employer-employee relationship.
(j) "Life Annuity" means an annuity that is paid to the retired
Participant for as long as he lives and which does not provide any
payments to a Beneficiary. The amount of this annuity is determined
by the benefit formula in Section 4.
(k) "Monthly Salary" means the Salary paid to the Participant during the
applicable month. Monthly Salary shall be based upon the Salary paid
for completed months.
(l) "Normal Retirement Date" means the first of the month coincident
with or next following the attainment of the Participant's
sixty-fifth birthday, unless otherwise specified by the Committee.
(m) "Participant" means any Eligible Employee who is participating in
the Plan in accordance with the provisions herein set forth.
(n) "Plan" means this plan, the Anixter Inc. Supplemental Executive
Retirement Plan.
2
(o) "Plan Administrator" means the Anixter Inc. Employee Benefits
Administrative Committee.
(p) "Present Value" means the commuted present value lump sum of any
amounts owed at the time of any such calculation (using the
mortality assumptions used for the calculation of benefits under the
Anixter Inc. Pension Plan), which shall be discounted to present
value at a reasonable interest rate as determined by the Committee
(or its designee) in its sole discretion.
(q) "Qualified Pension Benefit" means the Participant's Normal Form Life
Annuity benefit payable from the Anixter Inc. Pension Plan.
(r) "Retirement" means any termination of employment with the Company,
other than termination by the Company for Cause, on or after
attaining his or her Normal Retirement Date or, with respect to any
Participant, the Committee has determined in its sole discretion
that such Participant is no longer regularly engaged in the
provision of services to the Company, regardless of the
Participant's payroll status.
(s) "Retirement Date" means the first day of the month coincident with
or next following the date when a Participant retires after
attaining his or her Normal Retirement Date.
(t) "Salary" means the remuneration paid to a Participant during a Plan
Year, including overtime, regular bonus amounts or commissions in
lieu of regular bonus amounts, before reduction for amounts deferred
pursuant to any plan of the Corporation (including, without
limitation, any tax-qualified or non-qualified plans of deferred
compensation and any cafeteria plans, as defined in section 125 of
the Internal Revenue Code), but excluding special performance bonus
amounts, signing and relocation bonuses, extraordinary commissions,
any amounts or payments received from a nonqualified deferred
compensation plan, stock option, phantom stock option or similar
long-term incentive plan maintained by the Company, severance pay,
and other extraordinary payments.
2.2 Gender and Number. Except when otherwise indicated by the context, any
masculine terminology used herein shall also include the feminine and the
feminine shall include the masculine, and the use of any term herein in
the singular may also include the plural and the plural shall include the
singular.
SECTION 3. ELIGIBILITY AND PARTICIPATION
3.1 Eligibility. An Employee must be designated by the Committee and approved
by the Compensation Committee for participation in this Plan to become
eligible to receive Benefits.
3
3.2 Reemployment of Former Participant. Notwithstanding any provision of the
Plan to the contrary, any person reemployed as an Employee who previously
participated in and received benefits under the Plan shall not be eligible
to participate again in the Plan. Furthermore, any payments or future
rights to payments under the Plan made or to be made with respect to such
Participant shall not be discontinued on account of such reemployment.
SECTION 4. BENEFITS
4.1 Normal Benefit. A Participant who is eligible for Retirement or Vested
Termination Benefits will receive from the Plan on a monthly basis a Life
Annuity commencing on the later of his Normal Retirement Date or his
Retirement Date equal to his Applicable Formula contained in Exhibit A.
Exhibit A shall be updated as necessary to reflect Committee
recommendations which are approved by the Compensation Committee.
4.2 Deferred Retirement. The Deferred Retirement Benefit shall be calculated
according to Section 4.1, with the Life Annuity commencement on the first
of the month coincident with or next following the Participant's
Retirement Date.
4.3 Vested Termination. Unless otherwise provided in Section 4.1, if a
Participant Retires or his or her employment terminates for any reason
other than Cause, with at least five (5) years of service and after
attaining fifty-five (55) years of age, he is eligible for Vested
Benefits. The Vested Benefit shall be calculated according to Section 4.1.
4.4 Optional Payment Forms. The Normal Form of benefit will be the Life
Annuity form commencing on the Participant's Normal Retirement Date. The
Participant may elect one of the following Optional Payment Forms.
a) Early Commencement of Benefits. A Participant who is at least
fifty-five (55) years of age may elect to have his benefit commence
prior to his Normal Retirement Date. Such benefit shall be adjusted
to be actuarially equivalent to his Normal Benefit.
b) 50% Joint and Survivor Annuity. A Participant may elect to have his
benefit paid in the form of a 50% Joint and Survivor Annuity. 50%
Joint and Survivor Annuity shall mean an annuity which is paid to
the retired Participant with a survivor annuity paid during the life
of the surviving spouse or non-spouse Beneficiary after the
Participant's death. The annuity must be the actuarial equivalent of
the Life Annuity for that Participant. The amount of the survivor
annuity shall be fifty percent (50%) of the Participant's benefit.
4.5 Pre-Retirement Death Benefits. A Participant who dies will not receive
special benefits on account of death. Such a Participant may receive
benefits only if he qualifies for reasons other than death.
4
If a Participant dies after meeting the requirements for Vested
Termination, either while employed or after termination of employment but
prior to the commencement of benefit payments, his Beneficiary will be
entitled to receive a survivor's benefit. The amount of the benefit
payable would be the same amount that would be payable to the Beneficiary
if the Participant had retired and begun receiving benefits in the form of
a 50% Joint and Survivor Annuity on the day before his death.
4.6 Disability Benefits. A Participant who has been disabled will not receive
special benefits on account of disability. Such a Participant may receive
benefits only if he qualifies for reasons other than disability.
4.7 Forfeiture of Benefits. Notwithstanding anything in this Plan to the
contrary, the Corporation's obligations to make the payments hereunder are
conditioned upon the following:
(a) The Participant shall have continued in the active employ of the
Corporation until such time as he is otherwise entitled to benefits
under Section 4.
(b) The Participant's employment with the Company shall not have been
terminated for Cause, or grounds discovered after termination of
employment that would have led to termination for Cause.
If the Participant fails to satisfy the foregoing conditions, the
Corporation's obligations hereunder shall cease.
SECTION 5. FINANCING
5.1 Financing of Benefits. Benefits shall be payable, when due, by the
Corporation, out of its current operating revenue to the extent not paid
from a trust created pursuant to Section 5.2. The Corporation's obligation
to make payments to the recipient when due shall be contractual in nature
only, and participation in the Plan will not create in favor of any
Participant any right or lien against the assets of the Corporation. No
benefits under the Plan shall be required to be funded by a trust fund or
insurance contracts or otherwise.
5.2 "Rabbi" Trust. In connection with this Plan, the Board may establish a
grantor trust (known as the "Anixter Inc. Executive Benefit Plan Trust")
for the purpose of accumulating funds to satisfy the obligations incurred
by the Corporation under this Plan (and such other plans and arrangements
as determined from time to time by the Corporation). At any time, the
Corporation may transfer assets to the Trust to satisfy all or part of the
obligations incurred by the Corporation under this Plan, as determined in
the sole discretion of the Committee, subject to the return of such assets
to the Corporation at such time as determined in accordance with the terms
of such Trust. Any assets of such Trust shall remain at all times subject
to the claims of creditors of the Corporation in the event of the
Corporation's insolvency; and no asset or other funding medium used to pay
benefits accrued under the Plan shall result in the Plan being considered
as other than "unfunded" under ERISA. Notwithstanding the establishment of
5
the Trust, the right of any Participant to receive future payments under
the Plan shall remain an unsecured claim against the general assets of the
Corporation.
SECTION 6. BENEFICIARY DESIGNATION
6.1 Designation of Beneficiary.
(a) All Beneficiary designations shall be in writing and signed by the
Participant. The designation shall be effective only if and when
delivered to the Corporation during the lifetime of the Participant.
The Participant also may change his Beneficiary or Beneficiaries by
a signed, written instrument delivered to the Corporation. The
payment of amounts shall be in accordance with the last unrevoked
written designation of Beneficiary that has been signed and
delivered to the Corporation. All Beneficiary designations shall be
addressed to the Secretary of Anixter Inc. and delivered to his
office, and shall be processed as indicated in subsection (b) below
by the Secretary or by his authorized designee.
(b) The Secretary of Anixter Inc. (or his authorized designee) shall,
upon receipt of the Beneficiary designation:
(1) Ascertain that the designation has been signed, and if it has
not been, return it to the Participant for his signature;
(2) If signed, stamp the designation "Received", indicate the date
of receipt, and initial the designation in the proximity of
the stamp.
(c) Death of his Beneficiary prior to the Participant's date of
retirement shall void the selection involving that Beneficiary. The
Participant shall be immediately required to make a different
selection of payment form or to name another Beneficiary.
6.2 Ineffective Designation.
(a) If the Participant does not designate a Beneficiary, or if for any
reason such designation is entirely ineffective, the amounts that
otherwise would have been paid to the Beneficiary shall be paid to
the Participant's estate as the alternate Beneficiary.
(b) If a designation is effective in part and ineffective in part, to
the extent that a designation is effective, distribution shall be
made so as to carry out as closely as discernable the intent of the
Participant, with result that only to the extent that a designation
is ineffective shall distribution instead be made to the
Participant's estate as an alternate Beneficiary.
6
6.3 Simultaneous Death. If a Participant and Beneficiary die under
circumstances such that it is not possible to determine who died first, it
is presumed that the Participant survived the Beneficiary.
6.4 Disclaimer. A Beneficiary may disclaim any benefit hereunder in accordance
with Internal Revenue Code Section 2518 and applicable state law.
SECTION 7. GENERAL PROVISIONS
7.1 Employment/Participation Rights.
(a) Nothing in the Plan shall interfere with or limit in any way the
right of the Company to terminate any Participant's employment at
any time, nor confer upon any Participant any right to continue in
the employ of the Company. If any Participant's employment is
terminated for any reason and he is not then entitled to benefits in
accordance with Section 4, nothing shall be paid to such Participant
or his Beneficiary(ies) under this Plan.
(b) Nothing in the Plan shall be construed to be evidence of any
agreement or understanding, express or implied, that the Company
will continue to employ a Participant in any particular position or
at any particular rate of remuneration.
(c) No employee shall have a right to be selected as a Participant, or,
having been so selected, to be selected again as a Participant.
(d) Nothing in this Plan shall affect the right of a recipient to
participate in and receive benefits under and in accordance with any
pension, profit sharing, deferred compensation or other benefit plan
or program of the Company. In addition, no payments under this Plan
shall be deemed salary or other compensation to the Participant for
the purpose of computing benefits to which the Participant may be
entitled under any pension plan or other arrangements that the
Company may have for the benefit of its employees.
7.2 Nonalienation of Benefits.
(a) No right or benefit under this Plan shall be subject to
anticipation, alienation, sale, assignment, pledge, encumbrance, or
change, and any attempt to anticipate, alienate, sell, assign,
pledge, encumber or change the same shall be void; nor shall any
such disposition be compelled by operation of law except to the
extent required by law.
(b) No right or benefit hereunder shall in any manner be liable for or
subject to the debts, contracts, liabilities, or torts of the person
entitled to benefits under the Plan.
7
(c) If any Participant or Beneficiary hereunder should become bankrupt
or attempt to anticipate, alienate, sell, assign, pledge, encumber,
or change any right or benefit hereunder, then such right or benefit
shall, in the discretion of the Committee, cease, and the Committee
shall direct in such event that the Corporation hold or apply the
same or any part thereof for the benefit of the Participant or
Beneficiary in such manner and in such proportion as the Committee
may deem proper.
7.3 Severability. If any particular provision of the Plan shall be found to be
illegal or unenforceable for any reason, the illegality or lack of
enforceability of such provision shall not affect the remaining provisions
of the Plan, and the Plan shall be construed and enforced as if the
illegal or unenforceable provision had not been included.
7.4 No Individual Liability. It is declared to be the express purpose and
intention of the Plan that no liability whatsoever shall attach to or be
incurred by the shareholders, officers, or directors of the Corporation or
any representative appointed hereunder by the Corporation, under or by
reason of any of the terms or conditions of the Plan.
7.5 Applicable Law. The Plan shall be governed by and construed in accordance
with the laws of the State of Illinois except to the extent governed by
applicable Federal law.
7.6 Successors. The provisions of the Plan shall bind and inure to the benefit
of Company and its successors and assigns. The term successors as used
herein shall include any corporate or other business entity that shall,
either by merger, consolidation, purchase or otherwise acquire all or
substantially all of the business and assets of the Company, and
successors of any such corporation or other business entity.
7.7 Indemnity of Committee. To the maximum extent permitted by applicable law,
the Company shall indemnify, hold harmless and defend the Committee, each
member of the Committee, any employee of the Company, or any individual
acting as an employee or agent of any of them (to the extent not
indemnified or saved harmless under any liability insurance or any other
indemnification arrangement) from any and all claims, losses, damages,
liabilities, costs and expenses (including attorneys' fees) arising out of
any actual or alleged act or failure to act made in good faith in
connection with the Plans (or any related trust agreements), including
expenses reasonably incurred in the defense of any claim relating thereto.
7.8 Overpayment. If the Committee determines that any Participant or
Beneficiary receives any payment to which he or she is not entitled
hereunder, the Committee may seek recovery of such overpayment, plus
interest.
7.9 Qualified Domestic Relations Order. If the Committee receives an order
purporting to be a qualified domestic relations order with respect to a
Participant's benefit under the Plan, to the extent possible it shall
attempt to have such benefit assigned from the Anixter Inc. Pension Plan.
7.10 Information to Company. The Company shall furnish to the Committee in
writing all information the Company deems appropriate for the Committee to
exercise its duties
8
hereunder. Such information shall include but shall not be limited to the
names of all Participants and their Salary, date of birth, employment,
termination of employment, retirement, or death.
7.11 Information to Participant. The Committee shall make available to such
Participant and Beneficiary for examination at the principal office of the
Company (or at such other location as may be determined by the Committee),
a copy of the Plan and such of its records or copies thereof as may
pertain to the benefits of such Participant or Beneficiary.
SECTION 8. PLAN ADMINISTRATION, AMENDMENT AND TERMINATION
8.1 In General. The Plan shall be administered by the Committee, which shall
have the sole authority to construe and interpret the terms and provisions
of the Plan and determine the amount, manner and time of payment of any
benefits hereunder. The Committee shall maintain records, make the
requisite calculations and disburse payments hereunder, and its
interpretations, determinations, regulations and calculations shall be
final and binding on all persons and parties concerned. The Committee may
adopt such rules as it deems necessary, desirable or appropriate in
administering the Plan and the Committee may act at a meeting, in a
writing without a meeting, or by having actions otherwise taken by a
member of the Committee pursuant to a delegation of duties from the
Committee. No member of the Committee may act, vote, or otherwise
influence a decision of the Committee specifically relating to his
benefits, if any, under the Plan.
8.2 Claims Procedure. If the Committee denies a benefit, in whole or in part,
it shall advise the Participant or Beneficiary, as applicable, of (i) the
specific basis or bases for the denial (ii) references to the specific
Plan provisions upon which the denial is based (iii) a description of any
additional material or information that the Participant or Beneficiary
needs to process the claim, and an explanation of why that material or
information is necessary; and (iv) a statement of the Plan's appeal
procedures as hereinafter set forth. Any person dissatisfied with the
Committee's determination of a claim for benefits hereunder must file a
written request for reconsideration with the Committee within 60 days of
the denial by the Committee. Such person has the right to request, free of
charge, and obtain copies of all documents, records, and other information
that was relied upon by the Committee in denying such person's benefits or
was submitted, considered, or generated in the course of making the
benefit denial, regardless of whether it was used in denying the claim.
This request must include a written explanation setting forth the specific
reasons for such reconsideration. The Committee shall review its
determination within 60 days, plus an extension for an additional 60 days
in special circumstances, and render a written decision with respect to
the claim, setting forth the specific reasons for such denial written in a
manner calculated to be understood by the claimant. Such claimant shall be
given a reasonable time within which to comment, in writing, to the
Committee with respect to such explanation. The Committee shall review its
determination promptly and render a written decision with respect to the
claim. Such decision upon matters within the scope of the authority of the
Committee shall be conclusive, binding, and final upon all claimants under
this Plan.
9
8.3 Finality of Determination. The determination of the Committee as to any
disputed questions arising under this Plan, whether of law or of fact, or
mixed questions of law and fact, including questions of construction and
interpretation, shall be final, binding, and conclusive upon all persons.
8.4 Delegation of Authority. The Committee may, in its discretion, delegate
its duties to an officer or other employee of the Company, or to a
committee composed of officers or employees of the Company.
8.5 Expenses. The cost of payment from this Plan and the expenses of
administering the Plan shall be borne by the Corporation.
8.6 Tax Withholding. The Corporation shall have the right to deduct from all
payments made from the Plan any federal, state, or local taxes required by
law to be withheld with respect to such payments.
8.7 Incompetency. Any person receiving or claiming benefits under the Plan
shall be conclusively presumed to be mentally competent and of age until
the Corporation receives written notice, in a form and manner acceptable
to it, that such person is incompetent or a minor, and that a guardian,
conservator, statutory committee or other person legally vested with the
care of his estate has been appointed. In the event that the Corporation
finds that any person to whom a benefit is payable under the Plan is
unable to properly care for his affairs, or is a minor, then any payment
due (unless a prior claim therefore shall have been made by a duly
appointed legal representative) may be paid to the spouse, a child, a
parent, or a brother or sister, or to any person deemed by the Corporation
to have incurred expense for the care of such person otherwise entitled to
payment.
In the event a guardian or conservator or statutory committee of the
estate of any person receiving or claiming benefits under the Plan shall
be appointed by a court of competent jurisdiction, payments shall be made
to such guardian or conservator or statutory committee provided that
proper proof of appointment is furnished in a form and manner suitable to
the Corporation. Any payment made under the provisions of this Section 8.7
shall be a complete discharge of liability therefore under the Plan.
8.8 Action by Corporation. Any action required or permitted to be taken
hereunder by the Corporation or its Board shall be taken by the Board, or
by any person or persons authorized by the Board.
8.9 Notice of Address. Any payment made to a Participant or to his surviving
Spouse at the last known post office address of the distributee on file
with the Corporation, shall constitute a complete acquittance and
discharge to the Corporation and any director, officer or employee
including, without limitation, members of the Committee with respect
thereto, unless the Corporation shall have received prior written notice
of any change in the condition or status of the distributee. Neither the
Corporation nor any director, officer or employee including, without
limitation, members of the Committee
10
shall have any duty or obligation to search for or ascertain the
whereabouts of the Participant or the Beneficiary.
8.10 Amendment and Termination. The Plan may be amended, suspended or
terminated, in whole or in part, by the Board of Directors, but no such
action shall retroactively reduce the benefits under the Plan which have
accrued prior to the effective date of such action. Notwithstanding the
foregoing, a transfer of benefits provided hereunder and a concomitant
transfer of liabilities to the Anixter Inc. Pension Plan shall not be
regarded as an amendment reducing the benefits accrued under the Plan for
any Participant. In addition, the Committee has concurrent authority to
make technical and/or clarifying amendments to the Plan or amendments that
either have no cost effect on the Company or an effect that is not
reasonably expected to exceed $10,000, plus any correlative modifications
thereto.
8.11 Savings Clause. Notwithstanding anything to the contrary contained herein,
if (i) the Internal Revenue Service (IRS) prevails in its claim that all
or a portion of the amounts contributed to the Plan, and/or earnings
thereon, constitute taxable income to a Participant or beneficiary for any
taxable year that is prior to the taxable year in which such contributions
and/or earnings are actually distributed to such Participant or
beneficiary, (ii) the U.S. Department of Labor (DOL) prevails in its claim
that the Trust prevents the Plan from meeting the "unfunded" criterion of
the exceptions to various requirements of Title I of ERISA for plans that
are unfunded and maintained primarily for the purpose of providing
deferred compensation for a select group of management or highly
compensated employees, or (iii) legal counsel selected by the Committee
advises the Committee that the IRS or DOL would likely prevail in such
claim, the Participant's Account balance shall be immediately distributed
to the Participant or beneficiary. For purposes of this Section, the IRS
or DOL shall be deemed to have prevailed in a claim if such claim is
upheld by a court of final jurisdiction, or if the Committee, based upon
the advice of legal counsel selected by the Committee, fails to appeal a
decision of the IRS or DOL, or a court of applicable jurisdiction, with
respect to such claim, to an appropriate IRS or DOL appeals authority or
to a court of higher jurisdiction within the appropriate time period.
8.12 Transfer of Benefits. Notwithstanding anything contained herein to the
contrary, the Committee has the authority to provide that the benefits of
one or more Participants shall be provided from and the liabilities
attributable to such benefits shall be transferred to the Anixter Inc.
Pension Plan. Upon such transfer being effected, the benefits of the
affected Participants shall cease to be payable under the Plan.
11
SECTION 9. EXECUTION
IN WITNESS WHEREOF, the Company has caused this Anixter Inc. Supplemental
Executive Retirement Plan to be executed by its duly authorized officer this 4th
day of August 2004, to be effective as of August 4, 2004.
Anixter Inc.
By: _____________________________
Title: __________________________
ATTEST:
__________________________
Secretary
12
ANIXTER INC.
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
EXHIBIT A
APPLICABLE FORMULA FOR NORMAL BENEFIT
ELIGIBLE EMPLOYEES AS OF AUGUST 4, 20
Eligible Employee: Robert Grubbs, Jr.
Normal Retirement Date: 54th birthday
Target Benefit (at age 65): Monthly benefit equal to fifty percent (50%) of
Final Average Salary*
Benefit Offset: Normal Benefit Life Annuity payable from the
Anixter Inc. Pension Plan and the Anixter Inc.
Excess Benefit Plan
Normal Benefit (at age 65): Target Benefit less Benefit Offsets
Reduction: Actuarially reduced (using the same assumptions
as provided under the Anixter Inc. Pension Plan)
for commencement prior to age 65, subject to a
minimum Normal Benefit of $550,000 per year
($45,833.33 per month)
Eligible Employee: Dennis Letham
Normal Retirement Date: 65th birthday
Target Benefit (at age 65): Monthly benefit equal to fifty percent (50%) of
Final Average Salary*
Benefit Offset: Normal Benefit Life Annuity payable from the
Anixter Inc. Pension Plan and the Anixter Inc.
Excess Benefit Plan
Normal Benefit (at age 65): Target Benefit less Benefit Offsets
Reduction: Actuarially reduced (using the same assumptions
as provided under the Anixter Inc. Pension Plan)
for commencement prior to age 65
* "Final Average Salary" means the highest obtainable average of Monthly Salary
which can be derived from the Monthly Salary earned during any sixty (60)
consecutive calendar months in the one hundred twenty (120) calendar months
prior to the month in which the Participant terminates employment for any
reason, including his death or retirement. If the Participant has completed
fewer than sixty (60) calendar months of employment, the average shall be based
upon all calendar months of service prior to his termination of employment.
13