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Exhibit 10(i)(ii)
AMENDMENT NUMBER ONE
TO THE
LANIER WORLDWIDE, INC. PENSION EQUITY PLAN
WHEREAS, Lanier Worldwide, Inc. (the "Corporation") maintains
for the benefit of certain employees the Lanier Worldwide, Inc. Pension Equity
Plan (as amended and restated as of July 1, 1997)(the "Plan");
WHEREAS, the Corporation has the authority to amend the Plan
pursuant to Section 11.5 of the Plan; and
WHEREAS, the Corporation desires to amend the Plan in certain
respects effective July 1, 1997.
NOW, THEREFORE, BE IT RESOLVED, that pursuant to the authority
granted in Section 11.5 of the Plan, Section 3.32 of the Plan is hereby amended
as follows:
3.32. PRIOR PLAN ACCRUED BENEFIT. For each Participant
employed by Lanier Puerto Rico, Inc. in the Plan on July 15,
1997, and for each other Participant in the Plan on June 30,
1997, his Accrued Benefit determined in accordance with the
terms of the Plan in effect as of June 30, 1997.
FURTHER RESOLVED, the first sentence of Section 5.2(b) is
hereby amended as follows:
Except as provided in Section 5.2(c),(d),(e) and (f), a
Participant's Accrued Benefit Percentage shall be equal to the
sum of the following applicable percentages:
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FURTHER RESOLVED, the first sentence of Section 5.2(c)
is hereby amended as follows:
Except as provided in Section 5.2(e) and (f) for Participants
employed by Lanier Puerto Rico, Inc., the Accrued Benefit
Percentage of a Participant with an Accrued Benefit on June
30, 1997 shall be equal to the greater
of the following:
FURTHER RESOLVED, Section 5.2(d) is hereby amended as
follows:
(d) ALTERNATIVE BENEFIT DETERMINATION FOR CERTAIN PLAN
PARTICIPANTS WITH A PRIOR PLAN ACCRUED BENEFIT. If a
Participant satisfies the requirements of (i) or (ii) below,
then such Participant's benefit payable under the Plan shall
be the greater of (a) his Accrued Benefit determined as of his
Employment Termination Date and (b) his Prior Plan Accrued
Benefit. In the case of a Participant who satisfies the
requirements of clause (i) below, the Average Compensation and
Years of Service used in determining his Prior Plan Accrued
Benefit shall be determined as of his Employment Termination
Date. In the case of a Participant who satisfies the
requirements of clause (ii) below, the Years of Service used
in determining his Prior Plan Accrued Benefit shall be
determined as of his Employment Termination Date and the
Average Compensation used in determining his Prior Plan
Accrued Benefit shall be determined as of December 31, 1997.
(i) The Participant had attained his Early Retirement
Date or his Normal Retirement Age as of July 1, 1997,
or in the case of a Participant employed by Lanier
Puerto Rico, Inc., as of July 15, 1997; or
(ii) The Participant's Early Retirement Date was
within five years of July 1, 1997 (or in the case of
a Participant employed by Lanier Puerto Rico, Inc.,
as of July 15, 1997) provided the Participant
remained employed by an Employer during that period,
or the Participant is a Former 3M Participant (as
defined in Exhibit A) who is eligible for an early
unreduced retirement benefit in accordance with
Section 3.4 of Exhibit A.
For purposes of this Section 5.2(d), the Prior Plan Accrued
Benefit will be expressed in the form of a lump sum payment (a
lump sum Actuarial Equivalent) and will be reduced by 1.5% of
the Participant's Average Compensation (determined as of the
Participant's Employment Termination Date or December 31, 1997
as provided above) multiplied by the Participant's Years of
Service for purposes of benefit accrual since July 1, 1997.
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FURTHER RESOLVED, Section 5.2(e) is hereby amended as
follows:
ACCRUED BENEFIT PERCENTAGES OF EMPLOYEES OF LANIER PUERTO
RICO, INC. Except as provided in Section 5.2(f), the Accrued
Benefit Percentage of a Participant who is an employee of
Lanier Puerto Rico, Inc. shall be equal to the sum (1) plus
(2) where:
"(1)" is the sum of the following applicable
percentages based on the Participant's age:
(i) 1.5% for each Year of Service before the
Participant attains age 35;
(ii) 4% for the Year of Service in which the
Participant attains age 35, as provided in
clause (vii), and for each Year of Service
thereafter before the Participant attains
age 40;
(iii) 6% for each Year of Service in which
the Participant attains age 40, as provided
in clause (vii), and for each Year of
Service thereafter before the Participant
attains age 50;
(iv) 10% for each Year of Service in which
the Participant attains age 50, as provided
in clause (vii), and for each Year of
Service thereafter before the Participant
attains age 55;
(v) 12% for each Year of Service in which
the Participant attains age 55, as provided
in clause (vii), and for each Year of
Service thereafter before the Participant
attains age 60;
(vi) 13% for each Year of Service in which
the Participant attains age 60, as provided
in clause (vii), and for each Year of
Service thereafter.
(vii) for each Year of Service in which the
Participant attains age 35, 40, 50, 55 or
60, the relevant applicable percentage shall
be the sum of pro-rata portions of each of
the percentages applicable before and after
the Participant attains the relevant age.
Such pro-rata portions shall be determined
as follows:
(1) THE PRE-ATTAINED AGE PORTION.
The product of 1.5%, 4%, 6%, 10%, or
12%, as applicable, multiplied by a
fraction, the numerator of which
shall be the number of full months
during such year up to, but not
including, the month in
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which the Participant attained the
relevant age and the denominator of
which shall be 12.
(2) THE POST-ATTAINED AGE PORTION.
The product of 4%, 6%, 10%,12% or
13%, as applicable, multiplied by a
fraction, the numerator of which
shall be the number of full months
during such year beginning with the
month in which the Participant
attained the relevant age and the
denominator of which shall be 12.
(viii) For the year in which a Participant
terminates employment, the relevant
percentage shall be determined by
multiplying the applicable percentage by a
fraction, the numerator of which is the
number of full months during which the
Participant is employed by an Employer and
the denominator of which is 12.
"(2)" is the sum of the following applicable
percentages based on the Participant's Years of
Service:
(i) 1% for each Year of Service up to and
including the Participant's 20th Year of
Service;
(ii) 2% for each Year of Service commencing
with the Participant's 21st Year of Service
and up to and including the Participant's
25th Year of Service;
(iii) 3% for each Year of Service commencing
with the Participant's 26th Year of Service.
Nothwithstanding anything in the Plan to the contrary, the benefits of
a Participant who is an employee of Lanier Puerto Rico, Inc. and who
terminates employment with Lanier Puerto Rico, Inc. prior to July 15,
1997 shall be determined in accordance with the terms of the Plan in
effect on June 30, 1997.
FURTHER RESOLVED, the Plan is amended to include the following
Section 5.2(f):
(f) ACCRUED BENEFIT PERCENTAGES OF PARTICIPANTS
EMPLOYED BY LANIER PUERTO RICO, INC. ON JULY 15, 1997.
The Accrued Benefit Percentage of a Participant
employed by Lanier Puerto Rico, Inc. with an Accrued
Benefit on July 15, 1997 shall be equal to the greater
of the following:
(1) the Participant's Accrued Benefit Percentage
under Section 5.2(e), except that if the Participant
had attained age 40 and had at least five Years of
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Service on July 15, 1997, the Participant's Accrued
Benefit Percentage shall be increased by 1% for each
year of the Participant's full Years of Service prior
to such date; and
(2) the sum of (A) and (B) where:
"(A)" is the Participant's Accrued Benefit
Percentage under Section 5.2(e) for Years of
Service after July 15, 1997;
"(B)" is the percentage which is equal to
(I) divided by (II), where:
"(I)" is the lump sum Actuarial
Equivalent of the Participant's
Prior Plan Accrued Benefit on July
15, 1997 determined in accordance
with Section 3.3(a), provided that
for this purpose only the interest
rate shall be the rate in effect one
month prior to the month identified
in Section 3.3(a); and
"(II)" is 150% of the Participant's
Average Compensation as of July 15,
1997 (determined in accordance with
the terms of the Plan in effect on
June 30, 1997), minus the lesser of
(I) 50% of his Average Compensation
as of July 15, 1997 (determined in
accordance with the terms of the
Plan in effect on June 30, 1997) and
(II) 50% of his Covered Compensation
as of July 15, 1997 (determined in
accordance with the terms of the
Plan in effect on June 30, 1997).
FURTHER RESOLVED, Section 5.1 of Exhibit A is hereby amended
as follows:
GENERAL. Notwithstanding anything in the Plan or this Exhibit
A to the contrary, the Accrued Benefit of a Participant shall
not be less than the Participant's Accrued Benefit under the
Plan as of June 30, 1997 (as determined under the terms of the
Plan in effect as of such date), or in the case of a
Participant employed by Lanier Puerto Rico, Inc. as of July
15, 1997 (as determined under the terms of the Plan in effect
as of June 30, 1997).