<Page>
Exhibit 10.9
THE JEAN COUTU GROUP (PJC) INC.
SENIOR EXECUTIVES
PENSION PLAN
INCLUDING AMENDMENT 4
October 23, 2002
<Page>
EXCERPT OF THE MINUTES OF A MEETING
Of the : Board of Directors RECEIVED ON
SEP. 4, 1997
Of : The Jean Coutu Group (PJC) Inc.
Held in : Longueuil, Quebec Rep ...
On : July 15, 1997
WHEREAS the company, by resolution of the Board of Directors dated July 11,
1980, created a pension plan for its employees and subsequently amended the
plan, the most recent amendment being dated December 7, 1993, and
WHEREAS Revenue Canada has requested that corrections be made to the provisions
of the plan in order to comply with the requirements of the new registration
rules under the Income Tax Act.
NOW THEREFORE upon resolution duly proposed, seconded and unanimously adopted,
it is hereby resolved as follows:
1. The amendment of December 7, 1993 is repealed.
2. The provisions of the plan contained in the document titled
"Regulation - pension plan" as submitted to the meeting are hereby
adopted and these provisions shall replace the former provisions
governing the plan. The document is hereby filed with the secretary
of the meeting and shall form part of the minutes of the meeting.
3. Article 2 shall enter into force and effect on January 1, 1990.
I, the undersigned, certify that the foregoing is a true and accurate excerpt of
the minutes of the meeting of the Board of Directors of the company, held at the
place and on the date first indicated above.
Longueuil, Quebec
July 15, 1997 [Signature]
---------------------
Yvon Bechard
Executive Vice President
<Page>
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A. REGULATION - PENSION PLAN
- -------------------------------------------------------------------------------
THE JEAN COUTU GROUP (PJC) INC.
SENIOR EXECUTIVES PENSION PLAN
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Short name SEPP - THE JEAN COUTU GROUP (PJC) INC.
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TABLE OF CONTENTS
<Table>
I. SUMMARY
II. PURPOSE
III. DEFINITIONS
IV. NAME OF THE PLAN
V. EFFECTIVE DATE
VI. FINANCIAL YEAR
VII. ELIGIBILITY
VIII. MEMBERSHIP
IX. PERIODS
X. ACCOUNTS
XI. ACTUARIAL ASSUMPTIONS
XII. CONTRIBUTIONS
XIII. BENEFITS DURING REPAYMENT PERIOD
XIV. BENEFITS DURING DEFERRED ANNUITY PERIOD
XV. BENEFITS DURING EARLY ANNUITY PERIOD
XVI. BENEFITS DURING NORMAL ANNUITY PERIOD
XVII. BENEFITS DURING POSTPONED ANNUITY PERIOD
XVIII. BENEFITS DURING ANNUITY PAYMENT PERIOD
XIX. ANNUITY OPTIONS
XX. PURCHASE OF ANNUITIES
XXI. BENEFICIARY
XXII. ASSIGNMENT OF RIGHTS BETWEEN SPOUSES
XXIII. NOTICE
XXIV. ADMINISTRATION
XXV. DISCLOSURE TO MEMBERS
XXVI. SURPLUS
XXVII. TAXES
XXVIII. NO SEIZURE
XXIX. EVIDENCE
XXX. OBLIGATIONS
XXXI. AMENDMENTS
XXXII. TERMINATION
</Table>
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<Page>
I. SUMMARY
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<Table>
<Caption>
Article
- --------------------------------------------------------------------------------------------------------------
NAME OF PLAN The Jean Coutu Group (PJC) Inc. IV
Senior executives pension plan
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SHORT FORM NAME SEPP - The Jean Coutu Group (PJC) Inc. IV
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PRINCIPAL EMPLOYER The Jean Coutu Group (PJC) Inc. III
- --------------------------------------------------------------------------------------------------------------
EMPLOYER MEMBERS N/A III
- --------------------------------------------------------------------------------------------------------------
EFFECTIVE DATE July 11, 1980 V
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CONSOLIDATION DATE January 1, 1990 V
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REFORM DATE January 1, 1991 V
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FINANCIAL YEAR END December 31, 1980 VI
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ELIGIBILITY Jacques Masse - 01.06.1982, Jean Gregoire - VII
01.01.1988 Yvon Goyer - 01.06.1988
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NORMAL RETIREMENT DATE Jacques Masse and Yvon Goyer - 60 years old IX
Jean Gregoire - 63 years old
- --------------------------------------------------------------------------------------------------------------
ANNUITY PERCENTAGE Jacques Masse and Jean Gregoire - 2% X
Yvon Goyer - 0.91%
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ACT Act respecting supplemental pension plans - Quebec III
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TYPE OF PLAN Specific benefits X
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CATEGORY OF PLAN Non-contributing XII
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</Table>
FORM OF ANNUITY
<Table>
<Caption>
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Lifetime Bridge
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APPLICABLE Yes Jacques Masse - PSV X
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GUARANTEE 120 instalments XVIII
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JOINT AND SURVIVOR 0% XVIII
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INDEXATION J Masse and Y Goyer - IPC X
- --------------------------------------------------------------------------------------------------------------
</Table>
<Page>
II. PURPOSE
A) Principal purpose
The principal purpose of the plan is to provide for periodic payments of amounts
to individuals from the date of their retirement until the time of their death
for services rendered as employees.
B) Allocation of funds
The plan funds shall solely be allocated for the following purposes:
o payment of benefits;
o total or partial repayment of contributions paid by a member or by a
participating employer for the purpose of preventing revocation of
registration of the plan;
o payment of administration costs, investment and other reasonable
expenses incurred within the framework of the plan;
o transfers to other registered plans;
o total or partial repayment of contributions paid by a member further to
an amendment which reduces contributions of members under the plan;
o interest at a reasonable rate paid on the repayment of contributions;
o amounts paid in total or partial settlement for any members' rights to
actuarial surpluses.
C) Eligible benefits
Solely the benefits described in this regulation which cover each of the
following events shall be allowed under the plan:
o retirement
o employment termination
o death
o transfer of benefits between spouses after marital break-down
o partial or total winding-up of the plan.
III. DEFINITIONS
For purposes of interpretation of this regulation, the following words shall
have the meanings set forth in this article unless the context clearly indicates
they should be understood in their ordinary meaning:
a) EMPLOYEE: shall mean a person who is employed by the employer and
remunerated for services rendered;
b) EMPLOYER: the principal employer whose name appears in the summary. Where an
employee is employed by a participating employer, employer shall mean the
participating employer in the department where the employee is working;
c) DISABILITY: condition where, due to injury or illness, an employee is unable
to perform any remunerated duty for which he/she is reasonably qualified
based on his/her education and experience. Such disability shall be
permanent and certified by a qualified physician.
d) REMUNERATION: remuneration shall include salary, fees, premiums, directors'
fees and commissions paid by the employer to any person in his/her service;
e) INDEXED REMUNERATION: the remuneration adjusted by the average wage index,
as set forth in the Income Tax Act;
f) INCOME TAX ACT: the Canada Income Tax Act, any regulations adopted pursuant
thereto and the administrative guidelines established pursuant to this Act
and its regulations, or the provisions of the relevant provincial tax laws
pursuant to which the plan is registered, where such provisions are more
restrictive than federal law;
g) ACT: the Pension Plan Act whose name appears in the summary;
h) HIGHEST AVERAGE WAGE: shall mean, for a person who is employed for 3
non-concurrent periods of 12 consecutive months, 1/3 of the sum of indexed
remuneration for each of the 36 months covering these 3 periods. In any
other event, the sum of indexed remuneration for each of the months divided
by the number of months where this remuneration contributes to this sum. The
highest average wage is then expressed on an annual basis;
i) SERVICE: the fact that a person performs work for his/her employer without
allowing for temporary interruption periods;
j) AVERAGE MAXIMUM PENSIONABLE EARNINGS: the arithmetical average of maximum
pensionable earnings as defined by the Act respecting the Quebec Pension
Plan for the 3 year period terminating at the end of the year when the
calculation of the average is made;
k) SPOUSE: the person of opposite sex who:
a) is married to the member;
b) lives in a common law union with an unmarried member for at least three
years or in the following cases for at least one year:
<Page>
i) at least one child is born or to be born of their union;
ii) they have jointly adopted at least one child during the period of their
marital life;
iii) one of the two has adopted at least one child of the other during such
period.
The status as spouse shall be determined on the first of the following dates:
i) the day immediately preceding the death of the member;
ii) the initial payment date of the member's annuity.
Spousal benefits shall be extinguished by legal separation, divorce, marriage
annulment or termination of marital life, but the foregoing events shall not
extinguish the right of the spouse to benefits where they occur during the
period of deferral or payment of the annuity, provided there has been no
division of vested benefits at the time of the event and that the member has
advised the pension committee in writing to pay the annuity to such spouse
notwithstanding such event.
l) SERVICE YEARS: service years include full years and fractions of years.
Generally, a service year is credited to any employee who has worked full
time throughout the year.
For employees who are temporarily on leave from work without remuneration,
or who received reduced remuneration for part of the year for any reason
whatsoever, or any member whose membership has either commenced or
terminated during the year, the fraction of the service year credited shall
be the ratio obtained by dividing remuneration paid to the member by the
remuneration which the member would have received had he/she worked full
time throughout the year;
m) MEMBERSHIP YEAR: any year during which an employee is an active member of
the plan;
n) ELIGIBLE SERVICE: any period during which a member is an employee. Solely
service in Canada or foreign service giving rise to taxable remuneration in
Canada shall be deemed eligible. Periods of remunerated temporary leave are
deemed to be eligible service.
However, for a related member, any period of remunerated absence for
disability or other reason shall not be eligible.
o) TEMPORARY LEAVE: a period of less than 24 months authorised by the employer,
at the end of which the member is scheduled to return to work;
p) MEMBER: means an employee who acquires benefits under the plan or an
ex-employee who continues to be entitled to benefits under the plan. The
purchase of a pension fund from an insurer does not terminate membership of
the relevant person;
q) ACTIVE MEMBER: any employee who, from time to time, acquires benefits under
the plan;
r) RELATED MEMBER: shall mean a member who, as the case may be:
i) directly or indirectly owns at least 10% of the issued shares of a
class of the share capital of the employer or any related corporation
of the employer;
ii) is in a subordinate relationship with the employer;
iii) is a specified shareholder of the employer as this expression is
defined pursuant to the Income Tax Act;
s) PENSIONABLE SERVICE: all service years after the effective date shall be
credited as pensionable service. However, the period between one year after
the effective date and prior to the reform date shall not be deemed to be
pensionable service in the case of a related member whose salary is not
deemed reasonable according to guidelines issued by the income tax
authorities (Revenue Canada).
Service years prior to the effective date shall not be deemed pensionable
unless they are recognised as such by the employer. However, in any event,
service years prior to the effective date shall not be deemed pensionable by
the employer in the following cases.
o In the case of a related member, any years for which the employer has
contributed to a deferred profit-sharing plan on behalf of such
member, or years when the employee has acquired benefits pursuant to
another registered retirement plan of the employer.
o In the case of a related member, any years prior to the reform date
during which the salary is deemed to be unreasonable according to
guidelines issued by the income tax authorities (Revenue Canada).
t) MAXIMUM ANNUITY AMOUNT: shall mean the relevant benefits ceiling determined
for the calendar year, during which benefits commence being paid, as more
fully detailed under the Income Tax Act.
IV. NAME OF THE PLAN
The following elements comprise the plan known under the name first indicated in
the summary:
<Page>
o this regulation and the resolution adopting it;
o the pension committee regulation and the resolution adopting it;
o powers of attorney where applicable, and any resolutions of the
pension committee;
o the plan summary;
o the fund comprised of contributions and investments made with such
contributions;
o member records;
o any other documents and records related to management of the plan.
V. EFFECTIVE DATE
The plan shall enter into force and effect on the date first set forth in the
summary and the provisions of the consolidated text shall enter into force and
effect on the date of consolidation referred to in the summary.
Any provisions herein which refer to the consolidation date are intended to
comply with the Act respecting supplemental pension plans referred to in the
summary.
The reform date referred to hereunder is the date when the new provisions of the
Income Tax Act shall fully apply to this plan. This date is referred to in the
summary.
VI. FINANCIAL YEAR
The financial year of the plan shall end on 31 December of each year and the
initial financial year shall end on the date set forth in the summary.
VII. ELIGIBILITY
Solely employees whose names are listed in the summary are eligible for the
plan.
VIII. MEMBERSHIP
Any eligible employees automatically become members under the plan commencing on
the effective date or the date set forth in the summary.
IX. PERIODS
During membership under the plan, a member is entitled to rights and options
which vary according to the period during which any event occurs which allows
the member to exercise these rights or options. These periods are as follows:
A) Repayment period
This period commences when an employee becomes an active member and ends on
the earlier of the two following dates:
o the date when the employee completes a period of two years active
membership;
o the date when the normal annuity period commences.
B) Deferred annuity period
This period commences when the repayment period ends and terminates when the
early annuity period commences. This period does not exist in the event the
repayment period terminates on the date when the early annuity period or
normal annuity period commences.
C) Early annuity period
This period commences on the later of the two following dates:
i) the date when the repayment period ends;
ii) 10 years prior to the commencement of the normal annuity period.
This period ends on the first day of the normal annuity period. This period
does not exist for a member if the repayment period has ended on the
commencement date of the normal annuity period.
For a related person, in relation to annuities credited for pensionable
service prior to the reform date, the early annuity period may not commence
prior to reaching the age of 60.
D) Normal annuity period
The normal annuity period commences on the first day of the month following
the month when the member reaches the initial normal retirement age set forth
in the summary and terminates on the first day of the month following the
month when the member has reached the age of 65. During this period the
member is said to have reached the normal retirement age.
E) Deferred annuity period
This period commences on the date when the normal annuity period ends and
terminates on the earliest of the following dates:
i) the date when the continuous employment period of the member with the
employer ends;
ii) the end of the calendar year when the participant reaches the age of 69;
iii) where extension of the deferral would result in the plan no longer being
registered pursuant to the Income Tax Act;
<Page>
iv) on the date where the member applies and the employer consents to make
full payment of the annuity to the member;
v) the death of the member prior to commencement of full payment of his/her
annuity.
F) Annuity service period
This period commences with the first payment of the member's pension annuity
and ends on the latest of the following dates:
o the end of the guaranteed annuity period;
o death of the member;
o death of the spouse.
X. ACCOUNT
A. Annuities account
1. Description
An annuities account shall be maintained for each member. The account shall
hold the amounts of annuities credited to the relevant member.
The account shall be subdivided into as many parts as necessary to determine
benefits of the member.
The balance of the annuity kept in the account or a portion of that account
shall always be equal to an amount whose payment commences without adjustment
on the normal retirement date.
Parts of the account shall be identified as follows and each part shall be
maintained for a member solely where the member is entitled thereto.
<Table>
<Caption>
IDENTIFICATION DESCRIPTION OF ANNUITY
RP1 Past service annuity granted prior to the consolidation
date.
RP2 Past service annuity granted after the consolidation
date.
RF1 Future service annuity in relation to prior membership as
of the consolidation date.
RF2 Future service annuity related to membership after the
consolidation date.
RFC Future service annuity related to pensionable service
years after the reform date during which the member is a
related person.
RT Supplementary annuity terminating at 65.
</Table>
The amount of the annuity in any part of the account shall at all times be
equal to the sum of annuities paid into this part of the account on the
relevant date.
The captive portion of the account shall be the aggregate of captive
parts. The free portion shall be the aggregate of free parts.
The portions of RP1 and RF1 annuity account are captive after the member
has reached the age of 45 and has completed a continuous employment period
of at least 10 years or has been an active member for at least 10 years.
Parts RP2, RF2 and RFC of the annuity account shall become captive upon
termination of the repayment period.
The vested portion of the account shall be the aggregate of each part of
the account multiplied by the vested percentage applicable to such part.
The vested percentage shall always be 100% for all parts of the annuities
account.
All annuities paid into the annuities account shall be in the form
specified in the summary.
2. Amount of annuities
The amount of the annuity in part RP1 of the account shall be equal to the
product of the annuity percentage for past service referred to in the
summary and the highest average wage applied to the number of eligible
past service years credited by the employer prior to the consolidation
date.
The amount of the annuity in part RP2 of the account shall, on any given
date, be equal to the product of the lesser of the following amounts:
a) the annuity percentage for past service referred to in the summary and
the highest average wage;
b) two-thirds of the higher of $1,725 or the maximum annuity amount per
pensionable year, for any given year;
and the number of eligible past service years credited by the employer
after the consolidation date.
The amount of the annuity in part RF1 of the account shall be equal to the
product of the annuity percentage for future service referred to in the
summary and the highest average wage and the number of pensionable years
after the consolidation date.
<Page>
The amount of the annuity in part RF2 of the account shall, on any given date,
be equal to the product of the lesser of the following amounts:
a) the annuity percentage for future service referred to in the summary and the
highest average wage;
b) the maximum annuity amount per pensionable year for any given year;
and the pensionable service years during after the consolidation date up to the
relevant date, provided the member was not a related person.
The amount of the annuity in the RFC part of the account shall, for the relevant
date, be equal to the sum of the following amounts calculated for each
pensionable year after the consolidation date up to the relevant date, during
which the member was a related person.
<table>
J(z)
MIN[S(1) multiplied by ------- multiplied by, L(2)]
J(1)
</table>
S(1) = remuneration in the year t for the period of the pensionable year.
Z = relevant year which shall be year t or after.
J(z) = the wage index for year z is the average wage as defined by the Income
Tax Act. J(1) is the index J(2) where z = t.
u = the annuity percentage for future service specified in the summary.
L(2) = maximum annuity amount per pensionable year applicable in year z.
Where bridge benefits are provided for in the summary, the amount of the annuity
in part RT is equal to the amount produced by the following formula:
<table>
D
A multiplied by -------
10
</table>
where
A = the maximum annuity under the public plan where the bridge benefit
is provided for, payable for the first time when a person reaches the
age of 65, throughout the month where the payment of the member
annuity commences, after deducting, where necessary, any remuneration
received by the member prior to commencement of his/her annuity.
D = the lowest of the following amounts:
o 10
o for a non-related member after the reform date:
the number of pensionable service years.
o for a related member after the reform date:
the number of actual full time pensionable service years.
The annuity amount in each part of the account shall be determined at each
year-end and the difference between the annuity amount at year end and the
amount at the commencement of the year shall be the amount paid into the account
for the year.
No further amount shall be paid into the annuities account after the date when
the member commences receiving an annuity under the plan or any other plan of
the employer.
3. Indexation
For members whose annuities are indexed, the annuities for parts RP1, RP2, RF1,
RF2, RFC and RT of the member's annuity account shall be indexed on January 1 of
the year following the year where the annuity commenced and January 1 of each
year thereafter.
Pursuant to indexation, the plan shall pay a supplemental annuity to the retired
member in addition to the retirement annuity. This supplemental annuity shall
terminate at the same time as the annuity used for purposes of calculation.
The amount of the supplemental annuity shall be obtained by multiplying the
annuity payable pursuant to parts RP1, RP2, RF1, RF2, RFC and RT of the
annuities account by the difference between the average consumer price index
ratio for the year and the average consumer price index for the year when
annuity payments commence.
The average consumer price index (CPI) for any year shall be obtained by taking
the arithmetical average of monthly consumer price indices published by
Statistics Canada for the 12 months ending on September 30 of the calendar year
immediately preceding the relevant year.
The amount of the supplemental annuity on the annualised basis in connection
with parts RP1, RP2, RF1, RF2, and RFC of the annuities account shall not be
less than the amount of the previous year. The amount of the supplemental
annuity on an annualised basis in connection with part RT of the annuities
account shall not be less than the amount for the previous year, at any time
prior to the member reaching the age of 65.
4. Maximum annuity
<Page>
The maximum annualised annuity which may be paid to a member up until the time
when the member reaches the age of 65 may not exceed the amount obtained
according to the following equation:
<table>
D 1(i)
[(A multiplied by B]) plus .25 multiplied by C multiplied by -----] multiplied by -------------------
35 1(c)
</table>
where
A = maximum pensionable earnings allowed under the Income Tax Act for the
year when the annuity commenced.
B = number of pensionable service years under the plan.
C = the average of maximum pensionable earnings as defined under the
Income Tax Act for the year when the payment of benefits commences
and for each of the two previous years.
D = the lesser of 35 and the total determined for item B.
I(1) = the average of the consumer price index for the year or, if higher,
for a prior year, provided such year does not fall earlier than the
initial benefits payment date.
I(c) = the average of the consumer price index for the initial benefits
payment year.
The maximum annualised annuity which may be paid to a member after the date when
he/she reaches the age of 65 may not exceed the amount obtained according to the
following equation:
1(i)
{(A multiplied by BR) plus RF2 plus RFC}-------------------
1(c)
where
A = the corresponding value defined in the preceding calculation.
BR = the number of pensionable service years under the plan prior to the
consolidation date.
RF2 = the amount of the annuity in part RF2 of the member's annuity account.
RFC = the amount of the annuity in part RFC of the member's annuity account.
Ii, IC = the corresponding definition for the same symbols in the previous
calculation.
The aforementioned rule shall apply to any pension benefit, excluding those
derived from the CEV account of the member, which shall be payable either upon
retirement, employment termination or winding up of the plan including any
amounts paid to spouses further to marital break-up and shall not include the
distribution of any surplus to members.
In the case where the sum of parts RP1, RP2, RF1, RF2, and RFC of the member's
annuity account exceeds the maximum defined hereinabove, the amount of each part
of the annuities account shall be reduced proportionally.
5. Value of annuities account
Where the provisions of the plan refer to the value of the annuity, this shall
mean the present value of the amount of the cumulative annuity in the member's
annuity account or a portion of this account.
Present value shall be determined by using the actuarial assumptions and methods
described in the following paragraph.
The value of an annuity shall be determined by the actuary, who shall rely on
the following elements:
o date when the value is to be calculated
o the amount of the annuity or the adjusted amount where applicable
o the base guarantee and additional guarantees where applicable
o nature of annuity
o date when the annuity commences
o age and gender of the person or persons on whose survival the payment
of the annuity depends
o any other characteristics or elements which in the actuary's opinion
will have an impact on the value of the annuity.
6. No commingling of assets between accounts
The assets held by the plan in annuities accounts and parts of contribution
accounts constituted by contributions required of members in order to be
entitled to such annuities may not be used to obtain benefits under other parts
of member contribution accounts and vice versa.
B. Contributions account
1. Description
An account shall be created for each member to hold contributions or
transfers and any accrued interest.
<Page>
The account shall be subdivided into as many parts as necessary to determine the
amount of benefits of the member.
The parts of the account shall be identified as follows and each part shall be
maintained for a member solely where the member is entitled thereto.
<Table>
<Caption>
IDENTIFICATION NATURE OF AMOUNT
CEV Voluntary contributions and free transfers.
CTC Captive transfers arising out of another plan.
</Table>
The balance of any part of an account shall be equal at all times to the
difference between aggregate deposits including interest accruing to this part
of the account and aggregate withdrawals made from this part of the account,
where applicable.
The captive part of the account shall be the aggregate of captive parts. The
free part of the account shall be the aggregate of non-captive parts.
The vested part of the account shall be the aggregate of each part of the
account multiplied by the acquisition percentage applicable to each part.
The CEV part shall at all times remain free and the CTC part shall at all times
remain captive.
The CEV and CTC parts shall always be 100% vested.
2. Equivalent annuity
The equivalent annuity for each part of the contributions account shall be the
amount of the annuity whose value is equal to the value of this part of the
contributions account, by using the relevant actuarial assumptions at the time
when the equivalent annuity is to be determined, taking into account the nature
of the annuity, the age and gender of persons upon whose life depends payment of
the annuity and any element which in the actuary's opinion will have an impact
on the value of the annuity.
3. Interest
Any part of the account shall carry interest at the rate of return obtained on
plan assets, after deductions of investment costs where applicable.
The method used to calculate rates of return on plan assets and the method of
application of interest rates shall be determined by the actuary or the
accountant selected by the pension committee.
Interest on member accounts shall accrue until the balance is withdrawn from the
account in accordance with the provisions of the plan.
Interest credited on the CEV part shall be compounded at least annually.
XI. ACTUARIAL ASSUMPTIONS
Actuarial assumptions and methods are required for management of the plan,
particularly in the following cases:
o actuarial equivalences for annuity options
o death benefits
o transfers
o early retirement
o deferred retirement.
The actuarial assumptions and methods used shall be determined by the plan
actuary and approved by the pension committee. They shall comply with generally
accepted actuarial principles and be submitted to the REGIE at least 30 days
prior to use. Assumptions and methods used shall be reasonable, uniform,
consistently applied and appropriate based on the circumstances.
XII. CONTRIBUTIONS
1. Wage contribution
Members shall pay no wage contribution under the plan.
2. Employer contribution
The employer shall assume the entire costs of the plan. The employer
contribution shall be determined on the basis of an actuarial valuation in
accordance with the requirements of the Act and the Income Tax Act.
The annual contribution shall represent the cost of benefits in relation to
services performed and recorded during each financial year, based on
actuarial methods used.
3. Voluntary additional contributions
A member may make additional voluntary contributions into the fund for
current service in the manner and up to the maximum limits allowed for such
contributions by the Act and regulations under the Income Tax Act, without
exceeding the maximum pension adjustment amount.
4. Transfers
Furthermore, a member may transfer into the fund sums which he/she has
contributed into registered retirement plans or retirement savings plans. Any
such amounts shall be deemed additional voluntary contributions and may be
administered as deferred annuities, subject to relevant law. Any such
<Page>
transfers shall be made in compliance with the Income Tax Act.
5. Payment of contributions
Contributions required by the plan shall be paid at the commencement of each
financial year or by regular instalments during the financial year. In the
latter case, aggregate contributions paid since the commencement of the
financial year shall not be less than aggregate contributions which have been
paid since the commencement of the financial year where they have been paid
monthly, no later than the last day of the month following the month for
which each of the contributions is due. Contributions with respect to a
member under the plan for any given calendar year may not be paid prior to
the calendar year to which they are applicable.
6. Limitation
Solely the contributions described in this section may be paid with respect
to the plan. Any contribution paid to the plan by a member shall be applied
to the account of such member. The sum of contributions paid and additional
voluntary contributions of a member shall not exceed the maximum allowable
contribution for the relevant year pursuant to the Income Tax Act.
XIII. BENEFITS DURING REPAYMENT PERIOD
Where the member ceases activity during the repayment period, the plan shall pay
the following benefits, based on the reason for cessation of employment and the
relevant election made by the member.
1. Employment termination
Where the member has terminated a period of continuous service with his/her
employer for any reason other than death, he/she may exercise one of the
following elections:
a) with respect to the vested and non-captive part of his/her annuities
account and contributions account
A) transfer the value of this part into a registered retirement savings
plan or other registered retirement plan designated by him/her:
B) leave monies in the fund and in such case, the annuity credited to this
part of his/her annuities fund shall be paid out to him/her upon
retirement
C) cash out the value of this part.
b) in relation to the captive part of his/her annuities account and
contributions account
A) transfer the value of this part into a locked-in retirement account or
other registered retirement account as directed by the member provided
such plan is authorized to receive such a transfer and agrees to
administer the transfer as captive contributions;
B) leave the amounts in a fund and in such case the annuity credited to
this part of his/her annuities account shall be paid out upon
retirement.
Upon retirement, the value of parts of the contributions account may be
allocated as follows based on instructions of the member:
o cash value paid out, where permitted
o transfer into a registered retirement savings plan or locked-in
retirement account where applicable
o transfer into another registered retirement plan
o purchase a retirement annuity from an authorised insurance company.
Where the member does not exercise any election, he/she shall be deemed to have
selected choice B. He/She may, at any time thereafter prior to retirement,
exercise any of the options which are available upon employment termination.
2. Death
Where death of the member occurs, the plan shall pay out a lump sum payment
to the beneficiary equal to the value of the annuities account and CEV and
CTC contribution accounts. This benefit shall be paid as soon as practicable.
XIV. BENEFITS DURING A DEFERRED ANNUITY PERIOD
Where the member ceases activity during the deferred annuity period, the plan
shall pay the following benefits based on the grounds further to which the
member ceased activity and in accordance with the election made by the member.
1. Employment termination
Where a period of continuous service of the employee terminates with his/her
employer for any reason other than death, the member may exercise one of the
following elections:
a) with respect to the vested and non-captive part of his/her annuities
account and contributions account
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A) transfer the value of this part into a registered retirement savings
plan or other registered pension plan designated by him/her;
B) leave the monies in the fund, and in such case, the annuity credited
to this part of his/her annuities account shall be paid out upon
retirement;
C) cash out the value of this part.
b) with respect to the captive part of this annuities account and
contribution account
A) transfer the value of this part into a locked-in retirement account or
other registered retirement account as directed by the member,
provided such plan is authorized to receive such a transfer and agrees
to administer the transfer as captive contributions;
B) leave amounts in the fund and, in such event, the annuity credited to
this part of his/her annuities account shall be paid out upon
retirement.
Upon retirement, the value of parts of the contributions account may be
allocated as follows, based on instructions of the member:
o cash value paid out, where permitted
o transfer into a registered retirement savings plan or locked-in
retirement account where applicable
o transfer into another registered retirement plan
o purchase a retirement annuity from an authorised insurance company.
Where the member does not exercise any election, he/she shall be deemed to have
selected choice B. He/She may, at any time thereafter prior to retirement,
exercise any of the options which are available upon employment termination.
2. Death
Where death of the member occurs, the plan shall pay out a lump sum payment
to the beneficiary equal to the value of the annuities account and CEV and
CTC contribution accounts. This benefit shall be paid as soon as practicable.
XV. EARLY RETIREMENT PERIOD BENEFITS
Where the member ceases activity during the early retirement period, the plan
shall pay the following benefits based on the reason why the member ceased
activity and in accordance with the election made by the member.
1. Retirement
Where the member has ended a period of continuous service with his/her
employer for a reason other than death and where the member elects to receive
early retirement, as of the first day of the month selected by the member
after cessation of the member's continuous service, the plan shall continue
to pay an annuity to the member.
The initial amount of the annuity shall be the sum of the following amounts:
a) the annuity of parts RP1 and RP2 of the member's annuity account, reduced
on an actuarial basis;
b) the annuity of parts RF1, RF2 and RFC of the member's annuity account,
reduced on an actuarial basis;
c) the annuity of part RT of the member's account. Where the member wishes to
retire prior to the age of 60, the annuity of part RT shall be reduced on
an actuarial basis based on the annuity which would have been paid in the
event the member elected to retire at the age of 60.
d) for each of paragraphs (a), (b) and (c) above, the annuity reduced on an
actuarial basis shall not exceed the amount obtained according to the
following equation:
X multiplied by (1-.0025 multiplied by Y)
where
X = amount of the normal annuity which is to be reduced on an actuarial
basis.
Y = the number of months between the date when the annuity commenced and
the date of the normal annuity period.
Upon retirement, the value of parts of the contribution account may be used as
follows in accordance with instructions of the member:
o cashing out where permitted
o transfer to a registered retirement savings plan or locked- account
where applicable
o transfer into another locked-in retirement savings plan
o purchase of a pension annuity from an authorised insurance company.
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2. Employment termination
Where a period of continuous service of the member with his/her employer ends
for a reason other than death and the member does not elect to receive early
retirement, he/she may exercise one of the following choices:
a) with respect to the non-captive part of his/her annuities account and
contributions account
A) transfer the value of this part into a registered retirement savings
plan or other registered pension plan designated by him/her;
B) leave the monies in the fund, and in such case, the annuity credited
to this part of his/her annuities account shall be paid out upon
retirement;
C) cash out the value of this part.
b) with respect to the captive part of this annuities account and
contribution account
A) transfer the value of this part into a locked-in retirement account or
other registered retirement account as directed by the member provided
such plan is authorized to receive such a transfer and agrees to
administer the transfer as captive contributions;
B) leave amounts in the fund and in such event the annuity credited to
this part of his/her annuities account shall be paid out upon
retirement..
Upon retirement, the value of parts of the contribution account may be used as
follows based on instructions of the member:
o cashing out where permitted
o transfer to a registered retirement savings plan or locked-in
retirement account where applicable
o transfer into another retirement savings plan
o purchase of a pension annuity from an authorised insurance company.
Where the member makes no election, he/she is deemed to have selected choice B.
He/She may at any time thereafter, prior to retirement, exercise the choices
available upon employment termination.
3. Death
Where death of the member occurs, the plan shall pay to the beneficiary in the
form of a lump sum payment the value of the annuities account and CEV and CTC
contributions accounts. This benefit shall be paid as soon as practicable.
XVI. BENEFITS DURING THE NORMAL ANNUITY PERIOD
Where the member ceases activity during the normal annuity period the plan shall
pay the following benefits based on the reason why the member ceased activity.
1. Retirement
Where the member has terminated a period of continuous service with his/her
employer for any reason other than death and where the member elects to
receive an annuity, as of the first day of the month selected by the member
and based on cessation of continuous service, the plan shall pay an annuity
to the member.
The initial amount of the annuity shall be the total of the following
amounts:
a) the annuity amount in parts RP1 and RP2 of the member's annuity account,
reduced on an actuarial basis;
b) the annuity amount in parts RF1, RF2 and RFC of the member's annuity
account reduced on an actuarial basis;
c) the annuity amount in part RT of the member's annuity account.
Upon retirement, the value of parts of the contribution account may be
used as follows based on instructions of the member:
o cashing out where permitted
o transfer to a registered retirement savings plan or locked-in
retirement account where applicable
o transfer into another retirement savings plan
o purchase of a pension annuity from an authorised insurance company.
2. Employment termination
When a period of continuous service of the member with his/her employer ends
for a reason other than death and the member elects not to receive an
annuity, he/she may exercise one of the following choices:
a) with respect to the non-captive part of his/her annuities account and
contributions account
A) transfer the value of this part into a registered retirement savings
plan or
<Page>
other registered pension plan designated by him/her;
B) leave the monies in the fund, and in such case, the annuity credited
to this part of his/her annuities account shall be paid out upon
retirement;
C) cash out the value of this part.
b) with respect to the captive part of this annuities account and
contribution account
A) transfer the value of this part into a locked-in retirement account or
other registered retirement account as directed by the member provided
such plan is authorized to receive such a transfer and agrees to
administer the transfer as captive contributions;
B) leave amounts in the fund and in such event the annuity credited to
this part of his/her annuities account shall be paid out upon
retirement.
Upon retirement, the value of parts of the contribution account may be used as
follows based on instructions of the member:
o cashing out where permitted
o transfer to a registered retirement savings plan or locked-in
retirement account where applicable
o transfer into another retirement savings plan
o purchase of a pension annuity from an authorised insurance company.
Where the member makes no election, he/she is deemed to have selected choice B.
He/She may at any time thereafter, prior to retirement, exercise the choices
available upon employment termination.
3. Death
Where death of the member occurs, the plan shall pay to the beneficiary in
the form of a lump sum payment the value of the annuities account and CEV and
CTC contributions accounts. This benefit shall be paid as soon as
practicable.
XVII. BENEFITS DURING THE DEFERRED ANNUITY PERIOD
A member may remain employed by the employer after the normal annuity period. In
such cases, payment of the annuity shall be deferred.
During the deferral period, a member may require payment of his/her annuity in
whole or in part, but solely to the degree necessary to compensate for any
reduction in remuneration of a permanent nature which is not compensated by
annuities payable under the OLD AGE SECURITY ACT or under the ACT RESPECTING THE
QUEBEC PENSION PLAN or the CANADA PENSION PLAN for the relevant period. A member
may make the foregoing request only once per 12 month period unless otherwise
agreed with the pension committee.
Any member who remains employed or returns to work with an employer following an
interruption of employment shall not be entitled to receive any additional
benefits, including any voluntary additional contributions, where he/she is
already receiving full or partial retirement benefits.
Upon termination of the deferral period, the plan shall pay the following
benefits based on the reason why the deferral period ended.
1. Retirement
Where the deferral period terminates for a reason other than death, and the
member elects to receive an annuity, the plan shall continue to pay an
annuity to the member as of the first day of the month selected by the member
and based on cessation of continuous service.
The initial amount of the annuity shall be the total of the following
amounts:
A. The total of the following amounts:
a) the annuity of parts RP1 and RP2 of the member's annuity account, reduced
on an actuarial basis;
b) the annuity of parts RF1, RF2 AND RFC of the member's annuity account,
reduced on an actuarial basis;
The amounts in these parts of account shall take into account salary and service
years of the member up until the commencement of payment of the annuity.
B. The total of the following amounts:
a) the annuity of parts RP1 and RP2 of the member's annuity account at the
end of the normal annuity period, as adjusted;
b) the annuity of parts RF1 and RF2 and RFC in the member's annuity account
at the end of the normal annuities period, as adjusted.
Upon retirement, the value of parts of the contribution account may be allocated
as follows, based on instructions of the member:
o cashing out where permitted
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o transfer to a registered retirement savings plan or locked-in
retirement account where applicable
o transfer into another retirement savings plan
o purchase of a pension annuity from an authorised insurance company.
Any adjustment of annuities shall take into account partial payments of
annuities which have been made during the deferral period, where
applicable.
2. Employment termination
Where a period of continuous service of the member with his/her employer ends
for a reason other than death and the member elects not to receive the
annuity to which he/she is entitled, he/she may exercise one of the following
choices:
a) with respect to the non-captive part of his/her annuities account and
contributions account
A) transfer the value of this part into a registered retirement savings
plan or other registered pension plan designated by him/her;
B) leave the monies in the fund, and in such case, the annuity credited
to this part of his/her annuities account shall be paid out upon
retirement;
C) cash out the value of this part.
b) with respect to the captive part of this annuities account and
contribution account
A) transfer the value of this part into a locked-in retirement account or
other registered retirement account as directed by the member provided
such plan is authorized to receive such a transfer and consents to
administer the transfer as captive contributions;
B) leave amounts in the fund and in such event the annuity credited to
this part of his/her annuities account shall be paid out upon
retirement..
Upon retirement, the value of parts of the contribution account may be used as
follows based on instructions of the member:
o cashing out where permitted
o transfer to a registered retirement savings plan or locked-in
retirement account where applicable
o transfer into another retirement savings plan
o purchase of a pension annuity from an authorised insurance company.
Where the member makes no election, he/she is deemed to have selected choice B.
He/She may at any time thereafter, prior to retirement, exercise the choices
available upon employment termination, but his/her annuity shall commence no
later than the first day of the month when the member reaches the age of 69.
3. Death
Where the member's period of continuous service with his/her employer
terminates due to death of the member and the member has a spouse, the plan
shall pay an annuity to his/her spouse equal to the value of the annuity that
the member would have received had payment of such annuity commenced the day
prior to death.
Payment of the annuity to the spouse shall commence on or before the later of
the two following dates:
a) the one year anniversary of the death of the member;
b) December 31 of the calendar year when the spouse turns 69.
Where the member has no spouse or has a spouse and the spouse has waived his/her
survivorship right to reversion of the annuity upon death of the member, the
plan shall pay a lump-sum amount to the beneficiary, the value of which is equal
to the annuity which the member would have received had payment of this annuity
commenced on the date prior to death. This benefit shall be paid as soon as it
is practically possible to do so.
XVIII. BENEFITS DURING THE ANNUITY PERIOD PAYMENT
1. Frequency of payments
The initial annuity determined upon retirement shall be calculated on an
annual basis. The annuity shall be paid monthly, on the first day of each
month and the amount of each instalment shall be equal to one twelfth of the
annual amount.
2. Nature of the annuity
Unless specified otherwise for a part of the member's annuity account, the
normal member annuity shall be paid in equal instalments. The final
instalment shall be paid on the first day of the month when death of the
member occurs.
3. Benefits after death of the member
<Page>
Where death of the member occurs prior to receipt of the minimum number of
monthly payments during the guaranteed annuity period as provided in the
summary, benefits will continue to be paid to the beneficiary in the usual
manner until the minimum number of monthly payments specified in the summary
have been made, at which time the annuity shall no longer be paid.
Notwithstanding the foregoing, where the member has a spouse on the date of
retirement and such spouse is living at the time of the death of the member
and has not waived his/her right to survivorship prior to the member's
retirement, the annuity shall continue to be paid to the spouse up until the
payment falling on the first day of the month when the death of the spouse
occurred, and at such time the annuity shall no longer be paid.
The spousal annuity shall be equal to the percentage specified in the summary
of the annuity received by the member. The amount of the annuity shall be
obtained as an option pursuant to the following article.
XIX. ANNUITY OPTIONS
Where the member has no spouse upon retirement, the plan annuity may be paid in
another form.
Where the member has a spouse upon retirement and such spouse has waived his/her
right to the annuity under survivorship, the member may opt for a form of
annuity which is different from the usual form provided for under the plan.
Unless he/she has waived the right to receive an annuity upon death of the
member, the spouse shall be entitled to an annuity if the latter is receiving an
annuity prior to death. The spouse may waive his/her right to the annuity at any
time prior to commencement of payment of the member's annuity and may revoke
this waiver during the same period.
The forms of allowable annuities are limited to the following:
i) a lifetime annuity ceasing upon death of the member;
ii) a lifetime annuity with a guaranteed period of 5, 10 or 15 years;
iii) an annuity payable throughout the lifetime of the member. After the
member's death, a reduced annuity to the spouse throughout his/her life.
The amount which continues to be paid to the spouse after death of the
member may be any one of the following amounts as a annuity percentage:
10%, 75%, 66 2/3%, 60%, 50%;
iv) a combination of ii) and iii) above;
v) an annuity combined with the annuity payable under the Quebec Pension Plan
or the Canada Pension Plan or pursuant to the OLD AGE SECURITY ACT, subject
to the following conditions:
a) the portion of the annuity which shall cease at the time when pensions
under these public plans commence shall terminate no later than the
month end immediately following the month when the member turns 65.
b) the amount of the temporary annuity, including the amount of bridge
benefits where applicable shall not exceed the total of the following
amounts:
1. the maximum annuity payable pursuant to the OLD AGE SECURITY ACT to a
person who is 65 years old who receives it for the first time or the
month during which the annuity of the member commences;
2. the maximum pension payable under the Quebec or Canada Pension Plan
to a person who reaches the age of 65 and receives it for the first
time for the month during which the annuity of the member commences,
multiplied by the ratio of the highest average wage for three
consecutive years over the average maximum pensionable earnings for
the corresponding years, where such ratio is less than one.
vi) provided the normal annuity has not already been indexed, a lifetime
annuity structured in one of the aforementioned forms and adjusted to
either partially or fully factor in variations in the consumer price
index.
Any form of annuity payable under the plan shall be paid out in equal, uniform
instalments during the lifetime of the member, with the exception of any
reduction in the case where the member elects to combine his/her annuity, and
excluding adjustments where he/she chooses the adjustable annuity pursuant to
the options described at articles v) and vi) above.
Furthermore, any annuity payable after death of the member, either to his/her
spouse or a beneficiary, shall be uniform throughout the remainder of the
lifetime of the spouse or during the guarantee period, with the exception of any
reduction effected upon termination of the guarantee period where the member has
chosen an annuity which may not be reduced upon death during the guarantee
period and excluding adjustments in the case where he/she has selected an
adjusted annuity pursuant to the option described at article vi) above.
The amount of the optional annuity shall be determined by the actuary based on
present day values of the usual annuity. Any option which has the effect of
increasing the normal annuity shall not be available unless this option is
<Page>
required pursuant to the Act. In the latter case, the surplus value of the
normal annuity over and above the value of the annuity chosen shall be paid out
in a lump-sum to the member.
The choice of annuity shall be exercised prior to commencement of payment of the
annuity.
In the event of partial deferral of payment of the annuity, the member shall
exercise his/her choice prior to commencement of partial payment of his/her
annuity. The form of annuity selected shall be applicable not only to the
portion of the annuity whose payment is about to commence but also to portions
of his/her annuity which have been deferred and are terminating after exercise
of the option.
XX. PURCHASE OF ANNUITIES
At the time a member's annuity commences, the pension committee may purchase an
annuity for such member from an insurance company where the degree of solvency
of the plan is 100% or higher and provided such annuity has identical terms and
conditions to the annuity payable under the plan.
Where the pension committee purchases an annuity, it shall seek quotes from at
least three companies and accept the best quote.
Where the degree of solvency is less than 100%, the member annuity shall be paid
by the fund at least until such time as the plan becomes solvent or is wound up.
Notwithstanding the foregoing, with respect to retirement of the member the
amount of the CEV portion of the contribution account shall be withdrawn from
the plan and used in accordance with one of the following manners where
compliant with the Act:
o purchase of an insurance company annuity
o transfer to a registered retirement savings plan or registered
retirement income fund.
o cashed.
o transferred to another retirement plan where the member is also a
member, provided such plan is capable of consenting thereto.
XXI. BENEFICIARY
A member may designate a person as a beneficiary to receive benefits payable
upon death or thereafter.
The beneficiary shall be named in the form prescribed by the administrator or by
written document executed by the member and countersigned by a witness and
delivered to the administrator.
The beneficiary may be revoked or changed without his/her consent unless he/she
has been named irrevocably or has become so by operation of the law.
In the absence of a designated beneficiary, death benefits shall be paid to
successors, heirs and assigns.
Where the beneficiary is a spouse, he/she does not lose any rights as a
beneficiary solely due to the fact that he/she does not qualify as spouse of the
member.
Notwithstanding the foregoing, where the member has a spouse at the time of
death, he/she shall automatically be beneficiary entitled to one of the
following amounts as the case may be, and benefits payable to any named
beneficiary or successors, heirs and assigns shall be reduced in a corresponding
manner:
a) where death of the member occurs prior to the deferred annuity period, the
portion of death benefits which results from recognised service of the member
after 31 December 1989 or amendments brought to the plan after such date;
b) where death of the member occurs during the deferred annuity period, any and
all benefits payable upon death of the member unless the spouse has already
waived his/her right to an annuity.
XXII. ASSIGNMENT OF RIGHTS BETWEEN SPOUSES
A) In the event of legal separation, divorce or marriage nullity, any
benefits accumulated by the member under the plan shall, upon written
request to the pension committee, be divided with his/her spouse in the
manner provided for in the Quebec Civil Code or by court order.
In the same manner, where the court grants the spouse of a member any
benefits which the latter has accumulated under the pension plan as
payment of a compensatory allowance, such benefits shall be assigned to
the spouse in the proportions set forth in the court judgment upon written
request made to the pension committee.
B) Unless otherwise ordered by the court, neither the division of assets of the
member nor the assignment of any portion of such rights may be executed where
the assigned value exceeds 50% of all cumulative benefits of the member.
Where the judgment or agreement of the parties does not establish the portion
which is due to the ex-spouse, any benefits acquired by the member during
marriage shall be shared and shared alike.
C) Save and except in the case where the member is entitled to repayment, where
he/she has left his/her employment, the spouse who benefits from a division
of assets shall not receive his/her portion in cash. The options open to such
spouse are as follows:
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i) If he/she is a member under the plan he/she may leave his/her new
benefits in his/her name.
ii) If he/she is not a member of the plan he/she may also exercise the
foregoing option. In this case, the spouse will then become a member.
iii) He/She may also transfer his/her share into his/her own plan or into
another retirement savings instrument such as locked-in retirement
account, annuity contract or life income fund.
D) For the purposes of allowing division between common-law spouses, the two
spouses shall enter into an agreement for such purpose. In the absence of any
such agreement, no division of benefits shall be permitted. Where an
agreement has been concluded, articles XXII.B and XXII.C shall also apply to
common-law spouses.
E) Where there is an assignment of benefits between spouses, the benefits of the
member shall be reduced such that the present value of all benefits to which
he/she is entitled, including those benefits to be assigned to the spouse or
former spouse shall not increase as a result of the assignment of the
member's benefits. The benefits of the member shall only be adjusted on a
later date in order to replace the benefits to which the spouse or former
spouse is entitled.
XXIII. NOTICE
Any member who wishes to commence receiving his/her pension annuity shall notify
the pension committee at least 90 days prior to the date upon which he/she
wishes to receive his/her initial annuity payment.
This also applies where the member wishes to exercise an annuity option.
XXIV. ADMINISTRATION
Administration of the plan principally consists of performing the following
duties in relation to the plan:
o acting as trustee of the fund, which is comprised of contributions,
net earnings and income arising out of investment of the fund
o management of the fund and drafting an investment policy
o interpreting and applying the provisions of the plan
o keeping member records
o calculation of benefits and making payments
o preparation of reports required by law
o informing members
Administration is entrusted to the pension committee. The pension committee
shall be comprised of members appointed by the employer and the members.
The composition of the committee, its rights and duties are more fully described
in the pension committee regulation adopted by the board of directors of the
employer.
XXV. DISCLOSURE TO MEMBERS
Members are entitled to disclosure of information concerning the plan generally
and their specific rights under the plan. The pension committee shall inform
members of their rights and benefits, and more particularly provide members or
eligible workers, as the case may be, with the following information.
o summary of the plan and brief description of rights and duties of
members pursuant to the plan and under the Act. Information shall be
provided within 90 days, as the case may be, of
i) the date when the worker becomes a member, or otherwise becomes
eligible.
ii) the registration date of the plan or amendment.
o notice of amendment
o annual benefits statement
o annual statement setting forth the financial position of the plan
o statement of benefits upon cessation of active membership and data
used to determine benefits
o access to the prospectus of the plan and other relevant documents
o annual meeting with directors' report and holding of elections for
position(s) to fill for members on the pension committee.
The pension committee regulation contains more information concerning
information to the members and may be consulted by the members.
XXVI. SURPLUS
Where the actuarial valuation discloses that the plan has a surplus, this
surplus shall be used to reduce contributions for the employer in the following
order:
1. Any amortisation amount to pay after the fifth year following the assessment
date.
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2. Any amortisation amount to pay up until the end of the fifth year.
Furthermore, while respecting the aforementioned order, the surplus shall be
used to reduce employer contributions in the following order:
a) any amortisation amount of an initial unfunded liability
b) any amortisation amount of an unfunded past service liability
c) any amortisation amount of an unfunded past services liability
Finally, where there are several unfunded liabilities of the same nature, the
reduction shall operate by proceeding with the longest standing deficit up until
the most recent.
Where there remains a surplus after having paid all unfunded liabilities, this
residual surplus shall be allocated to reduce the current year's contribution
where it exceeds the lesser of :
a) 20% of the amount of liabilities, and
b) the higher of:
i) 2 times current estimated service contributions which would have been
payable had there not been a surplus for the 12 months immediately
following the valuation date, and
ii) 10% of the amount of liabilities.
XXVII. TAXES
This plan has been created on the assumption that it will be registered pursuant
to relevant tax legislation and will remain registered. In the event that
registration is not forthcoming, the plan shall be terminated. In the event the
plan is registered and continuation is refused thereafter, the plan shall be
wound-up.
In the event that the plan has to be amended to retain registration, it shall be
amended so as to comply with the Income Tax Act.
The plan may not contain provisions further to which pension adjustment amounts
determined according to the method prescribed by the regulations and the Income
Tax Act would be inadequate. If that were to prove the case, the plan shall be
immediately amended in order to comply with the requirements of these
regulations.
All benefits payable under the plan shall be deemed taxable income for the
recipient, unless such benefits are transferred into another tax-exempt pension
plan.
Where the plan pays taxable benefits to the member or to a beneficiary, it shall
carry out deductions at the source and deliver such amounts held back to the
relevant government authority.
Any contribution paid into the plan where a payment would make the plan
revocable under the Income Tax Act shall be returned to the person who paid it.
This provision shall apply both to employer and member contributions.
XXVIII. NO SEIZURE
Unless otherwise provided by law, the following may not be assigned, seized or
attached:
1. any wage or employer contribution paid or to be paid into the pension fund in
addition to accrued interest;
2. any sum or benefit paid out under the plan or the law which arises out of
employee or employer contributions;
3. any sums paid to the spouse of the member further to a division or other
assignment of rights with cumulative interest in addition to benefits
constituted with these sums.
Any benefits of a person within the framework of a plan can neither be assigned,
attached, accelerated or offered as security nor be the subject matter of a
waiver.
XXIX. EVIDENCE
Prior to payment of any annuity or the payment of any transfer amount whose
value is obtained by using relevant actuarial assumptions, evidence of age shall
be required by any person upon whom survivorship of the annuity depends. Prior
to any payment of annuity or death benefits to a spouse evidence of the capacity
of the spouse must be provided.
XXX. LIABILITY
The pension fund does not covenant to pay any benefits other than out of
available funds. Liabilities of the pension fund are not those of the employer.
Subject to the law, liability of the employer shall be limited to past
contributions.
This plan shall not be deemed as a guarantee of employment for any employee, nor
an undertaking with respect to wages required to produce the maximum benefits
provided for under the plan.
XXXI. AMENDMENTS
The employer may at any time amend this regulation subject to the provisions of
the law.
No amendments may affect existing benefits of members resulting from salary and
employer contributions prior to the effective date of such amendment.
Any amendment made to this regulation shall only be valid if approved by the
relevant authorities.
The pension committee is authorised to carry out any amendment to the plan
required by law or the relevant
<Page>
authorities provided such amendments do not affect the costs of the plan. Solely
the employer may make amendments which affect the cost of the plan.
XXXII. TERMINATION
The employer may at any time repeal this regulation subject to the provisions of
the law.
In the event this regulation is repealed, 100% of benefits shall automatically
be assigned to members. The fund shall be used in the order set forth by law.
Any surplus after payment of annuities shall revert to the employer. However,
the employer may authorise the administrator to distribute any surplus to
members in order to increase annuities to amounts in excess of the limits
allowed under the Income Tax Act. Any such improvement shall be done by way of
amendment. The amount of the surplus allocated to each member shall be
determined by the employer and any amount unused to improve benefits as provided
for hereinabove shall be paid in cash to the member.
<Page>
THE JEAN COUTU GROUP (PJC) INC
Excerpt of minutes of a meeting of the board of directors of The Jean Coutu
Group (PJC) Inc. held on 9 September, 1998.
Upon resolution duly moved and seconded, it is hereby resolved:
WHEREAS the company, by resolution of the Board of Directors dated July 11,
1980, created a pension plan for their employees and subsequently amended it,
the most recent amendment being dated July 15, 1997 and
WHEREAS the employer wishes to improve the pension plan with respect to Mr Yvon
Goyer.
NOW THEREFORE upon resolution duly proposed, seconded and unanimously adopted it
is hereby resolved as follows:
1. The number of past service years credited to Mr Yvon Goyer is increased by 9
years and 2 months, yielding a total of 18 years and 2 months of recognised
past service.
2. The percentage of annuity granted to Mr Yvon Goyer is increased from 0.91% to
2%.
The aforementioned amendments shall enter into force and effect on December 31
1997.
I, the undersigned, BERNARD ROCHETTE, secretary of the company, hereby certify
that the foregoing is a true copy of resolutions of the Board of Directors of
such company.
Executed in Longueuil on this 14th day of September 1998
/SIGNED /
Bernard Rochette
<Page>
THE JEAN COUTU GROUP (PJC) INC
Excerpt of minutes of a meeting of the board of directors of The Jean Coutu
group (PJC) Inc. held on September 8, 1999.
Further to a motion duly presented and seconded, it is hereby resolved:
WHEREAS the Company, by resolution of the Board of Directors dated July 11,
1980, created a pension plan for senior executives and amended it thereafter,
the most recent amendment being dated September 9, 1998 and
WHEREAS Revenue Canada has asked that corrections be brought to the provisions
of the plan in order to comply with the requirements of the new registration
rules and the Income Tax Act.
WHEREAS in order to comply with the requirements of the Act, the Company must
amend the plan.
NOW THEREFORE further to a resolution duly proposed, seconded and unanimously
adopted it is hereby resolved as follows:
1. Article III k) is repealed and replaced by the following:
k) "spouse: the person who upon the retirement date of the member or on the
date preceding his/her death, if earlier:
a) is married to the member or
b) lives maritally with the unmarried member whether of the opposite sex
or the same sex, for at least three years or, in the following cases,
for at least one year:
i) at least one child is born or to be born of their union;
ii) they have jointly adopted at least one child during the period of
marital life;
iii) one of them has adopted at least one child of the other during this
period."
2. Article III s) is amended by replacing the words "guidelines issued by income
tax department" by "information circular 72-13R8".
3. Article X.A 4) is amended by adding the words "maximum 35 years for the
period prior to the consolidation" to the definition of "B" and by adding
"maximum 35 years" to the definition "BR".
4. Articles XIII (1), XIV (1), XV (2), XVI (2) and XVII (2) of the plan are
amended as follows:
The final paragraph shall become the penultimate paragraph and, following
incorporation of this amendment, the word "may" shall be changed to "shall"
in the final paragraph.
5. The articles XV (1), XVI (1) and XVII (1) are amended as follows: The word
"may" is changed to "shall" in the final paragraph.
<Page>
6. The foregoing amendments shall enter into force and effect as of 1 January,
1990 save and except for the first amendment which shall enter into force and
effect in compliance with the Act.
I the undersigned, CAROLINE GUAY, secretary of the Company, hereby certify that
the foregoing is a true copy of resolutions of the Board of Directors of the
Company.
Executed in Longueuil on this 10th day of September 1999.
/SIGNED/
Caroline Guay
<Page>
THE JEAN COUTU GROUP (PJC) INC.
Excerpt of minutes of a meeting of the board of directors of the Jean Coutu
Group (PJC) Inc. held on October 18, 2000.
WHEREAS the company, by resolution of the board of directors dated July 11,
1980, created a pension plan for its senior executives and subsequently amended
such plan, the most recent amendment being dated 8 September, 1999, and
WHEREAS the company wishes to offer this plan to all its vice-presidents, and
that consequently, certain amendments must be made to the plan regulation and to
the regulation of the pension committee created to administer the plan.
NOW THEREFORE further to resolution duly proposed, seconded and unanimously
adopted, it is resolved as follows:
1. The cover page of the pension committee regulation is amended as follows:
To the members appointed by the employer, add member no. 4 "Representing the
employer"
For member no. 2 appointed by the employer, replace the words "Representing
the members" by "A member under the plan".
For member no. 1 appointed by the members, replace the word "None" by
"Representing the members".
Repeal the final line of the page.
2. The following amendments were brought to the composition of the committee:
[gamma] The mandate of Mr Jean Coutu is terminated.
[gamma] Mr Francois Coutu is appointed member of the pension committee to
represent the employer.
[gamma] Madam Carole Bouthillette is appointed member of the committee as
a member under the plan appointed by the employer.
[gamma] Mr Denis Courcy is appointed member of the committee in his
capacity as representative of the members up until the next
annual meeting of the members
3. The executive vice-president or treasurer of the company are hereby
authorised to make any necessary contributions on behalf of the company to
the plan and to authorise expenses related to administration of the plan,
where applicable, with the exception of asset management expenses which shall
be assumed by the fund.
The following amendments are hereby brought to the plan regulation.
<Page>
4. Section 1 - The summary is amended by repealing the headings "eligibility"
and the two following headings and replacing them by:
<Table>
<Caption>
Title Description Article
- ------------------------------------------------------------------------------------------------------------------
Eligibility Yvon Bechard 01.01.2000 VII
Michel Boucher 01.01.2000
Carole Boutillette 01.01.2000
Denis Courcy 01.01.2000
Claudia Di Renzo 01.01.2000
Yvon Goyer 01.06.1988
Alain Lafortune 01.01.2000
Jacques Jr. Lamoureux 01.01.2000
Richard Mayrand 01.01.2000
Johanne Meloche 01.01.2000
Jean-Pierre Normandin 01.01.2000
- ------------------------------------------------------------------------------------------------------------------
Commencement of normal 60 years or relatively at the service post 01.01.2000 IX
annuity period 35 years of service if before
- ------------------------------------------------------------------------------------------------------------------
Annuity percentage 2% X
- ------------------------------------------------------------------------------------------------------------------
</Table>
5. Section 1 - form of annuity is repealed and replaced by the following:
<Table>
<Caption>
LIFETIME BRIDGE ARTICLE
- ------------------------------------------------------------------------------------------------------------------
Applicable Yes PSV + RRQ / RPC X
- ------------------------------------------------------------------------------------------------------------------
Guarantee 15 years or 5 years if reversible 15 years or 5 years if reversible XVIII
- ------------------------------------------------------------------------------------------------------------------
Spousal rate of 66 2/3% 66 2/3% XVIII
survivorship
- ------------------------------------------------------------------------------------------------------------------
Indexation Yes Yes X
- ------------------------------------------------------------------------------------------------------------------
</Table>
6. Article III (m) is amended by replacing the final phrase of the first
paragraph by the following:
"Periods of temporary leave which are remunerated and periods of disability
during which the member receives benefits under a long-term disability plan
to which the employer contributes shall be deemed eligible service".
7. Article III (s) is repealed and replaced by the following:
(s) PENSIONABLE SERVICE: all eligible service years after the membership date
shall be deemed pensionable service. However, the period from one year after
the membership date until the date of reform shall not be deemed as
pensionable service in the case of a related member whose remuneration is not
considered to be reasonable according to information circular 72-13R8.
Years prior to the membership date shall not be pensionable unless they are
deemed eligible service years which the employer credits as pensionable
service.
However, the following service years which are prior to the membership date
may not in any event be deemed by the employer as pensionable service:
[gamma] Any years during which the employer has contributed to a deferred
profit-sharing plan for a related member, or years where the
employee has vested benefits in another registered pension plan of
the employer.
[gamma] In the case of a related member, any years prior to the reform
date during which the salary is deemed unreasonable according to
information circular 72-13R8.
<Page>
8. Articles VII and VIII are repealed and replaced by the following.
VII. ELIGIBILITY
Solely employees whose names are listed in the summary are eligible
under the plan. The eligibility date for each employee is set forth
after his/her name.
VIII. MEMBERSHIP
The eligible employees shall automatically be members under the plan,
commencing on the eligibility date set forth in the summary.
9. Article IX D is repealed and replaced as follows:
D) Normal annuity period
The normal annuity period commences on the first day of the month
following the month during which the member satisfies the conditions
specified in the summary and shall terminate on the first day of the
month following the month during which the member reaches the age of 65.
The member reaches the normal retirement age at the age of 65.
10. Article X A is amended as follows:
The third sub-paragraph of paragraph 1 is repealed and replaced with the
following:
"The amount of the annuity kept in the account or part of the account
shall at all times be equal to the unadjusted amount which the member
shall receive during the normal annuity period".
Part RF2 of the annuities account is repealed and the following parts
shall be added:
RF2 future service annuity in relation to membership after consolidation
and prior to January 1, 2000
RF3 future service annuity in relation to membership after January 1,
2000 or after the membership date, if later.
The fourth subparagraph at the end of paragraph 1 is repealed and
replaced as follows:
"All parts of annuity accounts RP2, RF2, RF3 and RFC shall become captive
upon termination of the repayment period".
Paragraph 2 is amended by repealing the final subparagraph describing the
amount of the annuity in part RF2 and replacing it by the following
phrase:
"and the number of pensionable service years after the consolidation date
and up until the relevant year, without however being later than December
31, 1999 and provided the member was not a related person.
The amount of the annuity in part RF3 of the account shall, on the
relevant date, be equal to the product of the lesser of the following
amounts:
a) the annuity percentage for future service set forth in the summary and
the highest average wage;
b) the maximum pensionable annuity for the relevant year;
<Page>
and the number of pensionable service years commencing on January 1,
2000 or the membership date, whichever is the later and up until the
relevant date, provided the member was not a related person".
11. Article X.A 3 is amended by replacing the word RF2 by RF2, RF3 wherever it
appears.
12. Article X.A.4 is amended by replacing the word RF2 by RF2 + RF3 wherever it
appears.
13. The second subparagraph of article XV I. is repealed and replaced as
follows:
The initial annuity amount shall be the sum of the following amounts:
a) the annuity of parts RP1 and RP2 of the member's annuity account, reduced
on an actuarial basis;
b) the annuity of parts RF1, RF2 and RFC of the member's annuity account,
reduced on an actuarial basis;
c) the annuity of part RF3 of the member's annuity account, reduced by .25%
for each month between the date when the annuity commences and the
commencement of the normal annuity period;
d) the annuity of part RT of the member's annuity account, reduced on an
actuarial basis in relation to the annuity which would have been paid had
the member taken his/her retirement and the commencement of the normal
retirement period;
e) for each of paragraphs (a), (b) and (c) above, the reduced annuity may
not exceed the amount obtained according to the following equation;
X multiplied by (1 - .0025 multiplied by Y)
where
X = the amount of the normal annuity to be reduced
Y = the number of months between the date when the annuity is paid and
the commencement of the normal annuity period.
14. Articles XVI and XVII are amended by replacing the word RF2 by RF2 + RF3
wherever it appears.
15. The foregoing amendments shall enter into force and effect on January 1,
2000 and shall be known as amendment no. 3 to the plan.
I the undersigned, Caroline Guay, secretary of the company, hereby certify that
the foregoing represents a copy of resolution of the Board of Directors of the
Company.
Executed in Longueuil on this 20th day of October 2000.
/SIGNED/
Caroline Guay
<Page>
THE JEAN COUTU GROUP (PJC) INC.
Excerpt of minutes of a meeting of the board of directors of the Jean Coutu
Group (PJC) Inc. held on October 23, 2002
WHEREAS the Company, by resolution of the board of directors dated July 11,
1980, created a pension plan for its senior executives, and amended the plan
subsequently, the most recent amendment being dated October 18, 2000.
WHEREAS the company wishes to grant eligibility under the plan to two new
vice-presidents.
NOW THEREFORE upon resolution duly proposed, seconded and unanimously adopted it
is hereby resolved as follows:
1. The two following lines shall be added after the names appearing under the
heading "eligibility" in section 1 - Summary.
<Table>
Normand Messier 09/10/2001
Alphonse Galluccio 26/08/2002
</Table>
2. The foregoing amendment shall be known as amendment no. 4 to the plan.
I the undersigned, Caroline Guay, secretary of the company, hereby certify that
the foregoing is a true copy of resolutions of the directors of such company.
Executed in Longueuil on this 23rd day of October 2002.
/SIGNED/
Caroline Guay
<Page>
EXCERPT OF MINUTES OF A MEETING
Of : The Board of Directors RECEIVED ON
16 JULY 1992
Of : Jean Coutu Group (PJC) Inc.
Held at : Longueuil, Quebec Repi ...
On : June 18, 1992
WHEREAS the company, by resolution of the board of directors dated July
11, 1980, created a pension plan for its employees, and subsequently amended
such plan, the most recent amendment being dated November 20, 1989, and
WHEREAS the Act Respecting Supplemental Pension Plans requires
consolidation of the provisions of the plan.
NOW THEREFORE upon resolution duly proposed, seconded and unanimously
adopted it is resolved as follows:
1. The provisions of the plan contained under the heading titled
"Regulation - pension plan" as submitted to the meeting are hereby
adopted and such provision shall replace the former provisions
governing the plan. The document has been filed with the secretary
of the meeting to form part of the minutes of the meeting.
2. The provisions titled "Regulation - Pension Committee" has been
submitted to the meeting adopted and filed with the meeting
secretary to form part of the minutes of the meeting. The provisions
contained in this document replace the former provisions governing
the pension committee.
3. The pension committee members are hereby relieved of their duties.
<Page>
4. The following persons are hereby appointed as members of the pension
committee and the secretary of the meeting is hereby mandated to
obtain their written consent.
<Table>
Yvon Bechard 530 rue Beriault
Longueuil, Quebec
J4G 1S8
Jean Coutu 530 rue Beriault
Longueuil, Quebec
J4G 1S8
Robert A. Faust 65 Boul. Salaberry Sud
Chateauguay, Quebec
J6J 4J4
</Table>
5. The members of the pension committee shall not be remunerated for
their services.
6. The president or treasurer of the company shall and are hereby
authorised on behalf of the company to make any contributions
necessary to the plan and to incur any expenses related to
administration of the plan, where applicable, excluding investment
expenses which shall be assumed by the fund.
7. Articles 1 and 2 shall enter into force and effect commencing on
January 1, 1990 and the remaining articles shall enter into force
and effect on the date of this meeting.
I the undersigned, hereby certify that the aforementioned provisions
are a true copy of the minutes of a meeting of the board of directors of the
company held at the place and on the date first indicated hereinabove.
Executed in Longueuil, Quebec
On: June 18, 1992
/SIGNED/
------------------------
Yvon Bechard
Executive Vice-President
<Page>
B. REGULATION - PENSION COMMITTEE Effective date July 11, 1980
<Table>
<Caption>
Name of SENIOR EXECUTIVES' PENSION PLAN OF
plan THE JEAN COUTU GROUP (PJC) INC.
----------------------------------------------------------------------------------------------------------
Short FEPP THE JEAN COUTU GROUP (PJC) INC.
name
----------------------------------------------------------------------------------------------------------
COMMITTEE MEMBERS
----------------------------------------------------------------------------------------------------------
Appointed by employer Appointed by members
----------------------------------------------------------------------------------------------------------
No. Qualifications No. Qualifications
----------------------------------------------------------------------------------------------------------
1 Employer representative 1 None
2 Employees' representative
3 Independent
----------------------------------------------------------------------------------------------------------
</Table>
CONTENTS
<Table>
I. GENERAL PROVISIONS
II. COMPOSITION OF THE COMMITTEE
III. CODE OF CONDUCT
IV. GOVERNANCE
V. POWERS AND DUTIES OF THE COMMITTEE
VI. FUND MANAGEMENT
VII. ADMINISTRATION OF THE PLAN
VIII. FORMS
</Table>
PLAN COMPRISED OF NO MORE THAN 5 MEMBERS
<Page>
I. GENERAL PROVISIONS
1. Introduction
Pursuant to the Act Respecting Supplemental Pension Plans of Quebec, a pension
plan shall be administered by a pension committee and, under certain
circumstances by the employer. This regulation describes the management by the
pension committee of the plan first mentioned hereinabove.
This document is intended for use by the employer, members who wish to be
informed concerning the committee and principally to members of the pension
committee who need to become familiar with their duties and responsibilities and
to delegate them where necessary, in their discretion.
Wherever it is necessary to refer to the name of the plan in related
documentation, the short form of the name first mentioned on the cover page may
be used.
2. Definitions
In this regulation, the following words shall have the meanings given to them in
this article unless the context clearly indicates that they should be used in
their ordinary sense.
a) PLAN: The pension plan mentioned on the cover page.
b) ACT: The Quebec Act Respecting Supplemental Pension Plans.
c) COMMITTEE: The body of persons appointed as members of the committee.
d) MEMBER: A person appointed to sit on the committee and who accepts such
appointment.
II. COMPOSITION OF THE COMMITTEE
1. The committee shall be comprised of members appointed by the employer and
members appointed by members under the plan. The number and qualifications
of members appointed by each of the parties shall be provided on the cover
page. The appointment of committee members shall comply with the conditions
for forming the committee described in this section.
2. The members appointed by the employer shall be appointed by resolution of
the board of directors and shall accept such appointment in writing.
3. The committee member representing plan members shall be appointed during the
annual meeting of members by majority vote of active and non-active members
present at the meeting.
4. Prior to holding the initial committee meeting, the member to be appointed
by plan members shall be nominated by the employer. This also applies in the
case where the members' meeting does not elect committee members.
5. Where a member who is nominated by the employer resigns or is no longer
capable of acting in such capacity, the employer shall name a replacement
within 30 days after the date of receipt of the notice of resignation or the
date when the member becomes incapable of acting.
6. Where a committee member who has been appointed at the meeting of plan
members becomes incapable of acting or resigns, the committee shall appoint
a member to fulfil the mandate of the member up until the following meeting
of plan members within 30 days following receipt of the notice of
resignation or the date when the member becomes incapable of acting.
7. Committee members shall be Canadian residents.
8. At least one committee member shall also be a plan member and one committee
member shall be independent, i.e. neither a party under the plan, nor a
third party to whom the fund is prohibited from granting loans by law.
9. The term of a committee member shall not exceed 3 years. Any committee
member whose mandate expires shall continue to perform his duties up until
the appointment of a new or replacement committee member.
10. The employer may replace any nominated committee member, subject to 30 days
notice.
11. Meetings of plan members may replace any elected committee member even prior
to expiration of such committee member's term.
12. Any committee member may resign subject to 30 days written notice to the
committee, or to the employer in the event he has been appointed by the
employer.
13. The committee may act even during periods where positions on the committee
are vacant.
14. The committee shall advise the REGIE and any other relevant authority of any
changes on the committee by forwarding the names of members who no longer
sit as committee members and the name and address of any new members.
<Page>
III. CODE OF CONDUCT
1. The committee shall act with prudence, diligence and competence as any
reasonable person would do under similar circumstances. It shall also act
with honesty and loyalty, and in the best interests of plan members and
beneficiaries.
2. The members of the pension committee who have been selected on the basis of
their professional and business qualifications, shall be required to apply
their qualifications, know-how and expertise towards the better
administration of the pension committee.
3. Committee members may not exercise their powers in their own interest nor
that of third parties. Nor may any member place himself in a position which
puts his personal interests and his duties and functions in conflict.
4. Any committee member who is a plan member or beneficiary shall exercise his
powers in the common interest, placing his own interest on an equal footing
with that of other plan members or beneficiaries.
5. Any committee member shall immediately notify the committee in writing of
any interest he has in any business which is likely to put his personal
interests and his duties or functions in a position of conflict. Such member
shall also disclose any rights or benefits other than those resulting from
the plan which he may have in the annuities fund or against such fund by
specifying, wherever applicable, their nature and value.
IV. GOVERNANCE
1. The committee members shall hold joint meetings for purposes of
administering the plan.
Committee decisions shall be taken by majority vote of members present and
entitled to vote. Any member who is unable to attend a meeting may act by
proxy.
The committee may also adopt written resolutions based on the stated
position of each of its members.
2. Any and all committee members shall be deemed to have approved any
resolution passed by the members. Each member shall be jointly and severally
liable with the committee, unless he immediately expresses his dissent.
3. A committee member shall be deemed to have consented to any decision taken
in his absence unless he forwards his dissent in writing to other members
within a reasonable delay, after having taken knowledge thereof.
4. The committee may authorise any of its members to execute any documents
necessary in relation to committee business to be conducted on behalf of the
committee.
5. In the exercise of its duties, the committee may consult a lawyer, an
actuary, accountant or other expert. Persons consulted may be in the service
of the employer.
V. POWERS AND DUTIES OF THE COMMITTEE
1. The committee shall satisfy any obligations set forth in the Act. The
committee shall, without limitation, carry out the following duties:
a) Interpret the plan.
b) Manage funds of the plan.
c) Administer member records and calculate benefits.
d) File reports with the relevant government authorities.
e) Report back to the employer.
f) Disclose information to which members are entitled.
g) Hold annual members' meetings.
2. Subject to the restrictions and prohibitions set forth in the plan, the
committee may delegate all or some of its powers and duties or be
represented by a third party for specific acts.
Any person to whom the committee delegates powers shall assume the same
obligations and liabilities as those which the committee assumes when it
exercise such powers on its own behalf.
3. The committee may allow any person to whom it delegates certain powers or
duties the right to sub-delegate in whole or in part.
4. The delegation of any powers exercised by the committee shall be set forth
by written power of attorney, setting forth the powers delegated and the
conditions pursuant to which such powers may be exercised.
Prior to executing any power of attorney, the committee shall ensure that
they may assign such powers and that the person acting under the power of
attorney has the necessary capacity to assume such powers.
5. The committee shall not be liable for acts or omissions of the person acting
under any power of attorney unless he/she exceeds the conditions of
<Page>
the aforementioned power of attorney or has consented to or ratified such
act or omission.
6. Within thirty days following the commencement of duties of a member
appointed by the members' meeting, the committee shall review any powers of
attorney in order to determine which should be continued or revoked.
Where a power of attorney is revoked, such revocation shall automatically
cancel any further delegation of powers made by the attorney.
7. The committee may take out liability insurance for committee members. The
premium of such insurance shall be paid by the fund.
VI. FUND MANAGEMENT
1. Any sums of money, assets or securities delivered from time to time to the
committee or income or profits realised therefrom shall constitute the
pension fund.
2. The committee, acting in its capacity as trustee, shall manage the fund in
compliance with this regulation.
3. No portion of the fund shall, at any time, be used or misappropriated for
purposes other than those which comply with the conditions of the plan.
4. The committee shall draft a written investment policy which sets forth the
type of plan, its features and financial commitments.
The investment policy shall include the following elements:
- estimated return.
- degree of risk attached to the portfolio.
- cash flow requirements.
- allocation of assets between fixed return investments and shares.
- categories and sub-categories of authorised investments.
- measures ensuring portfolio diversity and risk reduction.
- rules and frequency of periodic reviews for purposes of measuring
portfolio performance, monitoring management and generally in order to
review investment policy.
- rules related to borrower solvency and security required for carrying
out securities loans or mortgage loans.
- methods of assessing investments which are not listed on the stock
exchange.
5. The committee has full powers to invest or reinvest all or part of the fund
in investments which it deems advantageous in its discretion.
The committee may deposit part or all of the fund with a chartered bank,
credit union or retain an investment expert, an insurance company or a trust
company for purposes of investment.
However, investment shall be subject to the provisions of the Act and
regulations and the investment policy which the committee has drafted for
the fund.
6. The committee is hereby authorised to:
a) Exercise voting rights or other rights granted by the securities, bonds,
assets or investments held by the fund.
b) Sell or dispose of any and all assets of the fund.
c) Take out loans by mortgaging any immovable property held by the fund, for
amounts not to exceed the value of the mortgaged property, less any other
outstanding mortgage loans which encumber such property.
d) Borrow other than by way of mortgage loan, provided
i) the loan is short-term.
ii) the loan is to prevent having recourse to sale at a loss of assets
of the fund.
iii) the loan is either to make repayments, or to pay out benefits or
administrative costs of the plan.
iv) the aggregate loan so contracted does not exceed two times the
current financial year contribution.
v) assets of the plan are not put up as security for any such loan.
e) Execution of any and all transfers and assignments which may be necessary
to exercise the powers granted hereunder.
7. Any deposit or investment made with assets of the plan shall be made in
the name of and on behalf of the pension fund or entered on its account.
8. Where an unforeseen or uncontrollable event has the effect of rendering
any asset of the plan non-compliant with the Act, the committee shall,
within a reasonable time period after becoming
<Page>
aware of such event, take any measure necessary to resolve the
situation.
9. Any person who makes an investment which does not comply with the Act is
IPSO FACTO and without any further proof of fault being required, liable
for any losses resulting therefrom.
Members of the committee who approve any such investment are IPSO FACTO
and without any further proof of fault being required jointly and
severally responsible for any losses resulting therefrom.
Such person shall however incur no liability pursuant to this article
where they have acted in good faith in reliance on the recommendation of
persons whose opinion they were entitled to rely upon.
10. The following persons may not receive fees, commissions or other
benefits for any transaction in relation to fund investment:
- committee members, attorneys acting under a power of attorney, spouse,
child.
- the employer and any employees responsible for administration of the
plan.
- any person who is prohibited from receiving a loan from the plan.
11. The committee shall keep a precise and detailed accounting of any and
all investments and transactions of the fund.
Any person designated for such purpose by the employer may from time to
time reasonably examine the accounts and the registers in connection
with the fund.
Within 90 days following the financial year-end of the plan, the
committee shall prepare financial statements to be audited by an
accountant.
This report shall be filed with the employer and any relevant
authorities within the time periods allowed by the Act.
VII. ADMINISTRATION OF THE PLAN
1. The committee shall administer the plan.
2. The committee shall perform the following duties, without limitation:
a) Audit contributions to the fund made by the employer. Review employer
reasons provided for any substantial variation in the level of
contributions.
The committee shall ensure that contributions are paid within the time
periods required by the Act and shall inform the REGIE of any
contributions remaining unpaid 60 days after the due date.
b) Prepares records for each member. The record shall contain any
information required for the proper administration of the plan, for
production of reports and statistics and necessary to calculate any
rights and benefits of members, and necessary for production of benefit
statements. Such information shall generally be provided by the
employer.
c) Interprets the provisions of the plan. This interpretation shall be for
the purpose of providing a fair and equitable treatment to the members.
In cases where interpretation of the plan leads to an action which is
not compliant with the Act it shall apply the provisions of the Act.
d) Prepare an annual benefits statement for each member in accordance with
the Act and its regulations.
e) Determine procedures and forms necessary for the proper administration
of the plan and ensure that procedures are followed.
f) Designate the establishment where a member may consult provisions of
the plan and other plan related documents. Where there is more than one
establishment located within 150km of the workplace of the member and
places documents required at the disposal of members at such location.
g) Receive membership applications from members and notices of nomination
and changes of beneficiary.
h) Receive and authorise applications by members who wish to receive a
portion of their annuity during the deferral period. In this regard,
determine the amount of the benefit and pay it when due.
i) Provide the REGIE with reports and information required by it within
the time periods specified by the Act and regulations.
j) Provide a summary of the principal provisions of the plan for each
member.
k) Inform the members affected by any application for amendment to the
plan and deliver to such members particulars of the amended provisions.
l) Retain the services of an actuary for calculations required of the
actuary for the determination of benefits, the actuarial evaluation of
the plan or any mandate which
<Page>
falls within the expertise and jurisdiction of the actuary.
m) Provide an annual report of business of the plan and its administration
with statistics in support.
n) Determine the amount of pension benefits, inform the member of
available options, provide the retired member with a description of
benefits to which he/she is entitled and pay out annuities or authorise
the purchase thereof.
o) File with the REGIE at least 30 days prior to application any
assumptions or methods used to determine benefits and equivalences
provided for by the Act and by the plan.
p) Provide the member or his/her spouse a statement of benefits to which
they are entitled in the case of separation, divorce or cessation of
marital life.
q) Within 6 months of each financial year-end, convene and hold an annual
meeting of members where at least the following agenda items shall be
dealt with:
- register of statements of conflicts of interest.
- amendments brought to the plan.
- election of members of the pension committee.
- financial position of the plan.
- administration report.
r) Approve fees for the actuary, auditor, consultants, persons acting
under powers of attorney and submit such fee requests to the employer
for payment or pay them out of the funds, as specified under the plan.
s) Satisfy any obligations under the Income Tax Act with respect to the
maintenance or registration and payment of benefits.
t) Determine eligibility to and amounts of death benefits; inform the
spouse or the beneficiary of their benefits and the manner in which
they have been calculated, in addition to paying out such benefits.
u) Within 60 days of being informed thereof, provide to any member who
ceases to be active, a statement itemizing amounts due or the value of
benefits in addition to the method of calculation used to determine
them, conditions of vesting of benefits provided for under the plan.
v) Determine the transfer amount to assign at the time of employment
termination, inform the member of available options, the manner to
obtain the amount of transfer and pay the amount to the plan designated
by the member.
w) Receive written notices of waivers of rights by spouses.
x) Inform the plan of members who cannot be traced and pay to the filing
office any amounts of benefits for such members and those for whom
several persons are claiming a single benefit .
y) Apply membership rules for employees under the plan.
3. In the event of termination of the plan the pension committee shall prepare
and have prepared any reports and calculations required by the Act and submit
them to the REGIE.
Upon approval it shall wind up the fund as provided for in the termination
documents.
<Page>
NOMINATION FOR MEMBERSHIP OF THE PENSION COMMITTEE
<Table>
<Caption>
- ------------------------------------------------------------------------------------------------------------------
Name of
plan
- ------------------------------------------------------------------------------------------------------------------
A:
</Table>
In accordance with the provision of the aforementioned pension plan you have
been appointed a member of the pension committee as follows:
1. By whom :
2. Date of commencement of
the mandate :
3. Termination of mandate :
The duties and functions incumbent upon members of the pension committee are
described in the regulation of the pension committee, a copy of which is
forwarded to you herewith.
We would like to thank you for agreeing to serve on the committee as Chairman
and actuary of the committee. For our records, would you please complete the
acceptance below and return it to the following address:
- -------------------------------------------------------------------------------
ACCEPTANCE
I, the undersigned, hereby agree to serve on the pension committee of the
above-mentioned pension plan. I hereby declare that I have reviewed the pension
committee regulation and accept the responsibilities incumbent upon committee
members. I furthermore agree to comply with the code of conduct set forth in the
regulation.
Date: ________________________________ Signed: _____________________________
- -------------------------------------------------------------------------------
<Page>
- -------------------------------------------------------------------------------
NOTICE OF REVOCATION TO A MEMBER OF THE PENSION COMMITTEE
- -------------------------------------------------------------------------------
<Table>
<Caption>
Name of
plan
- -------------------------------------------------------------------------------
A: _____________________________________________________
_____________________________________________________
_____________________________________________________
_____________________________________________________
</Table>
You are hereby informed that your mandate as a member of the above-mentioned
pension plan committee shall terminate on __________________________________ .
We would like to thank you for having served on this committee and for the
services which you have rendered.
Date: ________________________________ Signed: _____________________________
<Page>
THE JEAN COUTU GROUP (PJC) INC.
SUPPLEMENTAL PENSION PLAN
FOR VICE-PRESIDENTS
PLAN AND AMENDMENTS
DECEMBER 10, 2003
<Page>
SUPPLEMENTAL PENSION PLAN
FOR VICE-PRESIDENTS
OF THE JEAN COUTU GROUP (PJC) INC.
(effective on January 1, 2000)
May 2000
<Page>
TABLE OF CONTENTS
- -------------------------------------------------------------------------------
<Table>
<Caption>
Pages
Chapter 1 - Introduction ...............................................3
Chapter 2 - Definitions ................................................4
Chapter 3 - Plan eligibility and membership ............................7
Chapter 4 - Contributions ..............................................8
Chapter 5 - Retirement dates ...........................................9
Chapter 6 - Pension benefits ..........................................10
Chapter 7 - Annuity payment methods ...................................13
Chapter 8 - Employment termination benefits ...........................15
Chapter 9 - Calculation of pension benefits during disability
periods ............................................................17
Chapter 10 - Death benefits ...........................................18
Chapter 11 - Administration ...........................................19
Chapter 12 - Pension fund .............................................20
Chapter 13 - Future of the plan .......................................21
Chapter 14 - General provisions .......................................22
Schedules
</Table>
<Page>
CHAPTER 1 - INTRODUCTION
- -------------------------------------------------------------------------------
The supplemental pension plan for vice-presidents of The Jean Coutu Group (PJC)
Inc. (hereinafter referred to as the "plan") was created by The Jean Coutu Group
(PJC) Inc. on January 1, 2000.
The purpose of this by-law is to document the provisions of the plan. The
principal purpose of the plan is to provide for periodic payment of benefits to
vice-presidents upon retirement, for services which they have performed as
employees. Amounts payable under this plan are in addition to amounts which may
be paid under the Senior Executives pension plan of The Jean Coutu Group (PJC)
Inc. (hereinafter jointly referred to as the "basic plan"). This plan
principally aims to make up the shortfall between amounts which would have been
paid under the basic plan were it not for limitations under the Income Tax Act
and those actually paid out under the basic plan.
The provisions of this plan shall apply to members whose service terminates on
or after January 1, 2000.
3
<Page>
CHAPTER 2 - DEFINITIONS
- -------------------------------------------------------------------------------
Unless the context clearly indicates a different interpretation, the terms and
expressions hereinafter shall be defined as follows for the purposes of this
plan:
2.01 ACTUARY: member of the Canadian Institute of Actuaries holding the title of
Fellow and appointed as actuary for this plan.
2.02 ADMINISTRATOR: Plan administrator as defined at chapter 11.
2.03 YEARS OF SERVICE:
1) for plan members as of the effective date, the sum of years and
fractions of years of continuous service as an employee since the last
hiring by the Company, and
2) for members who joined the plan after the effective date, the sum of
years and fractions of years of continuous service as an employee since
becoming a member under the plan, in addition to the sum of years and
fractions of years of continuous service as an employee prior to the
membership date under the plan where recognized by the Company as such
for the purposes of this plan, in its entire discretion.
The total of years of service calculated pursuant to paragraphs 1) and 2)
above shall not exceed 35 years. Furthermore, years of service shall no
longer accumulate commencing on the normal retirement date.
2.04 PENSION FUND: fund maintained, as necessary, in order to pay out benefits
provided for under the plan or its provisions.
2.05 FINANCIAL MANAGEMENT AGREEMENT: any existing or future agreement entered
into between the administrator and a third party manager for purposes of
the plan.
2.06 EFFECTIVE DATE: January 1, 2000.
2.07 NORMAL RETIREMENT DATE: normal retirement date of the member described at
article 5.01.
2.08 EMPLOYEE: any person appointed as vice-president by the Company for
purposes of the plan.
2.09 ACTUARIAL EQUIVALENT: unless specifically provided to the contrary
hereunder, any pension or annuity of an equivalent actuarial value,
calculated on the basis of actuarial tables and other methods and
assumptions which the administrators have adopted for purposes of the plan
further to recommendations of the actuary and which are used for similar
purposes pursuant to the basic plan.
4
<Page>
2.10 AVERAGE RECENT SALARY: average annual salary of the member over the three
consecutive years of service which yields the highest average, whether or
not they immediately precede termination of the employee's continuous
service. Where the member counts less than three years of service, the
average recent salary shall be calculated over the employee's entire period
of service with the Company. The average shall be calculated based on the
presumption that the salary of any given financial period is paid uniformly
throughout such period.
2.11 MEMBER: employee or ex-employee who participates in the plan in accordance
with chapter 3 and continues to be entitled to benefits under the plan.
2.12 BASIC PLAN: Senior executives pension plan of The Jean Coutu Group (PJC)
Inc., amended most recently on June 16, 1999, as amended from time to time.
2.13 PLAN: Senior executives supplemental pension plan of The Jean Coutu Group
(PJC) Inc., adopted on January 1, 2000, as amended from time to time.
2.14 SALARY:
1) base salary paid by the Company to the member during the relevant
financial period, excluding bonuses or other forms of remuneration; and
2) the salary defined at article 9.01, for periods of disability during
which the member receives benefits under a long-term disability plan
sponsored by the Company,.
2.15 COMPANY: The Jean Coutu Group (PJC) Inc., any related company, any company
designated by The Jean Coutu Group (PJC) Inc. for purposes of the plan or
any successor company. Any mention of the "Company" under the plan with
respect to any measure or decision, consent or authorisation required, or
related to any opinion to be formulated or any discretionary power to
exercise shall mean The Jean Coutu Group (PJC) Inc., acting and represented
by its board of directors, or any person authorised by the board for the
purposes of the plan.
2.16 THIRD PARTY MANAGER: trust company appointed by the administrator to hold
assets in trust, administer and otherwise make investments on behalf of the
pension fund.
2.17 PRESENT VALUE: the aggregate sum which corresponds, unless otherwise
indicated hereunder, to the present value of benefits to which a person is
entitled or shall be entitled, calculated by application of interest rates,
actuarial tables and other assumptions adopted by the administrator further
to recommendations by the actuary and used for similar purposes under the
basic plan.
5
<Page>
The definitions or expressions of SPOUSE, EXERCISE and CONTINUOUS SERVICE shall
be as defined under the basic plan.
Unless specifically provided to the contrary pursuant to the plan, the masculine
shall include the feminine and the singular shall include the plural and VICE
VERSA.
6
<Page>
CHAPTER 3 - PLAN ELIGIBILITY AND MEMBERSHIP
- -------------------------------------------------------------------------------
3.01 ELIGIBILITY AND MEMBERSHIP
1) Employees shall be members of the plan upon the effective date.
2) Persons meeting the definition of employee after the effective date
shall be deemed members under the plan provided they satisfy such
definition of employee.
3.02 RE-HIRING
Unless otherwise decided by the Company in its entire discretion, any
member who has ceased to be employed by the Company and is subsequently
re-hired shall be deemed to be a new member with respect to eligibility to
benefits under the plan. This provision, however, shall not affect
accumulated benefits which may have been acquired under the plan with
respect to prior service. Any cumulative benefits after the re-hiring date
shall be calculated based on years of service calculated after such date.
7
<Page>
CHAPTER 4 - CONTRIBUTIONS
- -------------------------------------------------------------------------------
4.01 EMPLOYER CONTRIBUTIONS
The Company shall determine a benefits funding policy under the plan, which
may vary between members.
The Company shall pay contributions to the pension fund in its entire
discretion, further to recommendations of the actuary, in compliance with
the funding policy.
4.02 EMPLOYEE CONTRIBUTIONS
The member shall neither be bound nor entitled to make any payments to the
plan.
8
<Page>
CHAPTER 5 - RETIREMENT DATES
- -------------------------------------------------------------------------------
5.01 NORMAL RETIREMENT DATE
For purposes of the plan, the normal retirement date of the member shall be
the first day of the month coinciding with his 65th birthday, or of the
following month.
5.02 EARLY RETIREMENT DATE
The member who terminates his continuous service during the ten year period
preceding the normal retirement date shall be deemed to have taken early
retirement for purposes of application of the plan.
In the foregoing event, the early retirement date shall correspond to the
first day of the month when the member terminated his continuous service or
of the following month. His early retirement date shall nevertheless fall
on the same date as under the basic plan.
5.03 DEFERRED RETIREMENT DATE
The member may defer his retirement date beyond the normal retirement date.
In the foregoing event, the deferred retirement date shall correspond with
the first day of the month when the member terminates his continuous
service, or of the following month. His deferred retirement date shall
nevertheless fall on the same date as under the basic plan.
9
<Page>
CHAPTER 6 - PENSION BENEFITS
- -------------------------------------------------------------------------------
6.01 NORMAL ANNUITY
Any member who terminates his continuous service on the normal retirement
date or during the month immediately preceding such date shall be entitled
to an annuity, payable in equal monthly instalments, commencing on his
normal retirement date. The amount of such annuity shall be equal to the
difference between the amount set forth at paragraph 1) and the total
amounts provided for at paragraphs 2) and 3) as follows:
1) 2% of the average recent salary multiplied by the years of service;
2) the annuity payable in accordance with the normal payment method under
this plan, whose present value determined as of the normal retirement
date is equal to the present value of benefits under the basic plan with
respect to years of service accumulated since the date of membership
under the basic plan and calculated pursuant to article 2.03, and
excluding any reduction in benefits payable under the basic plan due to
the division of benefits further to any marital break-up; and
3) 1,722.22 dollars or any higher amount allowed pursuant to the Income Tax
Act, applicable to the basic plan and determined on the normal
retirement date, multiplied by the years of service accumulated prior to
the membership date under the basic plan and calculated in accordance
with article 2.03.
6.02 EARLY PENSION
The member who takes early retirement in accordance with article 5.02
may elect to receive:
10
<Page>
1) an annual annuity payable in equal monthly instalments, commencing on
the first day of the month coinciding with the early retirement date, or
any month thereafter, but no later than the normal retirement date. The
member's annuity shall therefore be equal to the difference between the
amount provided for at subparagraph a) and the sum of amounts provided
for at subparagraphs b) and c) as follows:
a) 2% of the average recent salary multiplied by the number of years of
service and reduced, where applicable, by 0.5% for each month
preceding the first day of the month coinciding with his 60th
birthday or the following month;
b) the annuity payable in accordance with the normal payment method
under this plan, whose present value calculated on the early
retirement date is equal to the present value of benefits under the
basic plan, multiplied by the number of years of service accumulated
since the membership date under the basic plan and calculated in
accordance with article 2.03, but excluding any reduction of the
benefit payable under the basic plan due to sharing of benefits
further to any marital break-up; and
c) 1,722.22 dollars, or any higher amount allowed under the Income Tax
Act, applicable to the basic plan and calculated as of the early
retirement date, multiplied by the number of years of service
accumulated prior to the membership date under the basic plan and
calculated in accordance with article 2.03, and reduced where
applicable by 0.5% for each month preceding the first day of the
month coinciding with his 60th birthday or the following month; or
2) a deferred annuity payable in equal monthly instalments, commencing as
of the normal retirement date and calculated in accordance with article
6.01.
11
<Page>
6.03 DEFERRED ANNUITY
Any member who elects to take a deferred annuity in accordance with
article 5.03 shall be entitled to an annuity payable in equal monthly
instalments, commencing as of the deferred retirement date and
calculated in compliance with article 6.01 by substituting the phrase
`deferred retirement date' for the phrase `normal retirement date'.
6.04 PENSION RE-ADJUSTMENT
Any periodic increase or similar increase to the annuity paid pursuant
to the basic plan which commences after the commencement of payment of
benefits under this plan shall not be taken into consideration in
calculating the annuity payable under this plan.
12
<Page>
CHAPTER 7 - ANNUITY PAYMENT METHODS
- -------------------------------------------------------------------------------
7.01 CALCULATION OF THE ANNUITY ACCORDING TO THE NORMAL METHOD
The annuity provided for at articles 6.01 to 6.03 shall be calculated
in accordance with the usual annuity payment method under the plan. The
annuity shall be payable according to this method unless the member
selects another annuity payment method.
7.02 NORMAL ANNUITY PAYMENT METHOD
1) The normal annuity payment method of the member having a spouse at the
commencement of the annuity payment period shall consist of a joint and
survivor annuity payable in equal monthly instalments for the remainder
of the life of the member and, after the member's death, payable to his
spouse throughout her life in the form of monthly instalments equal to
60% of the monthly amount received by the member prior to death. Where
the member and his spouse die prior to receiving 60 monthly instalments,
his successors and assigns shall be entitled to an aggregate sum equal
to the present value of the remainder of the 60 instalments.
2) The normal annuity payment method for the member who has no spouse on
the first annuity payment date shall consist of a lifetime annuity
payable in equal monthly instalments and, in any event, for a period of
at least 120 months. Where the member dies prior to receiving 120
monthly instalments, his successors, heirs and assigns shall be entitled
to an aggregate sum equal to the present value of the remainder of the
120 instalments.
7.03 OPTIONAL ANNUITY PAYMENT METHOD
1) Instead of the normal payment method for the annuity described at
article 7.02, the member may elect to receive his annuity according to
an optional payment method allowed by the administrator of the plan.
This election nevertheless shall be made prior to the annuity being paid
to such member.
13
<Page>
2) The annuity payable under the optional payment method shall correspond
to the actuarial equivalent of the annuity payable to the member
pursuant to the normal payment method.
14
<Page>
CHAPTER 8 - EMPLOYMENT TERMINATION BENEFITS
- -------------------------------------------------------------------------------
8.01 EMPLOYMENT TERMINATION BENEFITS
Any member who terminates his continuous service, except in the case of
death, shall be eligible for early retirement and to a deferred annuity,
payable as of his normal retirement date in the amount calculated in
accordance with article 6.01.
However, the portion of this annuity accumulated with respect to the number
of years of service prior to the effective date shall be multiplied by the
following percentage based on the year of employment termination.
<Table>
<Caption>
YEAR OF EMPLOYMENT TERMINATION PERCENTAGE
---------------------------------------------------------------------
2000 0%
2001 25%
2002 50%
2003 75%
2004 ET SEQ. 100%
----------------------------------------------------------------------
</Table>
8.02 EARLY PAYMENT OF THE DEFERRED ANNUITY
Any member who is entitled to a deferred annuity pursuant to article 8.01
may elect to receive his annuity on the first day of any month falling
within the ten year period preceding the normal retirement date. The
initial payment of his annuity pursuant to this plan shall nevertheless be
the same as under the basic plan.
15
<Page>
The member's pension shall consequently be equal to the annuity calculated in
accordance with article 6.02. However, the portion of the annuity accumulated
for years of service prior to the effective date shall be multiplied by the
following percentage based on the employment termination year:
<Table>
<Caption>
YEAR OF EMPLOYMENT TERMINATION PERCENTAGE
---------------------------------------------------------------------
2000 0%
2001 25%
2002 50%
2003 75%
2004 ET SEQ. 100%
----------------------------------------------------------------------
</Table>
8.03 REPAYMENT
Any member entitled to a deferred annuity pursuant to article 8.01 may
also elect to receive a lump-sum amount equal to the present value of
the deferred annuity. He nevertheless shall be required to do so in the
event he has transferred all benefits to which he is entitled under the
basic plan.
16
<Page>
CHAPTER 9 - CALCULATION OF RETIREMENT BENEFITS DURING DISABILITY PERIODS
- -------------------------------------------------------------------------------
9.01 SALARY DURING DISABILITY PERIOD
For the purposes of calculating retirement benefits during a disability
period, where a member receives benefits under a long-term disability
plan sponsored by the Company, the salary of the member shall be deemed
equal to the base salary rate which he receives immediately prior to
the commencement of his disability.
9.02 CONTINUOUS SERVICE DURING A DISABILITY PERIOD
For the purposes of calculating retirement benefits during a disability
period, where a member receives benefits under a long-term disability
plan sponsored by the Company, continuous service shall not be
interrupted.
17
<Page>
CHAPTER 10 - DEATH BENEFITS
- -------------------------------------------------------------------------------
10.01 DEATH BENEFITS PRIOR TO PAYMENT OF THE ANNUITY
1) Where death occurs prior to a member becoming eligible for early
retirement, a death benefit shall be paid in one lump sum to the
successors, heirs or assigns of the member. This death benefit shall
be equal to the present value of the deferred annuity calculated in
accordance with article 8.03.
2) Where death occurs after the member becomes eligible for early
retirement, a death benefit shall be paid in a lump sum to
successors, heirs or assigns of the member. Such benefit shall be
equal to the present value of the annuity determined in accordance
with the relevant provision of articles 6.01 to 6.03, as the case
may be, based on the assumption that the initial annuity payment
date falls on the first day of the month following death of the
member.
10.02 DEATH BENEFITS AFTER INITIAL PAYMENT OF THE ANNUITY
Where the member has commenced to receive an annuity at the time of death,
benefits shall be determined in accordance with the annuity payment method
selected by the member in accordance with chapter 7.
18
<Page>
CHAPTER 11 - ADMINISTRATION
- ---------------------------------------------------------------------------
11.01 ADMINISTRATOR
The Company shall be administrator of the plan. In this regard, the
Company shall be responsible for all aspects of administration of the
plan and the pension fund.
The administrator shall act as a trustee. Subject to restrictions or
prohibitions under the plan, he may delegate all or any of his powers
and duties, or be represented by one or more persons for any specific
act or measure, as he deems necessary in his entire discretion.
19
<Page>
CHAPTER 12 - PENSION FUND
- -------------------------------------------------------------------------------
12.01 ADMINISTRATION OF THE PENSION FUND
The pension fund shall be administered by the administrator.
12.02 EXPENSES
Administration expenses under the plan and in relation to the pension
fund shall be assumed by the pension fund, unless they are assumed by
the Company.
12.03 INVESTMENTS
The pension fund shall be invested by the administrator or by a third
party manager in accordance with the instructions provided by the
administrator.
20
<Page>
CHAPTER 13 - FUTURE OF THE PLAN
- -------------------------------------------------------------------------------
13.01 MAINTENANCE OF THE PLAN
The Company shall maintain the plan indefinitely. However, it reserves
the right to terminate or amend the plan, in whole or in part.
13.02 AMENDMENT OF THE PLAN
Unless agreed to by the relevant member, no amendment shall result in a
reduction of pension benefits accumulated by the member prior to such
amendment date, as calculated based on his salary and years of service
at such time.
13.03 SPECIAL AGREEMENTS
The Company may enter into special agreements with certain designated
members for the purpose of granting annuities or other additional
benefits in addition to those governed by this plan. Such agreements
shall be deemed to form a part of this plan, provided they are
incorporated into the by-law in the form of a schedule or by-law under
the plan.
Notwithstanding the foregoing subparagraph, for the purposes of
information disclosed to members, solely members listed in a special
schedule shall be entitled to such information.
21
<Page>
CHAPTER 14 - GENERAL PROVISIONS
- -------------------------------------------------------------------------------
14.01 NO ASSIGNMENT
Sums payable under the plan shall be subject to the following
restrictions:
1) TRANSACTION NULL AND VOID
Any transaction which is intended to assign, attach, accelerate,
discount, give up as security or constitute a waiver of any sum
payable pursuant to this plan shall be deemed null and void.
2) EXEMPTION FROM SEIZURE
Any sums payable pursuant to this plan shall be exempt from
executions of judgment, seizures or attachments of assets.
14.02 NO EMPLOYMENT RIGHT GRANTED
This plan shall not be deemed to create or extend the right of any
person to remain employed with the Company. Nor shall it in any manner
whatsoever restrict or limit the right of the Company to dismiss any
person.
14.03 NO RIGHT WITH RESPECT TO EMPLOYER CONTRIBUTIONS
Any contributions paid by the Company shall not be deemed to increase
any benefit whatsoever under the plan. Nor shall it be deemed to create
for any person other than the Company any right, title or interest with
respect to assets of the Company or the pension fund.
22
<Page>
14.04 DISCLOSURE A CONDITION PRECEDENT TO PAYMENT OF BENEFITS
The payment of any benefit shall only be made once the beneficiary
provides the Company with satisfactory evidence of his age or the age
of persons who may become eligible and any other information which may
be necessary for the calculation and payment of such benefit.
14.05 COMPANY RECORDS
Where records of the Company are used for the purposes of the plan,
these records shall be deemed evidence of their contents unless it is
demonstrated that they should be rectified.
14.06 RESTRICTIVE COVENANT (SEVERABILITY)
Any provision of the plan which is declared invalid or unenforceable by
a relevant court of jurisdiction shall have no effect with respect to
the validity or enforceability of the plan or its remaining provisions.
The plan shall be interpreted, applied and enforced as if such invalid
or unenforceable provision had never been drafted.
14.07 PAYMENT CONDITIONS
Notwithstanding any other provision of the plan, no benefit shall be
payable or continue to be paid pursuant to chapters 6, 7, 8 and 10
where the member has been dismissed on the grounds of professional
misconduct, gross negligence or a material breach of the conditions of
his employment with the Company.
14.08 HEADINGS AND SUB-HEADINGS
The headings, sub-headings and table of contents of this plan have been
included solely for purposes of reference and shall not be used for
purposes of interpreting the plan.
23
<Page>
14.09 INTERPRETATION
1) For members governed by the funding policy set forth at article
4.01, this plan is intended to be a retirement compensation
arrangement for its members, as defined by the Canada Income Tax
Act .
2) Any provision of the financial management agreement which is
contrary to the provisions of the plan shall, to the degree of such
incompatibility, be deemed null, void and unenforceable.
3) This plan shall be governed and interpreted in accordance with the
laws of the Province of Quebec.
24
<Page>
RIDERS TO THE SUPPLEMENTAL PENSION PLAN
FOR VICE-PRESIDENTS
OF THE JEAN COUTU GROUP (PJC) INC.
ADDITIONAL BENEFITS
GRANTED TO CERTAIN MEMBERS
<Page>
SCHEDULES - INTRODUCTION
- -------------------------------------------------------------------------------
This document is a rider to the by-law of the supplemental pension plan for
vice-presidents of The Jean Coutu Group (PJC) Inc. (hereinafter the "plan") as
created on January 1, 2000.
This rider is intended to replace certain articles of the plan by-law in order
to reflect additional benefits that have been granted to certain members.
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SCHEDULE A - ARTICLES AMENDING THE PLAN BY-LAW WITH RESPECT TO MR YVON BECHARD
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2.14 SALARY:
1) the sum of the base salary and bonus that the Company has paid to the
member during the financial year, excluding other forms of remuneration;
and
2) during any disability period pursuant to which the member receives
long-term disability plan benefits sponsored by the Company, the salary
described at article 9.01.
2.17 PRESENT VALUE: with respect to benefits to which a person is entitled or
shall be entitled, an aggregate sum which corresponds, unless indicated to
the contrary under this plan, to the present value of such benefits,
calculated according to the interest rates, actuarial tables and other
assumptions adopted by the administrator upon recommendation of the actuary
and used for similar purposes pursuant to the basic plan, subject to any
adjustment in connection with special tax considerations relevant to the
member.
4.01 EMPLOYER CONTRIBUTIONS
The Company shall determine a funding policy for plan benefits for the
member.
The Company shall pay contributions into the pension fund that it deems
necessary, upon recommendation of the actuary, in order to fully fund any
and all benefits under the plan to which a member is entitled upon
retirement.
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The contribution with respect to any financial period shall be determined
at the commencement of such period, based on a presumption that uniform
annual contributions have been paid at the commencement of each financial
period up until the deemed retirement date of the member. For purposes of
calculating the contribution, pension fund assets, recent member data and
recommended actuarial assumptions shall be taken into account.
8.01 EMPLOYMENT TERMINATION BENEFITS
The member who terminates his continuous service, except in the case of
death, shall be eligible for early retirement and to a deferred annuity,
payable as of his normal retirement date in the amount calculated in
accordance with article 6.01.
8.02 EARLY PAYMENT OF THE DEFERRED ANNUITY
Any member who is entitled to a deferred annuity pursuant to article 8.01
may elect to receive his annuity on the first day of any month falling
within the ten year period preceding the normal retirement date. The
initial payment of his annuity pursuant to this plan shall nevertheless be
the same as under the basic plan. The annuity of the member shall
consequently be equal to the annuity calculated in accordance with article
6.02.
9.01 SALARY DURING DISABILITY PERIOD
For the purposes of calculating retirement benefits during a disability
period where a member receives benefits under a long-term disability plan
sponsored by the Company, the salary of the member shall be deemed equal to
the sum of the base salary rate which he receives immediately prior to the
commencement of his disability and the average of bonuses paid during the
three years immediately preceding commencement of his disability.
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THE JEAN COUTU GROUP (PJC) INC.
Excerpt of minutes of a board of directors meeting of The Jean Coutu Group (PJC)
Inc. held on October 18, 2000.
WHEREAS the company deems it appropriate to create a pension plan for its
vice-presidents.
NOW THEREFORE, upon resolution further to motion, duly seconded and unanimously
adopted, the board hereby resolves as follows:
1. A pension plan for vice-presidents (Canadian) of the company shall enter into
force and effect on January 1, 2000. Plan by-laws shall be set forth in a
document dated May 2000 and entitled "Supplemental pension plan for
vice-presidents of The Jean Coutu Group (PJC) Inc.".
This document was distributed at the meeting and a copy delivered to the
secretary of the meeting for filing with minutes of the meeting.
2. For purposes of the aforementioned supplemental pension plan, the following
persons are hereby designated as meeting the definition of employee on the
date the plan entered into force and effect:
Yvon Bechard
Michel Boucher
Carole Bouthillette
Denis Courcy
Claudia Di Renzo
Yvon Goyer
Alain Lafortune
Jacques Jr. Lamoureux
Jacques Masse
Richard Mayrand
Johanne Meloche
Jean-Pierre Normandin
3. Laval Mathieu FICA of the firm Vias Ltee is hereby appointed actuary of the
plan.
4. The assumptions, methods and actuarial tables used for purposes of
determining actuarial equivalences and present values are those prescribed by
the Canadian Institute of Actuaries for calculation of transfer values of
registered pension plans. In cases where the values prescribed are
incomplete, such values are those recommended by the plan actuary and which
are coherent with the prescribed values.
5. Unless otherwise specified in the schedules of the by-law, this plan has not
been funded.
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6. Executive vice-president Yvon Bechard is hereby authorised to appoint the
trustee to receive contributions from the company for the purposes of plan
funding, where applicable, and to establish the investment policy applicable
to funds accumulated through this trust. Trust fees shall be assumed by the
company except in cases of management fees in relation to managing fund
assets.
I the undersigned, Caroline Guay, company secretary, hereby certify that the
foregoing is a true copy of resolutions of the board of directors of such
company.
Executed in Longueuil on this 20th day of October the year 2000.
/SIGNED/
Caroline Guay
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THE JEAN COUTU GROUP (PJC) INC.
Excerpt of minutes of a meeting of the board of directors of The Jean Coutu
Group (PJC) Inc. held on October 23, 2002.
WHEREAS the company has created a supplemental pension plan for its
vice-presidents by resolution duly adopted by the board of directors at a
meeting held on October 18, 2000.
WHEREAS the company deems it appropriate to bring certain amendments to this
plan.
NOW THEREFORE, upon resolution further to motion, duly seconded and unanimously
adopted the board hereby resolves as follows:
1. The by-law of the supplemental pension plan for vice-presidents is hereby
amended to recognise, as of the effective date of the plan, the years of
continuous service of Madame Johanne Meloche between June 1, 1981 and June 9,
1989.
This amendment is enacted by adding schedule F to the by-law of the plan. A
copy of this schedule is hereby delivered to the secretary of the board
meeting to be filed with the minutes of the meeting.
2. For the purposes of the supplemental pension plan for vice-presidents, the
following persons are hereby designated as meeting the definition of employee
commencing on the date entered beside their respective names.
Normand Messier October 9, 2001
Alphonse Galluccio August 26, 2002
3. The by-law of the supplemental pension plan for vice-presidents is hereby
amended to recognise, as of the membership date under the plan, the years of
continuous service of Mr Normand Messier between August 1, 1990 and October
9, 1995.
This amendment is adopted by adding schedule G to the by-law under the plan.
A copy of this schedule is hereby delivered to the secretary of the board
meeting to be filed with the minutes of the meeting.
4. The funding policy under the plan, adopted by resolution passed on October
18, 2000, is hereby repealed and replaced by the following, to be effective
on January 1, 2003.
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"Unless otherwise provided under the schedules of the by-law, funding shall
commence in the year following the year where, on December 31, the present
value of benefits provided for under the plan with respect to service prior
to such date exceeds 1.5 times the annual salary of the membership on such
date.
The objective of funding is to accumulate amounts by the age of 60 within a
trust fund such that, if added on to taxes payable under the plan, amounts
shall not be lower than 1.5 times the annual salary of the member at such
age, based on the present value of estimated benefits provided for under the
plan. Thereafter, the level of funding shall be maintained until such time as
the member retires.
Funding shall be completed in the year when a member retires, whether such
retirement occurs before or after his 60th birthday."
5. Schedule D of the by-law applicable to Mr Yvon Goyer is hereby repealed and
replaced by a new schedule D, copy of which is delivered to the secretary of
the board meeting to be filed with the minutes of the meeting.
I the undersigned, Caroline Guay, company secretary, hereby certify that the
foregoing is a true copy of resolutions of the board of directors of such
company.
Executed in Longueuil on this 23rd day of October the year 2002.
/SIGNED/
Caroline Guay
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SCHEDULE G - ARTICLES OF THE PLAN BY-LAW REPLACED WITH RESPECT TO MR NORMAND
MESSIER
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2.03 NUMBER OF YEARS OF SERVICE:
The total number of years and fractions of years of continuous service of
the employee since he was employed by the company, in addition to years and
fractions of years of continuous service between August 1, 1990 and October
9, 1995.
The total number of years of service shall not exceed 35 years.
Furthermore, the number of years of service shall cease to accumulate as of
the normal retirement date.
October 23, 2002
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THE JEAN COUTU GROUP (PJC) INC
Excerpt of minutes of a meeting of the board of directors of The Jean Coutu
Group (PJC) Inc. held on May 30, 2003.
WHEREAS the company has created a supplemental pension plan for its
vice-presidents by resolution duly adopted by the board of directors at a
meeting held on October 18, 1990 and subsequently amended by last amendment
adopted on October 23, 2002.
WHEREAS the company deems it appropriate to bring a correction to this plan with
a view to making it comply with the employment conditions agreed upon with one
of the members under this plan.
NOW THEREFORE, upon resolution further to motion, duly seconded and unanimously
adopted, the board hereby resolves as follows:
1. Schedule G of the by-law under the supplemental pension plan for
vice-presidents as adopted on October 23, 2002 is hereby repealed and
replaced by a revised schedule G, a copy of which is hereby delivered to the
board's secretary to be filed with the minutes of the meeting.
2. The amendments made on October 23, 2002 shall constitute amendment number 1
to the plan and the revised schedule shall constitute amendment number 2 to
the supplemental plan for vice-presidents.
3. The revised schedule G shall replace the original schedule G retroactive to
the effective date of amendment number 1 for the relevant member.
I the undersigned, Caroline Guay, company secretary, hereby certify that the
foregoing is a true copy of resolutions of the board of directors of such
company.
Executed in Longueuil on this 30th day of May of the year 2003.
/SIGNED/
Caroline Guay
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SCHEDULE G - ARTICLES IN THE PLAN BY-LAW REPLACED WITH RESPECT TO MR NORMAND
MESSIER
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2.03 NUMBER OF YEARS OF SERVICE
The total number of years and fractions of years of continuous service of
the employee since his final hiring date with the company in addition to
years and fractions of years of continuous service since August 1, 1990.
The total number of years of service shall not exceed 35 years.
Furthermore, the number of years of service shall cease accumulating as of
the normal retirement date.
Revised on May 30, 2003