EX-10.59 7 smtc-01272019xex1059.htm EXHIBIT 10.59
Exhibit 10.45
THE EXECUTIVE NONQUALIFIED EXCESS PLAN
OF SEMTECH CORPORATION
(Amended and Restated Effective as of March 1, 2019)
The Executive Nonqualified Excess Plan of Semtech Corporation (the “Plan”), formerly known as the Semtech Executive Compensation Plan and previously amended and restated effective January 1, 2005, is hereby further amended and restated as set forth herein, effective as of March 1, 2019. The purpose of the Plan is to attract and retain designated key employees by providing such persons with an opportunity to defer receipt of a portion of their compensation and receive Discretionary Company Credits as provided in the Plan. For purposes of clarity, the amendment and restatement of the Plan effective as of March 1, 2019 is not intended to, and shall not be construed to, change the time or form of payment of any existing deferrals credited under the Plan prior to that date. Moreover, nothing in the Plan, including in the amendment and restatement thereof effective as of March 1, 2019 is intended as, or shall be construed as, a material modification of any benefits earned and vested under the Plan (or a predecessor plan) prior to January 1, 2005, and any such benefits shall remain subject to the terms of the Plan (or predecessor plan) as in effect on January 1, 2004.
ARTICLE I
DEFINITIONS
For purposes of the Plan, the following words and phrases shall have the meanings set forth below, unless their context clearly requires a different meaning:
“Account” means the bookkeeping account maintained by the Administrator on behalf of each Participant pursuant to this Plan. The sum of each Participant's Sub-Accounts, in the aggregate, shall constitute his or her Account. The Account and each and every Sub-Account shall be a bookkeeping entry only and shall be used solely as a device to measure and determine the amounts, if any, to be paid to a Participant or the Participant’s Beneficiary under the Plan.
“Administrator” means the administrative committee appointed as such by the Board of Directors of the Company.
“Affiliated Group” means (a) the Company, and (b) all entities with whom the Company would be considered a single employer under Sections 414(b) and 414(c) of the Code, provided that in applying Section 1563(a)(1), (2), and (3) of the Code for purposes of determining a controlled group of corporations under Section 414(b) of the Code, the language “at least 50 percent” is used instead of “at least 80 percent” each place it appears in Section 1563(a)(1), (2), and (3), and in applying Treasury Regulation Section 1.414(c)-2 for purposes of determining trades or businesses (whether or not incorporated) that are under common control for purposes of Section 414(c), “at least 50 percent” is used instead of “at least 80 percent” each place it appears in that regulation. Such term shall be interpreted in a manner consistent with the definition of “service recipient” contained in Section 409A of the Code.
“Base Salary” means the annual rate of base wages payable by the Employer to an Eligible Employee in cash during a Plan Year, prior to reduction for any deferrals under this Plan or under any other plan of the Employer under Sections 125 or 401(k) of the Code. For purposes of this Plan, any Base Salary payable after the last day of a calendar year solely for services performed during the final payroll period described in Section 3401(b) of the Code containing December 31 of such year shall be treated as earned during the subsequent calendar year.
“Beneficiary” or “Beneficiaries” means the person or persons, including one or more trusts, designated by a Participant in accordance with the Plan to receive payment of the remaining balance of the Participant's Account in the event of the death of the Participant prior to the Participant's receipt of the entire amount credited to the Participant’s Account.
“Beneficiary Designation Form” means the form established from time to time by the Administrator (in a paper or electronic format) that a Participant may complete, sign and return to the Company to designate one or more Beneficiaries.
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“Bonus” means any incentive bonus payable to an Eligible Employee pursuant to any annual or short-term cash incentive compensation plan of the Employer that is designated by the Administrator as an eligible source of compensation for deferral under this Plan, determined prior to reduction for any deferrals under this Plan or under any other plan of the Employer under Sections 125 or 401(k) of the Code.
“Change in Control” means an event described in Section 409A(a)(2)(A)(v) of the Code (or any successor provision thereto) and the regulations thereunder.
“Code” means the Internal Revenue Code of 1986, as amended.
“Company” means Semtech Corporation and its successors, including, without limitation, the surviving corporation resulting from any merger or consolidation of Semtech Corporation with any other corporation, limited liability company, joint venture, partnership or other entity or entities.
“Deferral Election” means the Participant's election on a form approved by the Administrator (in a paper or electronic format) to defer a portion of the Participant’s Base Salary and/or Bonus in accordance with the provisions of ARTICLE III.
“Disability” shall have the meaning provided in Section 409A of the Code and the regulations thereunder, and notwithstanding any other provision of the Plan to the contrary, the existence of a Disability shall be determined by the Company’s applicable third-party long-term disability insurance provider. Generally, a Disability means that the Participant is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve months, or is, by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve months, receiving income replacement benefits for a period of not less than three months under an accident and health plan covering Employees of the Employer.
“Discretionary Company Credit” means a credit by the Company to a Participant’s Account in accordance with the provisions of ARTICLE V of the Plan, whether as a match of Participant deferrals or otherwise. Discretionary Company Credits, if any, shall be credited at the sole discretion of the Company, and the fact that a Discretionary Company Credit may be credited in one year shall not obligate the Company to continue to make any such Discretionary Company Credit in any subsequent year.
“Eligible Employee” has the meaning given to such term in Section 2.1 hereof.
“Employer” means the Company and any participating member of the Affiliated Group which adopts this Plan.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.
“Fiscal Year” means the fiscal year of the Company.
“In-Service Sub-Account” means each bookkeeping In-Service Sub-Account maintained by the Administrator on behalf of each Participant pursuant to Sections 2.4 and 3.4(b) hereof with respect to a Plan Year.
“Normal Retirement Age” means the earlier of (a) the date on which a Participant completes 10 consecutive years of participation in the Plan, or, (b) the date on which a Participant attains the age 59 and completes 5 consecutive years of participation in the Plan.
“Participant” means any Eligible Employee who (a) at any time has elected to defer the receipt of Base Salary and/or Bonus in accordance with the Plan or (b) whose Account has been credited with a Discretionary Company Credit, and who, in any case, has not received complete payment of the amount credited to the Participant’s Account.
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“Plan” means The Executive Nonqualified Excess Plan of Semtech Corporation, as it may be amended from time to time.
“Plan Year” means a calendar year, including, where the context requires with respect to the deferral of a Participant’s Bonus, the calendar year in which begins the fiscal year for which such Bonus is earned.
“Separation from Service” means a Participant’s termination of employment or service with the Affiliated Group, including as a result of the Participant’s death while in service, in such a manner as to constitute a “separation from service” as defined under Section 409A of the Code.
“Separation Sub-Account” means each bookkeeping Separation Sub-Account maintained by the Administrator on behalf of each Participant pursuant to Sections 2.4 and 3.4(a) hereof with respect to a Plan Year.
“Specified Employee” means a “specified employee” as determined by the Company in accordance with Section 409A of the Code.
“Sub-Account” means each bookkeeping Separation Sub-Account and In-Service Sub-Account maintained by the Administrator on behalf of each Participant with respect to a particular Plan Year pursuant to Section 2.4.
“Unforeseeable Emergency” means an “unforeseeable emergency” as defined under Section 409A of the Code. In general, for purposes of Section 409A of the Code, an “unforeseeable emergency” means a severe financial hardship to a Participant resulting from an illness or accident of the Participant, the Participant’s spouse, the Participant’s Beneficiary, or the Participant’s dependent (as defined in Section 152 of the Code, without regard to Sections 152(b)(1), (b)(2), and (d)(1)(B)); loss of the Participant’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, for example, as a result of a natural disaster not covered by insurance); or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.
ARTICLE II
ELIGIBILITY; SUB-ACCOUNTS
2.1. Eligibility. Participation in the Plan is limited to any employee of the Employer who (i) is selected by the Administrator, in its sole discretion, to participate in the Plan, and (ii) is a member of a “select group of management or highly compensated employees,” within the meaning of Sections 201, 301 and 401 of ERISA (each an “Eligible Employee”). In lieu of designating individual Eligible Employees for Plan participation, the Administrator may establish eligibility criteria (consistent with the requirements of this Section 2.1) providing for participation of all Eligible Employees who satisfy such criteria. The Administrator may at any time, in its sole discretion, change the eligibility criteria for Eligible Employees, or determine that one or more Participants will cease to be an Eligible Employee.
2.2. Enrollment Requirements. Except as otherwise determined by the Administrator, as a condition to participation, each Eligible Employee shall complete, execute and return to the Company a Deferral Election no later than the date or dates specified by the Administrator in accordance with the Plan. In addition, the Administrator may establish from time to time such other enrollment requirements as it determines in its sole discretion are necessary.
2.3. Commencement Date. Except as otherwise may be provided by the Administrator pursuant to Section 3.1, each Eligible Employee shall be eligible to commence participation in accordance with the terms and conditions of this Plan effective as of January 1 of the Plan Year next following the Plan Year in which he or she becomes an Eligible Employee pursuant to Section 2.1. Notwithstanding the foregoing, the Administrator, in its sole discretion, may permit an Eligible Employee to commence participation in the Plan upon such earlier date as may be specified by the Administrator, consistent with the Plan and Section 409A of the Code.
2.4. Sub-Accounts. The Administrator shall establish and maintain a separate Sub-Account for each Participant for amounts credited to a Participant’s Account for each Plan Year as deferrals of Base Salary and/or Bonus, and as
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Discretionary Company Credits, as applicable. Each such Sub-Account shall be either a Separation Sub-Account or an In-Service Sub-Account, in accordance with Section 3.4 and the Participant’s Deferral Election for the applicable Plan Year. Each Participant’s Sub-Account(s) shall be credited with deferrals of Base Salary and/or Bonus, effective as of the date such amounts would otherwise have been paid to the Participant, or as soon as administratively practicable thereafter. A Participant’s Sub-Accounts shall be credited with gains, losses and earnings as provided in ARTICLE V hereof and shall be debited for any payments made to the Participant in accordance with ARTICLE VI hereof. Amounts credited to a Separation Sub-Account shall be paid following the Participant’s Separation from Service as provided in ARTICLE III and ARTICLE VI hereof, and amounts credited to an In-Service Sub-Account shall be paid in the year specified by the Participant or, if earlier, following the Participant’s Separation from Service or death, as provided in ARTICLE III and ARTICLE VI hereof.
2.5. Termination. An Eligible Employee’s right (if any) to defer Base Salary and/or Bonus shall cease with respect to the Plan Year following the Plan Year in which such individual ceases to be an Eligible Employee, although such individual shall continue to be subject to all of the terms and conditions of the Plan for as long as he or she remains a Participant.
ARTICLE III
DEFERRAL ELECTIONS
3.1. Certain Newly Eligible Participants. Except as otherwise determined by the Administrator, in its sole discretion, newly Eligible Employees shall not be permitted to make a Deferral Election with respect to Base Salary and/or Bonus amounts earned during the Plan Year (or Fiscal Year, respectively) in which the Eligible Employee is first eligible to participate in the Plan. However, notwithstanding the foregoing, the Administrator, in its sole discretion, may permit any Eligible Employee to make a Deferral Election with respect to Base Salary and/or Bonus amounts earned during the Plan Year (or Fiscal Year, respectively) in which the Eligible Employee is first eligible to participate in the Plan (and in any other plan that would be aggregated with the Plan under Section 409A of the Code), as determined in accordance with Treasury Regulation Section 1.409A-2(a)(7); provided, however, that such Deferral Election (a) is made and becomes irrevocable no later than the 30th day after the date that the Eligible Employee first becomes eligible to participate in the Plan (or by such earlier date as specified by the Administrator), and (b) shall apply only to Base Salary and/or Bonus amounts earned for services performed after the date that the Deferral Election becomes irrevocable, as determined by the Administrator in accordance with Section 409A.
3.2. Annual Deferral Elections. Unless the Administrator determines to permit an election pursuant to Section 3.1, and except as otherwise determined by the Administrator, each Eligible Employee may elect to defer Base Salary and/or Bonus for a Plan Year (or Fiscal Year, respectively) by filing a Deferral Election with the Administrator. The Deferral Election with respect to Base Salary and/or Bonus must be filed with the Company by, and shall become irrevocable as of, December 31 (or such earlier date as specified by the Administrator) next preceding (a) the Plan Year for which such Base Salary would otherwise be earned, or (b) the Fiscal Year for which such Bonus would otherwise be earned, as applicable.
3.3. Amount Deferred. A Participant shall designate on each Deferral Election the portion of his or her Base Salary and/or Bonus that is to be deferred with respect to the applicable Plan Year (or Fiscal Year, respectively) in accordance with this ARTICLE III. For each Plan Year (or Fiscal Year, respectively), an Eligible Employee may defer (in 1% increments) up to 80% of his or her Base Salary and up to 80% of his or her Bonus, or, to the extent permitted by the Administrator in its sole discretion, a Participant may defer a specified dollar amount of his or her Base Salary and/or Bonus.
3.4. Elections as to Time and Form of Payment. Each Deferral Election will specify the allocation of the Participant’s deferrals to the Participant’s Sub-Accounts in accordance with this Plan. In each Deferral Election, the Participant shall also elect the time and form of payment of his or her Base Salary and/or Bonus deferrals for the applicable Plan Year in accordance with Section 3.4(b). Except as otherwise may be determined by the Administrator, in its sole discretion, the time and form of payment elected by a Participant for any deferrals of Base Salary and Bonus earned for the same Plan Year must be congruent.
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(a) Participant Payment Elections-Separation Sub-Accounts. On each Deferral Election pursuant to which deferrals of Base Salary and/or Bonus amounts are credited to a Participant’s Separation Sub-Account, the Participant shall elect the time and form of payment of such Sub-Account in the event of the Participant’s Separation from Service in accordance with the provisions of this Section 3.4(a) and ARTICLE VI. A Participant may elect to receive payment of each such Separation Sub-Account, subject to the provisions of ARTICLE VI, as soon as practicable following the Participant’s Separation from Service in one of the following forms of payment:
(i) a single lump sum payment, or
(ii) substantially equal annual installments over a period of up to 20 years.
(b) Participant Payment Elections-In-Service Sub-Accounts. On each Deferral Election pursuant to which deferrals of Base Salary and/or Bonus amounts are credited to a Participant’s In-Service Sub-Account, the Participant shall elect the month and calendar year in which payment from that In-Service Sub-Account will be made or commence, which calendar year must be no earlier than the second calendar year after the Plan Year to which such Deferral Election relates (for example, the earliest payment date for an In-Service Sub-Account with respect to a Participant’s deferral of 2019 Base Salary and Bonus earned for the fiscal year commencing in 2019 would be January 2021). A Participant may elect to receive payment of each such In-Service Sub-Account, subject to the provisions of ARTICLE VI, in one of the following forms of payment:
(i) a single lump sum payment, or
(ii) substantially equal annual installments over a period of up to 20 years.
Subject to the provisions of ARTICLE VI, payment of each In-Service Sub-Account shall be made or commence during the month and calendar year specified in the applicable Deferral Election, or, if the Participant’s Separation from Service occurs prior to the date such In-Service Sub-Account is otherwise scheduled to be paid, as soon as practicable following the Participant’s Separation from Service, in the manner elected by the Participant (single lump sum payment or substantially equal annual installments over a period of up to 20 years) in the applicable Deferral Election for payment in the event of Separation from Service. The calendar year designated on each Deferral Election with respect to an In-Service Account for a Plan Year will apply to all amounts credited to that In-Service Sub-Account under the Plan, except as otherwise provided in ARTICLE VI. A Participant may choose a different month and calendar year for payment of each separate In-Service Sub-Account in accordance with this Section 3.4(b).
(c) Default Time and Form of Payment. To the extent that a Participant does not designate the time and form of payment of a Sub-Account on a Deferral Election as provided in Section 3.4(a) (or such designation does not comply with the terms of the Plan), the Participant’s deferrals for the applicable Plan Year shall be credited to a Separation Sub-Account and the Participant shall be deemed to have elected that such Sub-Account shall be paid, subject to the provisions of ARTICLE VI, in a single lump sum payable as soon as practicable following the Participant’s Separation from Service.
(d) One Time Initial Payout Elections - Change in Control, Disability and Death.
(i) Change in Control - Single Trigger. To the extent permitted by the Administrator, in its sole discretion, on the initial Deferral Election filed by a Participant under the Plan, the Participant will have the opportunity to elect to receive payment of his or her entire vested Account balance under the Plan in the event of a Change in Control, as soon as practicable following the Change in Control in one of the following forms of payment: (A) a single lump sum payment, or (B) substantially equal annual installments over a period of up to 20 years.
(ii) Change in Control - Double Trigger. To the extent permitted by the Administrator, in its sole discretion, on the initial Deferral Election filed by a Participant under the Plan, the Participant will have the opportunity to elect to receive payment of his or her entire vested Account balance under the Plan in the event of the Participant’s Separation from Service (other than as a result of the Participant’s death) within two years after a Change in Control, as soon as practicable following the Participant’s Separation from Service (but subject to Section 6.2) in
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one of the following forms of payment: (A) a single lump sum payment, or (B) substantially equal annual installments over a period of up to 20 years.
(iii) Disability. To the extent permitted by the Administrator, in its sole discretion, on the initial Deferral Election filed by a Participant under the Plan, the Participant will have the opportunity to elect to receive payment of his or her entire vested Account balance under the Plan in the event the Participant incurs a Disability, as soon as practicable following the Participant’s Disability in one of the following forms of payment: (A) a single lump sum payment, or (B) substantially equal annual installments over a period of up to 20 years.
3.5. Duration and Cancellation of Deferral Elections.
(a) Duration. Once irrevocable, a Deferral Election shall only be effective for the Plan Year with respect to which such election was timely filed with the Administrator. Except as provided in Section 3.5(b) hereof, a Deferral Election, once irrevocable, cannot be cancelled or modified during a Plan Year.
(b) Cancellation.
(i) The Administrator may, in its sole discretion, cancel a Participant’s Deferral Election where such cancellation occurs by the later of the end of the Plan Year in which the Participant incurs a Disability or the 15th day of the third month following the date the Participant incurs a Disability.
(ii) The Administrator may, in its sole discretion, cancel a Participant’s Deferral Election due to an Unforeseeable Emergency or a hardship distribution pursuant to Treasury Regulation Section 1.401(k)-1(d)(3).
(iii) If a Participant’s Deferral Election is cancelled with respect to a particular Plan Year in accordance with this Section 3.5(b), such Participant may make a new Deferral Election for a subsequent Plan Year, as the case may be, only in accordance with Section 3.2 hereof.
3.6. Vesting. Except as otherwise provided by the Administrator with respect to Discretionary Company Credits pursuant to ARTICLE IV, each Participant shall at all times have a fully vested interest in his or her Account.
ARTICLE IV
DISCRETIONARY COMPANY CREDITS
4.1. In any Plan Year, the Administrator, in its sole discretion, may, but shall not be required to, credit Discretionary Company Credits to a Participant’s Account. Such Discretionary Company Credits may include matching contributions and/or non-matching contributions. Such Discretionary Company Credits that are matching contributions may be made to a Participant’s deferrals of Base Salary, Bonus, both, or neither within the sole discretion of the Administrator.
4.2. Except as otherwise may be provided in a vesting schedule established by the Administrator, in its sole discretion, any Discretionary Company Credits, including matching contributions and non-matching contributions, shall vest 25 percent on December 31st of the Plan Year in which the applicable Discretionary Company Credit is made, and an additional 25 percent on each December 31st of the following three Plan Years thereafter.
4.3. Notwithstanding the foregoing, any unvested Discretionary Company Credits credited to a Participant’s Account shall immediately become fully vested upon (a) the date on which the Participant reaches Normal Retirement Age, (b) the Participant’s death, (c) the Participant’s Disability, or (d) involuntary termination of the Participant’s employment within 18 months after a Change in Control.
4.4. Discretionary Company Credits, if any, shall be credited to a Separation Sub-Account and paid in such time and form of payment as determined by the Administrator. Unless otherwise determined by the Administrator at the time of crediting, any Discretionary Company Credits that are matching contributions shall be credited to a Sub-
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Account for payment in same time and form elected by the Participant for deferrals of Base Salary for the same Plan Year to which such matching contributions relate.
ARTICLE V
CREDITING OF GAINS, LOSSES AND EARNINGS TO ACCOUNTS
Each Participant’s Account will be credited with gains, losses and earnings based on notional investment directions made by the Participant in accordance with notional investment crediting options and procedures established from time to time by the Administrator in its sole discretion. The Administrator specifically retains the right in its sole discretion to change the notional investment crediting options and procedures from time to time. By electing to defer any amount under the Plan, each Participant acknowledges and agrees that the Affiliated Group is not and shall not be required to make any investment in connection with the Plan, nor is it required to follow the Participant’s notional investment directions in any actual investment it may make or acquire in connection with the Plan. Any amounts credited to a Participant’s Account with respect to which a Participant does not provide notional investment direction shall be credited with gains, losses and earnings as if such amounts were invested in a notional investment option selected by the Administrator in its sole discretion.
ARTICLE VI
PAYMENTS
6.1. Date of Payment of Sub-Accounts. Except as otherwise provided in this ARTICLE VI, a Participant’s Account shall commence to be paid in accordance with the applicable time and form of payment determined for each Sub-Account pursuant to Section 3.4.
(a) Separation Sub-Account. In general, the vested amounts credited to a Participant’s Separation Sub-Account shall be paid, or commence to be paid, following the Participant’s Separation from Service, at the time and in the form of payment specified by the Participant for such Sub-Account in accordance with Section 3.4(a) hereof.
(b) In-Service Sub-Account. In general, the vested amounts credited to a Participant’s In-Service Sub-Account shall be paid at the time and in the form specified by the Participant for such Sub-Account in accordance with Section 3.4(b) hereof, or if earlier, following the Participant’s Separation from Service.
(c) Calculation of Installment Payments. In the event that a Participant’s vested Sub-Account is paid in installments: (i) the first installment shall commence at the time specified pursuant to Section 3.4(a) or 3.4(b), as applicable; (ii) the amount of each installment shall equal the quotient obtained by dividing the Participant’s vested Sub-Account balance as of the date of such installment payment (or as of such earlier date as may be reasonably determined by the Administrator to facilitate the administration of the Plan) by the number of installment payments remaining to be paid at the time of the calculation; and (iii) the amount of such Sub-Account remaining unpaid shall continue to be credited with gains, losses and earnings as provided in ARTICLE V hereof.
(d) Subsequent Deferral Elections. A Participant may elect, on a form provided by the Administrator in accordance with this Section 6.1(d), to change the time and/or form of payment with respect to one or more of his or her Sub-Accounts to a later time in accordance with this Section 6.1(d) (a “Subsequent Deferral Election”). A Participant may make no more than one Subsequent Deferral Election with respect to each of the Participant’s Sub-Accounts. Any such Subsequent Deferral Election must be filed with the Administrator at least twelve (12) months prior to the date that the Sub-Account would otherwise have been paid under the Plan. On each such Subsequent Deferral Election, the Participant must delay the payment date for a period of at least five (5) years after the date that the Sub-Account would otherwise have been paid under the Plan, except with respect to payment in the event of the Participant’s death.
6.2. Mandatory Six-Month Delay. Notwithstanding any other provision of this Plan to the contrary, in no event may payments triggered by the Separation from Service of a Specified Employee be paid or commence prior
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to the first business day of the seventh month following the Specified Employee’s Separation from Service (or if earlier, within 90 days after the Specified Employee’s death).
6.3. Death of Participant after Separation from Service or Disability. Notwithstanding any other provision of this Plan, in the event of the Participant’s death after (a) the Participant’s Separation from Service for other reasons or (b) the Participant’s Disability, the remaining amount of all of the Participant’s Sub-Accounts shall be paid to the Participant’s Beneficiary or Beneficiaries designated on a Beneficiary Designation Form (or, if no such Beneficiary, to the Participant’s estate) in a single lump sum as soon as administratively practicable following the date of the Participant’s death. A Participant’s Beneficiary Designation Form may be changed at any time prior to his death by the execution and delivery of a new Beneficiary Designation Form. The Beneficiary Designation Form on file with the Administrator that bears the latest date at the time of the Participant’s death shall govern. If a Participant fails to properly designate a Beneficiary in accordance with this Section 6.2, then payment pursuant to this Section 6.2 shall be made to the Participant’s estate.
6.4. Withdrawal Due to Unforeseeable Emergency. A Participant shall have the right to request, on a form provided by the Administrator, to an accelerated payment of all or a portion of the Participant’s vested Account in a lump sum if the Participant experiences an Unforeseeable Emergency. The Administrator shall have the sole discretion to determine whether to grant such a request and the amount to be paid pursuant to such request.
(a) Determination of Unforeseeable Emergency. Whether a Participant is faced with an unforeseeable emergency permitting a payment under this Section 6.4 is to be determined by the Administrator based on the relevant facts and circumstances of each case, but, in any case, a payment on account of an Unforeseeable Emergency may not be made to the extent that such emergency is or may be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant’s assets, to the extent the liquidation of such assets would not cause severe financial hardship, or by cessation of deferrals under the Plan. Payments because of an Unforeseeable Emergency must be limited to the amount reasonably necessary to satisfy the emergency need (which may include amounts necessary to pay any Federal, state, local, or foreign income taxes or penalties reasonably anticipated to result from the payment). Determinations of amounts reasonably necessary to satisfy the emergency need must take into account any additional compensation that is available upon the cancellation of a Deferral Election upon a payment due to an Unforeseeable Emergency. However, the determination of amounts reasonably necessary to satisfy the emergency need is not required to take into account any additional compensation that due to the Unforeseeable Emergency is available under another nonqualified deferred compensation plan but has not actually been paid, or that is available due to the Unforeseeable Emergency under another plan that would provide for deferred compensation except due to the application of the effective date provisions of Section 409A of the Code.
(b) Payment of Account. Any payment on account of an Unforeseeable Emergency shall be made within ninety (90) days following occurrence of the Unforeseeable Emergency, as determined by the Administrator under this Section 6.4.
6.5. Limited Cash-Outs.
(a) In the event of a distribution upon a Participant’s Separation from Service, Death, Disability, or Change in Control, if the amount deferred under the Plan does not exceed $50,000 at the time of distribution, the Participant’s entire vested Account balance shall be distributed in a single lump sum payment, notwithstanding the Participant’s election to the contrary.
(b) The Administrator may, in its sole discretion, require a mandatory lump sum payment of a Participant’s Account if the amount deferred under the Plan does not exceed the applicable dollar amount under Section 402(g)(1)(B) of the Code, provided that sum lump sum payment results in the termination and liquidation of the entirety of the Participant’s interest under the Plan, including all agreements, methods, programs or other arrangements with respect to which deferrals of compensation are treated as having been deferred under a single nonqualified deferred compensation plan under Section 409A of the Code.
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6.6. Discretionary Acceleration of Payments. The Administrator may, in its sole discretion, accelerate the time or schedule of a payment under the Plan to a time or form otherwise permitted under Section 409A of the Code in accordance with the requirements, restrictions and limitations of Treasury Regulation Section 1.409A-3(j); provided that in no event may a payment to a Specified Employee be accelerated following the Specified Employee’s Separation from Service to a date that is prior to the first business day of the seventh month following the Specified Employee’s Separation from Service (or if earlier, within 90 days after the Specified Employee’s death) unless otherwise permitted pursuant to Treasury Regulation Section 1.409A-3(j).
6.7. Discretionary Delay of Payments. The Administrator may, in its sole discretion, delay the time or form of a payment under the Plan to a time or form otherwise permitted under Section 409A of the Code in accordance with the requirements, restrictions and limitations of Treasury Regulation Section 1.409A-2(b)(7).
6.8. Actual Date of Payment. To the extent permitted by Section 409A of the Code, the Administrator, in its sole discretion, may cause any payment under this Plan to be made or commence on any later date that occurs in the same calendar year as the date on which payment otherwise would be required to be made under this Plan, or, if later, by the 15th day of the third month after the date on which payment would otherwise be required to be made under this Plan. Further, to the extent permitted by Section 409A of the Code, the Administrator may delay payment in the event that it is not administratively possible to make payment on the date (or within the periods) specified in this ARTICLE VI, or the making of the payment would jeopardize the ability of the Company (or any entity which would be considered to be a single employer with the Company under Section 414(b) or Section 414(c) of the Code) to continue as a going concern. Notwithstanding the foregoing, payment must be made no later than the latest possible date permitted under Section 409A of the Code.
6.9. Discharge of Obligations. The payment to a Participant (or to his or her Beneficiary or estate) of a Sub-Account in a single lump sum or the number of installments as provided pursuant to this Plan shall discharge all obligations of the Affiliated Group to such Participant (and Beneficiary or estate) under the Plan with respect to that Sub-Account.
ARTICLE VII
ADMINISTRATION
7.1. General. The Administrator shall be responsible for the general administration of the Plan and shall have the full power, discretion and authority to carry out the provisions of the Plan. Without limiting the foregoing, the Administrator shall have full discretion to (a) interpret all provisions of the Plan; (b) resolve all questions relating to eligibility for participation in the Plan and the amount in the Account of any Participant and all questions pertaining to claims for benefits and procedures for claim review; (c) resolve all other questions arising under the Plan, including any factual questions and questions of construction; (d) determine all claims for benefits; and (e) adopt such rules, regulations or guidelines for the administration of the Plan and take such further action as the Company shall deem advisable in the administration of the Plan. The actions taken and the decisions made by the Administrator hereunder shall be final, conclusive, and binding on all persons, including the Company, its members, the other members of the Affiliated Group, Eligible Employees, Participants, and their estates and Beneficiaries. The Administrator may delegate to one or more officers of the Company, subject to such terms as the Administrator shall determine, the authority to administer all or any portion of the Plan, or the authority to perform certain functions, including administrative functions. In the event of such delegation, all references to the Administrator in this Plan (other than such references in the immediately preceding sentence) shall be deemed references to such officers as it relates to those aspects of the Plan that have been delegated.
7.2. Claims Procedure. Any person who believes he is entitled to receive a benefit under the Plan shall make application in writing on the form and in the manner prescribed by the Administrator. If any claim for benefits filed by any person under the Plan (the “claimant”) is denied in whole or in part, the Administrator shall issue a written notice of such adverse benefit determination to the claimant. The notice shall be issued to the claimant within a reasonable period of time but in no event later than 90 days from the date the claim for benefits was filed or, if special circumstances require an extension, within 180 days of such date. The notice issued by the Administrator shall be written in a manner calculated to be understood by the claimant and shall include the following: (a) the specific reason or reasons for any
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adverse benefit determination, (b) the specific Plan provisions on which any adverse benefit determination is based, (c) a description of any further material or information which is necessary for the claimant to perfect his or her claim and an explanation of why the material or information is needed and (d) a statement of the claimant’s right to seek review of the denial pursuant to Section 7.3 below.
7.3. Review of Claim Denial. If a claim is denied, in whole or in part, the claimant shall have the right to (a) request that the Administrator review the denial, (b) review pertinent documents, and (c) submit issues and comments in writing, provided that the claimant files a written request for review with the Administrator within 60 days after the date on which the claimant received written notice from the Administrator of the denial. Within 60 days after the Administrator receives a properly filed request for review, the Administrator shall conduct such review and advise the claimant in writing of its decision on review, unless special circumstances require an extension of time for conducting the review. If an extension of time for conducting the review is required, the Administrator shall provide the claimant with written notice of the extension before the expiration of the initial 60-day period, specifying the circumstances requiring an extension and the date by which such review shall be completed (which date shall not be later than 120 days after the date on which the Administrator received the request for review). The Administrator shall inform the claimant of its decision on review in a written notice, setting forth the specific reason(s) for the decision and reference to Plan provisions upon which the decision is based. A decision on review shall be final and binding on all persons for all purposes, subject to the claimant’s right to bring a civil action under Section 502(a) of ERISA. In the event of such civil action, the claimant shall be prohibited from presenting any evidence not considered by or presented to the Administrator in accordance with the claims procedures hereunder. No cause of action may be brought by a claimant who has received a claim denial later than two years following the date of such claim denial.
ARTICLE VIII
AMENDMENT AND TERMINATION
8.1. Amendment. The Company reserves the right to amend, terminate or freeze the Plan, in whole or in part. In no event shall any such action by the Company adversely affect the vested amount credited to any Participant’s Account, or result in any change in the timing or manner of payment of the amount of any Account (except as otherwise permitted under the Plan, including under Sections 6.4, 6.5, 6.6 and 6.7), without the consent of the Participant, unless the Company determines in good faith that such action is necessary to ensure compliance with Section 409A of the Code. To the extent permitted by Section 409A of the Code, the Administrator may, in its sole discretion, modify the rules applicable to Deferral Elections to the extent necessary to satisfy the requirements of the Uniformed Service Employment and Reemployment Rights Act of 1994, as amended, 38 U.S.C. 4301-4334.
8.2. Payments Upon Termination of Plan. Except as otherwise provided pursuant to Sections 6.5 and 6.6, in the event that the Plan is terminated, the amounts allocated to a Participant’s Sub-Accounts shall be paid to the Participant or the Participant’s Beneficiary, as applicable, on the dates on which the Participant or his or her Beneficiary would otherwise receive payments hereunder without regard to the termination of the Plan.
ARTICLE IX
MISCELLANEOUS
9.1. Non-Alienation of Deferred Compensation. Except as permitted by the Plan, no right or interest under the Plan of any Participant or Beneficiary shall, without the written consent of the Company, be (a) assignable or transferable in any manner, (b) subject to alienation, anticipation, sale, pledge, encumbrance, attachment, garnishment or other legal process, or (c) in any manner liable for or subject to the debts or liabilities of the Participant or Beneficiary. Notwithstanding the foregoing, to the extent permitted by Section 409A of the Code and Sections 6.7 and 6.8 hereof, the Administrator shall honor a judgment, order or decree from a state domestic relations court which requires the payment of part or all of a Participant’s or Beneficiary’s interest under this Plan to an “alternate payee” as defined in Section 414(p) of the Code.
9.2. Compliance with Section 409A of the Code. It is intended that the Plan comply with the provisions of Section 409A of the Code, so as to prevent the inclusion in gross income of any amounts deferred hereunder in a taxable year that is prior to the taxable year or years in which such amounts would otherwise actually be paid or made
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available to Participants (or their Beneficiaries or estates). This Plan shall be construed, administered, and governed in a manner that effects such intent, and the Administrator shall not take any action that would be inconsistent with such intent. Although the Administrator shall use its best efforts to avoid the imposition of taxation, interest and penalties under Section 409A of the Code, the tax treatment of deferrals under this Plan is not warranted or guaranteed. Neither the Company, the other members of the Affiliated Group, nor the Administrator (nor its delegate(s)) shall be held liable for any taxes, interest, penalties or other monetary amounts owed by any Participant, Beneficiary or other taxpayer as a result of the Plan. Any reference in this Plan to Section 409A of the Code will also include any proposed, temporary or final regulations, or any other guidance, promulgated with respect to such Section 409A by the U.S. Department of Treasury or the Internal Revenue Service. For purposes of the Plan, the phrase “permitted by Section 409A of the Code,” or words or phrases of similar import, shall mean that the event or circumstance shall only be permitted to the extent it would not cause an amount deferred or payable under the Plan to be includible in the gross income of a Participant or Beneficiary under Section 409A(a)(1) of the Code.
9.3. Participation by Employees of Affiliated Group Members. Any member of the Affiliated Group that is a direct or indirect subsidiary of the Company may, by action of its board of directors or equivalent governing body and with the consent of the Administrator, adopt the Plan; provided that the Administrator may waive the requirement that such board of directors or equivalent governing body effect such adoption. By its adoption of or participation in the Plan, such adopting member of the Affiliated Group shall be deemed to appoint the Company its exclusive agent to exercise on its behalf all of the power and authority conferred `by the Plan upon the Company and accept the delegation to the Administrator of all the power and authority conferred upon it by the Plan. The authority of the Company to act as such agent shall continue until the Plan is terminated as to the participating affiliate. An Eligible Employee who is employed by a participating member of the Affiliated Group and who elects to participate in the Plan shall participate on the same basis as an Eligible Employee of the Company. The Account of a Participant employed by a participating member of the Affiliated Group shall be paid in accordance with the Plan solely by such member to the extent attributable to the compensation that would have been paid by such participating member in the absence of deferral pursuant to the Plan, unless the Administrator otherwise determines that the Company shall be the obligor.
9.4. Interest of Participant. The obligation of the Company and any other participating member of the Affiliated Group under the Plan to make payment of amounts reflected in an Account merely constitutes the unsecured promise of the Company (or, if applicable, the participating members of the Affiliated Group) to make payments from their general assets, and no Participant or Beneficiary shall have any interest in, or a lien or prior claim upon, any property of Company or any other member of the Affiliated Group. Nothing in the Plan shall be construed as guaranteeing continued employment to any Eligible Employee. It is the intention of the Affiliated Group that the Plan be unfunded for tax purposes and for purposes of Title I of ERISA. The Company may create a trust to hold funds to be used in payment of its and the Affiliated Group’s obligations under the Plan, and may fund such trust; provided, however, that any funds contained therein shall remain liable for the claims of the general creditors of the Company and the other participating members of the Affiliated Group, and no assets shall be transferred to any such trust at a time or in a manner that would cause an amount to be included in the income of a Participant pursuant to Section 409A(b) of the Code.
9.5. Claims of Other Persons. The provisions of the Plan shall in no event be construed as giving any other person any legal or equitable right as against the Company or any other member of the Affiliated Group or the officers, employees or directors of the Company or any other member of the Affiliated Group, except any such rights as are specifically provided for in the Plan or are hereafter created in accordance with the terms and provisions of the Plan.
9.6. Severability. The invalidity and unenforceability of any particular provision of the Plan shall not affect any other provision hereof, and the Plan shall be construed in all respects as if such invalid or unenforceable provision were omitted.
9.7. Governing Law. Except to the extent preempted by federal law, the provisions of the Plan shall be governed and construed in accordance with the laws of the State of Delaware.
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9.8. Successors. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business and/or assets of the Company expressly to assume this Plan. This Plan shall be binding upon and inure to the benefit of the Company and any successor of or to the Company, including without limitation any persons acquiring directly or indirectly all or substantially all of the business and/or assets of the Company whether by sale, merger, consolidation, reorganization or otherwise (and such successor shall thereafter be deemed the “Company” for the purposes of this Plan), and the heirs, beneficiaries, executors and administrators of each Participant.
9.9. Withholding of Taxes. The Employer may withhold or cause to be withheld from any amounts payable under the Plan, or to the extent permitted pursuant to Section 409A of the Code and Section 6.5 of the Plan, from any amounts deferred under the Plan, all federal, state, local and other taxes as shall be legally required to be withheld. Further, the Employer shall have the right to (a) require a Participant to pay or provide for payment of the amount of any taxes that the Employer may be required to withhold with respect to amounts credited to a Participant’s Account under the Plan, or (b) deduct from any amount of Base Salary and/or Bonus or other payment otherwise payable in cash to the Participant the amount of any taxes that the Employer may be required to withhold with respect to amounts credited to a Participant’s Account under the Plan.
9.10. Electronic or Other Media. Notwithstanding any other provision of the Plan to the contrary, including any provision that requires the use of a written instrument, the Administrator may establish procedures for the use of electronic or other media in communications and transactions between the Plan or the Administrator and Participants and Beneficiaries. Electronic or other media may include, but are not limited to, e-mail, the Internet, intranet systems and automated telephonic response systems.
9.11. Headings; Interpretation. Headings in this Plan are inserted for convenience of reference only and are not to be considered in the construction of the provisions hereof. Unless the context clearly requires otherwise, the masculine pronoun wherever used herein shall be construed to include the feminine pronoun.
9.12. Participants Deemed to Accept Plan. By accepting any benefit under the Plan, each Participant and each person claiming under or through any such Participant shall be conclusively deemed to have indicated his or her acceptance and ratification of, and consent to, all of the terms and conditions of the Plan and any action taken under the Plan by the Administrator, the Company and the other members of the Affiliated Group, in any case in accordance with the terms and conditions of the Plan.
IN WITNESS WHEREOF, the Company has caused this Plan to be executed by its undersigned duly authorized officer, to be effective as of March 1, 2019.
SEMTECH CORPORATION

By: | /s/ Emeka Chukwu

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