SEC Filings

10-Q
MEDTRONIC PLC filed this Form 10-Q on 09/01/2017
Entire Document
 


Participant incurs a Termination of Employment prior to the date the Actual Award is to be paid pursuant to Section 5.2 below.

SECTION 5.

PAYMENT OF AWARDS

5.1    Right to Receive Payment. The Company and its Affiliates shall not be required to establish any special or separate fund or to make any other segregation of assets to assure the payment of any amounts under the Plan, and rights to the payment hereunder shall be no greater than the rights of the Company’s unsecured creditors. All expenses involved in administering the Plan shall be borne by the Company and its Affiliates.

5.2    Timing of Payment. A Participant’s Actual Award for a Performance Period shall be paid to him or her in the calendar year in which the Performance Period ends provided that, except as set forth in Section 5.4, the Participant remains employed through the end of the Performance Period. A Participant may, however, elect to defer or exchange some or all of his or her Actual Award under other Company plans in effect at that time applicable to the Participant in accordance with Section 409A of the Code.
5.3    Form of Payment. Except as set forth in Section 5.2, payment of an Actual Award shall be in cash in the form of a lump sum.

5.4    Termination of Employment During Performance Period.

(a)Except as required by applicable law or as otherwise determined by the Committee, if the Participant’s employment is terminated prior to the completion of a Performance Period due to a Restructuring or the Participant’s death, Disability, or Retirement, the Participant (or the Participant’s beneficiary in the case of the Participant’s death) will be entitled to receive (i) if such Participant provides services primarily in the United States, a pro rata portion of the Actual Award for which the Participant otherwise would have been eligible, determined at the end of the applicable Performance Period based upon the portion of the Performance Period the Participant was employed by the Company or Affiliate or (ii) if such Participant provides services primarily in a location other than the United States, a pro rata portion of the Target Award. Such amount, if any, (i) with respect to Participants providing services primarily in the United States, shall be paid at the time Actual Awards are otherwise payable to Participants in the Plan, subject to Section 9.5 of the Plan, or as otherwise determined by the Committee or as required by applicable law (provided, that such amount is in all events paid in the calendar year in which the Performance Period ends) and (ii) with respect to Participants providing services primarily in a location other than the United States, shall be paid in accordance with local payroll processing practices, or as otherwise determined by the Committee or as required by applicable law.

(b)Upon a Termination of Employment prior to the completion of a Performance Period for any reason other than due to death, Disability, Retirement or a Restructuring, the Participant’s Actual Award shall be immediately forfeited, the Participant shall have no further rights thereunder and such individual shall no longer be a Participant in the Plan unless (i) the Participant is otherwise eligible to receive all or a portion of the award pursuant to a severance plan maintained by the Company or Affiliate in which the Participant participates, (ii) payment of all or a portion of the award is required by applicable law or (iii) the Committee otherwise so determines. Except as required by applicable law or as otherwise determined by the Committee, no such payment may exceed the Actual Award for which the Participant otherwise would have been



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