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EXHIBIT 10.21
SEAGATE TECHNOLOGY
DEFERRED COMPENSATION PLAN FOR CORPORATE OFFICERS
PLAN SUMMARY
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PLAN PURPOSE To provide a tax deferred capital accumulation
opportunity through deferrals of salary and
bonus awards. To provide a competitive benefit
to retain highly compensated employees of
Seagate.
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FIRST PLAN YEAR July 1, 2000 through December 31, 2000.
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SUBSEQUENT PLAN YEARS January 1 through December 31.
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ADMINISTRATION COMMITTEE Appointed Committee (401k).
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ELIGIBILITY FOR PARTICIPATION - A select group of highly compensated
employees including all Vice Presidents, or
equivalent (other high level technical
positions) and above.
- Members of the Seagate Technology Board of
Directors or other companies as specified.
- Newly eligible employees will be notified by
the company of their eligibility and have 60
days to complete their deferral election for
participation in the current Plan year.
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SOURCES OF DEFERRALS - Up to 100% of annual base salary, director
fees, commissions and/or bonuses.
- Minimum election - $5,000 per year of
deferral. Minimum deferral can be satisfied
from salary and/or variable compensation.
- Minimum Deferral for Plan year 2000 is
$2,500.
- The minimum deferral requirement for
participants joining the Plan mid-year
will be pro-rated based upon the number of
months remaining in the Plan year.
- No deferral election shall reduce a
participant's compensation below the amount
necessary to satisfy the following
obligations:
- Applicable employment taxes (e.g., FICA/
Medicare) on amounts deferred.
- Benefit Plan withholding requirements.
- Income tax withholding for compensation
that cannot be deferred.
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DEFERRAL ELECTIONS SALARY OR - For the 2000 Plan year, initial elections
DIRECTOR FEES: must be filed by June 16, 2000 to be
effective beginning with the July 20, 2000
pay date.
- Subsequent elections to be filed by the open
enrollment forms due date of the year prior
to the year the salary or director fees are
paid.
- All deferrals are credited to the Plan year
in which they are paid.
- Newly eligible employees may file an election
within 60 days of date of hire or being
notified by the Company of their eligibility,
otherwise they may elect to defer salary in a
subsequent annual open enrollment.
- Deferrals must be elected for each Plan year.
- Salary or Director Fee deferral elections are
revocable.
BONUS AND COMMISSION:
- For the 2000 Plan year, initial elections
must be filed by June 16, 2000 for bonus and
commissions to be paid in 2000.
- All deferrals are credited to the Plan year
in which they are paid.
- Subsequently, elections are to be filed by
the open enrollment forms due date of the
year prior to the year the bonus and/or
commissions are paid.
- Newly eligible employees may file an election
within 60 days of being notified by the
Company of their eligibility, otherwise they
may elect to defer bonus and commissions in a
subsequent annual open enrollment.
- Deferrals must be elected for each Plan year.
- Bonus and commission deferral elections are
irrevocable.
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SOURCES OF Discretionary Company contributions may be made
COMPANY CONTRIBUTIONS as special incentives or rewards subject to a
vesting schedule specified at the time of
contribution.
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DEFERRAL ACCOUNT Amounts of salary and variable compensation
deferrals will be credited to a participant's
account on the day of payroll deduction.
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INVESTMENT OPTIONS - Participants shall specify that their
Deferral Account be deemed to be invested in
one or more of the benchmark funds available.
- The Company has the right to change the
benchmark funds from time to time.
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- Each year's deferrals may have a separate
investment allocation.
- The net investment earnings credited to the
Deferral Account is the net investment return
of the applicable benchmark funds.
- Investment allocations may be changed daily.
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EARNINGS (LOSSES) CREDITED Credited using daily unit values of the
TO DEFERRAL ACCOUNT applicable benchmark funds selected by the
participant.
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VESTING Employee Deferrals, Company contributions, if
any, and net investment returns credited to
Deferral Accounts will vest as follows:
- Participants will vest immediately in their
own voluntary deferrals.
- Vesting schedules for any Company
contributions will be established by the
Company at the time the contribution is
determined.
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DISTRIBUTION OF ACCOUNT Each year's deferrals and earnings thereon may
BALANCES have a separate distribution schedule.
- A participant may elect to receive that Plan
year's deferrals and earnings thereon either
at termination, January following
termination, or at a specified date while
employed.
- The election to receive payment of a Plan
year's deferrals and earnings thereon at
termination is irrevocable.
TERMINATION/LONG-TERM DISABILITY
In the event of a termination of employment, or
long-term disability (as defined in the
Company's Long-term disability plan), the normal
form of distribution will be a single lump sum.
Participants may elect an optional form of
distribution. The optional forms of distribution
include quarterly installments spanning 5, 10,
or 15 years. The form of distribution (lump sum
or quarterly installments) or commencement date
may be modified with at least one years' advance
notice.
DISTRIBUTION OF ACCOUNT - The form of distribution and commencement
BALANCES (CONTINUED) date elected for termination will apply to
all Plan year's deferrals, except for any
Plan year's election to receive the Plan
year's deferrals and earnings thereon as a
Scheduled In-Service Withdrawal. At the time
of termination, the most recent effective
election (on file for
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one year or longer) will supercede all other
elections and govern the form of termination
distribution payment.
Distributions commence as soon as practicable
after the first day of the month following the
end of the quarter in which the termination
occurs or January following termination as
elected by the participant. Distributions are
taxable when received. Notwithstanding any of
the above, if no election is on file for a
participant or if a participant's Account
balance is $50,000 or less, then the account
will be distributed in a single lump sum.
SCHEDULED IN-SERVICE WITHDRAWALS
- A participant may elect to receive a
distribution from the Plan while still
employed. Each year of deferrals and earnings
thereon may have a separate distribution
schedule.
- A specific distribution commencement year can
be elected, at the time of the deferral
election, as long as the distribution
commencement year elected is a minimum of two
years beyond the end of the deferral Plan
year to which the Scheduled In-Service
Withdrawal election is attached.
- A participant may elect to receive the
distribution in a lump sum payment or in
annual installments over a 2-, 3-, 4-, or
5-year period.
- The form of distribution (lump sum or
annual installments) may be amended up to
one year prior to the elected distribution
commencement date by providing the Company
with written notice on a form to be
provided by TBG Financial.
- Lump sum distributions will be paid in
January of the year specified on the
election form. Annual installment
distributions will commence in January of
the year specified on the election form.
DISTRIBUTION OF ACCOUNT - Notwithstanding the above, if a
BALANCES (CONTINUED) participant's total distribution for a
specific Scheduled In-Service Withdrawal
year is $25,000 or less, payment will be
in the form of a single lump sum.
- The specific distribution commencement year
elected can be changed or postponed to a
later future year with at least one year's
advance notice.
- If a participant terminates employment prior
to the Scheduled Withdrawal Date, that
portion of the participant's Deferral Account
will be distributed on termination of
employment in the form of distribution
previously selected and qualified to receive.
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- If a participant terminates employment in the
midst of receiving scheduled withdrawal
installments, the remaining installments will
be accelerated and paid out according to the
effective termination distribution election
on file.
NONSCHEDULED IN-SERVICE WITHDRAWALS
- These are unplanned distributions.
- Participants may request a Nonscheduled
In-Service Withdrawal of up to 100% of his
or her vested Account balance. 10% of the
requested amount will be forfeited; and
- Participants electing such a distribution
will be ineligible to participate in the
Plan for the balance of the Plan year and
the following Plan year.
- Nonscheduled In-Service Withdrawals must
be approved by Administrative Committee.
HARDSHIP WITHDRAWALS are permitted without
penalty subject to approval by the
Administration Committee but can be granted only
for the following reasons:
- Participant's or dependent's illness or
accident;
- Casualty loss of participant's property;
- Other similar circumstances arising out of
events beyond the control of the participant;
and
Participants electing such a distribution will
be ineligible to participate in the Plan for the
balance of the Plan year and the following Plan
year.
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RABBI TRUST - A Rabbi Trust provides security of the
Deferred Compensation Plan benefits from the
risk of change in control and repudiation.
- The Rabbi Trust receives the participant's
deferrals and invests the cash.
- The Rabbi Trust owns all assets.
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DEATH BENEFIT - If an active participant dies, the Account
balance, including any remaining In-Service
Withdrawal installments and all vested and
unvested Company contributions, will be paid
in a lump sum to named beneficiaries, subject
to ordinary income taxes.
- If a terminated participant receiving
installment distributions dies, the
beneficiary will be paid the remaining
balance as a lump sum.
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RISK OF LOSS All amounts deferred under the Plan and earnings
on these amounts are Company assets. In the
event of the Company's bankruptcy or insolvency,
the rights of Plan participants would be no
greater than those of general unsecured
creditors of the Company.
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PLAN AMENDMENT The Plan may be amended or terminated
at any time, except that no such modification or
termination shall reduce any amounts then
credited to a participant's Account.
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