Dell 2006 Annual Report Download - page 164

Download and view the complete annual report

Please find page 164 of the 2006 Dell annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 176

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176

years of Vesting Service. If the Participant has made any Salary Reduction Contributions to the Plan, such Participant's Service shall not be
disregarded under the immediately preceding sentence."
12. Subsection 7.4(d)(1) of the Plan is hereby amended, as underlined, to be and read as follows:
"(1) With respect to a Participant who terminates employment with the Employer and all Controlled Entities with a Vested Interest in his Employer
Contribution Account that is less than 100% and receives a distribution from the Plan of the balance of his Vested Interest in his Accounts in
the form of a lump sum distribution by the close of the second Plan Year following the Plan Year in which his employment is terminated, the
nonvested portion of such terminated Participant's Employer Contribution Account as of the Valuation Date next preceding his Benefit
Commencement Date shall become a forfeiture as of his Benefit Commencement Date. If the value of a Participant's vested Account Balance
is zero, the Participant shall be deemed to have received a distribution of his or her vested Account Balance and such nonvested portion shall
become a forfeiture as of his or her date of termination of employment with the Employer and all Controlled Entities. However, if such
Participant made any Salary Reduction Contributions to the Plan prior to his or her termination with the Employer and all Controlled Entities,
such Participant shall not be considered nonvested under the Plan and shall not be deemed to have received a distribution of his or her
Account Balance."
13. Subsection 7.4(e) of the Plan is hereby amended, as underlined, to be and read as follows:
"(e) Restoration of Forfeited Account Balance. In the event that the nonvested portion of a terminated Participant's Employer Contribution Account
becomes a forfeiture, the terminated Participant shall, upon subsequent reemployment with the Employer or a Controlled Entity prior to incurring a
Period of Severance of five consecutive years, have the forfeited amount restored to such Participant's Employer Contribution Account, unadjusted
by any subsequent gains or losses of the Trust Fund; provided, however, that such restoration shall be made only if, within five (5) years after the
date the Participant is reemployed, such Participant repays in cash all amounts previously distributed to him from his or her (i) Salary Reduction
Contribution Account (not including earnings on the Participant's Salary Reduction Contributions), and (ii) Employer Contribution Account. A
reemployed Participant who was not entitled to a distribution from the Plan on his date of termination of employment shall be considered to have
repaid a distribution of zero dollars on the date of his reemployment. Any such restoration shall be made as of the Valuation Date coincident with or
next succeeding the date of repayment. Restoration of the Participant's Account Balance includes
6