Danisco US Inc. Income Replacement Plan. Summary Plan Description. January 1, 2011

Transcription

1 Danisco US Inc. Income Replacement Plan Summary Plan Description January 1, 2011

2 INCOME REPLACEMENT PLAN SUMMARY PLAN DESCRIPTION TABLE OF CONTENTS Introduction... 1 Eligibility... 2 Enrollment and Contributions... 2 Calculating your Benefit... 3 Vesting and Breaks in Service How Benefits are Paid If You Retire Early If You Retire Late Death Benefits Claims Involving the Plan Benefit Limits Top Heavy Rules Employer Contributions Amendment or Termination of the Plan Assignment of Benefits The Pension Benefit Guaranty Corporation Plan Administration Information Statement of Your Rights under ERISA Glossary of Terms January 2011

3 1. INTRODUCTION This Summary Plan Description ( SPD ) explains benefits for which you may be eligible under the Danisco US Inc. Income Replacement Plan (the Plan ). This SPD is not a contract, nor is it part of the Plan. It is meant to summarize the Plan in easyto-understand language. However, in the event of any ambiguity or inconsistency between this SPD and the Plan Document, the Plan Document will control. The actual Plan Document is available for review during regular business hours at the office of the Plan Administrator at Four New Century Parkway, New Century, KS 66031, or by writing to the Plan Administrator at the same address. This Plan was adopted January 1, 1998 by Genencor International, Inc., which is now known as Danisco US Inc. ( Danisco or the Plan Sponsor ) and certain other participating employers (referred to collectively as the Employer or Employers ) and has been amended on several occasions since that date. This Plan only applies to individuals who are Covered Employees of the participating Employers on or after January 1, 1998 (or, in the case of employees of a participating Employer which adopted the Plan effective as of a later date, on or after that effective date). Danisco US Inc. is pleased to sponsor this Plan for its employees and for the employees of the other participating Employers. This Plan can become a significant part of your retirement preparations and may help you achieve a more secure financial future. However, the Plan is only useful to you if you understand how the Plan works and how best to integrate it with your future financial plans. Please read this SPD carefully. This SPD provides general descriptions about the way the Plan works, and is not meant to cover the wide range of individual circumstances that may arise. Should you have any specific questions about the terms of the Plan or how the Plan applies to your individual circumstances, please contact your Human Resources Representative. If, on the other hand, you have questions about taxes or financial planning, you should talk with your personal tax or financial planner. Your Human Resources Representative cannot assist you with those issues. At various points in this SPD, terms such as Compensation, Annuity, Years of Credited Service, etc. are used with capitalized first letters. These are specifically defined terms that are very important in determining your entitlement to Plan participation and benefits. We recommend you read through the Glossary of Terms section at the back of this SPD and become familiar with the Plan s terminology. 1 January 2011

4 2. ELIGIBILITY You will be eligible to participate as soon as you become a Covered Employee. Basically, a Covered Employee is any employee of an Employer with the following exclusions: Any employee covered by a collective bargaining agreement unless the collective bargaining agreement expressly provides for participation in the Plan; Any employee who is a non-resident alien and does not receive income from the Employer that constitutes income from sources within the U.S.; Leased Employees; any individual who is designated as an intern or cooperative employee or who is on the payroll of an entity other than the Employer; Any foreign national who is not a U.S. citizen or permanent resident, except while such person is (i) working in the U.S. for the Employer and (ii) not eligible to participate in a pension program in his home country; and Anyone not designated as a common-law employee on the Employer s payroll records, even if subsequently determined to have been a common law employee. The Employer s payroll records control your employment classification. Please note that you must be employed by the Plan Sponsor or another participating Employer. If you are employed by an Affiliate which has not adopted the Plan or by any other employer, you are not a Covered Employee If you terminate your employment with the Plan Sponsor or another participating Employer, your active participation in the Plan will end. If you are rehired by the Plan Sponsor or another participating Employer, you will be eligible for participation in the Plan again on the first day you are again a Covered Employee. Likewise, if you cease to be employed in a Covered Employee classification, your active participation in the Plan will end, but you may resume active participation again if you later resume employment in a Covered Employee classification. 3. ENROLLMENT AND CONTRIBUTIONS One of the advantages of the Danisco US Inc. Income Replacement Plan is that you are automatically enrolled as soon as you become a Covered Employee. There are no papers to sign or forms to fill out. The benefit is provided without charge or expense to you and is funded entirely by contributions made by the Plan Sponsor and the other participating Employers. The Employer determines how much of a contribution it should make to the Plan each year by using actuarial assumptions to determine the Plan s expected liability to pay benefits to you and the other Plan Participants and their beneficiaries. Your benefit is determined by a formula which considers your age, years of service and Compensation. Because the Employer wants to reward long-service employees, years of service are very important. However, the Plan Sponsor also realizes that not everyone who joins Danisco will stay until retirement, so it has designed the Plan benefits to be as portable as 2 January 2011

5 possible. Even if you leave before your Normal Retirement Date, you will be able to take with you any accumulated benefits in which you are Vested (see Section 5). 4. CALCULATING YOUR BENEFIT To understand how your benefits accrue and how the formula works, you will need to understand the basic components that go into the formula, as well as how the Plan uses the formula to calculate your benefits. Once you understand how the calculations are performed, you will be able to estimate what your benefits will be at any given point. Actual calculations will be performed by the Retirement Plan Committee or the Plan s actuaries and will be reported to you in your benefit statements. Calculating Age Points Because the Plan is a retirement plan, it is designed to allow your benefit accruals to increase as you get older and closer to retirement. Age Points are the age-related component of the benefit formula. Age Points - Age Points are determined on the last day of each Plan Year (December 31, each year). You are credited with one Age Point for each year of your attained age as of the last day of the Plan Year for which the determination is being made, along with a fractional Age Point for each month (rounded up to the next full month). Example: At the end of this Plan Year, you are exactly 45 years and 6 months old. In Age Points that would equal Example: At the end of this Plan Year, you are exactly 47 years and 2 and 1/2 months old. In Age Points that would equal 47 years and 3 months, or (remember, we round up to the next full month). Calculating Service Points Service Points are the service-related component of the benefit formula, and allow the Plan to reward long-time Covered Employees for their loyalty to the Employer. Actual Service - A Year of Actual Service is a calendar year either before or after the Original Effective Date of the Plan (January 1, 1998), in which you were credited with 2,280 Hours of Service. If a Participant is credited with at least a single Hour of Service in any given calendar month, the Participant is credited with 190 Hours of Service for that month for purposes of determining Actual Service under the Plan, regardless of the number of Hours actually worked. A Participant who is credited with fewer than 2,280 Hours of Service in a given calendar year will be credited with a partial year of Actual Service. A Participant earns one-twelfth of a Year of Actual Service for each month worked as a Covered Employee. You do not earn Actual Service while you are not a Covered Employee. For example, if you change from being a regular employee to being a project employee, you will not earn Actual Service for your time as a project employee. If you start out as a project employee and later become a Covered Employee, you will not receive Actual Service credit for your time as a 3 January 2011

6 project employee, but you will earn Actual Service credit for your time as a Covered Employee. However, you may earn Actual Service for certain periods of time while you are not working due to military leave. The rules governing military leave benefits are complicated, and eligibility for these benefits depends on the type of military service performed, your return to work within statutory time limits after discharge (unless you die or become Disabled while on qualified military service), and compliance with appropriate procedures. You should discuss your individual situation with your Human Resources Representative if you anticipate taking a military leave of absence, or if you have just returned from one. Actual Service may also be accumulated for previous service with the Plan Sponsor s Affiliates or predecessor companies if the Plan specifically permits. Generally speaking, service with an employer before the employer became affiliated with the Plan Sponsor will not be counted, and generally neither will service before your employer became a participating Employer under the Plan (since you cannot become a Covered Employee until your employer is a participating Employer). However, employees of the original participating Employers who adopted the Plan on the Original Effective Date receive Actual Service credit for the time prior to the Original Effective Date when they would have been Covered Employees if the Plan had been in effect. Furthermore, in the circumstances described below, you will be eligible to receive Actual Service for years worked before you joined the Plan Sponsor s group of affiliated corporations. If you were employed by Eastman Kodak Company, Snowmax Technologies, Cultor Ltd. or Genencor, Inc. before January 1, 1995 and you became an employee of the Plan Sponsor on or before January 1, 1995 because of a corporate transaction involving your employer and the Plan Sponsor, your years of service completed prior to January 1, 1995 with those employers will be counted as if you were working for the Plan Sponsor. If you were employed by Royal Gist-Brocades N.V. before June 2, 1995 and you became an employee of the Plan Sponsor on that date because of the corporate transaction involving the Plan Sponsor and Royal Gist-Brocades N.V., your years of service with that employer completed prior to June 2, 1995 will be counted as if you had been working for the Plan Sponsor. If you were employed by Genencor International Indiana, Inc. (formerly known as Solvay Enzymes, Inc.) before July 1, 1996 and became an employee of the Plan Sponsor on July 1, 1996 because of a corporate transaction involving the Plan Sponsor and Genencor International Indiana, Inc., your years of service with that employer completed prior to July 1, 1996 will be counted as if you were working for the Plan Sponsor. If you were employed by Danisco USA Inc. or Finnsugar Bioproducts, Inc. and you became a Plan Participant on January 1, 2007, your years of service with those employers completed before January 1, 2007 will be counted as if you were working for the Plan Sponsor but based on the records of Danisco USA Inc. or Finnsugar Bioproducts, Inc. as of January 1, These entities are some of the entities known as Predecessor Employers, and are the only Predecessor Employers for which Actual Service credit has been granted. Years of Actual Service with these Predecessor Employer will be calculated using the Actual Service formula described above, except for service credit with Danisco USA Inc. and Finnsugar Bioproducts, Inc. If you participated in benefit plans with a Predecessor 4 January 2011

7 Employer other than Danisco USA Inc. or Finnsugar Bioproducts, Inc., you should not assume that your Actual Service under the Plan will be the same as it was under the Predecessor Employer s plans, since those plans may have used different rules to calculate service. If you received predecessor service credit for service with Danisco USA Inc. or Finnsugar Bioproducts, Inc., then your predecessor service credit will be based on those employers records, which may differ from the service credit you would have received under the Plan s rules. You should discuss any particular questions you may have regarding your Actual Service with your Human Resources Representative. Service Points - Service Points, like Age Points, are determined on the last day of the Plan Year (December 31, each year). Service Points are really just your Years of Actual Service, rounded up to the next full month. Example: At the end of the 2010 Plan Year (December 31, 2010) you have been a Covered Employee of Genencor/Danisco since January 1 of During each of those years you were credited with 2,280 Hours of Service. In Service Points you would have thirteen years, or simply 13. Example: At the end of the 2010 Plan Year (December 31, 2010) you have been a Covered Employee of Genencor/Danisco since January 1, 1995, and you have been credited with 2,280 Hours of Service each year. You worked for Eastman Kodak Company prior to January 1, 1995, and moved to Danisco (then known as Genencor International, Inc.) as a result of a corporate transaction between Genencor/Danisco and Eastman Kodak Company. If you had been working for Genencor/Danisco during the years you worked with Eastman Kodak Company, you would have been credited with 10 Years of Actual Service. In Service Points, you have tweny-six years, or simply 26. Remember, service prior to the Original Effective Date of the Plan counts for purposes of calculating Service Points, as does your service with Eastman Kodak Company under these conditions. Calculating Plan Points Plan Points combine Age Points and Service Points to determine the Compensation Percentage that Danisco or other participating Employers will use to calculate your benefit under the Plan. Plan Points - Age Points and Service Points are added to determine Plan Points. AGE POINTS + SERVICE POINTS = PLAN POINTS Here s an example of how a Participant would determine his or her Plan Points, from start to finish: First, you need to figure out your Age Points: Sydney Participant was born on October 1, The last day of the Plan Year (the calculation date) is December 31, The length of time from Sydney s birth date to the calculation date is 65 years and 3 months, or years. 5 January 2011 Therefore, Sydney s Age Points = 65.25

8 Next, you need to figure your Service Points: Sydney s date of hire was January 1, 1990 and Sydney received credit for 2,280 Hours of Service, or a full Year of Actual Service, for each year worked. The last day of the Plan Year (the calculation date) is December 31, The length of time from Sydney s hire date to the calculation date is 30 years. Therefore, Sydney s Service Points = 30 Finally, to get your Plan Points, you need to add your Age Points and Service Points together, which will equal your Plan Points. Sydney s Plan Points are calculated as follows: Age Points = Plus Service Points = 30 Therefore, Sydney s Plan Points = You need to perform the above calculation for each year you were in the Plan (starting with the Plan Year beginning January 1, 1998 or the Plan Year in which you became a Covered Employee, whichever is later) until your effective date of retirement. (A Year of Actual Service commencing on or after January 1, 1998 is also a Year of Credited Service. ) In the above example, Sydney would need to figure out the Plan Points for each year from January 1, 1998 through the assumed retirement date of December 31, Your Plan Points will include your pre-1998 service (January 1, December 31, 1997 for Sydney) if that service is included in your Service Points (see the explanation of how Actual Service is calculated to determine if your pre-1998 service qualifies), but you will not need to determine your Plan Points for years before the Plan s Original Effective Date. 6 January 2011

9 Let s continue on with our Sydney example and determine what the Plan Points would be for each year from the Plan s Original Effective Date (January 1, 1998) to the calculation date: AGE POINTS+ SERVICE POINTS = PLAN POINTS Year Age Points Service Points Plan Points January 2011

10 Calculating Your Compensation Percentage After you have calculated your Plan Points there are several other steps you need to complete in order to calculate your benefit. The very next step is to take your Plan Points and determine which Point Bracket you fall into for each year since the Original Effective Date of the Plan. Point Brackets give you a Compensation Percentage that you will need to calculate your benefit. The brackets are as follows: If Your Plan Points Are: Your Compensation Percentage Is: < 40 5% per year At least 40 and < 50 At least 50 and < 60 6% per year 7% per year 60 and over 8% per year However, if you received credit for only a partial Year of Credited Service in any Plan Year, your Compensation Percentage for that Plan Year must be reduced by multiplying the Compensation Percentage that you would have received for a full Year of Credited Service by a fraction representing the portion of the Year of Credited Service for which you received credit. Example: You are credited with 1/2 a Year of Credited Service in Plan Year Your Plan Points for that Plan Year total 55.45, so you would ordinarily receive a 7% Compensation Percentage. However, because you only received credit for 1/2 a Year of Credited Service, that 7% is multiplied by 1/2, for an actual Compensation Percentage of 3.5%. If you have never completed a full Year of Credited Service, special rules apply for determining whether or not your Compensation Percentage will be reduced. Contact your Human Resources Representative for more information. 8 January 2011

11 Determining Your Cumulative Compensation Percentage After compiling your Plan Points, you assign a Compensation Percentage for each Plan Year based on the above chart. Continuing with our Sydney example, the process thus far would look like this: Year Plan Points Earned Compensation Percentage % % % % % % % % % % % % % % % % % % % % % % The next step is to add your Compensation Percentages for each year and come up with a total, your Cumulative Compensation Percentage. In our example, the total would be: 172% 9 January 2011

12 Again, it is important to understand that the service you performed before the Original Effective Date of the Plan (in our Sydney example, service since January 1, 1990 through December 31, 1997) may be counted when calculating your Service Points, which will increase the number of your Plan Points for each year and therefore increase your Compensation Percentage. (See the explanation of Years of Actual Service to determine whether your pre-1998 service counts for this purpose). However, you never include Compensation Percentages for years prior to the Original Effective Date in calculating your Cumulative Compensation Percentage. Calculating Average Annual Earnings Now, you only need one more piece of information to be able to calculate your benefit under the formula. This section explains how you determine the final, compensation-based component of the benefit calculation formula. Compensation - For purposes of this Plan, your Compensation means the amount reported on your Form W-2 during the Plan Year for services as a Covered Employee, excluding any amount in excess of the annual dollar limit (see below). Your Compensation will include Salary Deferral Contributions under the Danisco US 401(k) Plan and your contributions under an Employer s cafeteria and flexible benefits plans (including contributions that you make in this fashion to a health savings account), but will not include compensation received as an expense reimbursement or allowance (including moving expenses), fringe benefit, deferred compensation or welfare benefit or as a special miscellaneous individual bonus. Although your Compensation may include certain payments made after your termination of employment if they otherwise qualify and are made within specified time limits, your Compensation will never include severance pay. The total Compensation that may be included each year for Plan purposes is limited by law. For 2011, Plan Compensation is limited to $245,000. The limit may be increased by the IRS in future years for changes in the cost of living. This limit means that if your Compensation is more than $245,000, your benefit will be calculated as if your Compensation were only $245,000. It is important to bear in mind that this $245,000 limit was lower in previous years, so your benefit accruals would have been lower during those years if your Compensation is affected by this limit. If you are planning to take or have recently returned from a military leave, contact your Human Resources Representative for information about the impact of your leave on your Plan benefits. Credited Service - A Year of Credited Service is calculated in the same manner as a Year of Actual Service, except that only Plan Years beginning on or after the Original Effective Date of the Plan (January 1, 1998) are counted. Example: You begin work as a Covered Employee on June 1, On December 31, 1998 (the calculation date) you have earned seven months of Credited Service. Example: You begin working as a Covered Employee on January 1, You were credited with 2,280 Hours of Service during each of your full years. On December 31, 2000 (the calculation date) you have earned three Years of Credited Service. 10 January 2011

13 Remember, service before the Plan s Original Effective Date of January 1, 1998 doesn t count as Credited Service. Average Annual Earnings - The term Average Annual Earnings means your annual Compensation averaged over the five consecutive Years (or partial Years) of Credited Service in which you were paid the highest Compensation during the ten year period ending with the Plan Year including the date for which your Average Annual Earnings are being determined. If you ve completed at least one but fewer than five Years of Credited Service, your Average Annual Earnings will be computed using your actual number of Years of Credited Service, although a partial Year of Credited Service in which you earned as much or more Compensation as you did during a full Year of Credited Service will be counted as a full Year of Credited Service. If you have not completed at least one full Year of Credited Service, your Average Annual Earnings will be your Compensation for the partial Year of Credited Service in which your Compensation was highest. Using the facts in our Sydney example, the ten-year period ending with the Plan Year including the determination date (December 31, 2019) would be Suppose that Sydney s Compensation for those years looks like this: Year Compensation 2010 $35, $37, $40, $43, $48, $55, $60, $65, $70, $75,000 The five consecutive Years of Credited Service for which Sydney s Compensation was highest are That means that Sydney s Average Annual Earnings = $65,000 (($55,000 + $60,000 + $65,000 + $70,000 + $75,000)/5 = $65,000). Performing the Calculation 11 January 2011

14 The final calculation under the benefit formula is: AVERAGE ANNUAL EARNINGS X CUMULATIVE COMPENSATION PERCENTAGE (%) = VALUE OF YOUR PENSION BENEFIT Remember that in our Sydney example, Average Annual Earnings were $65,000 and the Cumulative Compensation Percentage was 172%. The calculation would be as follows: $65,000 AVERAGE ANNUAL EARNINGS x 172% CUMULATIVE COMPENSATION PERCENTAGE (%) $111,800 VALUE OF YOUR PENSION BENEFIT Therefore, the value of Sydney s pension benefit on December 31, 2019 would be $111,800. Summary and Important Additional Information The calculation process can seem a bit overwhelming, but it really involves only a few simple steps and very basic math. To summarize, those steps are: 1) Determine Your Age Points 2) Determine Your Service Points 3) Determine Your Plan Points 4) Determine Your Compensation Percentage For Each Plan Year 5) Determine Your Cumulative Compensation Percentage 6) Determine Your Average Annual Earnings 7) Perform the Calculation And Determine Your Estimated Benefit In no event shall your benefit be less than the amount of your benefit at the end of the prior Plan Year increased by 5%. This means that if you are a vested participant when you leave Danisco, your benefit will keep increasing by 5% annually until you take a distribution. You may elect to have your benefit paid in the form of a Lump Sum or in the form of an Annuity (married Participants must obtain spousal consent to obtain benefits in any form other than a Joint and Survivor 50% Annuity). If you elect to receive an Annuity, the value of your pension benefit ($111,800 in our Sydney example) will be converted into an Annuity using actuarial factors set forth in the Plan document. The payment option that you pick will affect the amount of the payment(s) made to you from the Plan. See Section 6 for more details. If you terminate employment and are later re-employed by an Employer, your Actual Service and Credited Service from your previous employment will be ignored if you received a Lump Sum distribution. If you received Annuity payments, your benefit will generally be reduced to reflect any distributions made to you before you returned to reemployment. 12 January 2011

15 Your benefits may also be subject to limits imposed by law. Conversely, some Participants have been granted supplemental benefits under the Plan. You will be notified if you are entitled to any additional benefits under the Plan under one of these special provisions. Your benefits may be offset for duplicative benefits paid under another defined benefit pension plan maintained by the Employer. Finally, the amount of your Lump Sum or your Annuity payment will be affected by the timing of your benefit commencement. For example, if you terminate employment but delay commencing payments, your benefit will continue to grow at 5% per Plan Year, resulting in a larger payment. Likewise, if you elect to be paid in the form of an Annuity, waiting until you are older will generally result in a larger monthly Annuity payment, because your life expectancy (and hence the anticipated duration of payment) will be shorter. Because of these variables (discussed in more detail later in this SPD) and other factors, the actual amount paid to you from the Plan may not be the same as the benefit amount that you are able to estimate using the calculation guidelines in this section. It is important for you to obtain accurate and up-to-date benefit information from the Employer before you begin making plans about your benefits. 5. VESTING AND BREAKS IN SERVICE During your employment with Danisco or with any other Affiliate, you will be credited with service for vesting purposes under the Plan. Vesting Service is used to determine your right to collect a benefit from the Plan after you terminate employment. If you terminate your employment with Danisco and its Affiliates before you are Vested, you will not be entitled to receive any benefits from the Plan. How To Become Fully Vested You become fully Vested in your Plan benefits if you are employed by the Plan Sponsor or its Affiliates upon reaching your Normal Retirement Age, upon your death, or upon incurring a Disability. In addition, if you are employed by Danisco or an Affiliate on or after January 1, 2008, after three Years of Vesting Service, you are 100% Vested, which means you have complete ownership of any accumulated Plan benefits to which you may be entitled. If, after becoming fully Vested, you decide to leave the employ of Danisco or any other participating Employer, you have a full right to receive your benefits, either in the future when you retire, or immediately. Until January 1, 2008, the Plan required five Years of Vesting Service for a Participant to become 100% Vested. If you left employment with Danisco and its Affiliates before January 1, 2008, you were 100% Vested if you had completed at least five Years of Vesting Service, or if you terminated employment on or after reaching Normal Retirement Age or due to your death or Disability. If you were not Vested and you are subsequently reemployed, the new three-year vesting schedule will apply to any benefits you earn after reemployment, and to any of your previous benefits which you are entitled to have restored because you were reemployed before incurring five consecutive Breaks in Service (see below). Calculating Vesting Service Vesting Service is calculated differently than Actual Service and Credited Service. A Year of Vesting Service is any Plan Year (and any calendar year prior to the Plan s Original Effective Date) in which you are credited with 1,000 Hours of Service for work for the Plan Sponsor or its 13 January 2011

16 Affiliates. Vesting Service is credited for periods of employment with the Plan Sponsor and its Affiliates whether or not you are a Covered Employee and even if you are a Leased Employee. Although service with an employer before the employer became affiliated with the Plan Sponsor generally will not be counted, you will be eligible to receive Vesting Service for years worked before you joined the Plan Sponsor s group of affiliated corporations in the circumstances described in the next subsection, Credit for Service With Predecessor Employers. Credit For Service With Predecessor Employers If you were employed by Eastman Kodak Company, Snowmax Technologies, Cultor Ltd. or Genencor, Inc. before January 1, 1995 and you became an employee of the Plan Sponsor on or before January 1, 1995 because of a corporate transaction involving your employer and the Plan Sponsor, your years of service completed prior to January 1, 1995 with those employers will be counted as if you were working for the Plan Sponsor. If you were employed by Royal Gist-Brocades N.V. before June 2, 1995 and you became an employee of the Plan Sponsor on that date because of the corporate transaction involving the Plan Sponsor and Royal Gist-Brocades N.V., your years of service with that employer completed prior to June 2, 1995 will be counted as if you had been working for the Plan Sponsor. If you were employed by Genencor International Indiana, Inc. (formerly known as Solvay Enzymes, Inc.) before July 1, 1996, and became an employee of the Plan Sponsor on July 1, 1996 because of a corporate transaction involving the Plan Sponsor and Genencor International Indiana, Inc., your years of service with that employer completed prior to July 1, 1996 will be counted as if you were working for the Plan Sponsor. If you were employed by Enzyme Bio-Systems Ltd., Corn Products International, Inc., any subsidiary of Corn Products International, Inc., or any predecessor of Corn Products International, Inc. or such predecessor s subsidiaries before February 5, 2002, and you were an employee of Enzyme Bio-Systems Ltd. on February 5, 2002 and a Participant on April 6, 2002, your years of service with those employers completed before February 5, 2002 will be counted as if you were working for the Plan Sponsor. If you were employed by Danisco USA Inc. or Finnsugar Bioproducts, Inc. and you became a Plan Participant on January 1, 2007, your years of service with those employers completed before January 1, 2007 will be counted as if you were working for the Plan Sponsor but based on the records of Danisco USA Inc. or Finnsugar Bioproducts, Inc. as of January 1, If you were employed by Agtech Products, Inc. on October 31, 2008 and you became a Plan Participant on January 1, 2009, your years of service with that employer completed before January 1, 2009 will be counted as if you were working for the Plan Sponsor but based on the records of Agtech Products, Inc. as of January 1, Years of Vesting Service with a Predecessor Employer will be calculated using the Vesting Service formula described above, except for service credit with Danisco USA Inc., Finnsugar Bioproducts, Inc. and Agtech Products, Inc. If you participated in benefit plans with a Predecessor Employer other than Danisco USA Inc., Finnsugar Bioproducts, Inc. and Agtech Products, Inc. you should not assume that your Vesting Service under the Plan will be the same as it was under the Predecessor Employer s plans, since those plans may have used different rules to calculate vesting service. If you received predecessor service credit for service with 14 January 2011

17 Danisco USA Inc., Finnsugar Bioproducts, Inc. and Agtech Products, Inc., then your predecessor service credit will be based on those employers records, which may differ from the service credit you would have received under the Plan s rules. Contact the Retirement Plan Committee to confirm the Years of Vesting Service credited to you. Breaks In Service If you are eligible for a Vested pension under this Plan and you then incur a Break in Service (a Plan Year in which you are not credited with more than 500 Hours of Service) but are eventually reemployed, you will receive credit for all Vesting Service earned prior to the Break in Service. If you are not eligible for a Vested pension under this Plan and you incur a Break in Service, Vesting Service will be disregarded if the number of consecutive one-year Breaks in Service when you are reemployed equals or exceeds the greater of (i) five or (ii) the number of your prior Years of Vesting Service. If you have five consecutive one-year Breaks in Service, subsequent Vesting Service is disregarded in determining your Vested interest in the benefit accrued before the Breaks in Service. Example: When you terminate employment, you have a benefit worth $15,000 and two Years of Vesting Service, meaning that your entire benefit is forfeited. You then return to work for an Employer 7 years later. Your original $15,000 is not restored. Example: You terminate employment with a $15,000 benefit and two Years of Vesting Service. You return to work for an Employer two years later. Your $15,000 benefit is restored. You continue to work for the Employer, and accrue an additional $10,000 in benefits and earn one more Year of Vesting Service. You are fully Vested in the entire $25,000 benefit at the end of that third Year of Vesting Service. The above examples assume that you terminate employment prior to reaching your Normal Retirement Age and that you do so for some reason other than death or Disability. Other Special Rules There are also other unique provisions that apply to Vesting Service, such as: If you are transferred to a class of employment which is ineligible for participation in this Plan (meaning that you cease to be a Covered Employee), but you remain employed by an Affiliate, you will continue to earn Vesting Service, even though you will not be credited with Actual Service or Credited Service. If you are transferred from an ineligible class of employment to an eligible class (meaning that you become a Covered Employee) you will receive credit for vesting based on your prior service, even though you will not receive any credit for Actual Service or Credited Service purposes. If you are absent due to military service which entitles you to reemployment rights under any federal or state regulation, and you return to service with an Employer or Affiliate prior to the expiration of those reemployment rights, your vesting service will accrue as if you had not experienced a Break in Service. If, however, you do not return within the allotted time frame afforded you under the applicable reemployment rights regulation, you will be treated as if you had quit on the first day of any absence for military service. (There is an exception if you die or become Disabled while on qualified military service; in those circumstances, you 15 January 2011

18 will be treated as if you had died or become Disabled while actively employed, your benefit will be considered fully Vested, just as if you had died or become Disabled while working for the Employer, and you will be entitled to the make-up benefit accruals you would have received if you had actually been reemployed.) The rules governing military leave benefits are complicated, and eligibility for these benefits depends on the type of military service performed, your return to work within statutory time limits after discharge, and compliance with appropriate procedures. You should discuss your individual situation with your Human Resources Representative if you anticipate taking a military leave of absence, or if you have just returned from one. If you are absent from work due to a maternity or paternity leave, you may be eligible to receive credit for up to 501 Hours of Service in the year your absence begins or the following year, solely for the purpose of preventing you from incurring a Break in Service. You should contact your Human Resources Representative for more information if you are considering taking such a leave, or if you have just returned from one. Example: You are credited with 300 Hours of Service during the course of a Plan Year before you leave for a qualifying maternity or paternity leave. You will receive credit for 201 Hours of Service for purposes of preventing a Break in Service that year. Those Hours of Service will not count for any other purpose. Unless otherwise disregarded (e.g. if you have incurred five consecutive Breaks in Service), Years of Vesting Service prior to the Original Effective Date of this Plan shall be taken into account. Summary Vesting is an important concept for you to understand. Again, vesting determines when you have rights to the benefits provided to you under the Plan. Once you are fully Vested (typically after three Plan Years (five, prior to January 1, 2008) during which you were credited with 1,000 Hours of Service, but also upon reaching Normal Retirement Age or your date of death or Disability while you are still employed by the Plan Sponsor or an Affiliate) you have earned a benefit under this Plan. Until that occurs, you are not entitled to any benefits under the Plan. 6. HOW BENEFITS ARE PAID There are basically four ways that your benefits can be paid. Remember, you must be Vested before you are eligible to receive any benefits under the Plan. The four payment options are as follows: Life Annuity - which pays your benefits in regular monthly installments for the balance of your lifetime. Joint and Survivor 50% Annuity payable if you are married as of your Annuity Starting Date. This option provides a reduced monthly benefit for the balance of your life, but then provides 50% of that reduced monthly benefit to your spouse, if he or she survives you, for the balance of his or her life. This method of payment allows you to provide for your spouse in the event of your death. However, because benefits are potentially payable over the lives of two persons (you and your spouse), the monthly benefit payments are less than what you would receive if you elected the Life Annuity. Even if your spouse dies before you do, your monthly benefit will continue to be paid in the reduced amount, and will not increase to the level that would be payable under a Life Annuity. Only the person who was your spouse on your Annuity 16 January 2011

19 Starting Date (or a former spouse entitled to survivor benefits under a Qualified Domestic Relations Order in effect on that date) will be able to receive the survivor benefits under this Annuity; you cannot substitute a new spouse if that spouse dies and you re-marry, nor can you revoke your spouse s survivor benefits or substitute a different spouse if you get divorced. Joint and Survivor 75% Annuity payable if you are married as of your Annuity Starting Date. This option provides a reduced monthly benefit for the balance of your life, but then provides 75% of that reduced monthly benefit to your spouse, if he or she survives you, for the balance of his or her life. This method of payment allows you to provide for your spouse in the event of your death. However, because benefits are potentially payable over the lives of two persons (you and your spouse), the monthly benefit payments are less than what you would receive if you elected the Life Annuity. In addition, since your spouse s survivor benefit is larger than the survivor benefit under the Joint and Survivor 50% Annuity, your lifetime monthly payment will be lower than your lifetime monthly payment under the Joint and Survivor 50% Annuity. Even if your spouse dies before you do, your monthly benefit will continue to be paid in the reduced amount, and will not increase to the level that would be payable under a Life Annuity. Only the person who was your spouse on your Annuity Starting Date (or a former spouse entitled to survivor benefits under a Qualified Domestic Relations Order in effect on that date) will be able to receive the survivor benefits under this Annuity; you cannot substitute a new spouse if that spouse dies and you re-marry, nor can you revoke your spouse s survivor benefits or substitute a different spouse if you get divorced. Lump Sum - provides payment in a single installment. As required by federal law, you will not be able to select any option other than the Joint and Survivor 50% Annuity if you are married on your Annuity Starting Date (subject to the $1,000 cash-out rule described below), unless your spouse consents in writing to another form of payment and his or her signature on the election form is notarized or witnessed by a Plan representative. Spousal Rights You will receive a written explanation of the Joint and Survivor 50% Annuity. That explanation will provide you with information about: The terms and conditions of the Joint and Survivor 50% Annuity; Your right to waive the Annuity and the effects of such a waiver; The rights of your spouse under this method of payment and the requirements that you must satisfy in order for your spouse s consent to a waiver of the Joint and Survivor 50% Annuity to be valid; Your right to revoke a previous waiver of the Joint and Survivor 50% Annuity and the effect of revoking such a waiver. You will also be furnished with a general description of the eligibility conditions that must be satisfied to obtain payment in this form or any of the other forms and sufficient information to explain the value of this particular form of benefit relative to the other forms of benefit. Generally, the explanation of your benefits must be provided no more than one hundred and eighty days and no less than thirty days prior to the Annuity Starting Date. You may waive the thirty-day waiting period by requesting earlier commencement, although benefits cannot commence before the eighth day after you receive the notice even if you have requested a waiver of the waiting period, and can only commence on the first day of a month. You may be 17 January 2011

20 permitted to elect to commence benefits retroactively (but your retroactive commencement date cannot be earlier than the first date you would be eligible for benefits). If you want more information about retroactive commencement, contact the Retirement Plan Committee. In order to be entitled to these special spousal rights, your spouse must be legally married to you, and under current federal law, must be of the opposite gender. If you have a domestic partner, same-gender spouse or other person for whom you want to provide in the event of your death, you should discuss the financial planning options available to you if you take a Lump Sum with your tax or financial adviser. Mandatory Cash-Out and Consent Rules If, when your employment terminates, the present value of your benefit is $1,000 or less, you will be paid in a Lump Sum as soon as practicable after your termination. The Plan does not need to obtain consent from you or your spouse to make payment in these circumstances. The Plan also does not need your consent to make a distribution to you once you have reached Normal Retirement Age. If the present value of your benefit exceeds $1,000, payment will not be made prior to your Normal Retirement Age unless you consent, and you will be able to choose the payment option that is best for you by completing an election form (supplied by the Plan) and submitting the election form (with any required spousal consent) prior to your proposed distribution date. This election form must be provided to you no earlier than 180 days prior to your proposed distribution date. If no special option or election form is submitted before your Normal Retirement Date, your retirement benefit will be paid as a Joint & Survivor 50% Annuity if you are married, or as a Life Annuity if you are not married. You may not change the form in which your benefits are paid after the Annuity Starting Date. Required Minimum Distributions Under federal law, distribution of benefits must begin by the later of: The Participant s termination of employment with the Employer, or The first day of April following the calendar year in which the Participant attains age 70½. This is known as your Required Beginning Date. If you are a 5% owner of the Employer (as defined by federal tax law), the Required Beginning Date is the first day of April following the calendar year in which you attained age 70½, even if you have not yet terminated employment. Missing Payees If the Retirement Plan Committee, after making reasonable efforts, cannot locate you (or your surviving spouse or other beneficiary, if you have died) at the time that benefits become payable, your benefits will be held in the Plan until the proper payee can be located. Failure to commence your distributions by your Required Beginning Date or interruptions in your scheduled payments may cause you to be liable for federal excise taxes. The same tax penalties may apply if your spouse or other beneficiary fails to commence distribution within a certain period of time after your death or fails to receive scheduled payments. You are responsible for keeping the Retirement Plan Committee supplied with current address information. 18 January 2011

21 Restrictions on Distributions to Highly-Compensated Employees If you are or were one of the 25 most highly-compensated employees in Danisco s group of affiliated corporations, your ability to obtain benefits in the form of a Lump Sum may be restricted. The Employer will inform you at the time that you request a Lump Sum distribution if this limitation applies to you. In addition, in the event that the Plan fails to satisfy certain funding thresholds, your ability to receive payment in the form of a Lump Sum may be restricted, even if you are not a highly compensated employee. You will be informed if these restrictions become applicable to the Plan. Effect of Re-employment If you terminate your employment and are later re-employed by an Employer, you will begin accruing new benefits for your new period of employment, but your Credited Service and Actual Service from the earlier employment period on account of which you had already received a complete distribution of your benefits (i.e., Lump Sum) will be ignored when calculating your new benefits. If you did not receive a Lump Sum after termination of your first period of employment, your Credited Service and Actual Service from that first period of employment will continue to be credited towards your total Plan benefit, subject to the rules for service credit described in Section 4. If you were receiving an Annuity from the Plan when you returned to employment, your Annuity payments will generally be suspended unless you are credited with less than 40 Hours of Service during a particular month. Your benefit amount will be determined taking all of your Credited Service and Actual Service into account but the final benefit due to you (or, if you have died before payments begin, your spouse or other beneficiary) will be reduced to reflect the payments made to you before your return to re-employment and in some cases may also be actuarially adjusted on account of the suspension period. Your monthly payment when distributions begin again will not be less than the payment you were receiving before your reemployment. If you die following your re-employment while still employed by the Employer, your spouse or other beneficiary will be entitled to receive death benefits pursuant to Section 9 as if you had died before your Annuity Starting Date. If you were receiving Annuity payments under a Joint & Survivor 50% Annuity or Joint & Survivor 75% Annuity prior to your re-employment and if you die while payments are still suspended, your spouse will also be entitled to receive the survivor payments due under that Annuity. The death benefits payable to your spouse or other beneficiary will be subject to the rules described in the previous paragraphs, so that the total amount payable from the Plan will be adjusted as necessary to ensure that benefits payments are not duplicated. Tax Consequences Benefit distributions from the Plan are generally taxable as ordinary income. If you elect to receive a Lump Sum distribution, you can usually defer tax on the entire amount by rolling your distribution into another qualified plan, 403(b) plan, governmental 457(b) plan, traditional IRA or Roth IRA. The Plan must withhold 20% of any portion of your Lump Sum distribution that you do not directly roll over into an IRA or another qualified plan for federal income tax payment. If you decide to make a rollover after receiving a distribution, you must complete the rollover within 60 days, and you will have to make payment of the 20% withholding amount from other 19 January 2011