Severance Policy for Executive Employees

EX-10.J 3 c93140exv10wj.htm SEVERANCE POLICY FOR EXECUTIVE EMPLOYEES exv10wj
 

Exhibit 10.j.

Severance Policy for Executive Employees

Three-Tiered Structure

                 
 
   •   Tier I:       12 months of “pay”
            — CEO and President
            — Direct Reports to CEO and President
 
   •   Tier II:       9 months of “pay”
            — Other Elected “Form 4” Corporate Officers
 
   •   Tier III:       6 months of “pay”
            — Other Direct Reports to Tier I Employees
                 
Form of Delivery: One 3-year rolling (“top hat”) plan
               
    •   Severance Benefit:
            — Tier I: 12 months of base pay and target bonus
            — Tier II: 9 months of base pay and target bonus
            — Tier III: 6 months of base pay and target bonus
    •   Benefit Trigger: Involuntary termination without cause or voluntary
        termination for good reason. (Note: “Cause” and “good reason” as defined in the CIC
        contracts)
    •   Payout Timing: Continuation of pay
    •   Annual Bonus: Pro rata target payout
    •   Long-Term Incentives: Unvested grants forfeited
    •   Retirement Benefits: Per plans; no enhancement
    •   Health Benefits: Continued at same employee cost and coverage level for
        18 months, for all tiers (i.e., COBRA)
    •   Restrictive Covenants: Noncompete and nonsolicitation (length to match
        severance period) and confidentiality
    •   Waiver: Required for benefit commencement/continuation
    •   Outplacement: Defined/provided via separate company policy