FINOVA Group Inc. Severance and Benefits Letter Agreement with Jeffrey D. Weiss (February 20, 2006)
This agreement between FINOVA Group Inc. and Jeffrey D. Weiss outlines a 4% salary increase effective March 1, 2006, and details severance benefits if Weiss is involuntarily terminated (not for cause or performance). Severance pay is based on years of service, with additional weeks awarded for past contributions. The company will pay COBRA premiums for a set period, provide career counseling, and offer financial planning and health benefits upon termination. If Weiss remains employed through January 1, 2008, accrued severance will be paid by March 15, 2008. Voluntary resignation or termination for cause voids these benefits.
Exhibit 10.P.8
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| FINANCIAL INNOVATORS |
| THE FINOVA GROUP INC. |
| 4800 N. SCOTTSDALE ROAD |
| SCOTTSDALE, AZ ###-###-#### |
| TEL ###-###-####/ 800 7FINOVA |
| INTERNET www.finova.com |
February 20, 2006
Dear Jeffrey Weiss,
This letter includes information about the 2006 cost of living increase and restates your severance benefits.
Salary
Effective March 1, 2006 your salary will be increased by a 4% cost of living adjustment.
Base Severance
| 1) | Base severance - in the event you are involuntarily terminated for reasons other than cause or performance, you will be eligible to receive severance pay in a lump sum, less applicable taxes, equal to 4 weeks for each full year of service prorated for partial years with a minimum of 52 weeks and a maximum of 78 weeks of base salary. As of this writing your severance, your base severance is equal to 66.72 weeks. |
Additional Severance
| 2) | In recognition of your contribution during 2003, in addition to the base severance pay detailed in (1) above, you were given another 17.96 weeks of severance. |
| 3) | In recognition of your contribution during 2004, in addition to the base severance pay detailed in (1) and the additional severance detailed in (2) above, you have been awarded another 18.25 weeks of severance. |
| 4) | In recognition of your contribution during 2005, in addition to the base severance pay detailed in (1) and the additional severance detailed in (2) and (3) above, you have been awarded another 16.32 weeks of severance. |
You may have the opportunity to be awarded additional severance weeks for future years. Those awards are discretionary and based upon the criticality of your position and your performance.
The total of your base and additional severance weeks may exceed the 78-week maximum stated in (1) above.
Funding for the payment of severance is secured in the FINOVA Severance Trust.
Since the task of liquidating the portfolio cannot be forecast precisely, it is difficult to predict our staffing needs, but every effort will be made to give you at least 30 days notice of your termination date.
COBRA
The Company will pay COBRA premiums for medical, dental and vision on your behalf for a period of time equal to the number of weeks of your base severance pay (item (1) above), rounded to the next whole month with a minimum of 12 months up to a maximum of 18 months. You must be a participant in the Plans at the time you are terminated and enroll in COBRA by sending the enrollment material to Aetna COBRA Administration to receive these benefits. The additional severance weeks granted to you for 2003, 2004 and 2005 in items (2), (3) and (4) above will not be eligible for Company paid COBRA premiums nor will any additional weeks granted in the future through that program. As of this writing, you are entitled to 16 months of company paid medical, dental and vision.
Career Continuation Counseling
You will also receive executive career-planning services to help you obtain future employment. Our outplacement vendor at this time is Lee Hecht Harrison. You are entitled to their 12-month program. Additional details about the program benefits will be communicated to you at the time of your severance.
Other Severance Benefits
Special Consideration
In the event that your employment has not been terminated by January 1, 2008, you will be paid the equivalent of the total number of weeks of accrued base severance and any additional severance on or before March 15, 2008. You will be eligible for the standard severance benefits, if any, after that date as if you were a new employee from the date of that payment.
Financial/Estate Planning
You are eligible for financial/estate planning services for up to 12 months from your termination date. The Company will reimburse you up to $8,000 for the costs incurred by you and/or your spouse in connection with financial counseling. The advice is to be provided by a licensed financial advisor of your choosing. This service includes, but is not restricted to tax preparation.
Exec-U-Care
You are eligible to continue your Exec-U-Care services for 12 months from your termination date. The Exec-U-Care program is used to pay for medical, dental or vision services not covered by the group health plans up to a total of $5,000 each calendar year. Co-payments, deductibles and any out of pocket costs associated with dental and doctor visits are covered benefits under this program. Exclusions and limitations of the program are in the enrollment information you already have.
Executive Physical Exam Benefit
You are eligible to be reimbursed up to $3,200 for one annual physical during the calendar year of your termination and one annual physical during the calendar year following your termination date. The physical can be arranged either through your primary care physician or at a medical facility of your choosing. The physical include a comprehensive physical exam, associated laboratory work, audiogram, glaucoma screening, resting electrocardiogram, chest x-ray, treadmill stress test and associated laboratory work, as applicable.
Resignations and Terminations for Cause or Performance
If you voluntarily resign or are terminated for cause or performance at any time, you are not eligible to receive severance benefits.
Nothing in this letter forms a contract of employment for any specific duration or on any specific terms, and FINOVA retains the right to terminate your employment at any time.
This letter is subject to the terms of applicable policies and the specific plans relating to the matters noted above, such as FINOVA’s Severance Pay Plan, Enhanced Severance Plans, the Annual Bonus Plans and the Employee Severance and Bonus Trusts, which are incorporated by reference. If those policies or plans conflict with this letter, the terms most beneficial to the employee shall control.
If you have any questions, please feel free to call me at ###-###-####.
Sincerely,
| /s/ Susan DeFelice |
| Susan DeFelice |
| Vice President – HR & Benefits |
Employee Acceptance
In signing below you are agreeing to the terms of this letter. You are also acknowledging your understanding that you are not able to voluntarily terminate employment and still receive any severance payment.
| /s/ Jeffrey Weiss | ||
| Jeffrey Weiss | ||
| Date: February 21, 2006 | ||
