Executive Change of Control Severance Plan Amendment (Section 409A Compliance)
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Change of Control Agreements
Summary
This agreement outlines changes to an executive severance plan to comply with Section 409A of the Internal Revenue Code. It states that severance payments, previously made in a lump sum within five days of termination, must now be delayed for six months, with 10% annual interest accruing during the delay. The severance payment may also be reduced by amounts paid under any other separation plan. The plan applies to executives affected by a change of control event.
EX-10.VII 2 g00166exv10wvii.htm EX-10(VII) Ex-10(vii)
Exhibit 10(vii)
Executive Change of Control Severance Plan
| § | Plan change to comply with Section 409A of the Internal Revenue Code. | |
| § | Plan provides payment to executive in lump sum within five days of termination. | |
| § | 409A requires payment to be delayed for six months — interest at 10% per annum will accumulate from original date. | |
| § | The amount payable under the severance plan can be reduced by any amount payable under any separation plan. |
E-3
