STAPLES, INC. EXECUTIVE LIFE INSURANCE PLANS SUMMARY OF PROVISIONS
EX-10.42 4 exhibit1042to10-k.htm EXECUTIVE LIFE INSURANCE PLANS SUMMARY OF PROVISION Exhibit 10.42 to 10-K
Exhibit 10.42
STAPLES, INC.
EXECUTIVE LIFE INSURANCE PLANS
SUMMARY OF PROVISIONS
BONUS LIFE PLAN
1. | This plan covers all named executive officers, except Mike Miles. This plan was no longer offered at the time Mr. Miles joined Staples. |
2. | On a pre-retirement basis, the death benefit is equal to 3 times current annual base salary. |
3. | On a post-retirement basis following 10 years of service, , Staples will continue to provide a death benefit equal to 3 times annual base salary (at the time of separation of service). |
4. | Alternatively, a participant can elect survivorship (or second-to-die) coverage under the Plan with a death benefit up to the maximum amount that can be obtained on a cost-neutral basis to the Staples. |
5. | Staples reimburses participants for premium payments related to this plan. Staples also provides a "gross-up" payment which is intended to cover the income taxes on the premium payment reimbursement. |
DEATH BENEFIT ONLY PLAN
1. | This plan covers all officers of Staples, including Mr. Miles. |
2. | On a pre-retirement basis, the death benefit is equal to 3 times current annual base salary. |
3. | On a post-retirement basis following certain age and service milestones, Staples will continue to provide a death benefit equal to 2 times current annual base salary |
4. | The cost for this coverage is free, and non-taxable, to the participant. |
5. | The death benefit under the plan is taxable to the beneficiary. Staples also provides a "gross-up" payment which is intended to cover the income taxes on the death benefit payment. |