Staples, Inc. Executive Life Insurance Plans Summary of Provisions
Staples, Inc. offers two executive life insurance plans for its officers. The Bonus Life Plan covers named executive officers (except Mike Miles) and provides a death benefit equal to three times the officer's annual base salary, both before and after retirement (with at least 10 years of service). Staples reimburses premiums and covers related taxes. The Death Benefit Only Plan covers all officers, including Mike Miles, and provides a death benefit of three times annual salary before retirement and two times after retirement, with no cost to participants. Taxes on the benefit are covered by Staples.
Exhibit 10.41
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. 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.
