Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
(e) Adoption of Executive Severance Plan
Effective
The Plan provides for the following severance benefits in the event of an
involuntary termination of a Participant by the Employer without Cause if such
termination occurs outside of the context of a Change in Control of
• A lump sum payment equal to 39 weeks of the Participant's Base Pay plus one week of Base Pay per year of service; • A prorated portion of the applicable Senior Management Bonus Program award based on the number of full weeks worked during the fiscal year as of the effective date of termination, provided that the performance criteria is achieved; • Contributions toward the cost of COBRA healthcare continuation coverage for up to 12 weeks; and • Outplacement services for a period to be determined by the Employer, but not exceeding two years.
The Plan provides for the following severance benefits in the event of an
involuntary termination by the Employer without Cause or a termination of
employment by the Participant for Good Reason if such termination occurs within
the context of a Change in Control of
• A lump sum payment equal to 78 weeks of Participant's Base Pay plus one week of Base Pay per year of service; • A prorated portion of the applicable Senior Management Bonus Program award based on the number of full weeks worked during the fiscal year as of the effective date of termination, provided that the performance criteria is achieved; • Contributions toward the cost of COBRA healthcare continuation coverage for up to 12 weeks; and • Outplacement services for a period to be determined by the Employer, but not exceeding two years.
Additionally, the Plan provides that Participants may be eligible for severance
benefits in connection with an involuntary termination by the Employer without
Cause or a termination of employment by the Participant for Good Reason within
two years after a Business Change. These benefits are the same benefits that are
described immediately above with respect to a Change in Control of
The foregoing description of the Plan does not purport to be complete and is
qualified in its entirety by reference to the full text of the Plan, which
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