2019 Executive Compensation Tables
occurred in the same year as the change in control, a prorated portion of the participants annual incentive compensation is paid based on achievement of a target level of performance. If
the qualifying termination occurred in the two years following a change in control, a prorated portion of the participants annual incentive compensation is paid based on the actual performance results achieved for the year. Any pro rata annual
incentive payout will be determined based on the number of calendar days the eligible named executive officer was actually employed during such plan year. Prorated annual incentive awards are paid in a lump sum at the same time that incentive
compensation for the same year are paid to the other senior officers of the Company, following certification by the Committee that applicable performance goals have been attained. Participants are subject to a
best-net cutback for 280G excise tax calculations with no excise tax gross-ups provided under the Severance Plan.
Subject to the participants timely election of continued coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended (COBRA), the Company would provide comparable medical (including prescription drug), dental, vision, and hospitalization benefits to the eligible named executive officer and his or her eligible dependents for the severance
period, provided the named executive officer continues to pay the applicable employee rate for such coverage and the named executive officer remains eligible for COBRA coverage. The severance period for a Tier 1 participant is 24 months and for a
Tier 2 participant is 18 months.
The eligible named executive officer will be entitled to receive reimbursement for professional
outplacement services actually incurred during the initial 12-month period following termination, not to exceed $10,000.
The eligible named executive officers, as a condition to receiving payments under the Severance Plan, are required to sign a general release
of claims relating to their employment. In addition, they are required to agree not to directly or indirectly, individually or in any capacity or relationship, engage in any business or employment, or aid or endeavor to assist any business or legal
entity, that is in direct competition with the business of the Company for the 12 months following termination.
During the
12 months following termination, the eligible named executive officers must also agree to not induce any employee of the Company to terminate employment with the Company, nor knowingly offer employment to any person who is or who was employed
by the Company unless such person has ceased to be employed by the Company for a period of at least six months.
Named executive officers
covered under the Severance Plan may not disparage, slander, or injure the business reputation or goodwill of the Company.
Named
executive officers must maintain as secret and confidential all protected information such as trade secrets, confidential and proprietary business information of the Company, and any other information of the Company, including but not limited to
customer lists, sources of supply, processes, plans, materials, pricing information, internal memoranda, marketing plans, internal policies, and products and services which may be developed from time to time by the Company and its agents or
employees, including the named executive officer.
Noncompliance with any of the above may result in the loss of severance benefits.
General Severance Plan
The General Severance Plan was amended and restated effective March 27, 2017 to include the senior officers who are not covered by the
Senior Executive Severance Plan. Mr. Boland, Mr. Bradley, and Ms. Lim-Johnson were the named executive officers in 2019 who participated in this Plan. Described below and illustrated in the
table, Potential Payouts Upon Termination, are the different elements payable under the General Severance Plan if Mr. Boland, Mr. Bradley, or Ms. Lim-Johnson had experienced an involuntary
termination of employment. All continuation amounts would be paid over the salary continuation period in compliance with Section 409A.
If Mr. Boland, Mr. Bradley, or Ms. Lim-Johnson were to have experienced an
involuntary termination of employment under the General Severance Plan in 2019, they would have been entitled to severance benefits. Involuntary termination of employment is defined in the General Severance Plan as the
termination of employment of an eligible employee by the employer, other than: for cause; as a result of his or her failure to accept such additional or revised responsibilities as communicated by the employer; by reason of the sale of his employer
or any portion of the employers assets or divisions (whether by asset or stock sale), provided he or she is offered employment with the purchaser thereof; or a voluntary termination of employment of any kind.
For an involuntary termination, an eligible employee would receive severance payments in the form of base salary continuation for a period of
weeks that is determined based on his or her job title/level and years of service. Mr. Boland and Ms. Lim-Johnson would have been eligible for 26 weeks of severance as of December 29, 2019.
Mr. Bradley would have been eligible for 46 weeks of severance as of December 29, 2019. Salary continuation amounts would be paid by the Company in installments and in accordance with the Companys standard payroll practice, subject
to the requirements of Section 409A.
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