Under the ORP, each participant has generally agreed not to compete with the Company for three years after
termination from employment for any reason. The
non-compete
provision does not apply to actions occurring after both a termination of employment and a change of control.
Supplemental Savings Incentive Plan and Long-Term Retention Plan
The SSIP and the LTRP also provide for the payment of the named executive officers vested account balances upon termination of employment, death or a
change of control. A termination of employment occurs under the SSIP upon a participants severance, retirement or attainment of age 55 while totally disabled. A termination of employment occurs under the LTRP upon a
participants severance or retirement. The definition of a change of control is the same definition used for the ORP, as described above. The material terms of the SSIP and the LTRP, including the options to receive lump sum or
installment payments, are described beginning on page 50 and on page 51, respectively.
Performance Unit Award Agreement
The material terms of the CEOs Performance Unit Award Agreement are described on pages 40 and 41.
In the event of a change of control, 40,000 performance units will become immediately vested, subject to certain adjustments for stock dividends
and other fundamental corporate transactions. The definition of a change of control is the same definition used for the ORP, as described above.
If Mr. Harrisons employment terminates for any reason other than a change of control (including death or disability), all unvested performance units
will lapse and be forfeited.
Annual Bonus Plan
The Annual
Bonus Plan, the material terms of which are described beginning on page 35, provides for certain payments to the named executive officers in the event of a termination of their employment or a change of control.
In the event of total disability, retirement or death of a participant during any fiscal year, a participant (or the participants estate) is entitled to
a
pro-rata
bonus based on the portion of the fiscal year completed by the participant and the actual overall goal achievement factor attained for that year.
In the event of a change of control, each participant is entitled to a
pro-rata
portion of the
participants target award under the Annual Bonus Plan, based on the portion of the year completed.
The term retirement is defined in the
Annual Bonus Plan as a participants termination of employment other than on account of death and (i) after attaining age 60, (ii) after attaining age 55 and completing 20 years of service or (iii) as the result of total disability.
The definition of a change of control is the same definition used for the ORP, as described above.
Long-Term Performance Plan
The Long-Term Performance Plan, the material terms of which are described beginning on page 37, also provides for certain payments to the named executive
officers in the event of a termination of their employment or a change of control.
In the event of the total disability, retirement or death of a
participant after the completion of the first year of a performance period but prior to the end of a performance period, and in the event of the subsequent attainment of the performance goals applicable to such participant, a participant (or the
participants estate) is entitled to a
pro-rata
award based on the portion of the performance period completed by the participant.
In the event of a change of control, each participant is entitled to a
pro-rata
portion of the
participants target award for the performance period, based on the portion of the performance period completed.
The definition of
retirement is the same definition used for the Annual Bonus Plan, as described above. The definition of a change of control is the same definition used for the ORP, as described above.
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