EXHIBIT 10.96
EMPLOYMENT AGREEMENT
BETWEEN
GOODY'S FAMILY CLOTHING, INC.
AND
XXXXX XXX XXXXX
TABLE OF CONTENTS
1. Definitions........................................................... 1
2. Employment............................................................ 3
3. Term.................................................................. 3
4. Position and Duties; Business Time.................................... 3
5. Compensation.......................................................... 3
6. Termination of Employment............................................. 5
7. Obligations of the Company Upon Termination........................... 6
8. Change of Control..................................................... 8
9. Non-exclusivity of Rights............................................. 8
10. Full Settlement....................................................... 8
11. Arbitration of Disputes............................................... 8
12. Confidential Information and Nonsolicitation.......................... 9
13. Successors............................................................ 9
14. Miscellaneous......................................................... 10
EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the "Agreement"), by and between GOODY'S
FAMILY CLOTHING, INC., a Tennessee corporation (the "Company"), and XXXXX XXX
XXXXX (the "Executive"), shall be effective as of the 29th day of January, 2003.
RECITALS:
A. The Executive has for some time served as Vice President, Human
Resources of the Company. The Company and the Executive have entered into a
Severance Agreement dated September 16, 1998 (the "Existing Severance
Contract"). The Company has promoted the Executive to Senior Vice President of
the Company.
B. The Company wishes to assure the continued service of the Executive.
The Company desires to recognize the Executive's commitment to the Company and
to confirm the right of the Executive to certain employment, compensation and
severance benefits. To attain that end, the Company and the Executive wish to
enter into this Employment Agreement (the "Agreement").
NOW, THEREFORE, in consideration of the promises and mutual covenants
herein contained, and other good and valuable consideration, the Company and the
Executive do hereby agree as follows:
1. Definitions.
(a) "Accrued Obligations" shall mean (i) the Executive's
Base Salary through the Date of Termination, (ii) any amounts deferred by the
Executive and not yet paid by the Company pursuant to a valid election to defer
the receipt of all or a portion of such payments made in accordance with any
plan of deferred compensation sponsored by the Company and any earned but unpaid
vacation pay for the current year, (iii) any amounts or benefits owing to the
Executive or to the Executive's beneficiaries under the then applicable employee
benefit plans or policies of the Company and (iv) any amounts owing to the
Executive for reimbursement of expenses properly incurred by the Executive
through the Date of Termination and which are reimbursable in accordance with
the reimbursement policy of the Company described in Section 5(e).
(b) "Base Salary" shall have the meaning set forth in
Section 5(a).
(c) "Board" shall mean the Board of Directors of the
Company.
(d) "Cause" shall mean that the Executive has, in the
judgment of a majority of the Board (i) committed a felony, or committed an act
of fraud, embezzlement or theft in connection with her duties with the Company
or in the course of her employment with the Company; (ii) willfully caused
damage to property of the Company; (iii) been convicted of a criminal offense
(either a misdemeanor involving acts of dishonesty, theft or moral turpitude, or
a felony); or (iv) engaged in a willful and material breach of her obligations
under Section 4 of this Agreement which
breach (under this clause iv) has been communicated to the Executive with
specificity by written notice, and which has not been cured to the reasonable
satisfaction of the Board within a reasonable period of time, which shall not be
less than ten (10) days, nor more than thirty (30) days, following receipt of
such written notice by the Executive. The Board shall provide the Executive with
an opportunity to meet with the Board in order to provide the Executive an
opportunity to refute or explain acts or omissions referred to in such written
notice. For the purpose of this Section, no act or omission shall be considered
willful unless done or omitted to be done in bad faith and without reasonable
belief that such act or omission was done in the best interest of the Company.
(e) A "Change of Control" of the Company shall mean and
shall be deemed to have occurred if (i) any person or group (within the meaning
of Rule 13d-3 of the rules and regulations promulgated under the Securities
Exchange Act of 1934, as amended (the "1934 Act Rules")), other than Xxxxxx X.
Xxxxxxxxxx, members of his immediate family, his affiliates, trusts or private
foundations established by or on his behalf, and the heirs, executors or
administrators of Xxxxxx X. Xxxxxxxxxx, shall acquire in one or a series of
transactions, whether through sale of stock or merger, more than 50% of the
outstanding voting securities of the Company or any successor entity of the
Company, (ii) all or substantially all of the Company's assets are sold or (iii)
the shareholders of the Company approve a complete liquidation or dissolution of
the Company.
(f) "Change of Control Date" shall mean (i) the closing
date on which a Change of Control shall have occurred, (ii) in the case of a
sale of all or substantially all of the Company's assets, the closing date on
which a Change of Control shall have occurred after shareholder approval is
obtained, or (iii) in the case of complete liquidation or dissolution of the
Company, the date on which shareholder approval is obtained.
(g) "Date of Termination" shall have the meaning set
forth in Section 6(e).
(h) "Disability" shall mean disability whereby the
Executive is unable to render the services provided for by this Agreement by
reason of illness, injury or incapacity (whether physical, mental, emotional or
psychological) for a period of either (i) ninety (90) consecutive days or (ii)
one hundred eighty (180) days in any consecutive three hundred sixty-five (365)
day period.
(i) "Incentive Bonus" shall have the meaning as set
forth in Section 5(b).
(j) "Incentive Plan" shall have the meaning as set forth
in Section 5(b).
(k) "Notice of Termination" shall have the meaning as
set forth in Section 6(d).
(l) "Qualified Plan" shall mean any retirement plan
maintained by the Company which is intended to meet the requirements of the
Internal Revenue Code of 1986, as amended.
(m) "Subsidiary" shall mean any majority-owned subsidiary
of the Company.
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(n) "Supplemental Payment Date" shall have the same
meaning as set forth in Section 7(c).
2. Employment. The Company has employed the Executive,
and the Executive has agreed to continue to be employed by the Company as Senior
Vice President, Human Resources of the Company. The Executive has held the title
of Vice President of the Company since March 24, 1997.
3. Term. The Executive shall be considered an at-will\
employee and her employment may be terminated by either party subject to the
obligations of the parties upon such termination as set forth in this Agreement.
4. Position and Duties; Business Time.
(a) Position and Duties. The Executive shall serve as
Senior Vice President, Human Resources of the Company or another position which
shall be either of comparable rank or a promotion and shall continue to have
such responsibilities and duties as assigned to her by the Chief Executive
Officer of the Company, the Chief Operating Officer of the Company or the Board
from time to time.
(b) Business Time. The Executive agrees to devote her
full business time to the business and affairs of the Company and to use her
best efforts to perform faithfully and efficiently the responsibilities assigned
to her hereunder, to the extent necessary to discharge such responsibilities,
except for:
(i) time spent in managing her personal,
financial and legal affairs and serving on corporate, civic or charitable boards
or committees, in each case only if and to the extent not substantially
interfering with the performance of such responsibilities, and
(ii) periods of vacation to which she is
entitled, periods of illness and other absences beyond her control.
It is expressly understood and agreed that the continued service by the
Executive on any boards and committees on which she is serving or with which she
is otherwise associated immediately preceding the date hereof, or her service on
any other boards and committees shall not be deemed to interfere with the
performance of the Executive's services to the Company; provided, that in the
case of boards or committees on which the Executive is not currently serving the
Executive provides written notice of her intention to serve and the Board
thereafter approves such service (other than non-compensatory positions with
local boards or committees e.g. charitable, chamber of commerce or homeowner
associations which shall not require approval).
5. Compensation. The Executive shall be entitled to
the following compensation and benefits for as long as the Executive remains an
employee of the Company:
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(a) Base Salary. The Executive shall receive a base
salary (the "Base Salary") payable in equal bi-weekly installments (or such
other installments as are provided by the Company for employees generally) at an
annual rate of $160,000. The Company shall review the Base Salary periodically
and in light of such review may, in its sole discretion, increase (but not
decrease) the Base Salary taking into account any change in the Executive's
responsibilities, increases in compensation of other executives with comparable
responsibilities, performance of the Executive and other pertinent factors, and
such adjusted Base Salary shall then constitute the "Base Salary" for purposes
of this Agreement.
(b) Short Term Incentive Plan Bonus. The Company has
established a "Short Term Incentive Plan" (the "Incentive Plan") under which the
Executive shall be eligible to participate for each fiscal year he holds the
position stated in Section 2 and shall be eligible to receive an annual
incentive target bonus of not less than 60% of the Base Salary earned by
Executive during each fiscal year based on performance and other specific
objectives adopted by the Compensation Committee of the Board (the "Incentive
Bonus").
(c) Incentive and Savings Plans; Retirement and Death
Benefit Programs. The Executive shall be entitled to participate in all
incentive and savings plans and programs, including stock option plans and other
equity-based compensation plans, and in all employee retirement, executive
retirement and executive death benefit plans on a basis no less favorable than
that basis generally available to executives of the Company holding comparable
positions or having comparable responsibilities.
(d) Other Benefit Plans. The Executive, her spouse and
their eligible dependents (as defined in, and to the extent permitted by, the
applicable plan), as the case may be, shall be entitled to participate in or be
covered under all medical, dental, group disability, group life, severance,
accidental death and travel accident insurance plans and programs of the Company
to the extent such plans and programs are generally available to executives of
the Company holding comparable positions or having comparable responsibilities.
(e) Other Perquisites. The Executive shall also be
entitled to:
(i) prompt reimbursement for all reasonable
expenses incurred by the Executive in accordance with the policies and
procedures of the Company;
(ii) three (3) weeks paid vacation, such paid
vacation time to be increased (but not decreased) in accordance with Company
policy;
(iii) an automobile allowance of $500 per month
shall be paid by the Company together with gasoline expenses for such automobile
in accordance with the Company's policies and procedures with respect thereto;
and
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(iv) an office or offices suitable for an
executive officer with secretarial and other assistance as shall reasonably be
required by the Executive.
(f) Equity Opportunity. The Executive shall be granted a
non-qualified stock option under the Company's 1997 Stock Option Plan to
purchase an aggregate of ten thousand (10,000) shares of common stock of the
Company at an exercise price equal to the closing sales price of the common
stock on the business day immediately preceding the date of grant, which option
shall vest in annual 20% increments beginning one year from the date of grant
and expire ten (10) years from the date of grant, and shall be upon such other
terms and conditions as contained in the Company's standard form of option
agreement.
(g) Existing Employment Contract. The Executive and
Company acknowledge that all the terms of the Existing Severance Contract are in
full force and effect and there has not been any breach of such Existing
Severance Contract.
6. Termination of Employment.
(a) Disability; Death. The Company may terminate the
Executive's employment after having established the Executive's Disability, by
giving to the Executive written notice of its intention to terminate her
employment, and her employment with the Company shall terminate effective on the
thirtieth (30th) day after receipt of such notice if the Executive shall fail to
return to full-time performance of her duties within thirty (30) days after such
receipt. If the Executive dies during the term of this Agreement, her employment
hereunder shall be deemed to cease as of the date of her death.
(b) Voluntary Termination by the Executive.
Notwithstanding anything in this Agreement to the contrary, the Executive may,
upon not less than thirty (30) days' written notice to the Company, voluntarily
terminate employment for any reason (including retirement under the terms of the
Company's retirement plan as in effect from time to time).
(c) Termination by the Company. The Company at any time
may terminate the Executive's employment for Cause or without Cause.
(d) Notice of Termination. Any termination by the
Company for Cause or by the Executive shall be communicated by a written Notice
of Termination to the other party hereto given in accordance with Section 14(c).
For purposes of this Agreement, a "Notice of Termination" means a written notice
given in the case of a termination for Cause which (i) indicates the specific
termination provision in this Agreement relied upon, (ii) sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision so indicated, and
(iii) if the termination date is other than the date of receipt of such notice,
specifies the termination date (which date shall be not more than thirty (30)
days after the receipt of such notice).
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(e) Date of Termination. For the purpose of this
Agreement, the term "Date of Termination" means (i) in the case of a termination
for which a Notice of Termination is required, the date of receipt of such
Notice of Termination or, if later, the date specified therein, as the case may
be, and (ii) in all other cases, the actual date on which the Executive's
employment terminates.
7. Obligations of the Company Upon Termination. Upon
termination of the Executive's employment with the Company, the Company shall
have the following obligations:
(a) Death, Disability and Retirement. If the Executive's
employment is terminated by reason of the Executive's death, Disability, or
retirement on or after the attainment of age sixty-five (65), the Company shall
have no further obligations to the Executive's legal representatives under this
Agreement other than payment of the Accrued Obligations. If the Executive's
employment is terminated by reason of the Executive's death or Disability, the
Company shall have the additional obligation, subject to the terms of the
Incentive Plan and further provided that the Executive has been employed by the
Company for the first six (6) months of the then applicable fiscal year, to pay
a cash amount equal to a portion of the Incentive Bonus, the product of a
fraction, the numerator of which is the number of days elapsed since the date
the Incentive Plan began for the applicable fiscal year through the date of the
Disability or the date of death of the Executive, and the denominator of which
is the total number of days of the applicable fiscal year for such Incentive
Plan. Unless otherwise directed by the Executive (or, in the case of the
Incentive Plan or a Qualified Plan, as may be required by such Incentive Plan or
Qualified Plan) all Accrued Obligations shall be paid to the Executive, her
beneficiaries or her estate, as applicable, in a lump sum in cash within thirty
(30) days of the Date of Termination. In the event of the termination of the
Executive by reason of retirement on or after the attainment of age sixty-five
(65), death or Disability, she and/or her named beneficiaries, as the case may
be, shall be entitled to the benefits available through the Company sponsored
plans and programs designated for such category of termination on Schedule A.
With regard to the termination of the Executive's employment by reason of
retirement on or after the attainment of age sixty-five (65) or Disability, the
Company shall pay the premiums (to the same extent paid prior to the termination
of employment) for the continued participation of the Executive for a period of
six (6) months after the Date of Termination in any individual life insurance
policy on the same terms as the Executive and the Company were participating
prior to the Date of Termination. Further, with regard to the termination of the
Executive's employment by reason of the Executive's death, retirement on or
after the attainment of age sixty-five (65) or Disability, the Company shall,
for a period of six (6) months after the Executive's Date of Termination, pay
the entire COBRA premium under any Company medical and dental program that the
Executive (and her spouse and eligible dependents) was participating in prior to
the termination of employment. The Company's premium obligations in the
preceding two sentences shall exclude normal employee contributions paid by the
Executive prior to the Date of Termination. In addition to the foregoing, in the
event of termination of the Executive's employment by reason of the death or
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Disability of the Executive, all unvested stock options held by the Executive
shall become fully vested, effective on the Date of Termination, and shall
thereafter be exercisable in accordance with the provisions of the applicable
Option Plan (including, without limitation, Sections 5 and 6 thereof) and Option
Agreement.
(b) Termination by the Company for Cause and Voluntary
Termination by the Executive. If the Executive's employment shall be terminated
for Cause or voluntarily terminated by the Executive the Company shall pay the
Executive the Accrued Obligations. The Executive shall be paid all such Accrued
Obligations in a lump sum in cash within thirty (30) days of the Date of
Termination and the Company shall have no further obligations to the Executive
under this Agreement, unless otherwise required by a Qualified Plan or specified
pursuant to a valid election to defer the receipt of all or a portion of such
payments made in accordance with any plan of deferred compensation sponsored by
the Company.
(c) Other Termination of Employment. If the Company
terminates the Executive's employment other than for Cause, death or Disability,
the Company shall pay and provide to the Executive the following:
(i) Severance Payment. The Company
shall pay to the Executive in a lump sum in cash or certified check within
fifteen (15) days after the Date of Termination a severance payment equal to the
sum of the following amounts (other than amounts payable from the Incentive Plan
or Qualified Plans, non-qualified retirement plans and deferred compensation
plans, which amounts shall be paid in accordance with the terms of such plans):
(A) all Accrued Obligations;
(B) a cash amount equal to six (6)
months of the Executive's Base Salary at the rate in effect as of the date when
the Notice of Termination was given;
(C) subject to the terms of the
Incentive Plan and further provided that the Executive has been employed by the
Company for the first six (6) months of the then applicable fiscal year, a cash
amount equal to a portion of the Incentive Bonus, the product of a fraction, the
numerator of which is the number of days elapsed since the date the Incentive
Plan began for the applicable fiscal year through the date of such Termination
or termination without Cause, and the denominator of which is the total number
of days of the applicable fiscal year for such Incentive Plan.
In addition, if the Executive has not accepted employment from a subsequent
employer prior to the date which is seven (7) months from the Date of
Termination (the "Supplemental Payment Date"), commencing on the Supplemental
Payment Date the Company shall pay the Executive an amount equal to fifty
percent (50%) of his monthly Base Salary at the rate in effect as of the date
when the Notice of Termination was given in equal monthly installments until the
earlier of (i) the payment of the sixth (6th) monthly installment; or (ii) the
date of the Executive's acceptance of employment from a subsequent employer. The
Executive shall notify the
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Company immediately upon her acceptance of any such new employment if secured
prior to the payment by the Company of such six (6) additional monthly
installments.
(d) Release. As a condition precedent to the receipt of
any termination benefits payable to the Executive under this Section 7, the
Executive agrees to execute a general release among other things releasing the
Company from any obligation or liability (other than those contained in Sections
7, 8, 9, 10, 11, 13 and 14 hereof, to the extent an obligation under any such
section arose at or prior to the Date of Termination and remains unfulfilled).
Such release shall exclude the Executive's rights under any Qualified Plan.
(e) Discharge of Company's Obligations. Subject to the
performance of its obligations under Sections 7, 8, 9, 10, 11, 13 and 14 (and
then, only to the extent an obligation under any such section arose at or prior
to the Date of Termination and remains unfulfilled), the Company shall have no
further obligations to the Executive under this Agreement in respect of any
termination of employment.
8. Change of Control. Upon the occurrence of a Change of
Control, the Company shall pay the Executive, as consideration for assisting the
Company in bringing about a successful transaction, an amount equal to twelve
(12) months of the Executive's Base Salary at the rate in effect as of the
Change of Control Date. Such amount shall be payable in a lump sum in cash or
certified check within five (5) days after the Change of Control Date.
9. Non-exclusivity of Rights. Nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in any
benefit, bonus, incentive or other plan or program provided by the Company and
for which the Executive may qualify, nor shall anything herein limit or
otherwise prejudice such rights as the Executive may have under any other
agreements with the Company, including, but not limited to stock option
agreements. Amounts which are vested benefits or which the Executive is
otherwise entitled to receive under any plan or program of the Company at or
subsequent to the Date of Termination shall be payable in accordance with such
plan or program.
10. Full Settlement. The Executive shall not be obligated
to seek other employment by way of mitigation of the amounts payable to the
Executive under any of the provisions of this Agreement.
11. Arbitration of Disputes. In the event that a claim
for payment or benefits under this Agreement is disputed, the Company and the
Executive agree to submit such dispute to final and binding arbitration with
United States Arbitration and Mediation, Inc. ("USAM") in Knoxville, Tennessee
or such other arbitration firm as the Company and the Executive shall mutually
agree. Either party wishing to arbitrate any claim hereunder shall notify the
other party and USAM in writing whereupon USAM shall select a neutral arbitrator
and shall schedule an arbitration hearing within thirty (30) days of receipt of
such notice of arbitration. The arbitration shall be conducted in accordance
with the rules and procedures of USAM. The
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parties agree that any arbitrator's award may be presented to a court of
competent jurisdiction and judgment entered thereon.
12. Confidential Information and Nonsolicitation.
(a) The Executive shall hold in a fiduciary capacity for
the benefit of the Company all secret or confidential information, knowledge or
data, including without limitation all trade secrets, relating to the Company,
and its business, (i) obtained by the Executive during her employment by the
Company, and (ii) which is not otherwise publicly known (other than by reason of
an unauthorized act by the Executive) and is subject to efforts that are
reasonable under the circumstances to maintain its secrecy. After termination of
the Executive's employment with the Company, the Executive shall not, without
the prior written consent of the Company, unless compelled pursuant to an order
of a court or other body having jurisdiction over such matter, communicate or
divulge any such information, knowledge or data to anyone other than the Company
and those designated by it.
(b) Upon termination of the Executive's employment for
any reason, the Executive, for the twelve (12) month period following the Notice
of Termination, shall not, on his own behalf or on behalf of any person or
entity, directly or indirectly solicit or aid in the solicitation of any
employees of the Company to leave their employment. In the event the Executive
violates the terms of Section 12(a) or this Section 12(b), the Employee shall
forfeit the right to all salary and benefits that the Executive and/or her
family members were otherwise entitled pursuant to the terms of Section 7. Also,
in the event that this Section 12 is determined to be unenforceable in part, it
shall be construed to be enforceable to the maximum extent permitted by law.
(c) The Executive agrees that the covenants of
confidentiality and non-solicitation contained in this Section 12 are reasonable
covenants under the circumstances and necessary to protect the business
interests and properties of the Company. The Executive agrees that irreparable
loss and damage will be suffered by the Company should the Executive breach any
of the covenants contained in this Section 12. Accordingly, the Executive agrees
that the Company, in addition to all remedies provided at law or in equity,
shall be entitled to a temporary restraining order and temporary and permanent
injunctions to prevent a breach or contemplated breach of any of the covenants
contained in this Section 12.
13. Successors.
(a) This Agreement is personal to the Executive and,
without the prior written consent of the Company, shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.
(b) This Agreement shall inure to the benefit of and be
binding upon the Company and its successors. The Company shall require any
successor to all or substantially
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all of the business and/or assets of the Company, whether direct or indirect, by
purchase, merger, consolidation, acquisition of stock, or otherwise, expressly
to assume and agree to perform this Agreement in the same manner and to the same
extent as the Company would be required to perform if no such succession had
taken place.
14 Miscellaneous.
(a) Applicable Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of Tennessee, applied
without reference to principles of conflict of laws.
(b) Amendments. This Agreement may not be amended or
modified otherwise than by a written agreement executed by the parties hereto or
their respective successors and legal representatives.
(c) Notices. All notices and other communications
hereunder shall be in writing and shall be given by hand delivery to the other
party, by overnight delivery or by registered or certified mail, return receipt
requested, postage prepaid, addressed as follows:
If to the Executive: at the address listed on the last page
hereof
If to the Company: Goody's Family Clothing, Inc.
000 Xxxxx'x Xxxx
X.X. Xxx 00000
Xxxxxxxxx, Xxxxxxxxx 00000-0000
Attention: General Counsel
(with a copy to the attention of the Secretary or to such other address as
either party shall have furnished to the other in writing in accordance
herewith). Communications delivered by hand or by overnight delivery shall be
deemed received on the date of delivery and communications sent by registered or
certified mail shall be deemed received three (3) business days after the
sending thereof.
(d) Tax Withholding. The Company may withhold from any
amounts payable under this Agreement such federal, state or local taxes as shall
be required to be withheld pursuant to any applicable law or regulation.
(e) Severability. The invalidity or unenforceability of
any provision of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement.
(f) Captions. The captions of this Agreement are not part
of the provisions hereof and shall have no force or effect.
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(g) Entire Agreement. This Agreement expresses the entire
understanding and agreement of the parties regarding the terms and conditions
governing the Executive's employment with the Company, and all prior agreements
governing the Executive's employment with the Company (including, without
limitation, the Existing Severance Contract) shall have no further effect;
provided, however, that except as specifically provided herein, the terms of
this Agreement do not supercede the terms of any grant or award to the Executive
under any stock option program of the Company except as specifically set forth
in Section 7(a) with respect to the vesting and exercisability of stock options.
IN WITNESS WHEREOF, the Executive has hereunto set his hand
and the Company has caused this Agreement to be executed in its name on its
behalf, and its corporate seal to be hereunto affixed and attested by its
Secretary, all effective as of the day and year first above written.
GOODY'S FAMILY CLOTHING, INC.
By: /s/ Xxxxxx X. Xxxxxxxxxx
----------------------------------------
Xxxxxx X. Xxxxxxxxxx
Title: Chairman and Chief Executive Officer
ATTEST:
/s/ Xxxxx Xxxxxxxx
-------------------------------
Title: Ass't. Sec
-------------------------
(CORPORATE SEAL)
EXECUTIVE: Xxxxx Xxx Xxxxx
/s/ Xxxxx Xxx Xxxxx
---------------------------------
Name: Xxxxx Xxx Xxxxx
Address:
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SCHEDULE A - XXXXX X. XXXXX
The following is a summary list of benefits available to the Executive
upon termination of the Executive's employment by reason of retirement on or
after the attainment of age sixty-five (65), death or Disability through Company
sponsored plans and programs as of the date of this Agreement. Nothing herein
shall preclude the Company from amending, altering, suspending, discontinuing or
terminating any of such plans and programs in compliance with applicable law and
regulation.
COVERAGE TYPE BENEFIT AMOUNT
Group Life Insurance -- Basic $
High Option $
Group Disability Insurance -- Basic 2 year
High Option High Option
(benefit for 5 years)
Coverage by group life and disability insurance policies terminates upon
termination of the Executive's employment for any reason, except death (in the
case of life insurance) and disability (in the case of disability insurance).
The Executive's beneficiaries are entitled to benefits under the group life
insurance policy if the Executive dies during the period he is receiving
disability payments as a result of such disability.
In addition, the Company has a 401(k) plan in which the Executive may
participate on a voluntary basis. Company contributions therein on his behalf
vest in accordance with the terms of the 401(k) plan, which provides that such
contributions become immediately vested in the event of death during the term of
employment. Upon termination for any reason, the Executive must withdraw his
vested funds by the end of the following fiscal quarter.
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