CBG » Topics » Severance Policy

This excerpt taken from the CBG DEF 14A filed Apr 23, 2009.

Severance Policy

We have a severance policy for highly compensated employees for any Company initiated separation other than “for cause” (as such term is defined in the severance policy). Assuming all eligibility conditions are satisfied, under the severance policy, employees who generally earn more than $100,000 in annual compensation, may be eligible for a minimum severance payment equal to one week of base salary for every $10,000 base salary, with a minimum of 12 weeks of base salary up to a maximum of 36 weeks of base salary. We pay such amounts in anticipation of unemployment and not as a reward for past service. Payment to an eligible highly compensated employee is triggered in the event of the employee’s involuntary termination by the Company, other than “for cause”. In addition, we provide a benefits allowance equal to $1,000 for each year of service, with a maximum of $5,000, provided the highly compensated employee was participating in a Company-sponsored medical plan at the time of termination and three months of outplacement assistance. If the highly compensated employee is otherwise bonus eligible and is terminated in the third or fourth quarter of the Company’s fiscal year end, or in the first quarter following the end of the fiscal year but before bonuses are paid, the highly compensated employee will be eligible to receive a pro-rated target bonus. Severance is typically paid in a single lump-sum. Payment of severance is conditioned upon, among other things, a release of claims against us by the employee. The severance policy applicable to all of our other salaried full time employees generally provides one week of base salary as severance pay for each full year of service, with a minimum payment of one week of base salary up to a maximum payment of 15 weeks and a benefits allowance of $1,000 for each full year of service up to a maximum payment of $5,000 (provided the employee was participating in a Company-sponsored medical plan at the time of termination) if their position is eliminated.

In the event that any of our named executive officers were involuntarily terminated as of December 31, 2008 under the circumstances covered by our current severance policy, they would have been entitled to severance benefits up to the following amounts: Mr. White $593,462, Mr. Sulentic $389,231, and Mr. Frese $420,385. Mr. Blain and Mr. Borok are not eligible to receive severance benefits under this policy. See “Other Agreements with Executive Officers” below for more information on Mr. Borok’s potential severance benefits.

 

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This excerpt taken from the CBG DEF 14A filed Apr 25, 2008.

Severance Policy

We have a severance policy for certain highly compensated employees. Assuming all eligibility conditions are satisfied, under the severance policy, the named executive officers may be eligible for a minimum severance payment of 12 weeks of salary up to 15 weeks of salary. We pay such amounts in anticipation of unemployment and not as a reward for past service. Payment to an eligible highly compensated employee is triggered upon any termination initiated by the Company for any reason (including, without limitation, elimination of an employees’ job or termination for cause). Severance is typically paid in a single lump-sum. Payment of severance is

 

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conditioned upon, among other things, a release of claims against us by the employee. The severance policy applicable to all of our salaried full time employees generally provides one week of severance pay for each full year of service up to a maximum payment of 15 weeks of base salary if their position is eliminated.

In the event that any of our named executive officers were involuntarily terminated as of December 31, 2007 under the circumstances covered by our current severance policy, they would have been entitled to severance benefits up to the following amounts: Mr. White $245,192, Mr. Kay $123,462 and Mr. Frese $138,462. Mr. Sulentic is not eligible to receive severance benefits under this policy because his employment agreement provides for severance benefits as described above. Mr. Blain is not eligible to receive severance benefits under this policy.

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