This excerpt taken from the FISV 8-K filed Dec 23, 2008.
Amended Employment Agreements
On December 22, 2008, the Company entered into an Amended and Restated Employment Agreement (Amended Employment Agreement) with each of Jeffery W. Yabuki and Thomas W. Warsop III to make changes required by Section 409A of the Code. To comply with Section 409A, the Amended Employment Agreements require a six-month delay in post-termination payments and benefits (other than payments to cover employment taxes due on such amounts) in the event that Mr. Yabuki or Mr. Warsop is considered a specified employee within the meaning of Section 409A at the time of a qualifying termination. After the six-month delay, Mr. Warsops Amended Employment Agreement also states that his severance payment will be made in a lump sum instead of 12 monthly installments. Mr. Yabukis Amended Employment Agreement provides that any excise tax gross-up payment due on a payment or benefit to be received pursuant to his
Amended Employment Agreement or Amended KEESA will be subject to a six-month delay in the event Mr. Yabuki is a specified employee within the meaning of Section 409A at the time of a qualifying termination. However, if prior to the end of such six-month period, Mr. Yabuki is required to remit the excise tax to the Internal Revenue Service, the Company will reimburse Mr. Yabuki for the gross-up payment attributable to the excise tax payment based on his actual rate of taxation. In addition, Mr. Yabukis Amended Employment Agreement eliminates certain provisions which are no longer applicable due to the passage of time.
This summary of the Amended Employment Agreements of Messrs. Yabuki and Warsop is qualified in its entirety by reference to the Amended Employment Agreements which are filed as Exhibit 10.3 and Exhibit 10.4, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.