This excerpt taken from the TYC 10-Q filed May 11, 2005.
Amount of Severance Benefits Upon Involuntary Termination. Except as otherwise provided in Section 4.05, the Severance Benefits to be provided to an Eligible Employee who incurs an Involuntary Termination and is determined to be eligible for Severance Benefits shall be as follows:
(a) Notice Pay. Except for Officers, each Eligible Employee who meets the eligibility requirements for a Severance Benefit under Section 3.01 shall receive 30 calendar days notice as a Notice Period. In the event that the Company determines that a Participants last day of work shall be prior to the end of his or her Notice Period, such Employee shall be entitled to pay in lieu of notice for the balance of such Notice Period. Notice Pay paid to an Eligible Employee shall be in addition to, and not offset against, the Severance Benefits the Participant may be entitled to receive under this Article IV. An Eligible Employee who does not sign, or who revokes his or her signature on, a Release shall only be eligible for Notice Pay. Unless otherwise permitted by the applicable plan documents or laws, an Eligible Employee will not be eligible to apply for short-term disability, long-term disability and/or workers compensation during the Notice Period, or anytime thereafter.
(b) Salary Continuation Benefits. Salary Continuation shall be provided during the Severance Period applicable to the Participant as set forth under the benefits schedule appended to the Plan. During the Severance Period, the Participant shall receive his or her Base Salary (net of deductions and tax withholdings, as applicable) in equal installments over the Severance Period, per normal payroll cycles. The salary continuation payment shall commence no earlier than the end of the revocation period applicable to the Release.
(i) Participant may be eligible for a cash payment equal to his or her pro rated annual bonus for the year in which Participants Termination Date occurs, subject to the discretion of the Company and pursuant to the terms set forth in the applicable incentive plans.
(ii) The Participant shall also receive a cash payment equal to his or her Annual Bonus during the Severance Period applicable to the Participant as set forth under the benefits schedule appended to the Plan. Such bonus payment shall be paid to the Participant in equal installments over the Severance Period (e.g., 12 month, 18 months or 24 months) or, in the sole discretion of the Plan Administrator, may be paid to the Participant in a single lump sum in lieu of payment over the Severance Period. The bonus payment shall be paid at the same time as the Salary Continuation Benefits.
(d) Medical, Dental and Health Care Reimbursement Account Benefits. The Participant shall continue to be eligible to participate in the medical, dental and Health Care Reimbursement Account coverage in effect at the date of his or her termination (or generally comparable coverage) for himself or herself and, where applicable, his or her spouse and
dependents, as the same may be changed from time to time for employees of the Company generally, as if Participant had continued in employment during the Severance Period (the COBRA Continuation Coverage Period). The Participant shall be responsible for the payment of the employee portion of the medical, dental and Health Care Reimbursement Account contributions that are required during the Severance Period and such contributions shall be made within the time period and in the amounts that other employees are required to pay to the Company for similar coverage. The Participants failure to pay the applicable contributions shall result in the cessation of the applicable medical and dental coverage for the Participant and his or her spouse or domestic partner and dependents. Notwithstanding any other provision of this Plan to the contrary, in the event that a Participant commences employment with another company at any time during the Severance Period, the Participant may cease receiving coverage under the Companys medical and dental plans. Within thirty (30) days of Participants commencement of employment with another company, Participant shall provide the Company written notice of such employment and provide information to the Company regarding the medical and dental benefits provided to Participant by his or her new employer. The COBRA Continuation Coverage Period under section 4980B of the Code shall run concurrently with the Severance Period.
(e) Stock Options. All stock options held by the Participant as of his or her Termination Date shall continue to vest as scheduled during the twelve (12) month period after Participants Termination Date, unless the Participants option agreement covering such options provides for more favorable vesting treatment. All vested outstanding stock options held by Participant shall be exercisable for the greater of (i) the period set forth in Participants option agreement covering such options, or (ii) twelve (12) months from the Termination Date. In no event, however, shall an option be exercisable beyond its original term.
(f) Restricted Stock.
(i) Restricted Stock. All unvested restricted stock and restricted stock units held by the Participant as of his or her Termination Date shall be forfeited as of the Termination Date.
(g) Outplacement Services. The Company may, in its sole and absolute discretion, pay the cost of outplacement services for the Participant at the outplacement agency that the Company regularly uses for such purpose; provided, however, that the period of outplacement shall not exceed twelve (12) months from Participants Termination Date. The Company shall pay the cost of outplacement services for the Participant for a period of up to twelve (12) months from Participants Termination Date at either (i) the outplacement agency that the Company regularly uses for such purpose, or (ii) provided the Senior Vice President Human Resources provides prior approval, at an outplacement agency selected by the Participant.
(h) In the event that provision of any of the benefits in (d) above, would adversely affect the tax status of the applicable plan or benefits, the Company, in its sole discretion, may elect to pay to the Participant cash in lieu of such coverage in an amount equal to the Companys premium or average cost of providing such coverage.