This excerpt taken from the VARI 10-Q filed Feb 5, 2008.
BETWEEN VARIAN S.P.A. AND SERGIO PIRAS
Sergio Piras, Senior Vice President, Vacuum Technologies, is employed by and serves as Managing Director of the Companys wholly-owned subsidiary in Italy, Varian S.p.A., working from its facility in Torino, Italy. Due to his position with Varian S.p.A., Mr. Piras is classified as an Industrial Dirigenti (an industry executive) as are certain other senior managers at Varian S.p.A. and therefore subject to a national collective labor agreement for all industrial dirigenti in Italy (the CCNL). The CCNL mandates that certain compensatory arrangements and benefits be provided to dirigenti working for industrial companies in Italy, which arrangements and benefits may be different from what is provided to non-dirigenti employees. Following is a summary of the compensatory arrangements and benefits provided to Mr. Piras under the CCNL:
Under Italian law, the Company is also required (under a government-mandated program, referred to as TFR, applicable to all Italy employees) to accrue and eventually pay to Mr. Piras a lump-sum amount when his employment terminates (regardless of the reason for that termination). The annual amount required to be accrued for Mr. Piras TFR is equal to his annual base salary plus annual cash bonus divided by 13.5. Under Italian law, Mr. Piras may elect to transfer all or a portion of his TFR entitlement to his Previndai Plan account.