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Exhibit 10.2
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "
Agreement ") is made and entered into as of
December 31, 2008 and amends and restates the Employment
Agreement (the "Original Employment Agreement") originally made and
entered into December 3, 2003 (the " Effective Date "),
by and among SPRINT CORPORATION, renamed SPRINT NEXTEL CORPORATION,
a Kansas corporation (" Sprint "), SPRINT/UNITED MANAGEMENT
COMPANY, a Kansas corporation and subsidiary of Sprint ("
SUMC ") (Sprint, SUMC and the subsidiaries of Sprint are
collectively referred to herein as the " Company "), and
KATHRYN A. WALKER (" Executive ").
Recitals
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1.
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Because the Company is mindful of
Executive’s substantial contributions to the Company and of
her attractiveness in the competitive marketplace, both within and
outside of the telecommunications industry, it desires to insure
her continued employment with the Company, it desires to encourage
her to maintain and increase her ownership of Company stock, and it
desires to provide her appropriate compensation arrangements that
continue to motivate her to focus on and increase shareholder
value.
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2.
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Executive has been, and now is,
serving as Chief Information and Network Officer.
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3.
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The Company desires to continue to
secure the continued long-term employment of Executive.
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4.
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Executive and the Company entered
into a Special Compensation and Non-Compete Agreement, dated
February 8, 1999 (the " Severance Agreement
").
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5.
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Executive and the Company desire to
amend and restate the Original Employment Agreement as provided
herein.
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6.
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Certain capitalized terms used
herein are defined parenthetically throughout this Agreement or
defined in Section 6 of this Agreement.
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NOW, THEREFORE, in consideration of the promises
and mutual covenants herein contained, and for other good and
valuable consideration, the receipt and sufficiency of which
consideration is mutually acknowledged by the parties, the parties
hereby amend and restate the Original Employment Agreement as
follows:
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1.
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Employment and
Termination
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1.01.
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Conditions of
Employment
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Subject to the terms of this Agreement, the
Company hereby agrees to continue to employ Executive as Chief
Information and Network Officer, with such authority, power,
responsibilities, and duties customarily exercised by a person
holding such position in a company of the size and nature of the
Company.
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1.02.
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Performance of
Duties
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Executive shall, during her employment with the
Company, owe an undivided duty of loyalty to the Company and agrees
to use her best efforts to promote and develop the business of the
Company. Executive agrees that, during her employment with the
Company, she must devote her full business time, energies, and
talents to serving as a senior executive officer of the Company and
that she shall perform her duties faithfully and efficiently
subject to the directions of the Board. Notwithstanding the
foregoing, Executive may, subject in all cases to the
Company’s Principles of Business Conduct (or any successor
code of conduct) (i) serve as a director, trustee, or officer
or otherwise participate in not-for-profit educational, welfare,
social, religious, and civic organizations; (ii) serve as a
director of any for-profit business listed on Exhibit A hereto or,
with the prior consent of the Board, serve as a director of any
for-profit business that is not a Competitor; and
(iii) acquire passive investment interests in one or more
entities, to the extent that the other activities do not inhibit or
interfere with the performance of Executive’s duties under
this Agreement, or to the knowledge of Executive conflict in any
material way with the business or policies of the
Company.
The term of Executive’s employment under
this Agreement (the " Employment Term ") began on the
Effective Date and ends on Executive’s 65th birthday (the "
End Date "). This Agreement sets forth certain terms of
Executive’s employment during the Employment Term, the
consequences of any termination of employment during the Employment
Term, and the terms of certain restrictive covenants by Executive
during and after the Employment Term. The Company and Executive
agree that the employment relationship is at will, and either party
may terminate the employment relationship for any reason in
accordance with the procedures and with the consequences set forth
in this Agreement.
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1.04.
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Procedures for
Termination
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Except as set forth below, any purported
termination of this Agreement or of Executive’s employment by
the Company or by Executive during the Employment Term, other than
by Executive’s death, shall be communicated by a written
notice of termination to the other party hereto delivered in
accordance with Section 14 below indicating the specific
termination provision in this Agreement relied upon and setting
forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination under the provision so indicated.
Any such termination will be effective on the Termination
Date.
The Company may not terminate Executive’s
employment for Cause during the Employment Term until it delivers
to Executive a written notice stating that Executive is guilty of
conduct constituting Cause by reference to one or more clauses of
Section 6.06 and specifying the particulars thereof in
reasonable detail.
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(c)
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CIC Good Reason
Termination
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Executive may terminate her employment for CIC
Good Reason during the Employment Term only within the CIC
Protected Period following written notice and an opportunity for
the Company to cure; provided, however, that Executive may not give
notice of termination for CIC Good Reason during any Period in
which Executive is unable to substantially perform her duties with
the Company due to physical or mental illness. In order to effect a
termination for CIC Good Reason, Executive must, within 60 days
following the event or circumstance giving rise to
Executive’s claim, deliver a written notice to the Company
that sets forth the specific event or circumstance giving rise to
CIC Good Reason by reference to one or more clauses of the
definition of CIC Good Reason set forth in Section 6.09 of
this Agreement. If, within 30 days following notice from Executive,
the Company corrects, in all material respects, the events or
circumstances giving rise to Executive’s claim for CIC Good
Reason, Executive shall not be entitled to terminate her employment
for CIC Good Reason by reason of such event or
circumstance.
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(d)
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Non-CIC Good Reason
Termination
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Executive may terminate her employment for
Non-CIC Good Reason any time during the Employment Term following
written notice and an opportunity for the Company to cure. In order
to effect a termination for Non-CIC Good Reason, Executive must
deliver a written notice to the Company within 60 days following
the event or circumstance giving rise to Executive’s claim of
Non-CIC Good Reason. The notice must set forth the specific event
or circumstance giving rise to Non-CIC Good Reason by reference to
one or more clauses of the definition of Non-CIC Good Reason set
forth in Section 6.24 of this Agreement. If, within 30 days
following notice from Executive, the Company corrects, in all
material respects, the events or circumstances giving rise to
Executive’s claim for Non-CIC Good Reason, Executive shall
not be entitled to terminate her employment for Non-CIC Good Reason
by reason of such event or circumstance.
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(e)
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Payment of Compensation Earned
Through Termination Date
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Upon a termination of Executive’s
employment hereunder for any reason, Executive or, in the event of
her death, Executive’s estate, in addition to any other
payments or benefits to which Executive may be entitled hereunder,
is entitled to
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(i)
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Executive’s Base Salary
prorated through the date of Separation from Service,
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(ii)
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any payment under the Incentive Plan
for Performance Periods ending before the date of Separation from
Service, unless eliminated or reduced, and then only to the extent
that such payments are eliminated or reduced, for all Senior
Officers continuing employment with the Company, and
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(iii)
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any vacation pay for vacation
accrued by Executive in the calendar year of termination but not
taken by the Separation from Service date.
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Except as otherwise provided herein, the Company
must pay any other employee benefits to which Executive is entitled
by reason of her employment to Executive or her estate at the time
or times required by the terms of the applicable Company plan or
policy.
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(f)
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Effect of Termination on Other
Positions
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If, on the Termination Date, Executive
(i) is a member of the Board or any board of directors of one
of Sprint’s subsidiaries, (ii) serves on the board of
directors of any other corporation by nomination, appointment, or
designation by Sprint or any of its subsidiaries, or
(iii) holds any other position with Sprint or any of its
subsidiaries, Executive shall, unless otherwise agreed to by the
Company, be deemed to have resigned from all such positions as of
the Termination Date. Executive agrees to execute such documents
and take such other actions as the Company may request to reflect
such resignations.
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(g)
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Condition to Certain
Payments
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Payments under Section 4 are conditioned on
Executive’s compliance with the requirements of
Section 4.03(b).
At the Company’s request, Executive shall
participate in an exit interview prior to Executive’s last
day worked as an employee of the Company to provide for the orderly
transition of her duties, to arrange for the return of the
Company’s property, to discuss her intended new employment,
and to discuss and complete such other matters as may be necessary
to ensure full compliance with this Agreement.
Subject to the terms of this Agreement, during
the Employment Term, while Executive is employed by the Company,
the Company will compensate her for her services as
follows:
Executive shall receive an annual base salary in
an amount not less than her annual salary on the Effective Date,
payable in monthly or more frequent installments in accordance with
the Company’s payroll policies and practices (such annual
base salary as adjusted pursuant to this Section 2.01 shall
hereinafter be referred to as the " Base Salary ").
Executive’s Base Salary shall be reviewed, and may be
increased but not decreased below the rate in effect on the
Effective Date (other than across-the-board reductions similarly
affecting all Senior Officers), by the Board in a manner that is
fair and pursuant to its normal performance review policies for
Senior Officers.
Executive will continue to participate in the
Incentive Plan, subject to its terms and conditions as they may
from time to time be established, amended, interpreted, or
terminated in accordance with the Company’s plans or policies
governing such benefits to the Company’s Senior
Officers
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generally. Executive’s Targeted
Compensation under the Incentive Plan shall be reviewed, and may be
increased but not decreased below her Targeted Compensation in
effect in 2003 (other than across-the-board reductions similarly
affecting all Senior Officers), by the Board in a manner that is
fair and pursuant to its normal performance review policies for
Senior Officers.
The Company will provide Executive with the
employee benefits (including, without limitation, life, disability,
medical and dental insurance coverage, participation in the
Company’s Deferred Compensation Plan, Savings Plan, and the
Pension Plan, and other benefits generally provided to Senior
Officers) that are no less favorable in the aggregate to Executive
than those provided to her as of the Effective Date, subject to
amendment, modification, interpretation by the Company, or
termination in accordance with the Company’s plans or
policies governing such benefits to Senior Officers
generally.
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2.04.
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Expense
Reimbursement
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The Company will reimburse Executive for
reasonable out-of-pocket expenses incurred and accounted for in
accordance with the policies and procedures of the Company for
Senior Officers generally, as they may from time to time be
established, interpreted, amended, or terminated.
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3.01.
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Principles of Business
Conduct
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Executive shall adhere in all respects to the
Company’s Principles of Business Conduct (or any successor
code of conduct) as they may from time to time be established,
interpreted, amended, or terminated.
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3.02.
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Proprietary
Information
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Executive acknowledges that during the course of
her employment she has learned or will learn or develop Proprietary
Information. Executive further acknowledges that unauthorized
disclosure or use of such Proprietary Information, other than in
discharge of Executive’s duties, will cause the Company
irreparable harm. Except in the course of her employment with the
Company under this Agreement, in the pursuit of the business of the
Company, or as otherwise required in employment with the Company,
Executive shall not, during the course of her employment or at any
time following termination of her employment, directly or
indirectly, disclose, publish, communicate, or use on her behalf or
another’s behalf, any Proprietary Information. If during or
after her employment Executive has any questions about whether
particular information is Proprietary Information she shall consult
with the Company’s Corporate Secretary or other
representative designated by the Company.
Executive also agrees to promptly disclose to the Company any
information, ideas, or inventions made or conceived by her that
result from or are suggested by services performed by her for the
Company under this Agreement, and to assign to the Company all
rights pertaining to such information, ideas, or inventions.
Knowledge or information of any kind disclosed by Executive to the
Company shall be deemed to have been disclosed without obligation
on the part of the
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Company to hold the same in confidence, and the
Company shall have the full right to use and disclose such
knowledge and information without compensation to Executive beyond
that specifically provided in this Agreement.
During Executive’s employment with the
Company and during the Non-Compete Period, Executive shall not
engage in Competitive Employment, whether paid or unpaid and
whether as a consultant, employee, or otherwise. This provision
shall not apply if, within one year following a Change in
Control:
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(i)
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the Company terminates
Executive’s employment with the Company for any reason other
than for Cause or Total Disability; or
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(ii)
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Executive terminates her employment
with the Company for CIC-Good Reason.
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If Executive ceases to be employed by the Company
because of the sale, spin-off, divestiture, or other disposition by
the Company of a subsidiary, division, or other divested unit
employing Executive, this provision shall continue to apply during
the Non-Compete Period, except that Executive’s continued
employment for the subsidiary, division, or other divested unit
disposed of by the Company shall not be deemed a violation of this
provision.
Executive agrees that because of the worldwide nature of the
Company’s business, breach of this Agreement by accepting
Competitive Employment would irreparably injure the Company and
that, therefore, a limited geographic restriction is neither
feasible nor appropriate to protect the Company’s
interests.
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3.04.
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Inducement of Employees,
Customers and Others
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During Executive’s employment with the
Company and during the Non-Compete Period, Executive shall not
directly or indirectly solicit, induce, or encourage any employee,
consultant, agent, or customer of the Company, or vendor or other
parties doing business with the Company, to terminate their
employment, agency, or other relationship with the Company or to
render services for or transfer business to any Competitor, and
Executive shall not initiate discussion with any such person for
any such purpose or authorize or knowingly cooperate with the
taking of any such actions by any other individual or entity on
behalf of the Competitor.
During the Non-Compete Period, Executive shall
not, without the prior written consent of the Company, in any
manner, solicit, request, advise, or assist any other person to
(a) undertake any action that would be reasonably likely to,
or is intended to, result in a Change in Control, or (b) seek
to control in any material manner the Board.
Executive shall, upon her Termination Date,
return to the Company all property of the Company in her
possession, including all notes, reports, sketches, plans,
published memoranda, or other
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documents, whether in hard copy or in electronic
form, created, developed, generated, received, or held by Executive
during her employment, concerning or related to the Company’s
business, whether containing or relating to Proprietary Information
or not. Executive shall not remove, by e-mail, by removal of
computer discs or hard drives, or by other means, any of the above
property containing Proprietary Information, or reproductions or
copies thereof, or any apparatus from the Company’s premises
without the Company’s written consent.
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3.07.
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Mutual
Non-disparagement
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Executive agrees to refrain from making any
statements about the Company or its officers or directors that
would disparage, or reflect unfavorably upon the image or
reputation of the Company or any such officer or director. The
Company agrees to use reasonable efforts to prevent its directors
and officers from making any statements about Executive that would
disparage, or reflect unfavorably upon the image or reputation of,
Executive.
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3.08.
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Assistance with
Claims
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Executive agrees that, consistent with
Executive’s business and personal affairs, during and after
her employment by the Company, she will assist the Company in the
defense of any claims or potential claims that may be made or
threatened to be made against it in any action, suit, or
proceeding, whether civil, criminal, administrative, or
investigative (" Proceeding ") and will assist the Company
in the prosecution of any claims that may be made by the Company in
any Proceeding, to the extent that such claims may relate to
Executive’s services provided under this
Agreement.
Executive agrees, unless precluded by law, to promptly inform
the Company if Executive is asked to participate (or otherwise
become involved) in any Proceeding involving such claims or
potential claims.
Executive also agrees, unless precluded by law, to promptly
inform the Company if Executive is asked to assist in any
investigation (whether governmental or private) of the Company (or
its actions), regardless of whether a lawsuit has then been filed
against the Company with respect to such investigation. The Company
agrees to reimburse Executive for all of Executive’s
reasonable out-of-pocket expenses associated with such assistance,
including travel expenses and any attorneys’ fees and shall
pay a reasonable per diem fee (equal to 1/250th of her Base Salary
rate at her Termination Date) for Executive’s services within
30 days of such services.
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3.09.
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Key Man Life
Insurance
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The Company may, at its discretion, purchase for
its own benefit and at its own expense, key man life insurance on
the life of Executive. Neither Executive nor Executive’s
spouse or dependents shall have any right, title, or interest in or
to such insurance or the proceeds thereof. Executive agrees to
cooperate with the life insurance company and the Company in the
insurance underwriting process, including submitting to a physical
examination and other tests necessary to secure coverage, and
signing all appropriate applications and written forms as may be
required by the insurance company.
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4.
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Payments On Certain
Terminations
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4.01.
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Payments on Certain
Terminations Not in Connection with Change in
Control
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If, during the Employment Term but not within a
CIC Protected Period, (a) the Company terminates
Executive’s employment with the Company for any reason other
than (x) Cause or (y) Executive’s Total Disability
or (b) Executive terminates her employment with the Company
for Non-CIC Good Reason and, in either event such termination
constitutes a Separation from Service, then Executive shall,
subject to Section 2.05 and the other applicable provisions of
this Section 4, be entitled to the following payments and
benefits (the " Non-CIC Benefits ") in lieu of any other
payments or benefits available under Section 4.02
below:
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(i)
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The Company will pay Executive her
Base Salary, at the rate in effect prior to her termination of
employment, in equal bi-weekly installments on the regular payroll
dates under the Company’s payroll practices applicable to
Executive on the date of this Agreement for the Non-CIC Severance
Period, except that (A) if the Release Consideration and
Revocation Period ends on or after December 15
th of the calendar
year of Executive’s Separation from Service, such
installments that are otherwise payable in the year of the
Executive’s Separation from Service shall be paid in a lump
sum on the first business day of the following calendar year or
(B) if Executive is a Specified Employee, with respect to any
amount payable by reason of the Separation from Service that
constitutes deferred compensation within the meaning of
Section 409A of the Code, such installments shall not commence
until after the end of the six continuous month period following
the date of Executive’s Separation from Service, in which
case, Executive shall be paid a lump-sum cash payment equal to the
aggregate amount of missed installments during such period on the
first day of the seventh month following the date of
Executive’s Separation from Service;
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(ii)
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The Company will pay Executive, at
the time and in the amounts set forth immediately below,
Executive’s (x) bonus amount earned under the Incentive
Plan for that portion of the Termination Performance Period ending
on Executive’s date of Separation from Service and
(y) the bonus amount under the Incentive Plan for the Non-CIC
Severance Period. Such amounts shall be calculated and paid as
follows:
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(A)
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For the Termination Performance
Period, the Company will pay Executive, at the time when payouts
are made for that Performance Period, an amount equal to the
Non-CIC Termination Period Incentive Payout.
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(B)
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For the Post I Termination
Performance Period, the Company will pay Executive, at the time
when payouts are made for that Performance Period, an amount equal
to the Capped Incentive Payout for such Performance Period or,
alternatively, in the event that the Non-CIC Severance Period ends
within such Performance Period, the Capped Incentive Payout for
such Performance Period prorated through the month in which the
Non-CIC Severance Period ends.
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(C)
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In the event that the Non-CIC
Severance Period ends in the Post II Termination Performance
Period, the Company will pay Executive, at the time when payouts
are made for that Performance Period, the Capped Incentive Payout
for such Performance Period prorated through the month in which the
Non-CIC Severance Period ends.
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For purposes of Sections 4.01(ii) (B) and
(C), in determining whether to count the month in which the Non-CIC
Severance Period ends, if the end of the Non-CIC Severance Period
falls on a date on or before the 15th of a month, such month shall
not be counted but, if the end of the Non-CIC Severance Period
falls on a date after the 15th of a month, such month shall be
counted.
This Section 4.01(ii) assumes that Performance Periods
under the Incentive Plan are 12 months in length. To the extent
that Performance Periods are greater or lesser than 12 months, the
above payout schedule shall be appropriately adjusted by the
Company, either by increasing or decreasing the number of
Performance Periods in which severance payouts shall be made, such
that (i) the final payment made to Executive under this
Section 4.01(ii) shall be made at the time payouts are made
for the Performance Period in which the Non-CIC Severance Period
ends, and (ii) Executive shall receive no less than nor no
greater than the amount, using concepts and formulas consistent
with those provided in this Section 4.01(ii), that would have
accrued and been payable to Executive under the Incentive Plan for
the Non-CIC Severance Period had the Performance Periods remained
12 months in length.
Notwithstanding anything in this Section 4.01(ii) to the
contrary, each such payment shall be payable in accordance with the
provisions of the Incentive Plan in the calendar year in which the
Non-CIC Termination Period Incentive Payout or Capped Incentive
Payout, as applicable, is determined, and in all events, not later
than December 31 st
of the year in which each such payout is
determined.
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(iii)
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During the Non-CIC Severance Period,
the Company will provide any employee benefit (including, but not
limited to, executive medical, dental and life coverage, qualified
or nonqualified retirement benefits, and other benefits generally
provided to Senior Officers other than country club membership dues
and accrual of vacation) that Executive was receiving or was
entitled to receive as of the date of Separation from Service,
except that long term-disability and short-term disability benefits
shall cease on Executive’s date of Separation from Service,
but if Executive becomes employed full-time during the Non-CIC
Severance Period, Executive’s entitlement to continued
participation in any medical, dental or other group health plan
sponsored by the Company shall immediately cease, except that
Executive shall retain any rights to continue coverage under the
COBRA continuation provisions of such Company’s group health
care plans by paying the applicable premium therefor.
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(iv)
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During the Non-CIC Severance Period,
the Company will pay for outplacement counseling by a firm selected
by the Company to continue until the earlier of such time as
Executive becomes re-employed or the end of the Non-CIC Severance
Period; provided, however, that all such outplacement services must
be completed, and all payments by the Company must be made, by
December 31st of the second calendar year following the
calendar year in which Executive’s Separation from Service
occurs.
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(v)
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The end of the Non-CIC Severance
Period will be treated as Executive’s termination date for
purposes of the Company’s stock option and restricted stock
programs.
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In all events, Executive’s right to receive
the Non-CIC Benefits shall cease immediately if Executive is
re-employed by the Company or an affiliate of the Company or if
Executive breaches the Restrictive Covenants. In all cases, the
Company’s rights under Section 5 shall
continue.
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4.02.
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Payments on Certain
Terminations in Connection with a Change in
Control
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If, during the Employment Term and within a CIC
Protected Period, (a) the Company terminates Executive’s
employment with the Company for any reason other than
(x) Cause or (y) Executive’s Total Disability, or
(b) Executive terminates her employment with the Company for
CIC Good Reason and in either event, such termination constitutes a
Separation from Service, then Executive shall, subject to
Section 2.05 and the other applicable provisions of this
Section 4, be entitled to the following payments and benefits
(the " CIC Benefits ") in lieu of any other payments or
benefits available under Section 4.01 above:
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(i)
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In lieu of any further salary
payments to Executive for periods after the Separation from Service
date, the Company will pay Executive her Base Salary, at the rate
in effect prior to her termination of employment, in equal
bi-weekly installments on the regular payroll dates under the
Company’s payroll practices applicable to Executive on the
date of this Agreement for the CIC Severance Period, except that
(A) if the Release Consideration and Revocation Period ends on
or after December 15 th of the calendar year of
Executive’s Separation from Service, such installments that
are otherwise payable in the year of the Executive’s
Separation from Service shall be paid in a lump sum on the first
business day of the following calendar year or (B) if
Executive is a Specified Employee, with respect to any amount
payable by reason of the Separation from Service that constitutes
deferred compensation within the meaning of Section 409A of
the Code, such installments shall not commence until after the end
of the six continuous month period following the date of
Executive’s Separation from Service, in which case, Executive
shall be paid a lump-sum cash payment equal to the aggregate amount
of missed installments during such period on the first day of the
seventh month following the date of Executive’s Separation
from Service;
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provided, however, to the extent
that Executive terminates her employment because of CIC Good Reason
and a reduction in Executive’s Base Salary has occurred which
constitutes CIC Good Reason under Section 6.09(ii) of this
Agreement, Executive’s Base Salary for the purpose of this
Section 4.02(i) shall be Executive’s Base Salary
immediately prior to such Base Salary reduction.
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(ii)
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In lieu of any payments under, and
notwithstanding any provisions of the Incentive Plan, the Company
will pay Executive, at the time and in the amounts set forth
immediately below, Executive’s (x) bonus amount earned
under the Incentive Plan for that portion of the Termination
Performance Period ending on Executive’s Separation from
Service date and (y) a bonus amount equal to the amount
Executive could have received under the Incentive Plan for the CIC
Severance Period. Such amounts shall be calculated and paid as
follows:
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(A)
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For the Termination Performance
Period, the Company will pay Executive, at the time when payouts
are made for that Performance Period, an amount equal to the CIC
Termination Period Incentive Payout.
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(B)
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For the Post I Termination
Performance Period, the Company will pay Executive, at the time
when payouts are made for that Performance Period, an amount equal
to Executive’s Final Targeted Compensation or, alternatively,
in the event that the CIC Severance Period ends within such
Performance Period, Executive’s Final Targeted Compensation
prorated through the month in which the CIC Severance Period
ends.
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(C)
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In the event that the CIC Severance
Period ends during the Post II Termination Performance Period, the
Company will pay Executive, at the time when payouts are made for
that Performance Period, Executive’s Final Targeted
Compensation prorated through the month in which the CIC Severance
Period ends.
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For purposes of Sections 4.02(ii) (B) and
(C), in determining whether to count the month in which the CIC
Severance Period ends, if the end of the CIC Severance Period falls
on a date on or before the 15th of a month, such month shall not be
counted but, if the end of the CIC Severance Period falls on a date
after the 15 th of a month, such month shall be counted.
Notwithstanding the above and for the purpose of determining the
payout amounts under Sections 4.02(ii)(B) and (C), to the extent
that Executive terminates her employment because of CIC Good Reason
and a reduction in Executive’s Targeted Compensation has
occurred which constitutes CIC Good Reason under
Section 6.09(vi) of this Agreement, Executive’s Final
Targeted Compensation for purposes of Sections 4.02(ii)(B) and
(C) shall be Executive’s Targeted Compensation
immediately prior to such Targeted Compensation reduction.
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This Section 4.02(ii) assumes that
Performance Periods under the Incentive Plan are 12 months in
length. To the extent that Performance Periods are greater or
lesser than 12 months, the above payout schedule shall be
appropriately adjusted by the Company, either by increasing or
decreasing the number of Performance Periods in which severance
payouts shall be made, such that (i) the final payment made to
Executive under this Section 4.02(ii) shall be made at the
time payouts are made for the Performance Period in which the CIC
Severance Period ends, and (ii) Executive shall receive no
less than nor no
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