Severance Plan for International
Senior Vice Presidents
As a Senior
Vice President, you are entitled to severance benefits in the event
your employment is terminated by Biogen Idec other than For Cause
or for reason of death or Disability (as these terms are defined in
the Biogen Idec 2008 Omnibus Equity Plan).
Your severance
benefits are comprised of (i) a lump sum payment (as
calculated below), (ii) upon completion of the appropriate
forms, continuation of your participation in Biogen Idec’s
group medical and dental insurance plans, to the same extent
provided for under local statute and to the same extent such
insurance is then provided to regular employees of Biogen Idec,
including payment by you of a portion of the insurance premiums
(i.e., the “Insurance Benefit”) and (iii) the
reasonable cost of up to nine months of executive-level
outplacement services from a recognized provider of such services,
at the expense of Biogen Idec (upon receipt of appropriate
documentation).
The lump sum
severance payment is calculated as follows:
[9 + (A x 2)] x B = lump sum
payment
|
|
where:
|
|
A
is the number of full years of service with Biogen Idec (but A x 2
may not exceed 9), and B is the monthly equivalent of your target
annual cash compensation at the time of your termination (i.e.,
one-twelfth of the sum of your then annual base salary plus target
annual bonus).
|
The following
are examples of how the lump sum payment and Insurance Benefit
Period are determined:
If your
employment with Biogen Idec is terminated after 10 months of
employment, you will receive a lump sum payment equal to nine
months of your target annual cash compensation and, if applicable,
continue to participate in Biogen Idec’s group medical and
dental plans for nine months, unless you become eligible to
participate in another employer’s medical and dental plans
before that date.
If your
employment with Biogen Idec is terminated after five years, you
will receive a lump sum payment equal to 18 months [9+9] of
your target annual cash compensation and, if applicable, continue
to participate in Biogen Idec’s group medical and dental
plans for 18 months, unless you become eligible to participate
in another employer’s medical and dental plans before that
date.
If at any time
within two years following a Corporate Transaction or Corporate
Change in Control (as these terms are defined in Biogen
Idec’s 2008 Omnibus Equity Plan) your employment is
terminated by Biogen Idec or the succeeding corporate entity, other
than For Cause or for reason of death or Disability (as these terms
are defined in Biogen Idec’s 2008 Omnibus Equity Plan), or
you experience an Involuntary Employment Action (defined below) and
as a result you terminate your employment with Biogen Idec or the
succeeding corporate entity, then, regardless of the length
of
