ADT 2007 Annual Report Download - page 62

Severance Arrangements Without a Change in Control
Description Chief Executive Officer Other Named Executive Officers
Governing document: Employment Contract. The Severance Plan.
For equity awards, individual
award agreements.
Termination events triggering • Involuntary termination Involuntary termination without
severance cash benefits and without Cause. Cause.
benefits continuation: • Termination by Mr. Breen
for Good Reason.
Severance cash benefit: Three times base salary and Two times base salary and two
three times higher of target times target annual bonus.
annual bonus or most recent
annual bonus payment.
Executive must sign release to Yes. Yes.
receive severance benefits:
Health and welfare benefits Three years from date of Two years from date of
continuation: termination if practicable under termination for health and
the plan. If not, an equivalent dental benefits only, if
cash payment is made, with a practicable under the plan. If
tax gross-up on such amount. not, an equivalent cash payment
is made.
Pension benefits consisting of Voluntary termination by N/A
accrued amounts in Mr. Breen without Good
supplemental retirement plans: Reason or termination by the
Company with Cause prior to
age 60—vested pension benefits
are subject to a reduction.
If Mr. Breen terminates with
Good Reason or is terminated
by the Company without Cause
and elects to commence
payments prior to age 60,
pension benefits are paid subject
to a reduction.
Prorated bonus in year of Yes. At the Company’s discretion and
termination: per the terms of the applicable
incentive plan.
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