ADT 2008 Annual Report Download - page 57

Description Chief Executive Officer Other Named Executive Officers
Health and welfare benefits Continued participation in the Twelve months from date of
continuation: Company’s health and welfare termination for medical and dental
plans over the same time period and health care reimbursement
for which severance is payable, account benefits only, if the
subject to an 18 month limit on executive does not commence
continuation of medical benefits. employment with another
If Mr. Breen’s severance period is company during the severance
greater than 18 months, an period. In addition, if the
equivalent cash payment is made executive’s severance period is
for the monthly COBRA premium greater than 12 months, the
cost of the coverage multiplied by executive will be entitled to a cash
the number of months by which payment equal to the projected
the severance period exceeds value of the employer portion of
18 months, with a tax gross-up on medical and dental benefit
such amounts. premiums over the excess
severance period.
Pension benefits consisting Voluntary termination by N/A
of accrued amounts in Mr. Breen without Good Reason
supplemental retirement or termination by the Company
plans: with Cause prior to age 60—
vested pension benefits are subject
to a reduction.
Prorated bonus in year of Yes, subject to applicable At the Company’s discretion and
termination: performance conditions. per the terms of the applicable
incentive plan.
Equity treatment: All awards vest in full upon an Substantially all of the individual
involuntary termination without award agreements are consistent
Cause, a termination for Good with the terms and conditions of
Reason or death or disability: the Severance Plan, which
• Options remain exercisable for provides that, upon an involuntary
the remainder of their term. termination without Cause:
Upon death or disability, • Outstanding stock options
options remain exercisable until continue to vest for 12 months.
the earlier of the original • The executive has 12 months
expiration date of the option or (or 36 months in the case of
the third anniversary of retirement eligible employees)
termination. to exercise vested stock options,
subject to the original term.
• All unvested restricted stock
and RSUs are forfeited.
Each individual award specifies
treatment of equity upon death or
disability.
Outplacement assistance: No. At Company’s discretion for up to
12 months.
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