ADT 2011 Annual Report Download - page 71

The table below summarizes the key terms and provisions of the severance plans that are currently
in effect. Refer to the ‘‘Potential Payments Upon Termination and Change in Control’’ table for the
estimated dollar value of the benefits available under the severance plans in effect as of our fiscal
year-end.
Severance Arrangements Not in Connection with a Change in Control
Description Chief Executive Officer Named Executive Officers
Governing document: Employment agreement. Severance Plan.
For equity awards, both the
Severance Plan and individual
award agreements.
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Termination events triggering • Involuntary termination Involuntary termination other
severance cash benefits and without Cause, other than for than Cause, permanent disability
benefits continuation: death or disability. or death.
• Termination by Mr. Breen for
Good Reason.
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Severance cash benefit: Two times base salary and two Two times base salary and two
times higher of target annual times target annual bonus.
bonus or most recent annual
bonus payment. The multiplier
on the cash benefit is reduced
from two times to 1.5 times at
age 62 and further reduced to
1.0 times at age 63 or older.
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Executive must sign release to Yes. Yes.
receive severance benefits:
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Health and welfare benefits Continued participation in the Twelve months from date of
continuation: Company’s health and welfare termination for medical and
plans over the same time period dental and health care
for which severance is payable, reimbursement account benefits
subject to an 18 month limit on only, if the executive does not
continuation of medical benefits. commence employment with
If Mr. Breen’s severance period another company during the
is greater than 18 months, an severance period. The executive
equivalent cash payment is made will also be entitled to a cash
for the monthly COBRA payment equal to the projected
premium cost of the coverage value of the employer portion of
multiplied by the number of medical and dental benefit
months by which the severance premiums for an additional
period exceeds 18 months, with 12 month period.
a tax gross-up on such amounts.
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