Classmates.com 2010 Annual Report Download - page 227

B. Severance Benefits Guidelines
The Severance Payment Benefit for which you are eligible under the Plan depends on your position, your base pay, your length of service, the
type of termination, and whether you are entitled to receive prior notice of your termination under the terms of the Worker Adjustment and
Retraining Notification Act (“ WARN Act ”). No Severance Payment Benefit will be paid to you if you fail to comply with or meet the
eligibility conditions stated above, including (without limitation) the execution and effectiveness of the Required Release on or before applicable
date specified in Section III.A.9. above, but in no event after the expiration of the sixty (60)-day period measured from the date of your
Separation from Service.
The actual Severance Payment Benefit for which you are eligible generally will be determined in accordance with the guidelines set forth below.
1. Severance Payment Benefit Guideline for Employees Not Entitled to WARN Act Notice: If you are not entitled to
advance notice of your termination pursuant to the provisions of the WARN Act, this section will serve as your Severance Payment Benefit
guideline.
(a) For employees other than Presidents, Executive Vice Presidents, Senior Vice Presidents or Vice Presidents, the
Severance Payment Benefit shall depend on whether you are terminated during the Transaction Protection Period as follows:
(i) For a termination that does not occur during the Transaction Protection Period, the Severance Payment Benefit for
employees who are not entitled to prior notice of layoff under the WARN Act is one week’s base pay for each full $20,000 of annual base pay,
and an additional one week’s base pay for each full six (6) month period of employment completed prior to termination, up to a maximum of an
additional five (5) weeks of base pay. For example, an employee with a $40,000 per year base salary who has been employed continuously for
four years would be eligible for a severance benefit equal to seven (7) weeks of base pay.
(ii) For a termination that occurs during the Transaction Protection Period, the severance benefit for employees who are
not entitled to prior notice of layoff under the WARN Act is one week’s base pay for each full $10,000 of annual base pay which the employee
was receiving prior to the Transaction (or, if greater, the base pay such employee was receiving before the termination) and an additional one
week’s base pay for each full six (6) month period of employment completed prior to termination, up to an additional five (5) weeks of base
pay. For example, an employee with a $40,000 per year base salary who has been employed continuously for four years would be eligible for a
severance benefit equal to nine (9) weeks of base pay.
(b) The Severance Payment Benefit amount for Presidents and Executive Vice Presidents shall be one year of base pay.
The Severance Payment Benefit amount for Senior Vice Presidents and Vice Presidents shall be six (6) months of base pay. The amounts for
Presidents, Executive Vice Presidents, Senior Vice Presidents and Vice Presidents shall apply whether or not the termination occurs during the
Transaction Protection Period. Whether an employee is a President, Executive Vice President, Senior Vice President or Vice President will be
based upon such employee’s title as of the date of termination or, if during the Transaction Protection Period, the employee’s highest title at any
time during that period. It shall be solely in the Company’s discretion to change employees’ titles.
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