Classmates.com 2010 Annual Report Download - page 228

2. Severance Payment Benefit Guideline for Employees Entitled to Notice Under the WARN Act. If you are entitled to
prior notice of your termination pursuant to the provisions of the WARN Act, the Severance Payment Benefit guideline is as follows: The
Severance Payment Benefit amount is the greater of (a) the amount for which you would be eligible under Section IV.B.1. above (if you had not
been entitled to WARN Act notice) minus eight weeks’ base pay, or (b) one week’s base pay. For example, the benefit guideline for a person
who has been employed for five years with a base salary of $100,000 who is not terminated during the Transaction Protection Period would be
two weeks’ base pay. The benefit guideline for a person who has been employed for three years with a base salary of $60,000 would be one
week’s base pay.
3. Payment of Benefits. The lump sum payment of the Severance Payment Benefit determined in accordance with the
provisions of this Section IV.B. will be subject to legally required tax withholdings and all other applicable payroll deductions. Such
withholdings and deductions may not include 401k Plan contributions or other elective benefit and benefit plan contributions as participation in
such benefits and plans terminate upon termination of employment.
4. Administrator Discretion. The Plan Administrator may, as it deems appropriate and in its sole discretion, authorize
Severance Payment Benefits in an amount different from that set forth in the Severance Payment Benefit Guidelines. Under certain
circumstances, the Plan Administrator may, in its sole discretion, waive or modify, with respect to one or more employees or classes of
employees, the eligibility requirements for Severance Payment Benefits or modify the amount of Severance Payment Benefits. The foregoing
shall not apply during the Transaction Protection Period. In no event, however, shall any Severance Payment Benefit payments be structured in
a manner, or shall the Plan Administrator take any other action, that would contravene the applicable requirements, restrictions and limitations of
Code Section 409A and the Treasury Regulations thereunder or otherwise result in a prohibited acceleration, or impermissible deferral, of benefit
payments under Code Section 409A and the Treasury Regulations thereunder.
6. Miscellaneous. Regardless of whether you meet the eligibility criteria of Section III and are eligible for benefits under the
Plan, you will be subject to the following rights and obligations in connection with your Layoff Termination or Involuntary Termination:
•
In your final paycheck, you will receive a lump sum payment for your salary or wages through your termination date, and all
your accrued but unused vacation.
• As of the effective date of your Layoff Termination, except as otherwise provided through COBRA, you will cease
participation in all employee benefits and benefit plans the Company makes available to its employees, in accordance with the
terms and conditions of such benefits and benefit plans.
•
In accordance with COBRA, you and/or your eligible dependents may elect temporary continuation coverage under the
Company’s group health benefit plans (medical, dental and/or vision), provided that you timely elect such coverage and you
timely pay the full amount of premiums due. In connection with your Layoff Termination, you and your eligible dependents
will be provided with COBRA election forms and a notice that describes your rights to, and the terms and conditions of,
temporary continuation coverage under COBRA. These documents will be provided separately.
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