Dollar General 2008 Annual Report Download - page 158

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our failure to offer to renew, extend or replace the named executive officer’ s employment
agreement before, at or within 60 days after the end of the agreement's term (unless we enter into
a mutually acceptable severance arrangement or the resignation is a result of the named
executive officer’ s voluntary retirement or termination), or (3) in the case of Mr. Dreiling, in the
event we elect not to extend the term of his employment by providing 60 days prior written
notice before the applicable extension date, then the named executive officer will receive the
following benefits as soon as administratively practicable after the 60th day after termination of
employment but contingent upon the execution and effectiveness of a release of certain claims
against us and our affiliates in the form attached to the named executive officer’ s employment
agreement:
• Continuation of base salary, as in effect immediately before the termination, for
24 months payable in accordance with our normal payroll cycle and procedures (Mr.
Bere will instead receive a lump sum payment equal to 2 times his base salary in
effect on July 6, 2007).
• A lump sum payment equal to 2 times the named executive officer’ s target incentive
bonus then in effect (Mr. Dreiling’ s target incentive bonus payment instead will be
payable over 24 months; Mr. Bere will instead receive a lump sum payment equal to
2 times the target incentive bonus he was eligible to earn under our bonus plan as in
effect on July 6, 2007).
• A lump sum payment equal to 2 times our annual contribution for the named
executive officer’ s participation in our medical, dental and vision benefits program
(in the case of Mr. Dreiling, the medical, dental and vision benefit instead will be in
the form of a continuation of these benefits to Mr. Dreiling, his spouse and his
eligible dependents to the extent covered immediately prior to the employment
termination, for 2 years from the termination date or, if earlier, until he is or becomes
eligible for comparable coverage under the group health plans of a subsequent
employer).
• Mr. Dreiling will receive a prorated bonus payment based on our performance for the
fiscal year, paid at the time bonuses are normally paid for that fiscal year.
• If Mr. Bere’ s termination occurred prior to the payment of our fiscal 2008 bonus, he
would receive a lump sum payment of his fiscal 2008 bonus, determined as if he had
remained employed through the date necessary to receive the payment of the fiscal
2008 bonus but prorated based on the number of months during fiscal 2008 during
which he was employed by us.
• Outplacement services, at our expense, for 1 year or, if earlier, until other
employment is secured.
Note that any amounts owed to a named executive officer in the form of salary
continuation that would otherwise have been paid during the 60 day period after the
named executive officer’ s employment termination will instead be payable in a single