JCPenney 2015 Annual Report Download - page 113

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(b) Health and Dental Insurance Continuation. Following an Involuntary Separation from Service other than for
Cause, the Executive will, as provided in Section 1.4(a) of this Agreement, be eligible to receive COBRA
continuation coverage under the medical and/or dental option, as applicable, under the Health and Welfare Plan
at active associate rates if (i) the Executive is enrolled in a full-time medical and/or dental option, as applicable,
under the Health and Welfare Plan on the effective date of the Executive’s Involuntary Separation from Service
other than for Cause and the Corporation currently is paying a portion of the Executive’s premium for the
medical and/or dental coverage on the Executive’s behalf, and (ii) the Executive timely elects COBRA
continuation coverage under the Health and Welfare Plan. If the Executive satisfies these prerequisites, the
Corporation will allow the Executive to participate in COBRA continuation coverage under the Health and
Welfare Plan at active associate rates until the earlier of (i) the end of the month that coincides with or next
follows the term of the Severance Period; and (ii) the end of the month prior to the month the Executive fails to
timely make any required premium payment under the Health and Welfare Plan in connection with receiving
COBRA continuation coverage under the Health and Welfare Plan or otherwise loses eligibility for COBRA
continuation coverage under the terms of the medical and/or dental option, as applicable, under the Health and
Welfare Plan. Any subsidized COBRA continuation coverage provided under this Section 1.4(b) will be
applied against the Executive’s statutory continuation period under COBRA.
(c) Special Bonus Hours. Following an Involuntary Separation from Service, the Corporation shall pay the
Executive a lump sum payment for Special Bonus Hours, if the Executive is a participant in the Corporation’s
Paid Time Off Policy (“PTO Policy”). Such payment shall be determined in accordance with the provisions of
the PTO Policy applicable to an involuntary termination resulting from a reduction in force.
(d) Accelerated Vesting. On Executive’s Involuntary Separation from Service other than for Cause, Executive shall:
(i) with respect to any equity award that constitutes an Inducement Award, immediately vest in such
Inducement Award as provided in the applicable award notice or agreement evidencing the award.
(ii) with respect to any award of stock options, stock appreciation rights, or time-based restricted stock or
restricted units, immediately vest in a prorated number of the stock options, stock appreciation rights,
and/or time-based restricted stock or restricted stock units based on the Executive’s length of
employment during the vesting period provided in the applicable award notice or agreement.
(iii) with respect to any award of performance-based restricted stock or restricted stock unit awards, vest in a
prorated number of such performance-based restricted stock or restricted stock units based on (X)
Executive’s length of employment during the performance period, and (Y) the attainment of the
performance goal as of the end of the performance period, all as provided under the terms of the
respective award notice or agreement.