Rayovac 2008 Annual Report Download - page 116

Table of Contents
Index to Financial Statements
John A. Heil
Termination Scenarios
Component
Voluntary/
For Cause/
Retirement
Good
Reason
(1 yr Upon
Sale of
Pet)
Good
Reason
(No Sale of
Pet)
Without
Cause Death Disability
Change In
Control(10)
(1 yr Upon
Sale of
Pet)
Change In
Control(11)
(No Sale of
Pet)
Cash Severance(1) $ — $ 1,800,000 $ 1,602,934 $ 1,602,934 $ 1,602,934 $ 1,602,934 $ 1,800,000 $ 1,602,934
Retention Award(2) $ — $ 675,000 $ 675,000 $ 675,000 $ — $ — $ 675,000 $ 675,000
LTIP Cash(3) $ — $ 337,500 $ 337,500 $ 337,500 $ 337,500 $ 337,500 $ 337,500 $ 337,500
Equity
Time-Lapse
Restricted
Stock(4) $ — $ 172,343(4a) $ 172,343(4a) $ 172,343(4a) $ 172,343(4a) $ 172,343(4a) $ 487,084(4b) $ 487,084(4b)
Performance-accelerated
Restricted
Stock(5) $ — $ — $ — $ — $ — $ — $ 12,510(5a) $ 12,510(5a)
Performance
Shares(6) $ — $ 157,682 $ 157,682 $ 157,682 $ 157,682 $ 157,682 $ 315,363 $ 315,363
Total $ — $ 330,025 $ 330,025 $ 330,025 $ 330,025 $ 330,025 $ 814,957 $ 814,957
Retirement Benefits
NQ Defined
Contribution
Benefit (SERP)(7) $ 126,129(7a) $ 206,234(7a) $ 206,234(7a) $ 206,234(7a) $ 342,142(7b) $ 343,723(7c) $ 343,723(7c) $ 343,723(7c)
Other Benefits
Health and
Welfare(8) $ — $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000
Tax Gross-Up(9) $ — $ — $ — $ — $ — $ — $ — $ —
Total (12) $ 126,129 $ 3,428,759 $ 3,231,693 $ 3,231,693 $ 2,692,601 $ 2,694,182 $ 4,051,180 $ 3,854,114
(1) Reflects cash severance payment of two times the sum of the executive’s current base salary and the actual 2007 fiscal year bonus (except in the case of
termination for good reason or change in control in relation to the sale of the Global Pet Supplies business and provided that the executive continues
employment for one year following such sale, the target bonus amount the executive would be eligible to receive if the Company met 100% of the
applicable performance goals in the fiscal year of such sale (i.e., 2008) would be used). Payments will be made in monthly installments over a period of 24
months.
(2) Amounts reflect the remaining portion of the retention incentive that would be paid in full for termination without cause, for good reason or upon a change
in control.
(3) Amount represents the accelerated cash-based LTIP award benefit that was earned in Fiscal 2008 but would have been paid in November of 2009.
(4) Amounts reflect restricted stock awards where restrictions lapse upon termination according to provisions under the award’s respective equity agreements.
(4a) Reflects 123,988 shares of unvested restricted stock that will continue to vest upon termination for good reason, without cause, death or disability. An
additional 53,472 unvested shares are forfeited upon termination in accordance with their equity award agreements. The value is calculated using the
stock price at the fiscal year end ($1.39 per share).
(4b) Reflects 158,283 shares of unvested restricted stock that will immediately vest upon change in control. Change in control value is calculated using the
highest stock price during the 60 day period prior to the termination using an assumed September 30, 2008 termination date ($2.78 per share), pursuant to
the applicable incentive plan governing documents.
(5) Amounts reflect restricted stock awards where restrictions lapse upon termination according to provisions under the award’s respective equity agreements.
Change in control value is calculated using the highest stock price during the 60 day period prior to the termination using an assumed September 30, 2008
termination date ($2.78 per share), pursuant to the applicable incentive plan governing documents.
(5a) Reflects 4,500 shares of unvested performance-accelerated restricted stock that will immediately vest upon change in control.
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008