Travelers 2014 Annual Report Download - page 297

provide proof of a rental or lease agreement or of an offer of purchase for property in the new location.
IV. Outplacement Services
An Employee who has a Termination of Employment due to a RIF will receive, at the Employer
’ s expense, professional outplacement
services. The cost, duration and content of these services shall be determined by the Employer and may be modified from time to time
without notice to the general Employee population; provided that, in no event will outplacement services extend beyond the end of the
second calendar year following the calendar year of the Employee ’ s Termination of Employment (and in no event will reimbursement occur
later than the end of the third calendar year following the calendar year of the Employee
’ s Termination of Employment).
The Employee will not be required to sign a Confidential Separation Agreement as a condition to receiving such outplacement services.
An Employee who has a Voluntary Termination after receiving Written Notice of Termination, but before the Termination of Employment
date specified in the Written Notice of Termination, will receive no additional outplacement services.
No other benefits are available under this Schedule A on account of an Employee
’ s Termination of Employment.
All capitalized terms used in this Schedule A, not otherwise defined in this Schedule A, have the meanings given to them in the Plan.
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THE TRAVELERS SEVERANCE PLAN
(As amended and restated effective January 1, 2015)
Severance Benefit Schedule B
Executive Severance Policy
This Schedule B applies to Terminations of Employment due to a Reduction in Force (“
RIF ” ) that occur on or after January 1, 2015 with respect to
any Employee who is classified by the Employer as serving in a position of Executive Vice President, Senior Vice President or Vice President. For
purposes of this Schedule B, an Employee serving the Employer in a position of Vice Chairman will be considered an Executive Vice President. In
order to be eligible for the Severance Benefits described below, the Employee must first execute a Confidential Separation Agreement, including a
general release and waiver of all claims, in the form provided to the Employee by the Employer. Any Employee covered by this Schedule B will not
be eligible for the Severance Benefit described in Schedule A.
For purposes of this Schedule B, “total monthly cash compensation” equals one twelfth (1/12) of the Employee
’ s annual base salary in effect at the
time of his/her Termination of Employment plus one twelfth (1/12) of the Employee
’ s “average bonus.” An Employee ’ s “average bonus” for this
purpose is calculated by reference to the bonus, if any, he/she received under the annual incentive cash bonus plan of the Company for the two
annual bonus periods that ended with or immediately prior to the date that the Written Notice of Termination was provided to the Employee. If the
Employee was eligible to receive a bonus for both of such bonus periods, then his/her “average bonus” is the sum of the bonuses received for
such bonus periods (which may be zero if he/she did not receive a bonus for either such period) divided by two. If the Employee was eligible to
receive a bonus for only one bonus period (for example, because he/she was recently employed), then his/her “average bonus” equals the amount
of the bonus received for such bonus period (which may be zero if he/she did not receive a bonus for such period). If the Employee was not
eligible to receive a bonus for either of such bonus periods, then his/her “average bonus” is zero.
For purposes of this Schedule B, any amount to be paid to an Employee that is expressed as a “monthly amount” will be paid in accordance with
the payroll practices of the Company. For example, in the case of semi
- monthly payroll, a monthly amount will be divided into two substantially
equal payments to be paid semi
- monthly.
I. Amount of Severance Benefit — Executive Vice Presidents
This Section I of Schedule B applies to Terminations of Employment due to RIF of Employees who are Executive Vice Presidents.
The Employee will be eligible to receive a Severance Benefit in an amount equal to the number of months specified in the chart below
(determined based on his/her Years of Service at Termination of Employment) multiplied by his/her total monthly cash compensation:
The Severance Benefit will be paid as follows:
A. No amount will be paid until the first payroll date following the six (6) month anniversary of the Employee
’ s Termination of
Employment.
B. On the first payroll date following the six (6) month anniversary of the Employee ’ s Termination of Employment, or as soon as
reasonably practicable thereafter, the Employee will receive a single
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Years of Service
Less than 5
5 but less than 10
10 or more
Months of Severance Benefit
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21
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