Travelers 2014 Annual Report Download - page 298

lump - sum payment equal to one - half of his/her annual base salary in effect at Termination of Employment.
C. Starting with the first payroll date following the six (6) month anniversary of the Employee ’ s Termination of Employment and
continuing for a total of six (6) months, the Employee will receive a monthly amount equal to one twelfth (1/12) of his/her annual
base salary in effect at the time of his/her Termination of Employment.
D. On the first payroll date following the one year anniversary of the Employee ’ s Termination of Employment, or as soon as
reasonably practicable thereafter, the Employee will receive a single lump
- sum payment equal to his/her total Severance Benefit
calculated above, reduced by the previous payments made to the Employee under Sections I.B. and I.C.
II. Amount of Severance Benefit — Senior Vice Presidents
This Section II of Schedule B applies to Terminations of Employment due to RIF of Employees who are Senior 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 lump
- sum payment equal to one - half of his/her annual base
salary in effect at Termination of Employment.
C. Starting with the first payroll date following the six (6) month anniversary of the Employee ’ s Termination of Employment and
continuing for a total of six (6) months, the Employee will receive a monthly amount equal to one twelfth (1/12) of his/her annual
base salary in effect at the time of his/her Termination of Employment.
D. On the first day payroll date following the one year anniversary of the Employee ’ s Termination of Employment, or as soon as
reasonably practicable thereafter, the Employee will receive a single lump
- sum payment equal to his/her total Severance Benefit
calculated above, reduced by the previous payments made to the Employee under Sections II.B. and II.C.
III. Amount of Severance Benefit — Vice Presidents
This Section III of Schedule B applies to Terminations of Employment due to RIF of Employees who are 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:
15
The Severance Benefit will be paid as follows:
A. Starting with the first payroll date following the Employee
’ s Termination of Employment, or as soon as reasonably practicable
thereafter, the Employee will receive a monthly amount equal to one twelfth (1/12) of his/her annual base salary in effect at the
time of his/her Termination of Employment, provided that monthly payments will be withheld until the period for cancellation or
revocation of the Confidential Separation Agreement (as described in the Confidential Separation Agreement) has expired
without cancellation or revocation, and the first payment will include any such withheld payments. Payments will continue until
the total payments made to the Employee equal the full Severance Benefit calculated above (the final payment may be reduced as
necessary so that the total payments do not exceed the Severance Benefit) or until twelve (12) monthly payments have been
made, whichever occurs first. For certainty under Code § 409A, in all cases the Severance Benefit will be paid in full by the end
of the second calendar year following the calendar year of the Employee
’ s Termination of Employment).
B. On the first payroll date following the one year anniversary of the Employee ’ s Termination of Employment, or as soon as
reasonably practicable thereafter, if the Severance Benefit has not already been paid in full, the Employee will receive a single
lump - sum payment equal to his/her total Severance Benefit calculated above, reduced by the previous payments made to the
Employee under Section III.A.
Years of Service
Less than 5
5 but less than 10
10 or more
Months of Severance Benefit
12
15
18
Years of Service
Less than 5
5 but less than 10
10 or more
Months of Severance Benefit
6
9
12