Black & Decker 2015 Annual Report Download - page 127

These Policies Are Intended To Serve As A Practical Guide To Stanley Black & Decker’s Various Practices And Programs. The Company
Reserves The Right To Modify Or Revoke Any Policy, At Any Time, With Or Without Notice. Where More Specific Documents Exist, Such As
Insurance Plan Documents, The Terms Of The More Specific Document Will Be Followed. These Policies Are Not Intended To Create Or
Constitute A Contract Of Employment Between The Company And Any Employee. Employment At SBD Remains Strictly On An ''At-Will'' Basis.
These Policies Supersede Any Previously Issued Policies, Handbooks, Or Policy Manuals of either The Stanley Works or Black & Decker.
StanleyBlack&Decker
HUMAN RESOURCE GUIDELINES
SUBJECT: EXECUTIVE SEPARATION PAY POLICY (LEVELS 1-5)
POLICY NO.: 3001a
DATE OF ISSUE: 1/1/2014
PURPOSE
The purpose of the Executive Separation Pay Policy ("Plan") of Stanley Black& Decker (SBD) is to provide
salary replacement on a short-term basis to eligible employees who participate in the Company's
Management Incentive Compensation Plan ("MICP") Levels 1-5 and equivalent positions whose job has
been permanently and involuntarily eliminated as a direct result of a "Job Loss Event." The objective of this
Plan is to help affected individuals transition to new employment without any loss in base compensation for
the specified period.
Effective January 1, 2014, this Plan alone governs all separation payments to executive level
employees in the U.S. This Plan supercedes and replaces any previous employee benefit plan related
to separation or separation pay (including any earlier Black& Decker or Stanley Works plan).
ELIGIBILITY
Employees who are eligible to receive benefits under this Executive Separation Pay Policy are those
employees who, in the year of their separation from the Company, are actively participating in the MICP
Levels1-5 and equivalent positions who have been involuntarily terminated due to a Job Loss Event.
A Job Loss Event is defined as an employment termination that is: 1) permanent in nature, 2)
involuntary, 3) initiated by the Company through no fault of the affected employee, and 4) the direct
result of a job elimination or combination with another position.
The term "job loss event" shall not include any employment termination for any other reason including,
without limitation, involuntary reductions caused by unforeseen or emergency circumstances or decreased
market demand, even if such job reductions are permanent. Further, a Job Loss Event shall not include a
situation where the Company offers to continue the employee in a job that is substantially similar in nature
to his or her job, regardless of whether the employee accepts or rejects such employment opportunity.
Separation pay will not be paid to employees who terminate due to voluntary termination,
retirement, or failure to return from an approved leave of absence.
Separation pay will not be paid to an employee who is discharged for unacceptable job performance or for
violation(s) of reasonable rules of conduct including, but not limited to, those found in the Global Business
Conduct Guidelines.
Separation pay will not be paid at the time of the sale of a business unit or portion thereof (or its assets) or
when a department or function is outsourced to a third party if the purchaser or third party offers to
continue the employee in his or her job or in a job that is substantially similar in nature to his or her job,
regardless of whether the employee accepts or rejects such employment opportunity.
This policy excludes all employees other than those participating in the Corporate Management
Incentive Compensation Plan Levels1-5 and equivalent positions.