Black & Decker 2015 Annual Report Download - page 128

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.
SEPARATION PAY
An employee whose employment is involuntarily terminated due to a Job Loss Event will be eligible
to receive a separation benefit.
An employee who has been re-hired will only be entitled to a new separation payment based on
Company service from his or her most recent re-hire date through his or her last day of work.
ELIGIBILITY SCHEDULE FOR SEPARATION PAY
The following is the eligibility schedule for separation pay:
Job Loss Event
Eligible employees who participate in the Corporate Management Incentive Compensation Plan at Level 4
or 5 and equivalent positions will receive twenty-six (26) weeks of separation pay regardless of their length
of service. Eligible employees who participate in the Corporate Management Incentive Compensation Plan
at Level 3 or higher will receive fifty-two (52) weeks of separation pay regardless of their length of service.
Separation pay will equal 100%of the employee's base weekly pay.
Release and Waiver
An employee's eligibility to receive benefits under this Plan is contingent upon him or her first signing
a release and waiver in the form provided them by the Company which may include, without limitation,
a covenant not to compete, a no solicitation of employees restriction, a no solicitation of customers
restriction, and other clauses deemed relevant by the Company. An employee who, for whatever
reason, elects not to sign such a release and waiver is not eligible for any separation pay.
Special Pay for a Facility Closure
If the Job Loss Event is due to a full facility closing, as determined by the Company, the employee will be
eligible to receive the greater of their separation pay entitlement under this policy or the amount their
length of service entitles them to pursuant to the Facility Closure Schedule (see Appendix A to HR
Guideline 3001 for a complete schedule of separation pay eligibility due to a Facility Closure). Separation
pay benefits will be paid in full regardless of re-employment, however, if the employee is rehired by the
Company, separation payments would cease.
In the case of a Job Loss Event or Facility Closure, separation pay will be reduced by any other
payments (other than unpaid vacation benefits) due to termination of employment, not counting
unemployment compensation, and by any period of advanced notice of termination required by law or
contract in which the employee is not required to work.
SPECIAL MEDICAL & DENTAL SUBSIDY
Affected employees who are at least 55 years of age and have at least 20 years of service with the
Company will be eligible to receive a special medical and dental subsidy, if they elect either retiree or
COBRA health care benefits. This subsidy is equal to 50% of normal COBRA costs for up to 18 months or
the employee can elect to have the same subsidized dollar amount applied to retiree medical premiums (if
they qualify) for the same period of time. The subsidy ends the first of the month in which the retiree turns
age 65 or 18 months, whichever comes first. If the employee reaches age 65 while receiving the subsidy
and the under age 65 spouse is still eligible for additional months under the 18 month rule, the spouse
continues the subsidy for the remainder of the 18 months or first of the month in which the spouse turns 65,
whichever occurs first.