Cincinnati Bell 2006 Annual Report Download - page 58

contribution rates for a two year period following his termination of employment plus payment of an additional
amount equal to the present value of an additional two years of participation in the pension plan based on his
base salary and target bonus in effect on his last day of employment.
Adjustments and/or Recovery of Award Payments
The Company is subject to and adheres to the requirements of Section 304 of the Sarbanes Oxley Act.
Therefore, if the Company was required to restate its financial results due to any material noncompliance of the
Company, as a result of misconduct with any financial reporting requirement under the securities laws, it would
act promptly to recover from the Chief Executive Officer and Chief Financial Officer any bonus or other
incentive-based or equity-based compensation received and/or any profits from the sale of securities of the
Company during the twelve month period following the date the financial statements, that were subject to
restatement, were issued.
Compensation Limitation
Section 162(m) of the Internal Revenue Code generally limits the available deduction to the Company for
compensation paid to any of the Company’s named executives to $1,000,000, except for performance-based
compensation that meets certain technical requirements. Although the Compensation Committee considers the
anticipated tax treatment to the Company and the executive officers of its compensation payments, the
Compensation Committee has determined that it will not necessarily seek to limit executive compensation to that
deductible under Section 162(m) of the Internal Revenue Code.
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