Earthlink 2013 Annual Report Download - page 170

• For employees eligible and participating in the Company’
s medical, dental, and vision plans, the
Company will pay to eligible employees an amount equal to the employer portion of active employees’
premiums for those plans, plus the two percent COBRA administration fee, for nine (9) months of COBRA
benefits coverage. The Company will make this payment in a single lump sum as soon as administratively
practicable following termination of the employee’s employment but no later than the 15 th
day of the third month
of the calendar year following the calendar year in which the employee’
s right to the payment vests. The
Company shall withhold or obtain payment for applicable income and employment taxes from any payments for
COBRA benefits. Such ex-
employees may continue COBRA for the COBRA eligibility period by paying 100
percent of the COBRA premium.
•
Nine (9) months of outplacement services provided by a vendor selected by the Company, with a
value of up to $15,000, beginning immediately following the termination of employee’
s employment with the
Company and all Affiliates. No cash payment is available in lieu of the outplacement services.
•
Employees given notice that their positions are being eliminated after the first quarter of any calendar
year will be paid the pro-
rata bonus, if any, otherwise payable under the applicable Company bonus plan in
which they participated for that year, based on regular earnings for that year and actual business results, payable
at the normal time of the bonus payout; provided, however, that such pro-
rata bonus will be paid no later than the
15 th day of the third month of the calendar year following the calendar year in which the employee’
s right to such
pro-
rata bonus vests. Severance pay is not considered regular earnings. Employees given notice that their
positions are being eliminated during the first quarter of any calendar year will not be eligible for any bonus
otherwise payable under the applicable Company bonus plan in which they participated for that year.
•
Six (6) months base salary paid in a lump sum as soon as administratively practicable following the
termination of employee’s employment with the Company and all Affiliates but no later than the 15 th
day of the
third month of the calendar year following the calendar year in which the employee’
s right to the payment vests.
Base salary excludes overtime, incentive compensation, bonuses, and any other forms of compensation over and
above the employee’s base salary rate.
•
For employees eligible and participating in the Company’
s medical, dental and vision plans, the
Company will pay to the eligible employees an amount equal to the employer portion of the employees’
premiums for those plans, plus the two percent COBRA administration fee, for six (6) months of COBRA
benefits coverage. The Company will make this payment in a single lump sum as soon as administratively
practicable following termination of the employee’s employment but no later than the 15 th
day of the third month
of the calendar year following the calendar year in which the employee’s right to the payment
6
III.
Eligible Employees in Vice President Positions
. Eligible employees who are in Vice President positions will receive,
after any applicable notice period, the following severance pay and benefits: