Rayovac 2008 Annual Report Download - page 115

Table of Contents
Index to Financial Statements
(6a) Amount represents the present value of the accounts payable at the benefit payment date. The discount value used to calculate the present value is 120% of
the applicable Federal mid-term rate of 2.86%.
(6b) Upon death, the entire account balance is fully vested and paid. Additional contribution credits are made according to the terms of the executive’s
employment agreement. Amounts shown represent the present value of the account balances that would be paid at the benefit payment date using 120% of
the applicable Federal short-term rate of 2.86%.
(6c) There is full vesting upon disability or change in control of the entire account balance. Amounts shown represent the present value of the account balances
that would be paid at the benefit payment date using discount rate assumptions previously stated in 6a.
(7) Reflects 24 months of insurance and other benefits continuation for the executive and his dependents.
(8) The executive would owe an excise tax payment if a change in control occurred at fiscal year end according to section 280G under the Internal Revenue
Code. The Company does not provide any tax gross-up payment to cover this tax.
(9) This termination scenario assumes the executive separates from service one year following the sale of their business segment subsequent to a change in
control.
(10) This termination scenario assumes the executive separates from service immediately following a change in control. The sale of their business segment is
irrelevant in the severance payment calculations under this scenario.
(11) These amounts take into account only programs or agreements in place prior to the end of Fiscal 2008. These amounts do not take into account the increase
of executive’s base salary to $600,000, which occurred following the end of Fiscal 2008. These amounts also do not take into account amounts that would
be payable to the executive in the event of the termination of such executive’s employment or a change in control pursuant to the additional incentive
structure entered into following the end of Fiscal 2008, under which the executive would be entitled to receive an additional amount equal to fifty percent of
such executive’s target LTIP amount, based on such executive’s salary as of the end of Fiscal 2008, contingent upon continued employment and payable in
two installments, the first of which occurred in November 2008 and the second of which will be made on or before December 31, 2009. For more
information on this incentive plan, please see the discussion under Long Term Incentive Plan on page 78.
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Source: Spectrum Brands, Inc, 10-K, December 10, 2008