Rayovac 2009 Annual Report Download - page 99

Table of Contents
Index to Financial Statements
Deferral and Post−Termination Rights
Retirement Benefits. The Company has in effect or previously had in effect various retirement and other post−employment programs available to
certain executives, including the named executive officers. These consist of the Rayovac Deferred Compensation Plan (the “Deferred Compensation Plan”),
the Spectrum Brands, Inc. Supplemental Executive Retirement Plan (the “SERP”) and the Company’s 401(k) plan.
The SERP is a supplemental executive retirement plan for eligible employees of the Company. The Board of Directors determines which employees
are eligible to participate. Pursuant to the SERP, the Company establishes an account for each participant. Each October 1 st, the Company credits the
account of each participant with an amount equal to 15% of the participant’s base salary. In addition, each calendar quarter, the Company credits each
account by an amount equal to 2% of the participant’s account value as of the first day of the plan year containing such calendar quarter. Each participant
vests 20% per year in his account after becoming a participant in the plan, with immediate full vesting occurring upon death, disability or a change in
control of the Company. Among the named executive officers, only Mr. Hussey, Mr. Lumley and Mr. Heil are active participants in the SERP. The current
account balances for each such active participant are set forth in the table entitled “Non−Qualified Deferred Compensation.” Subsequent to the end of
Fiscal 2008, the Company froze the SERP and made all active participants 100% vested. The full value of the account for each participant was paid to those
participants in January 2009.
None of the named executive officers were participants in the Deferred Compensation Plan at the end of Fiscal 2009, and, in fact, the Company had
no active participants in the Plan at such time. None of the named executive officers had had positive balances in the Deferred Compensation Plan at any
time during Fiscal 2009. No contributions to the Deferred Compensation Plan were made by or on behalf of any named executive officer in Fiscal 2009.
Supplemental Executive Life Insurance Program. Each of the current named executive officers participates in a program instituted by the Company
pursuant to which the Company on behalf of each participant makes an annual contribution on October 1 each year equal to 15% of such participant’s base
salary as of that date into a company−owned executive life insurance policy for such participant. The investment options for each such policy are selected
by the participant from among a limited number of alternatives provided by the insurance provider. Upon termination of a participant for any reason,
ownership of the policy would transfer to the participant and no further contributions would be made by the Company. The first contributions by the
Company were made on October 1, 2009.
Post−Termination Benefits. As described above, the Company has entered into employment agreements with all its current named executive officers
which govern, among other things, post−termination benefits payable to such named executive officers should his employment with the Company terminate.
In connection with the termination of her employment with the Company, Ms. Yoder has entered into a Separation Agreement and Release with the
Company to govern the parties relative rights and obligations arising out of the termination of her employment. A detailed description of the
post−termination rights and benefits pursuant to each of the agreements described in this paragraph is set forth under the heading “Termination and Change
in Control Provisions”.
Perquisites and Benefits
The Company provides certain limited perquisites and other special benefits to certain executives, including the named executive officers. Among
these benefits are financial planning services, tax planning services, car allowances or leased car programs, executive medical exams and executive life and
disability insurance. In addition, Mr. Hussey participates in the Company’s medical expense reimbursement plan, which provides for reimbursement for
certain annual medical expenses not covered by the Company’s health insurance plan, up to a maximum of $10,000 per year (plus a tax gross−up as
described below under “Tax Gross−Ups”). In addition, prior to the time the Company surrendered its leased aircraft, the Company permitted Mr. Hussey to
have personal use of the Company’s aircraft when it was not being used for business purposes. In addition, prior to the time the
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