Potential Payments Upon Termination or Change of Control
The following section describes potential payments and benefits to our named executive officers under our current compensation and benefit plans and
arrangements had a termination of employment or a change of control of our Company occurred on December 31, 2017.
On November 2, 2017, we
adopted the Change in Control Severance Pay Plan for Senior Executives (the Severance Plan) which provides for the payment and benefits set forth below upon a qualifying termination of employment following a change in control. We also
entered into a management continuity agreement with Mr. Leanse in connection with his hire.
In addition, our 2003 Incentive Plan contains provisions
regarding the acceleration of vesting and modification of equity awards. The Compensation Committee is authorized to accelerate the vesting of and modify outstanding awards as well as authorize discretionary severance payments to our named executive
officers upon termination. None of our named executive officers, other than Mr. OHern, has an employment agreement with our Company.
of the manner in which a named executive officers employment terminates, he is entitled to receive all accrued, vested or earned but deferred compensation and benefits during his term of employment. The information below sets forth the
additional payments and/or benefits to our named executive officers under the specified circumstances.
Change in Control Severance Pay Plan for
Under the Severance Plan, in the event that the employment of any of the named executive officers is terminated by us other than
for cause (as defined in the Severance Plan) or due to the executives death or total disability (as defined in the Severance Plan) or by the executive for good reason (as defined in the Severance Plan), in
each case upon or within 24 months following a change in control, the named executive officer will be entitled to the following: (i) a lump sum payment equal to three times the sum of (A) the higher of the executives annual base
salary as of the date of termination or the date of the change in control and (B) the average annual incentive bonus award to the executive in respect of the immediately preceding three fiscal years, (ii) a
pro-rated portion of the executives target annual incentive bonus for the year of termination, payable in a lump sum, (iii) outplacement services pursuant to our Companys outplacement services
plan for a period of 12 months following termination and (iv) a lump sum payment equal to the product of (A) the total amount of COBRA continuation monthly premium rate that would have otherwise been payable by the executive for COBRA
continuation for medical, vision and dental coverage for the executive and his eligible dependents and (B) 36. The Severance Plan does not provide for an excise tax gross-up payment to any eligible
participant. Instead, if any payment by our Company would subject an executive to the excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended, such payments shall be reduced or the full amount of such payments shall be
made, whichever leaves the executive in the best net after-tax position. Receipt of the payments and benefits set forth above is subject to the execution and effectiveness of a general release of claims in
favor of our Company and its affiliates.
Offer Letter with Mr. OHern
Our Company entered into an offer letter with Mr. OHern on April 26, 2018 which provides for certain benefits upon a qualifying termination of
employment, which are described above in the Compensation Discussion and Analysis under Offer Letter with Mr. OHern.
Management Continuity Agreement
entered into a management continuity agreement with Mr. Leanse in connection with his hiring as our Senior Executive Vice President, Chief Legal Officer and Secretary, effective January 1, 2013, which provided that if, within two years
following a change of control (as defined in the management continuity agreement), his employment is terminated (i) by us for no reason or any reason other than for cause (as defined in the management continuity agreement) or by reason of death
or disability (as defined in the management