EX-10.018



 




Exhibit 10.108




Amended and Restated

Severance Policy for Domestic Vice Presidents (and Above)

of Russ Berrie and Company, Inc.

Effective March 30, 2007




The Company’s Severance Policy is amended and restated for domestic vice presidents (and above;
collectively referred to herein as “VPs”) and is effective
March 30, 2007, as follows (as so amended and restated, the
“Severance Policy”):



VPs, if terminated by the Company without Cause, are eligible, based on tenure with the Company,
for the following severance payment:





	 	•	 	VPs with less than 1 year of service with the Company would receive 4 months of
severance pay
	 
	 	•	 	VPs with at least 1 year of service but less than 2 years of service with the
Company would receive 6 months of severance pay
	 
	 	•	 	VPs with at least 2 years of service but less than 6 years of service with the
Company would receive 8 months of severance pay
	 
	 	•	 	VPs with at least 6 years of service but less than 10 years of service with the
Company would receive 10 months of severance pay
	 
	 	•	 	VPs with 10 or more years of service with the Company would receive 12 months
(i.e., one year) of severance pay




The severance is to be paid at the salary rate (base pay not including bonus(es) or commissions) in
effect on the termination date. The severance will be paid over the course of the severance period
in accordance with the Company’s normal pay schedule (not in a lump sum). Notwithstanding the
foregoing, if all or any portion of the severance payments to be made to a VP hereunder would
subject the VP to the excise tax provisions of Section 409(A) of the Internal Revenue Code of 1986,
as then in effect, or any successor similar provision (“Section 409A”), and such payments would
also exceed the alternate compliance limits provided thereunder, then an amount equal to all
severance payments subject to Section 409A will be made (in a lump sum) to such VP on the day which
is 6 months and 1 day after the applicable termination date. During the severance period, the
terminated VP is also entitled to remain on the Company’s (1) health and dental insurance plan
(making the same payroll contribution as he/she made, on the date of termination, as an active
employee), and (2) all other insurance plans for which he/she was eligible on the date of
termination. In addition, for a period of 60 days, the terminated VP is entitled to use of the
Company automobile (or payment of an automobile allowance) or reimbursement of certain automobile
expenses, as the case may be, in accordance with the nature and type of automobile perk that the VP
had in effect on the date of termination. If the terminated VP obtains gainful employment during
his/her severance period, then the severance payments will be terminated effective on the date that
he/she begins new employment (the “Cut-Off Date”), provided, however, that such terminated VP will
remain entitled to any severance


 









 





payments deferred prior to the Cut-Off Date as a result of the applicability of Section 409A, which
amounts will be paid as described above.



Notwithstanding anything herein to the contrary, if in connection with any sale of any substantial
line of business of the Company (a “Specified Transaction”): (x) a VP employed within such line of
business is offered employment by the purchaser of such line of business (a “Purchaser”) which does
not involve a material diminution in the VP’s position, status or authority and which is at an
annual base salary level no less than, and with other compensation and benefits at least
substantially equivalent in value to, in each case the levels applicable to such VP immediately
prior to such sale (and no relocation outside of the New York metropolitan area is required of the
VP in connection therewith), (y) such Purchaser either (1) shall have, expressly and unconditionally,
assumed and agreed to perform the Company’s obligations under this Severance Policy in the same
manner and to the same extent that the Company would be required to perform if no such Specified
Transaction had taken place, or (2) maintains a severance policy in which such VP will participate that provides for each type of benefit provided under this Severance Policy at a level equal to or greater than the level provided under this Severance Policy to such VP under at least the circumstances under
which such benefit is provided under this Severance Policy (an
“Equivalent Policy”), and (z) such Purchaser agrees to maintain this Severance Policy or an Equivalent Policy for
a period of at least
two years after consummation of a Specified Transaction, no “termination” hereunder shall be deemed
to have occurred, and no benefits shall be payable hereunder, whether or not such VP accepts such offered employment.



Notwithstanding anything herein to the contrary, in the event that a VP is terminated without Cause
in connection with a Specified Transaction and is not offered employment as described in the
preceding paragraph, the severance payments and benefits applicable to such terminated VP will be
extended by an additional four months, up to a maximum severance period of twelve months.



As a condition to receiving the severance payment and benefits hereunder, the eligible terminated
VP must sign and deliver to the Company the Company’s general form of Release Agreement.



No amendment to this Amended and Restated Severance Policy will become effective (as to a person
covered thereby prior to such amendment) prior to the date that is six months from the date such
amendment is approved by the Board of Directors or the Compensation Committee of the Board of
Directors of the Company.



In the event that a VP is due payments and benefits under both this Severance Policy and the
Company’s Change-in-Control Severance Plan, as amended from time to time (the “CIC Plan”), the VP
shall receive the greater of the benefits and payments under the CIC and this Severance Policy,
determined on an item-by-item basis. As used in this Severance Policy, “Cause” shall have the
meaning assigned to it in the CIC Plan.



This Severance Policy supersedes any other agreement between the Company and a
VP that provides for lesser benefits with respect to the type of termination covered hereby in
effect on the effective date hereof or thereafter.




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