exhibit10_62-severance.htm


    
      Exhibit
10.62

      


      Summary of Executive
Severance Program

      


      Administration:

      
        	
                ·

              	
                Executive
      Severance Program of Triad Guaranty Inc. (the “Company”) is administered
      under the Triad Guaranty Insurance Corporation Severance Pay Plan (“the
      Plan”), as amended and restated.

              


      

      


      Design
Principles:

      
        	
                ·

              	
                Provide
      a reasonable amount of financial security during the individual’s
      transition to other employment due to an involuntary
      separation.

              


      

      
        	
                ·

              	
                Recognize
      a combination of the individual’s position / level and length of
      service.

              


      

      
        	
                ·

              	
                Provide
      clear criteria, guidelines and eligibility schedule to ensure consistent
      administration.

              


      

      


      Eligibility
Criteria:

      
        	
                ·

              	
                Executives
      in the executive compensation / benefit program who were employed by the
      Company as of March 1, 2010 and whose employment is terminated at any time
      on or before December 31, 2012, without cause, including job elimination,
      reduction in force, and/or
restructuring.*

              


      

      
        	
                ·

              	
                Executives
      who have entered into employment agreements providing for severance
      payment terms are not eligible for this program unless there is a
      cancellation of the existing
agreement.

              


      

      
        	
                ·

              	
                Executives
      who are terminated for cause are not eligible for this
      program.

              


      

      
        	
                ·

              	
                Voluntary
      resignations do not qualify under this
program.

              


      

      


      Eligibility
Schedule and Severance Components:  Executives who meet the
criteria above are generally entitled to receive, upon a qualifying termination,
a lump sum aggregate cash payment equal to the sum of 1/12 of his or her annual
base salary plus 1/12 of the aggregate value of his or her targeted cash bonus,
multiplied by a specified number of months based on position/level with the
Company and years of service to the Company as indicated in the chart
below.

      
        	
                ·

              	
                Executive
      Vice Presidents and Senior Vice Presidents qualify for the number of
      months set forth in Column I below.

              


      

      
        	
                ·

              	
                Vice
      Presidents who are members of the Executive Committee (Top Tier) qualify
      for the number of months set forth in Column II
  below.

              


      

      
        	 
      
	 
      	
                Months
      of Severance Credit

              
	
              	
                EVP
      / SVP

              	
                VP
      (Top Tier)

              
	Years
      of Service	
                Column
      I

              	
                Column
      II

              
	
                less
      than 1 year

              	
                12

              	
                10

              
	
                1-3.99
      years

              	
                13

              	
                11

              
	
                4 -
      6.99 years

              	
                15

              	
                13

              
	
                7-8.99
      years

              	
                16

              	
                14

              
	
                9
      or more

              	
                18

              	
                16

              


      

      


      
        	
                ·

              	
                Participants
      will receive COBRA benefits (provided they are eligible for COBRA of both
      medical and dental coverage) at the active employee rate for a number of
      months equal to the “Months of Severance Pay Credit” identified in the
      above chart or until COBRA otherwise
terminates.

              


      

      
        	
                ·

              	
                In
      addition to those benefits specifically provided by the Plan, participants
      will also receive twelve months of outplacement services to be paid for by
      the Company.

              


      

      


      Waiver
and General Release:   An executive’s receipt of the
severance benefits is contingent upon the Company’s receipt of a signed and
unrescinded non-compete agreement and general release of all claims against the
Company in a form acceptable to the Company.

      


      The CEO
and VP HR will manage this program within parameters approved by the Company’s
Board of Directors.

      


      *
Termination of an executive by the Company in conjunction with an offer of
employment by the Company or a successor company to the Company in substantially
the same position shall not constitute an “involuntary separation” for purposes
of this program regardless of whether such an offer is
accepted.