Exhibit 10.1



 










Exhibit 10.1




Severance Pay Policy




When associates are terminated due to departmental closures, restructuring, or elimination of
a position, applicable severance pay may be provided as a temporary continuation of earnings to
assist associates in the transition to new employment. Associates who are terminated for another
reason, or who voluntarily resign, are not eligible for severance pay under this policy.



Severance pay is calculated using the associate’s regular, base rate of pay on the termination
date. Base pay does not include bonus, incentives, overtime pay or any other remuneration.



Eligibility for Severance Pay




Associates must be actively employed at the time of termination in order to be eligible for
severance pay. An associate whose employment with the Company or any of its affiliated companies is
terminated will not be entitled to severance pay under this policy if he or she is offered an
alternate position with the Company, any of its affiliated companies, or any successor thereto,
with job duties and responsibilities (determined in relation to his or her current employers’
business), compensation, benefits, perquisites and other terms and conditions of employment that
are substantially similar to those in effect immediately prior to his or her date of termination. A
change in an associate’s title in these circumstances will not, standing alone, entitle him or her
to severance pay under this policy.



Associates who are eligible for severance pay as part of their termination are provided an
agreement that releases the Company from any claims related to the associate’s employment with the
Company, the execution of which is a condition precedent to receiving the severance pay.



The Company reserves the right to determine when severance pay will or will not be paid.



Calculating Severance Pay




Associates may receive severance as follows:



	 	 	 	 	 
	Associate	 	Eligible for	 	Maximum
	Non-Exempt

	 	1 week base salary per year of service

	 	14 weeks base pay
	 
	 	 	 	 
	Exempt

	 	6 weeks base salary, plus
2 weeks per year of service, plus equivalent COBRA

	 	6 months base pay
	 
	 	 	 	 
	AVP

	 	6 weeks base salary, plus
2 weeks per year of service, plus equivalent COBRA

	 	6 months base pay
	 
	 	 	 	 
	VP

	 	6 months base salary, plus
3 weeks per year of service, plus equivalent COBRA
	 	12 months base pay

	 
	 	 	 	 
	SVP

	 	12 months base salary, plus 3 weeks per
year of service, plus equivalent COBRA up to 18 months
	 	24 months base pay 18 months maximum COBRA
	 
	 	 	 	 
	EVP

	 	24 months base salary plus 18 months COBRA	 	 






 









 








The Company reserves the right to amend this severance pay schedule at any time.



Calculating Rates for Full-Time Associates



Severance pay is calculated at the associate’s regular, base rate of pay on the termination date.

Base pay does not include bonus, commissions, incentives, overtime pay, or any other remuneration.
The rate of pay is calculated as follows for full-time associates:



	 	 	 
	Type of Associate	 	Formula for Calculations
	Exempt

	 	Weeks = Divide the associate’s annual base pay by 52.
	 

	 	Months = Divide the associate’s annual base pay by 12.
	 
	 	 
	Non-exempt

	 	Weekly = Multiply the associate’s regular hourly rate by 40.






Part-Time Associates




Part-time associates may be entitled to pro-rated severance pay, based on the severance

schedule established for full-time associates. The pro-rated percentage will be calculated by
obtaining an average number of hours worked per week, based on the six-month period immediately
preceding the date that severance benefits are calculated by the Associate Relations Department.



	 	 	 
	

	 	NOTE: Associates who have been employed on both a full time and part time basis receive severance
pay based on the applicable combination of the full time and part time severance formulas.

Severance pay is calculated using the associate’s regular, base rate of pay on the termination
date. Base pay does not include bonus, incentives, overtime pay or any other remuneration.






Severance and Final Pay at Termination




Associates eligible for severance pay under this policy are paid final regular pay and accrued,
unused vacation according to the requirements of the state in which they are employed. Any earned
bonus or incentive pay is paid in accordance with the applicable plan and agreement. Severance pay
is normally paid in a separate check according to timeframes noted in the release agreement. The
Company will withhold all applicable federal, state, local, and other taxes as well as any required
payroll deductions from all severance pay that is paid under this policy.



Severance Pay for Rehired Associates




If an associate returns to work for the Company after receiving severance pay as part of the
original termination, the returning associate must reimburse the Company for any unused severance
pay.



Outplacement Assistance




As appropriate, the Company may also offer outplacement assistance to help associates find new jobs
and/or transition to new careers.



Administration of Severance Pay Policy




The Company has sole and absolute discretion to interpret and apply the terms of this policy. The
Company’s determinations under this policy shall be final and binding on all persons. The Company
reserves the right to amend or terminate this policy at any time and without prior notice .