Document:

Exhibit 10-8

Exhibit 10-8

 
January 5, 2001

 

Mr. John E. Buckley

One Kings Row

Cumberland, Rhode Island 02864

Re:  SEPARATION AGREEMENT AND RELEASE

Dear John:

This will confirm that your employment with A.T. CROSS Company ("CROSS") terminated effective December 31, 2000.  This Separation Agreement and Release ("Agreement") spells out the severance and benefits package available to you if you sign this
Agreement, and also indicates the compensation and benefits you will receive whether or not you sign this Agreement.

	
1.
	
If you sign this Agreement and abide by the terms and conditions explained below, CROSS will provide you with the following severance and benefits package:

 

	
	
(a)
	
You will be paid a total of $760,000.00 in severance pay, minus the appropriate taxes and other legally required or agreed-upon deductions in forty-eight (48) equal semi-monthly installments.

Provision of the severance benefits set forth herein is conditional on your reasonable cooperation and assistance in effecting an orderly transition with CROSS and reasonable cooperation and assistance during the time you are receiving severance
benefits.  Severance benefits will continue if you become disabled.  In case of your death, the remaining payments will be paid to your spouse or your estate.

 

	 	
(b)
	
Even if you do not sign this Agreement, if eligible, you have the right under federal legislation, commonly referred to as "COBRA", to continue participation in CROSS's group health insurance plans (medical, dental) at your expense for a period of up
to 18 months after termination of employment with CROSS, subject to limitations on that right imposed by COBRA.  However, although not obligated to do so, if you sign this Agreement, CROSS will continue to pay its current share of your monthly health
insurance premiums to age 65 or until you are eligible for health insurance coverage by virtue of employment, whichever comes first.  This means that if you elect "COBRA" while you are receiving Paragraph 1(a) payments, you will be obligated to pay only
the employee share of the monthly premium.  CROSS will deduct your share of the monthly premium from the Paragraph 1 (a) payments.  At the conclusion of the severance payments (if that occurs within the 18-month period following termination of
employment), you will be permitted to continue participation in the group health insurance plans by payment of your share of the appropriate monthly premium for the remainder of the 18-month COBRA period (subject to the limitations on that right imposed
by "COBRA").   You understand that, in accordance with "COBRA," CROSS's obligations under this paragraph may terminate in any event if you are not eligible or become covered by another health insurance plan prior to the end of the 18-month period
following your termination of employment.  Documents relating to your "COBRA" rights will be provided at a later date.

Your covered dependents, if eligible, have the right under federal legislation commonly referred to as "COBRA," to continue participation in CROSS's group health insurance plans (medical/dental) at their expense for a period of up to thirty-six (36)
months after termination of your coverage with CROSS, subject to limitations on the right imposed by COBRA.

 

	 	
(c)
	
CROSS will continue to pay its current share of the premium for your medical and dental insurance until age 65.

 

	 	
(d)
	
You will continue to receive $900 a month toward the purchase or cost of an automobile, along with $100 per month for gasoline, as long as you are receiving severance pay pursuant to Paragraph 1 of this letter, until you gain employment or until you
enter into a business arrangement that, in either case, provides you with an automobile or an automobile allowance, whichever occurs first.

 

	 	
(e)
	
CROSS will continue to pay the premium for your individual life insurance policy until age 65.  This policy can continue beyond that date if you assume the premium payments.

 

	
2.
	
You understand and agree that the payments and benefits offered to you in Paragraph 1 of this Agreement and not mandated by law are in addition to any payments or benefits which you are entitled to because of your employment with CROSS and are
conditional upon your execution of this Agreement.

 

	
3.
	
Whether or not you sign this Agreement, you are entitled to the following payments and/or benefits:

 

	 	
(a)
	
Your group life insurance terminates following the last day of your employment with CROSS.  You may convert your group life insurance to an individual policy without evidence of insurability within 31 days after termination of your group life
insurance.  If you die within those 31 days, the amount that you could have converted will be paid as a death benefit.  Appropriate forms will be provided at a later date.

 

	 	
(b)
	
Any benefits due to you under CROSSAVER PLUS will be forwarded to you, or to such plan or fund as you designate, by Fleet Investment Services.  Appropriate paperwork will be provided to you at a later date.

Benefits due to you under the A.T. CROSS Company Unfunded Excess Benefit Plan will be forwarded to you upon completion of valuation of the benefits as of December 31, 2000.

 

	 	
(c)
	
You are eligible for a benefit at retirement from the A.T. CROSS Pension Plan, including the Unfunded Excess Benefit Plan.  Paperwork explaining your actual benefit and payment options will be provided to you at a later date.

 

	 	
(d)
	
CROSS will pay you for any earned, but unpaid or unused, vacation for the current vacation year, less legal deductions.

 

	 	
(e)
	
Continuation of group health insurance at your expense to age 65.

 

	 	
(f)
	
Your Group Long-Term Disability insurance terminates on the date of the termination of your employment with CROSS.  There is no conversion privilege for this insurance.

 

	 	
(g)
	
You will have ninety (90) days following December 31, 2000 to exercise any vested (as of December 31, 2000) and unexpired incentive stock options and twelve (12) months following December 31, 2000 to exercise any vested (as of December 31, 2000) and
unexpired nonqualified stock options that you received as an employee.  Any restricted stock previously granted to you which has not vested as of December 31, 2000 will be forfeited.

 

	 	
(h)
	
Your business travel accident insurance terminated on December 31, 2000.  There is no conversion privilege for this insurance.

 

	 	
(i)
	
Except as explained in this Agreement, all compensation and benefits arising out of, or incidental to, your employment with A.T. CROSS Company, terminate effective with your termination date.

 

	
4.
	
By signing this Agreement, you knowingly and voluntarily release and forever discharge CROSS and its officers, directors, affiliates, agents, employees, successors, and/or assigns (collectively referred to throughout this Agreement as "CROSS"), of
and from any and all claims, known and unknown, which you, your heirs, executors, administrators, successors, and assigns, have or may have against CROSS that exist up to and including the date you execute this Agreement including, but not limited to, any
alleged violation of Title VII of the Civil Rights Act of 1964, as amended; The Civil Rights Act of 1991; Sections 1981 through 1988 of Title 42 of the United States Code, as amended; The Employee Retirement Income Security Act of 1974, as amended; The
Immigration Reform Control Act, as amended; The Americans with Disabilities Act of 1990, as amended; The Age Discrimination in Employment Act of 1967, as amended; The Older Worker's Benefit Protection Act; The Fair Labor Standards Act, as amended; The
Occupational Safety and Health Act, as amended; The Family and Medical Leave Act of 1993; The Rhode Island Fair Employment Practices Act, as amended; The Rhode Island Civil Rights Act, as amended; any other federal, state or local civil or human rights
law or any other local, state or federal law, regulation or ordinance; any alleged public policy, contract, tort, or common law claim; and/or any allegation for costs, fees, or other expenses including attorneys' fees incurred in these matters.

CROSS releases you from all claims arising from or relating to your employment and agrees to hold you harmless for all lawful acts done in the course of your employment.

 

	
5.
	
You confirm that you have not filed any charge, complaint or claim against CROSS with any agency, court or other forum.  Except as prohibited by law, you agree that any charge, complaint or claim that has been filed by you against CROSS will be
dismissed with prejudice, and without cost to CROSS.  You also agree that, if any charge, complaint or claim is filed hereafter in violation of Section 4, above, this Agreement may be relied on by CROSS to compel summary dismissal of the charge, complaint
or claim, with prejudice, and/or as a complete defense to such action.  Finally, you agree that you will not accept any relief or recovery in connection with any charge, complaint or claim that is filed in violation of Section 4 of this Agreement.

 

	
6.
	
By signing this Agreement, you agree to retain all Confidential Information (as hereinafter defined) in complete confidence and secrecy.  More specifically, you agree that you shall not disclose any Confidential Information, either directly or
indirectly, to anyone, and that you shall not use any Confidential Information, either directly or indirectly, for your benefit or anyone else's, subsequent to the termination of your employment.  The term "Confidential Information" includes information,
knowledge, data, and/or material disclosed by CROSS to you or acquired or developed by you as a consequence of or through your employment with CROSS which is not generally known in the industry in which CROSS is or plans to become engaged, including but
not limited to, matters of a business nature, such as contracts, purchasing, products, accounting, marketing, merchandising and selling, pricing, vendor and customer lists, vendor and customer requirements, business habits, business plans, individual
contracts, the identity of key employees, and such other information which enable CROSS to compete successfully in its business.

 

	
7.
	
By signing this Agreement, you understand and agree:  (a) that, other than as set forth in this Agreement and the letter between CROSS and you dated May 15, 2000, as amended by the letter between CROSS and you dated June 29, 2000, this Agreement sets
forth the entire agreement between you and CROSS and supersedes any prior separation and/or release agreements; (b) that other than as set forth in this Agreement, no other monies, benefits or payments are due to you (except any that may be due to you
pursuant to your status as a member of CROSS's Board of Directors, and the $135,420 payment to be paid on January 15, 2001); (c) that nothing in this Agreement is intended to mean that CROSS has engaged in any wrongdoing or unlawful conduct; (d) that you
will not disclose the existence or the contents of this Agreement to anyone but your attorney, spouse, accountant, federal or state tax authorities or where disclosure is compelled pursuant to legal process, or to the extent necessary in connection with
the enforcement of this Agreement; (e) that this Agreement can be modified only in a written agreement signed by you and CROSS; (f) that you will not in any way, directly or indirectly, induce or attempt to induce any employee of CROSS to leave the employ
of CROSS; and (g) CROSS agrees that nothing you do in good faith as a member of the Board of Directors will be considered as a violation of this Agreement.

 

	
8.
	
In addition to the above, by signing this Agreement you understand and agree that:

 

	 	
(a)
	
should you violate any term of this Agreement or your Employee Invention, Patent Assignment and Non-Disclosure Agreement, if you signed one; or

 

	 	
(b)
	
should you take any action that is injurious to, or make any statement or representation, either oral or written, which would in any manner tend to disparage, malign, cast aspersions or reflect adversely on or be derogatory or injurious to the
reputation or image of CROSS or any of its subsidiaries, affiliates, officers, directors or employees;

 

	 	
(c)
	
should you at any time during the twelve (12) months following December 31, 2000, without CROSS's written consent, directly or indirectly own, control, manage, or be connected as a stockholder (but not passive ownership of up to 1% in a public
company), partner, employee, agent, or consultant with any company, firm or other entity doing business in the United States or abroad that engages in the manufacture, sale, marketing, development or research of electronic pen products or that otherwise
directly or indirectly competes with products currently contemplated by the PCG division of CROSS;

no further payments or benefits will be paid to you under this Agreement (except to the extent such payment or benefit is mandated by law), and you will make immediate repayment to CROSS of one-half of all severance payments made by CROSS pursuant to
this Agreement.

 

	
9.
	
You understand that, whether or not you sign this Agreement, except as specifically stated herein, you must immediately return to CROSS all property of CROSS in your possession or control, including, but not limited to, all written and other materials
relating to inventions, technical innovations, Confidential Information and trade secrets, as well as company records, files, credit cards, keys and security badges.

 

	
10.
	
Notwithstanding the foregoing, by signing this Agreement, you understand and agree that if you sue or file a claim against CROSS, in violation of this Agreement, you will be obligated to pay CROSS all its costs and expenses of defending the suit or
claim, including reasonable attorneys' fees.  CROSS agrees that if it is found by a court of competent jurisdiction to be in violation of this Agreement, it will be obligated to pay all your costs and expenses for enforcing the Agreement, including
reasonable attorneys' fees.

 

	
11.
	
You may take up to twenty-one (21) days from the date of receipt of this Agreement to consider whether or not you wish to sign this Agreement.  You and CROSS agree that any modification, material or otherwise, made to this Agreement will not restart
or affect in any manner the original twenty-one (21) day consideration period.  If you sign the Agreement, please return it to the CROSS Human Resources Department within the twenty-one (21) day period.

If you do sign this Agreement, it will not take effect until seven (7) days have passed after you sign it.  During those seven days, you will have the right to revoke this Agreement.  If you decide to revoke this Agreement, please notify Tina Benik, or
in her absence, John Ruggieri, by telephone or letter, during the seven-day period that you desire to revoke your execution of this Agreement.  If the last day of the revocation period is a Saturday, Sunday, or legal holiday in Rhode Island, the
revocation period shall not expire until the next day that is not a Saturday, Sunday or legal holiday.

Because this Agreement does not take effect until the eighth day after you have signed it, we will not be able to provide you with the severance pay or benefits that we have offered you as consideration until the seven-day revocation period has expired.

 

	
12.
	
This Agreement shall be governed by and construed in accordance with the laws of the State of Rhode Island without regard to its conflict of laws provisions.  Should any provision of the Agreement be declared unenforceable by any court of competent
jurisdiction and cannot be modified to be enforceable, excluding the general release language, such provision shall immediately become null and void, leaving the remainder of this Agreement in full force and effect.  However, if for any reason the general
release language were ruled to be unenforceable for any reason, you shall return the consideration paid hereunder to CROSS.  In the event that the language in this Agreement and any other agreement which is not superseded conflict, the terms of this
Agreement shall govern.

 

	
13.
	
We advise you to consult with an attorney before signing this Agreement.

 

 

 

	 	
Very truly yours,

By: /s/ TINA C. BENIK

(Tina C. Benik)

Vice President, Legal

and Human Resources

	
TCB:lac

I acknowledge that I have carefully considered and understand my rights and obligations, as explained in this Agreement.  I acknowledge that I am signing this Agreement knowingly and voluntarily, and that I have not been pressured to sign this
Agreement by anyone connected with CROSS.

	
By /s/ JOHN E. BUCKLEY________

(John E. Buckley)
	
January 12, 2001

DateExhibit 10.7

                        THE FARMERS GROUP, INC.

                       DISCRETIONARY MANAGEMENT

                           INCENTIVE PROGRAM

                                  FOR

                       EXCEPTIONAL PERFORMANCE

                           January 2001
                    (Destroy previous editions)

<PAGE>   1

                          TABLE OF CONTENTS

Introduction                                                                  2
Purpose                                                                       2
Eligibility                                                                   2
Effective Date                                                                2
Selection Criteria                                                            3
Award Amounts                                                                 3
Nomination, Selection and Review Process                                      4
Evaluation Guidelines and Nomination Forms                                    4

<PAGE>   2

                               INTRODUCTION
Farmers Group, Inc. and the Auto, Fire and Truck Exchanges are dedicated to
excellence.  Our continued success and future growth depends on this
commitment.  Within our organization there are strong performers in key
positions who have both the opportunity and the ability to impact our business
in a truly exceptional way over and above their normal job requirements.  This
opportunity may not occur every year but when it does, we want to reward those
who excel.

To help ensure these superior performers are properly rewarded for their
extraordinary contributions, the Company established a Discretionary Management
Incentive Program.  This program is separate from all other Farmers Group, Inc.
incentive compensation programs.  Nomination does not guarantee that an award
will be given.  Also, people not nominated by their department head may be
included.  We believe that those people who give an extraordinary effort should
have the opportunity to be considered for special recognition and
compensation.

This Discretionary Management Incentive Program guide outlines the plan
provisions, eligibility and nomination criteria.  Publishing of the
administrative procedure for the Discretionary Management Incentive Program
does not guarantee the continuation of the program.  The program is completely
discretionary and may be modified or terminated by Farmers Group, Inc.  The
Chief Executive Officer is the final authority concerning the interpretation of
this program.

Purpose

The Discretionary Management Incentive Program is designed to:

     provide a special financial reward for superior performance over and above
     normal job responsibilities in a given calendar year by selected eligible
     employees, and

     motivate other employees to seek and retain jobs within the functional
     areas designated for plan participation.

Eligibility

Individuals whose salary grades are listed below are considered eligible
nominees for purposes of this program.

     All employees in SG 39 or above
     All employees in SG 4B or 4C

The specific individuals eligible for nomination may change each year due to
changes in job classification or salary grade.  Individuals eligible for the
Executive Incentive Program are not eligible for participation in this program.

Effective Date

The program operates on a calendar year basis.  Awards are normally distributed
in April following the performance year.  While it is expected that awards will
be made each year, there is no requirement that any awards must be made for any
given year.

Officers must submit their nominations to the Chief Executive Officer by the
last day of February following the performance calendar year.

<PAGE>   3

Selection Criteria

Satisfying the salary grade eligibility criteria does not automatically
guarantee a nomination.  However, employees who meet the salary grade criteria
should be encouraged to strive for nomination.

The intent of this program is to recognize the top performers in a calendar
year.  A "top performer" would be defined as an individual who clearly
demonstrates initiative and competence in executing tasks over and above the
expectations of his or her position.  While we expect high quality performance
from all individuals at this level, recipients of the discretionary bonus
distinguish themselves by displaying innovative approaches to their jobs that
result in notable accomplishments and achievements clearly over and above
normal job responsibilities.  These achievements lead to improvements in
profitability, productivity and/or quality of service provided to our
customers, agency force and/or employees.

Due to the nature of this program, no individual should be nominated for
the same achievement in consecutive years.  If a project is incomplete at the
end of the year, then that project should not be used to support a nomination.
Results can only be measured after a project has been completed and
successfully implemented.

The nominee would normally be the single individual in a department who clearly
 demonstrated superior initiative and performance over and above normal job
requirements or expectations for the award year.  If an Officer believes there
is more than one top performer in a department, the Officer may then nominate
another individual.  Multiple nominations must be ranked in preference order.
Since there is no guarantee that a nominee will receive a bonus, order of
preference may become very important in the selection process.

Corporate Legal and Claims Litigation are considered separate departments for
purposes of this program.

It is important to remember that while the program is discretionary, and
nomination does not guarantee an award, each functional area should benefit
considerably by promoting the program to eligible employees.

Award Amounts

Each Nominee who is selected for an award may receive from 10% up to 40% of his
or her base annual salary in the year for which the award relates.  Pro rata
awards may be granted to those who attain eligibility during the award year.
Nominators are requested to recommend an award percentage for individual
nominees.  Final award amounts, however, will be determined by the Chief
Executive Officer after reviewing all nominations with the Discretionary
Management Incentive Advisory Committee.  This Committee will include the Vice
President of Human Resource Services and other members as appointed by the
Chief Executive Officer.

The approved budget for the 2000 discretionary award pool (for awards paid in
2001) is $700,000.  The award pool is determined annually by the Chief
Executive Officer.

The pool will be negatively affected by adverse changes in the Exchange Surplus
 up to the maximum of 20% bonus pool as otherwise determined.  A target
cumulative three-year change in surplus shall be calculated by determining the
surplus required to maintain the previous year's three year weighted average.
Any shortfall shall be multiplied by the percentage under target.  That amount
shall be deducted from the DMIP pool.  The same guidelines apply to the
Executive Incentive Program.  Any reduction to the pool will be done annually
prior to award distribution.

<PAGE>   4

Nomination, Selection and Review Process

All Officers with eligible candidates are responsible for identifying
appropriate nominees.  If an officer nominates more than one person, the
nominees must be listed in order of preference.

The best-qualified individual should be nominated regardless of whether he/she
has been nominated or received an award in previous years.  Some individuals
may not be in a position every year to win an award because of the nature of
their work or the possibility that a special project, etc., may take longer
than a year to complete.  They also may be too new in the position to excel
over and above normal job duties.

The Discretionary Management Incentive Advisory Committee will review all
nominations and suggested award amounts and will make recommendations to the
Chief Executive Officer.  The Chief Executive Officer has final selection
authority.

Evaluation Guidelines and Nomination Forms

To leverage the value of this program within each functional area it is useful
to plan ahead.  The following tips may be helpful:

     Identify all employees who satisfy the title or salary grade eligibility
     criteria.

     Communicate the program to all eligible employees.  Explain that this is a
     very difficult award to win; that it takes exceptional performance over
     and above what is expected; and that all nominees are ranked by
     contribution level in the review process based on the nominating data
     submitted.

     Encourage employees to strive for nomination.  Be careful to explain that
     multiple nominations in a given category will be listed in preference
     order and that a nomination does not guarantee an award.

     Explain the types of performance that are considered superior.  Emphasize
     that everyone's eligibility is subject to annual review and that the
     discretionary nature of the program gives everyone a new opportunity each
     year.

     Take time to periodically document exceptional performance patterns.  This
     will make it easier to make a fair decision about who should be nominated
     and to write a strong nomination paper.

     Limit nominations to include only the top performer(s).  After the award
     selections have been made, meet with nominees who do not receive an award.
     Explain that they were nominated and did not receive an award.  Advise
     them why they were nominated and express your appreciation for their
     contribution although they did not receive a discretionary award.

Use the nomination form in the back of this guide to make your nominations.
Questions about the program or suggestions that will make it more effective
should be directed to the Director of Compensation.

<PAGE>   5

DISCRETIONARY MANAGEMENT INCENTIVE PROGRAM NOMINATION FORM

-------------------------------------------------------------------------------
 Name of Nominating Officer:
-------------------------------------------------------------------------------
 Nominee's Name:                              Hire Date:
-------------------------------------------- ----------------------------------
 Job                                  Title:
                                              Job #:             SG:
--------------------------------------------
          (Attach copy of job description)
-------------------------------------------- ----------------- ----------------
 Office:
-------------------------------------------------------------------------------
 Recommended Award %:        Ranking:         (If more than one individual is
 being nominated)
-------------------------------------------------------------------------------
 To ensure that there is sufficient information with which to evaluate this
nominee, include the following information in your write-up:

     The specific nature of the special achievement(s).

     How the achievement(s) is distinguished from expected levels of
     performance outlined in the attached job description(s).

     Benefit to the function (qualify if possible).

     Benefit to the company (qualify if possible).
-------------------------------------------------------------------------------

Description of Achievement(s):

                          (Continue on separate page)

Signature:                                  Date:
------------------------------------------- -----------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00022-of-00352.parquet"}]]