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fiscal year 2013 under our 2003 Equity Incentive Plan, or the 2003 Plan, and the 2007 Equity Incentive
Plan, or the 2007 Plan, are subject to different treatment in a change‐in‐control transaction. Under the
2003 Plan and the 2007 Plan, in the event of a change‐in‐control, any participant holding a stock option
or SAR may exercise the option or SAR in full, even if the option was not otherwise exercisable, and has
the right to receive, upon sixty days’ written notice to us after the change in control, cash equal to the
excess of the change in control price of the shares covered under the surrendered option or SAR over
the exercise or base price of the surrendered options or SARs. On the date of the change in control, any
unvested restricted stock awards held by a participant under the 2003 Plan or the 2007 Plan vest in full
and each participant has the right, upon sixty days’ written notice to us, to receive, in exchange for the
surrender of the restricted stock awards, an amount of cash equal to the change in control price of the
restricted stock awards.
If the change in control transaction would trigger the adjustment provisions of our existing
equity incentive plans, because, under our 2003 Plan, it is a recapitalization, stock split, reverse stock
split, reorganization, merger, consolidation, split‐up, spin‐off, combination, repurchase, or exchange of
shares, or because, under the 2007 Plan or the 2013 Plan, it is a merger, specified subdivision,
combination or dividend of shares, a cash dividend meeting certain requirements, or other event that, in
the judgment of the Board or the Committee requires an adjustment to prevent dilution or enlargement
of the benefits under the 2007 Plan or the 2013 Plan, the Committee or the Board may make
appropriate adjustments to prevent dilution or enlargement of the benefits or potential benefits
available under our equity incentive plans. Under the adjustment provision, the Committee may also
determine a cash payment amount to be paid to the holder of any outstanding award in exchange for
cancellation of all or a part of the award. However, under the 2003 Plan, if the event or transaction
creates a change in control, then any such payment must be the greatest amount the participant could
have received under the change in control provisions described above and, if the Committee determines
it is necessary, each share subject to an award may be substituted by the number and kind of shares,
other securities, cash or other property to which holders of our common stock are or will be entitled
pursuant to the transaction.
Termination of Employment Connected to a Change in Control
The severance benefits provided under our agreements with our current NEOs are triggered if,
during the period starting six months before and ending, in the case of Messrs. Gliebe and Hinrichs,
three years or, in the case of Messrs. Schlemmer, Underwood and Colvin, two years, after a change in
control of our company, the executive’s employment is terminated. If the executive’s employment is
terminated for cause, or as a consequence of death or disability, our obligations under the agreement
are limited to the payment of amounts already earned, plus a prorated portion of any bonus, including
annual cash incentives under the SVA Cash Incentive Plan, assuming the performance goal for such
bonus had been attained. We may terminate the executive for “cause” under these agreements if he
(i) engages in intentional conduct not taken in good faith that has caused us demonstrable and serious
financial injury, (ii) is convicted of a felony which substantially impairs the executive’s ability to perform
his duties, or (iii) willfully and unreasonably refuses to perform his duties or responsibilities.
If the executive’s employment is terminated other than for cause or as a result of death or
disability, or by the executive with good reason, our full obligations under the agreement will be
triggered. The executive may terminate his employment with “good reason” under the agreements if
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we breach the terms of the agreement;