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we reduce the executive’s base salary, annual cash incentive opportunity or benefits;
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we remove the executive from positions within our company;
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the executive determines in good faith that there has been a material adverse change in his
working conditions or status;
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we relocate the executive; or
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we require the executive to travel 20% more frequently than prior to the change in control.
Under the agreements, the executive will receive a termination payment that is equal to, in the
case of Messrs. Gliebe and Hinrichs, three times or, in the case of Messrs. Schlemmer, Underwood and
Colvin, two times the sum of (1) the executive’s annual base salary then in effect (2) the higher of (i) the
executive’s annual cash incentive target bonus for the fiscal year of the termination, which includes
annual cash incentive payments under the SVA Cash Incentive Plan, or (ii) the annual cash incentive
received in the year prior to the change in control and (3) the value of all fringe benefits. The
agreements with Messrs. Gliebe and Colvin, but not the agreements with Messrs. Hinrichs, Schlemmer
and Underwood, also contain a gross‐up provision, which provides for additional payments to the
executives to compensate them for any excise taxes on payments related to the change in control that
may be imposed on the executives under the Internal Revenue Code. We have adopted a policy
prohibiting such gross‐up provisions in future change of control and severance agreements with
executive officers, and this policy applied to the agreements we entered into with Messrs. Hinrichs,
Schlemmer and Underwood.
The executive also will receive outplacement services, health and life insurance for up to, in the
case of Messrs. Gliebe and Hinrichs, three years, or, in the case of Messrs. Schlemmer, Underwood and
Colvin, two years, and the reimbursement of certain accounting and legal fees related to calculating the
tax impact of these payments. We will also waive any minimum years of service requirements with
respect to supplemental retirement programs, including the Target Supplemental Retirement Plan, and
will make a payment equal to the value of any additional retirement benefits the executive would
receive if he had remained employed for, in the case of Messrs. Gliebe and Hinrichs, three years, or in
the case of Messrs. Schlemmer, Underwood and Colvin, two years. The executive will also be credited
with, in the case of Messrs. Gliebe and Hinrichs, three years’ or, in the case of Messrs. Schlemmer,
Underwood and Colvin, two years’ additional service under any post‐retirement welfare benefit plan
that we maintain. Finally, we will pay any performance awards granted under a long‐term incentive
plan at target as if all performance requirements were met, but offset by any amount paid upon the
change in control under the same award. We do not currently maintain any long‐term cash incentive
plan and no awards are outstanding to our NEOs under any such plan.