SEC Filings

8-K
LINCOLN ELECTRIC HOLDINGS INC filed this Form 8-K on 11/21/2017
Entire Document
 


Annex A

Severance Compensation

 

  1. A lump sum payment in an amount equal to (A) three (3), if the Executive is a Tier I Executive as of immediately prior to the Change in Control, (B) two (2), if the Executive is a Tier II Executive as of immediately prior to the Change in Control or (C) one (1), if the Executive is a Tier III Executive as of immediately prior to the Change in Control, times the sum of (i) Base Pay (at the highest rate in effect for any period within three years prior to the Termination Date), plus (ii) incentive pay (in an amount equal to the greater of the Executive’s target bonus under the Management Incentive Plan on the Termination Date or the average annual Management Incentive Plan amounts paid to the Executive over the two years preceding the Termination Date). The Executive’s Tier for purposes of this Annex A shall be determined in accordance with the following chart:

 

Tier

 

  

Title/Position

 

Tier I Executive     

 

  

Chief Executive Officer

 

Tier II Executive

 

  

Member of the Management Committee

 

Tier III Executive

 

  

Senior Vice President who is not a member of the Management Committee  

 

 

  2.

Health and Life Benefits. For a period of 36 months following the Termination Date, or, if Section 3(c) applies, the date of the Change in Control (the “Continuation Period”), the Company will arrange to provide the Executive with health and life insurance benefits (as such health and life insurance benefits are described within the definition of Employee Benefits) (the “Health and Life Benefits”) substantially similar to those that the Executive was receiving or entitled to receive immediately prior to the Termination Date (or, if greater (if Section 3(a) or Section 3(b) applies), those that the Executive was receiving or entitled to receive at any time during the period commencing immediately prior to the Change in Control and ending immediately prior to the Termination Date), except that, notwithstanding Section 1(f), the level of any such Health and Life Benefits to be provided to the Executive under this Paragraph 2 may be reduced in the event of a corresponding reduction generally applicable to all recipients of or participants in such Health and Life Benefits. At the expiration of the Continuation Period, upon the Executive’s request, the Company will arrange to provide Health and Life Benefits as described in the preceding sentence provided that such Health and Life Benefits are permitted to be provided under a policy, plan, program or arrangement of the Company or any Subsidiary. During the

 

A-1