Looking for an agreement? Search from over 1 million agreements now.

Severance Plan

This is an actual contract by MCI.
Browse the agreement preview below and buy the entire agreement for $35
Search This Document
Exhibit 10.30


WORLDCOM, INC.

SEVERANCE PLAN


RESTATED AS OF JANUARY 1, 2001

TABLE OF CONTENTS

Page


INTRODUCTION 1

ARTICLE 1 - DEFINITIONS 1

ARTICLE 2 - SEVERANCE PAY BENEFIT 4

ARTICLE 3 - EXTENSION OF COVERAGE BENEFIT 6

ARTICLE 4 - COMMITTEE 7

ARTICLE 5 - AMENDMENT AND TERMINATION 8

ARTICLE 6 - CLAIMS PROCEDURES 8

ARTICLE 7 - MISCELLANEOUS 9


WORLDCOM, INC. SEVERANCE PLAN


INTRODUCTION

The MCI WORLDCOM, Inc. Severance Plan (the "Plan") was adopted, effective September 15, 1999, by WorldCom, Inc. (the "Company"), which then was named MCI WORLDCOM, Inc. The Plan is hereby restated, effective January 1, 2001, to reflect the new company name of WorldCom, Inc. and new Plan name of WorldCom, Inc. Severance Plan. The Company intends this plan to be an "employee welfare benefit plan" as defined in section 3(1) of ERISA. The Plan must be interpreted and administered in a manner that is consistent with that intent.


ARTICLE 1

DEFINITIONS

For the purposes of this Plan, the following terms will have the meanings set forth below:


1.1 Affiliate means any wholly owned subsidiary of the Company incorporated under the laws of any of the United States, any of the provinces of Canada or Puerto Rico and each foreign subsidiary that employs United States citizens who are assigned by the Company to the foreign subsidiary but, for such foreign subsidiary, only with respect to its assigned U.S. citizen employees.


1.2 Break-in-Service means any month during which an Employee fails to complete any paid working time for performance of duties for an Employer. An authorized absence, including a leave of absence, will not be deemed a Break-in-Service.

1.3 Code means the Internal Revenue Code of 1986, as amended.


1.4 Committee means the committee designated pursuant to Article 4 of the Plan, or its delegate, to administer the Plan in accordance with its terms.

1.5 Company means WorldCom, Inc.

1.6 Comparable Job means a job with an Employer at Compensation equal to at least 90% of the Employee's Compensation on the Employee's Termination of Employment and which does not require Relocation.


1.7 Compensation means:


a. For Employees with a base salary:


The annual rate of base salary payable to an Employee immediately prior to his or her Termination of Employment. For an Employee whose base salary is determined on an


hourly basis rather than an annual rate, the Employee's base salary will be annualized by multiplying the Employee's hourly rate of pay by the number of regular work hours in one week, and then multiplying by fifty-two (52). Compensation will not include overtime, cash bonuses (including referral bonuses), incentive pay, commissions, shift premium differentials, pay in lieu of vacation, patent and award fees, income from sources outside the United States which is excludable for federal income tax purposes, reimbursement of expenses and living allowances, education allowances and special of like nature, disability benefits, fringe benefits, deferred compensation, any form of stock based compensation, other distributions which receive special tax benefits, amounts paid for services rendered as an independent contractor, or special allowances, expense reimbursement and other similar payments to Employees participating in the international assignment program and any other form of compensation except base salary as set forth in this Plan section 1.8.


b. For Employees in direct sales with no base salary:

The annualized commissions paid to the Employee using the actual commissions paid to such Employee in the three (3) full months prior to his or her Termination of Employment. Compensation will not include cash bonuses (including referral bonuses), incentive pay, shift premium differentials, pay in lieu of vacation, patent and award fees, income from sources outside the United States which is excludable for federal income tax purposes, reimbursement of expenses and living allowances, education allowances and special payments of like nature, disability benefits, fringe benefits, deferred compensation, any form of stock based compensation, other distributions which receive special tax benefits, amounts paid for services rendered as an independent contractor, or special allowances, expense reimbursement and other similar payments to Employees participating in the international assignment program and any other form of compensation except commissions as set forth in this Plan section 1.8.

1.8 Effective Date of the Plan means September 15, 1999. Effective date of this restatement means January 1, 2001.


1.9 Employee means any individual employed by an Employer on a full-time, regular basis, excluding interns, employees who are designated as temporary by the human resources department, and individuals who are members of a collective bargaining unit, unless the collective bargaining agreement expressly provides that the individuals are Employees for the purposes of the Plan.

1.10 Employer means the Company and each of its Affiliates.


1.11 ERISA means the Employee Retirement Income Security Act of 1974, as amended.

1.12 Extension of Coverage Benefit means the medical and dental benefits that an Employee is entitled to receive pursuant to Article 3 of the Plan.


1.13 HRO means the Company's most senior human resources officer.


2

1.14 Month's Pay means an Employee's Compensation divided by twelve (12).


1.15 Month(s) of Service means any month during which an Employee completes any paid working time for performance of duties for an Employer or is on an authorized leave of absence, unless otherwise excluded by this Plan.


1.16 Plan means this WorldCom, Inc. Severance Plan, as amended and/or restated from time to time.

1.17 Relocation means a new job location which is at least fifty (50) more miles from the Employee's current residence than the Employee's present job location.

1.18 Severance Pay Benefit means the benefit that an Employee is entitled to receive pursuant to Article 2 of the Plan.

1.19 Severance Period means the period following Termination of Employment corresponding to the number of Week's Pay or Month's Pay upon which an Employee's Severance Pay Benefit is based.

1.20 Termination of Employment means the last day of work for the Employee as designated by the Employer, notwithstanding any other compensation or benefits to which the Employee may be entitled after such date.


1.21 Week's Pay means an Employee's annualized Compensation divided by fifty-two (52).

1.22 Year(s) of Service means the number of Months of Service divided by twelve (12). Subject to Plan section 7.1, employment prior to a Break-in-Service will not be used in calculating Year(s) of Service. Notwithstanding anything to the contrary in the immediately preceding sentence; in calculating Year(s) of Service, (a) an employee of WorldCom, Inc. or its subsidiaries who (i) was rehired within two years of his or her Break-in-Service, (ii) whose previous service as of the date of rehire was approved for credit and (iii) whose period of employment after rehire was at least 12 months, will receive credit for all Months of Service worked through November 5, 1996; and (b) Months of Service credited through November 16, 1998 to an employee of MCI Communications Corporation or its subsidiaries will be used in calculating Year(s) of Service if the employee (x) was rehired during the Severance Period and (y) his or her previous service as of the date of rehire was approved for credit.


3

ARTICLE 2


SEVERANCE PAY BENEFIT

2.1 Qualification .

(a) An Employee is eligible for a Severance Pay Benefit under this Plan if the Employee's employment is permanently terminated by an Employer as the result of:


(1) the occurrence of one of the following events (as determined by the Employer):


a. an Employer reduction in force, or


b. the elimination of the Employee's present job position.

(2) the Employee's prior job position not being available when the Employee attempts to return to work within six (6) months, or such longer period as may be required by law, from his or her last day of work from an approved leave of absence and no Comparable Job is offered to the Employee.


(b) Notwithstanding anything to the contrary in 2.1(a), an Employee will not be eligible for a Severance Pay Benefit under this Plan as the result of:


(1) termination of the Employee's employment if:


a. he or she accepts any position with an Employer, or


b. he or she receives a Comparable Job offer, or


(2) the sale or other disposition of all of the stock or all or a portion of the business of an Employer, or merger of an Employer into or with another corporation, whether by sale of stock or assets or otherwise. The mere fact of a change in control, or sale or other disposition of all or a portion of any Employer will not be deemed a Termination of Employment for purposes of qualifying for a Severance Pay Benefit under this Plan; or,

(3) the Employee's retirement, disability, death, resignation, or discharge with or without cause for any reason other than set forth in Plan section 2.1 (a); or,

(c) Notwithstanding anything to the contrary in this Plan, payment of a Severance Pay Benefit is conditioned upon:

(1) the Employee's execution of a general release of all claims against his or her Employer and the Company in a form acceptable to the Company; and


4
-- End of Preview --
Home| About Us| FAQ| Subscription | Contact Us |