EXHIBIT 10.4
CONFIDENTIAL
------------
COMPANY POLICY ON FINANCIAL COUNSELING & INDIVIDUAL INCOME TAX
SERVICE FOR EXECUTIVES IN SALARY GRADES 64E0 AND 64E1
A. Eligibility
-----------
This policy shall be applicable to the executives in salary grades 64E0 and
64E1.
B. Effective Date
--------------
This policy first became effective January 1, 1987. The provisions herein
reflect all modifications made through January 1, 1997, the effective date
of this current policy.
C. Definitions
-----------
Financial counseling service as used in this statement means professional
(financial, legal and tax) counseling in the broad area of estate building
and estate conservation including, but not necessarily limited to:
o Effective utilization of Company benefit programs;
o Individual capital building methods and tools;
o Income tax planning guideposts and tax shelters;
o Estate conservation and insurance planning;
o Preparation of personal wills and trust agreements;
o Cash flow, commercial banking, leverage and liquidity analysis, and
o Problem analysis and financial trade-offs.
Individual income tax service as used in this statement is specifically
limited to professional assistance in the preparation of the executive's
individual federal, state and/or local income tax returns and support of
such return upon audit.
D. Covered Services and Allowances
-------------------------------
1. The Company will provide the following to eligible executives upon
request to the Manager, Executive Relations:
a. Information regarding the kinds of financial counseling services
provided by nationally known organizations.
b. Information regarding nationally known organizations which
provide professional assistance in the preparation of individual
income tax returns.
c. Information regarding the executive's Company benefits for use by
the selected counseling organization, including a statement of
the extent to which the Company will reimburse the executive for
services of financial and tax counseling organizations.
Page 1
COMPANY POLICY ON FINANCIAL COUNSELING & INDIVIDUAL INCOME TAX
SERVICE FOR EXECUTIVES IN SALARY GRADES 64E0 AND 64E1
2. The Company will reimburse eligible executives in accordance with the
following provisions for the services of the organizations they
select:
a. Reimbursement for all financial counseling and individual income
tax service rendered during the initial calendar year of the
executive's participation under this policy will generally not
exceed $12,000.
b. Reimbursement for all financial counseling service and individual
income tax service during the calendar year of a participating
executive's termination will generally not exceed $12,000.
c. Reimbursement for follow-up financial counseling and individual
income tax services in any calendar year other than the initial
calendar year of participation or the calendar year immediately
preceding the executive's termination will generally not exceed
$8,000.
d. Any allowance unused in a calendar year may be carried forward to
the next calendar year for use during that period as necessary.
However, no more than the maximum allowance for a given year is
subject to carry forward, i.e., $12,000 for the initial year and
$8,000 for succeeding years.
e. If necessary, the allowance for the year following the current
year may be carried back to cover expenses in the current year
assuming the executive's expected continued eligibility. No more
than one year forward is available for carry back. If an
executive has received reimbursement under the carry back
provisions of the plan at the time of termination of employment,
the Company may, at its discretion, request reimbursement from
the executive for any such amount.
f. A one-time allowance of up to $4,000 for reimbursement of legal
services provided in preparation/updating of personal wills and
trusts is available. However, if an eligible executive relocates
to a different state, an additional allowance of up to $2,000 for
reimbursement of legal services provided in updating personal
wills and trusts to reflect the laws of the new state is
available.
g. The first year allowance of $12,000 will also be available to
change counseling organizations one time during the entire
eligibility period at the executive's discretion, not including
the provisions of f. above. This allowance would include
individual income tax service for that year.
h. If an executive terminates or dies while a participant under this
policy, an allowance of $1,550 will apply with respect to
individual income tax returns for the last calendar year in which
the executive was in the active service of the Company.
Page 2
COMPANY POLICY ON FINANCIAL COUNSELING & INDIVIDUAL INCOME TAX
SERVICE FOR EXECUTIVES IN SALARY GRADES 64E0 AND 64E1
i. If an executive's employment with the Company ceases other
than by retirement with an immediate retirement allowance,
death, or by agreement with the Company, reimbursement will
not be made for any financial counseling or income tax
services performed for the executive after the date
employment terminates.
3. Brokers' fees or promoters' fees are not reimbursable.
4. To obtain reimbursement under this policy, a participating executive
will forward the service organization's invoices with covering
memorandum to the Manager, Executive Relations. The Company's check
will be payable to the executive. The executive is responsible for
payment of the service organization's invoices.
5. Reimbursements will be grossed up in consideration of federal and
state income taxes.
6. The total reimbursement made by the Company will be reported to the
Internal Revenue Service and to other applicable tax jurisdictions as
supplemental payment of compensation. Each reimbursement will be
subject to FICA and withholding at the standard federal and state tax
rates at the time payment is made.
E. Non-Endorsement
---------------
It is the Company's policy that the decision whether or not to use
financial counseling service and/or income tax service as well as the
selection of organizations to render such services is an individual one.
Therefore, representatives of the Company will not suggest whether or not
an eligible executive should use such services, and will not encourage or
discourage use of any particular organization by an eligible executive.
By application for information outlined in "D" above, and by acceptance and
receipt thereof, any eligible executive shall release and discharge the
Company and any employee or other person who furnishes such information
from any and all liability and responsibility for loss or damage which said
applying executive may suffer as a consequence of receipt or use of such
information.
F. Administration
--------------
All decisions regarding this policy rest entirely with the Company and such
decisions shall be final. The Company reserves the right to modify or
terminate this policy at any time.
Effective: January 1, 1997
Page 3
CONFIDENTIAL
------------
COMPANY POLICY ON FINANCIAL COUNSELING & INDIVIDUAL INCOME TAX
SERVICE FOR EXECUTIVES IN SALARY GRADES 64E2 AND 64E3
A. Eligibility
-----------
This policy shall be applicable to the executives in salary grades 64E2 and
64E3.
B. Effective Date
--------------
This policy first became effective January 1, 1987. The provisions herein
reflect all modifications made through January 1, 1997, the effective date
of this current policy.
C. Definitions
-----------
Financial counseling service as used in this statement means professional
(financial, legal and tax) counseling in the broad area of estate building
and estate conservation including, but not necessarily limited to:
o Effective utilization of Company benefit programs;
o Individual capital building methods and tools;
o Income tax planning guideposts and tax shelters;
o Estate conservation and insurance planning;
o Preparation of personal wills and trust agreements;
o Cash flow, commercial banking, leverage and liquidity analysis, and
o Problem analysis and financial trade-offs.
Individual income tax service as used in this statement is specifically
limited to professional assistance in the preparation of the executive's
individual federal, state and/or local income tax returns and support of
such return upon audit.
D. Covered Services and Allowances
-------------------------------
1. The Company will provide the following to eligible executives upon
request to the Manager, Executive Relations:
a. Information regarding the kinds of financial counseling services
provided by nationally known organizations.
b. Information regarding nationally known organizations which
provide professional assistance in the preparation of individual
income tax returns.
c. Information regarding the executive's Company benefits for use by
the selected counseling organization, including a statement of
the extent to which the Company will reimburse the executive for
services of financial and tax counseling organizations.
Page 1
COMPANY POLICY ON FINANCIAL COUNSELING & INDIVIDUAL INCOME TAX
SERVICE FOR EXECUTIVES IN SALARY GRADES 64E2 AND 64E3
2. The Company will reimburse eligible executives in accordance with the
following provisions for the services of the organizations they
select:
a. Reimbursement for all financial counseling and individual income
tax service rendered during the initial calendar year of the
executive's participation under this policy will generally not
exceed $10,600.
b. Reimbursement for all financial counseling service and individual
income tax service during the calendar year of a participating
executive's termination will generally not exceed $10,600.
c. Reimbursement for follow-up financial counseling and individual
income tax services in any calendar year other than the initial
calendar year of participation or the calendar year immediately
preceding the executive's termination will generally not exceed
$6,200.
d. Any allowance unused in a calendar year may be carried forward to
the next calendar year for use during that period as necessary.
However, no more than the maximum allowance for a given year is
subject to carry forward, i.e., $10,600 for the initial year and
$6,200 for succeeding years.
e. If necessary, the allowance for the year following the current
year may be carried back to cover expenses in the current year
assuming the executive's expected continued eligibility. No more
than one year forward is available for carry back. If an
executive has received reimbursement under the carry back
provisions of the plan at the time of termination of employment,
the Company may, at its discretion, request reimbursement from
the executive for any such amount.
f. A one-time allowance of up to $3,000 for reimbursement of legal
services provided in preparation/updating of personal wills and
trusts is available. However, if an eligible executive relocates
to a different state, an additional allowance of up to $1,500 for
reimbursement of legal services provided in updating personal
wills and trusts to reflect the laws of the new state is
available.
g. The first year allowance of $10,600 will also be available to
change counseling organizations one time during the entire
eligibility period at the executive's discretion, not including
the provisions of f. above. This allowance would include
individual income tax service for that year.
h. If an executive terminates or dies while a participant under this
policy, an allowance of $1,250 will apply with respect to
individual income tax returns for the last calendar year in which
the executive was in the active service of the Company.
Page 2
COMPANY POLICY ON FINANCIAL COUNSELING & INDIVIDUAL INCOME TAX
SERVICE FOR EXECUTIVES IN SALARY GRADES 64E2 AND 64E3
i. If an executive's employment with the Company ceases other
than by retirement with an immediate retirement allowance,
death, or by agreement with the Company, reimbursement will
not be made for any financial counseling or income tax
services performed for the executive after the date
employment terminates.
3. Brokers' fees or promoters' fees are not reimbursable.
4. To obtain reimbursement under this policy, a participating
executive will forward the service organization's invoices with
covering memorandum to the Manager, Executive Relations. The
Company's check will be payable to the executive. The executive
is responsible for payment of the service organization's
invoices.
5. Reimbursements will be grossed up in consideration of federal
and state income taxes.
6. The total reimbursement made by the Company will be reported to
the Internal Revenue Service and to other applicable tax
jurisdictions as supplemental payment of compensation. Each
reimbursement will be subject to FICA and withholding at the
standard federal and state tax rates at the time payment is made.
E. Non-Endorsement
---------------
It is the Company's policy that the decision whether or not to use
financial counseling service and/or income tax service as well as the
selection of organizations to render such services is an individual one.
Therefore, representatives of the Company will not suggest whether or not
an eligible executive should use such services, and will not encourage or
discourage use of any particular organization by an eligible executive.
By application for information outlined in "D" above, and by acceptance and
receipt thereof, any eligible executive shall release and discharge the
Company and any employee or other person who furnishes such information
from any and all liability and responsibility for loss or damage which said
applying executive may suffer as a consequence of receipt or use of such
information.
F. Administration
--------------
All decisions regarding this policy rest entirely with the Company and such
decisions shall be final. The Company reserves the right to modify or
terminate this policy at any time.
Effective: January 1, 1997
Page 3
CONFIDENTIAL
------------
COMPANY POLICY ON FINANCIAL COUNSELING & INDIVIDUAL INCOME TAX
SERVICE FOR EXECUTIVES IN SALARY GRADE 64E4
A. Eligibility
-----------
This policy shall be applicable to the executives in salary grades 64E4.
B. Effective Date
--------------
This policy first became effective January 1, 1987. The provisions herein
reflect all modifications made through January 1, 1997, the effective
date of this current policy.
C. Definitions
-----------
Financial counseling service as used in this statement means professional
(financial, legal and tax) counseling in the broad area of estate
building and estate conservation including, but not necessarily limited
to:
o Effective utilization of Company benefit programs;
o Individual capital building methods and tools;
o Income tax planning guideposts and tax shelters;
o Estate conservation and insurance planning;
o Preparation of personal wills and trust agreements;
o Cash flow, commercial banking, leverage and liquidity analysis, and
o Problem analysis and financial trade-offs.
Individual income tax service as used in this statement is specifically
limited to professional assistance in the preparation of the executive's
individual federal, state and/or local income tax returns and support of
such return upon audit.
D. Covered Services and Allowances
-------------------------------
1. The Company will provide the following to eligible executives upon
request to the Manager, Executive Relations:
a. Information regarding the kinds of financial counseling services
provided by nationally known organizations.
b. Information regarding nationally known organizations which
provide professional assistance in the preparation of individual
income tax returns.
c. Information regarding the executive's Company benefits for use by
the selected counseling organization, including a statement of
the extent to which the Company will reimburse the executive for
services of financial and tax counseling organizations.
Page 1
COMPANY POLICY ON FINANCIAL COUNSELING & INDIVIDUAL INCOME TAX
SERVICE FOR EXECUTIVES IN SALARY GRADE 64E4
2. The Company will reimburse eligible executives in accordance with the
following provisions for the services of the organizations they
select:
a. Reimbursement for all financial counseling and individual income
tax service rendered during the initial calendar year of the
executive's participation under this policy will generally not
exceed $5,800.
b. Reimbursement for all financial counseling service and individual
income tax service during the calendar year of a participating
executive's termination will generally not exceed $5,800.
c. Reimbursement for follow-up financial counseling and individual
income tax services in any calendar year other than the initial
calendar year of participation or the calendar year immediately
preceding the executive's termination will generally not exceed
$4,200.
d. Any allowance unused in a calendar year may be carried forward to
the next calendar year for use during that period as necessary.
However, no more than the maximum allowance for a given year is
subject to carry forward, i.e., $5,800 for the initial year and
$4,200 for succeeding years.
e. If necessary, the allowance for the year following the current
year may be carried back to cover expenses in the current year
assuming the executive's expected continued eligibility. No more
than one year forward is available for carry back. If an
executive has received reimbursement under the carry back
provisions of the plan at the time of termination of employment,
the Company may, at its discretion, request reimbursement from
the executive for any such amount.
f. A one-time allowance of up to $3,000 for reimbursement of legal
services provided in preparation/updating of personal wills and
trusts is available. However, if an eligible executive relocates
to a different state, an additional allowance of up to $1,500 for
reimbursement of legal services provided in updating personal
wills and trusts to reflect the laws of the new state is
available.
g. The first year allowance of $5,800 will also be available to
change counseling organizations one time during the entire
eligibility period at the executive's discretion, not including
the provisions of f. above. This allowance would include
individual income tax service for that year.
h. If an executive terminates or dies while a participant under this
policy, an allowance of $950 will apply with respect to
individual income tax returns for the last calendar year in which
the executive was in the active service of the Company.
Page 2
COMPANY POLICY ON FINANCIAL COUNSELING & INDIVIDUAL INCOME TAX
SERVICE FOR EXECUTIVES IN SALARY GRADE 64E4
i. If an executive's employment with the Company ceases other than
by retirement with an immediate retirement allowance, death, or
by agreement with the Company, reimbursement will not be made for
any financial counseling or income tax services performed for the
executive after the date employment terminates.
3. Brokers' fees or promoters' fees are not reimbursable.
4. To obtain reimbursement under this policy, a participating executive
will forward the service organization's invoices with covering
memorandum to the Manager, Executive Relations. The Company's check
will be payable to the executive. The executive is responsible for
payment of the service organization's invoices.
5. Reimbursements will be grossed up in consideration of federal and
state income taxes.
6. The total reimbursement made by the Company will be reported to the
Internal Revenue Service and to other applicable tax jurisdictions as
supplemental payment of compensation. Each reimbursement will be
subject to FICA and withholding at the standard federal and state tax
rates at the time payment is made.
E. Non-Endorsement
---------------
It is the Company's policy that the decision whether or not to use
financial counseling service and/or income tax service as well as the
selection of organizations to render such services is an individual one.
Therefore, representatives of the Company will not suggest whether or not
an eligible executive should use such services, and will not encourage or
discourage use of any particular organization by an eligible executive.
By application for information outlined in "D" above, and by acceptance
and receipt thereof, any eligible executive shall release and discharge
the Company and any employee or other person who furnishes such
information from any and all liability and responsibility for loss or
damage which said applying executive may suffer as a consequence of
receipt or use of such information.
F. Administration
--------------
All decisions regarding this policy rest entirely with the Company and
such decisions shall be final. The Company reserves the right to modify
or terminate this policy at any time.
Effective: January 1, 1997
Page 3