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EXHIBIT 10.67
SIMPLICITY CAPITAL CORPORATION
SIMPLICITY HOLDINGS, INC.
SIMPLICITY PATTERN CO. INC.
EXECUTIVE SEVERANCE POLICY
EFFECTIVE DATE: JULY 24, 1997
I. ELIGIBLE EXECUTIVES:
A. GROUP A EXECUTIVES
Senior Vice President - Chief Financial Officer (Frank Rizzo)
Senior Vice President - Sales and Marketing (Louis Oltman)
Senior Vice President - Fashion Product (Judy Raymond)
B. GROUP B EXECUTIVES
Vice President - International (Gordon Robinson)
Vice President - Crafts and Home Decorating (Abbie Small)
Plant Director (Eric Booker)
II. SPECIAL VOLUNTARY TERMINATION:
A. QUALIFICATION
Upon the occurrence of a recapitalization, sale, merger or
other transaction that results in a change of control the
executives listed above may voluntarily terminate their
employment within the first year following the change of
control transaction if any of the following events occur:
- Material diminution of job title
- Material diminution of job responsibilities
- Material diminution of base salary
- Material diminution of retirement benefits (other
than as required by a change in law)
- Requirement imposed by the Company to relocate more
than 50 miles from the executive's previous base of
employment
B. SEVERANCE BENEFITS
- Base salary of 12 months for Group A Executives and 9
months for Group B Executives with mitigation for any
base salary received from another employer during the
12 or 9 months after voluntary termination.
- Pro-rata share, based upon the number of days
employed, of bonus for the fiscal year during which
voluntary termination occurred.
- Pro-rata share, based upon the number of days
employed, of retirement benefits for the fiscal year
during which voluntary termination occurred.
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- Continuation of medical benefits for 12 months for
Group A Executives and 9 months for Group B
Executives after voluntary termination occurs, unless
commencement of other employment occurs sooner and
medical coverage is available from the new employer.
III. TERMINATION WITHOUT CAUSE:
A. DURING THE FIRST YEAR
If termination without cause occurs during the first year
following a change of control transaction, the executive will
be entitled to the same severance benefits as described above
in (II B.) for voluntary termination.
B. DURING THE SECOND YEAR
If termination without cause occurs during the second year
following a change of control transaction, the executive will
be entitled to the following severance benefits:
- Base salary of 12 months for Group A Executives and 9
months for Group B Executives with mitigation for any
base salary received from another employer during the
12 or 9 months after termination without cause
occurred.
- Pro-rata share, based upon the number of days
employed, of bonus for the fiscal year during which
termination without cause occurred.
- Continuation of medical benefits for 12 months for
Group A Executives and 9 months for Group B
Executives after termination without cause occurs,
unless commencement of other employment occurs sooner
and medical coverage is available from the new
employer.
C. BEYOND THE SECOND YEAR
If termination without cause occurs anytime beyond the second
year following a change of control transaction, the executive
will be entitled to the following severance benefits:
- Base salary and benefits based upon the policy in
effect at that time
- Pro-rata share, based upon the number of days
employed, of bonus for the fiscal year during which
termination without cause occurred
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