Severance Benefits

A&B's Severance Policy determines what benefits, if any, will be paid in the event an individual's employment with the Company ends.

Note: The A&B Severance Policy outlined here applies to all full-time salaried non-bargaining employees of A&B, its divisions and wholly owned subsidiaries. This policy should not be interpreted as a specific guarantee regarding employment or compensation. These guidelines should not be relied upon by any employee. The Company reserves the right to change this policy at any time.

If your employment with A&B ends due to*...

  • A reduction in the Company's workforce, and/or

  • The elimination of a job

... you may be eligible for a severance allowance under this policy.

* The determination of whether these events have occurred, and any other issues relating to the administration of this policy, will rest with the Company.

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What The Severance Policy Provides

If an individual has at least one year of service with A&B, and his or her employment ends as a result of a workforce reduction or job elimination, he or she may be eligible to receive a severance payment. The actual payment made is based on the individual's length of service with the Company as outlined in the table below.

The Company will determine how the severance allowance will be paid, after considering the expressed preference of the affected employee. However, any severance allowance payable must be fully paid within two years.

Severance Allowance Payment Amounts
If The Affected Individual Has Been With A&B For... The Individual May Receive The Following Severance Payment...*

1 to 2 years

2 weeks pay (10 days)

3 to 4 years

2 weeks pay, plus 6 days pay per year of completed service

5 to 7 years

2 weeks pay, plus 7 days per year of completed service

8 to 10 years

2 weeks pay, plus 8 days per year of completed service

11 to 12 years

2 weeks pay per year of completed service

13 years or more

26 weeks pay

* This allowance will be offset on a dollar-for-dollar basis by any "dislocated worker allowance" payable to the individual in accordance with state and/or federal law.
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Severance Policy Provisions

The following provisions apply to the A&B Severance Policy...

  • Any decision to reduce the workforce and/or eliminate a job shall be at the sole discretion of the Company.

  • Individuals whose employment ends as a result of a workforce reduction or job elimination will:

    • be paid for all earned unused vacation, including any vacation earned during the current year, and

    • stop participating in A&B's employee health and welfare benefit plans in accordance with the provisions of each particular plan.

  • No severance allowance will be paid to an affected employee who:

    • rejects an offer of a comparable position with the Company (or one of its subsidiaries or divisions); or

    • through the efforts of the Company, is employed by another employer.

  • If an affected employee is receiving a severance allowance when he or she dies, the remainder of the allowance will be paid to the designated beneficiary.

  • Employees are not eligible for a severance allowance if they:

    • are discharged;

    • voluntarily end their employment;

    • die before the effective date of the termination; or

    • are eligible for, and are receiving sick leave or Long-Term Disability (LTD) payments during a period of disability.

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