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aggregate a greater voting interest than the person. The
adoption agreement stated that the eligible employees were Drs.
DeAngelis, Domingo, Durante, and Capizzi, and Ms. Quinn, and that
Dr. Borrero was an employee who was excluded.11 The adoption
agreement defined the term “compensation” as “Total Compensation
paid during the applicable period, including wages, bonuses and
over time [sic], etc., but not including deferred compensation
other than compensation deferred pursuant to Code Section 401(k).
Compensation shall also include salary reduction contributions
excludable from gross income pursuant to Code Section 125.”
C. Other Relevant Provisions
According to the STEP plan, a covered employee was
purportedly eligible to receive a severance benefit from the plan
upon termination of employment (except for termination for cause)
under the following circumstances: “dismissal; any termination
of employment unless such termination constitutes a ‘voluntary
separation without good cause’ within the meaning of New York
State Unemployment Insurance Law; total disability; or death.12
The STEP plan stated that benefits would normally start on the
first day of the second month after approval of the claim for
11 As noted above, Dr. Capizzi subsequently decided not to
participate in the STEP plan. Ms. Quinn was the only employee of
VRD/RTD who was covered by the STEP plan.
12 In operation, the STEP plan paid benefits to participants
even though the covered employee did not fall within one of these
circumstances.
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Last modified: March 27, 2008