Document:

exv10w25

Exhibit 10.25

ENSTAR GROUP LIMITED

2011-2015 ANNUAL INCENTIVE COMPENSATION PROGRAM

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	1. PURPOSES

	 	 	1	 
	2. DEFINITIONS

	 	 	1	 
	3. BONUS POOL

	 	 	2	 
	4. BENEFICIARY DESIGNATION

	 	 	3	 
	5. DELIVERY TO GUARDIAN

	 	 	3	 
	6. SOURCE OF SHARES

	 	 	3	 
	7. ADMINISTRATION

	 	 	3	 
	8. AMENDMENT AND TERMINATION

	 	 	3	 
	9. TAX WITHHOLDING

	 	 	3	 
	10. HEADINGS

	 	 	3	 
	11. PLAN

	 	 	4	 
	APPENDIX A

	 	 	A-1	 
	APPENDIX B

	 	 	B-1	 

i

 

ENSTAR GROUP LIMITED

2011-2015 ANNUAL INCENTIVE COMPENSATION PROGRAM

          WHEREAS, Enstar Group Limited, a Bermuda corporation (the “Company”), has previously
established the Castlewood Holdings Limited 2006 Equity Incentive Plan (the “Plan”), primarily in
order to award equity-based benefits to certain officers and other key employees of the Company and
its “Related Corporations” (as defined in the Plan);

          WHEREAS, one kind of equity-based benefit that can be awarded under the Plan is “Bonus Shares”
(as defined in the Plan); and

          WHEREAS, the Company desires to establish an annual incentive compensation program for each of
the 2011, 2012, 2013, 2014, and 2015 calendar years (the “Program”) for the benefit of certain
officers and other key employees of the Company and its Related Corporations whereby such officers
and key employees would be awarded cash, Bonus Shares, or a combination thereof, each as set forth
in the Program, upon the terms and subject to the conditions set forth below.

          NOW, THEREFORE, effective as of January 1, 2011, the Program is hereby adopted by the
Compensation Committee of the Board of Directors of the Company (the “Committee”) with the
following terms and conditions:

     1. Purposes. The purpose of the Program is to motivate certain officers and employees
of the Company to grow the Company’s profitability.

     2. Definitions.

          (a) “Award” means an award of Bonus Shares and cash to a Participant in accordance
with Section 3 of the Program.

          (b) “Change in Control” means “Change in Control” as such term is defined in a
Participant’s employment agreement or, if a Participant does not have an employment agreement with
the Company or any Related Corporation, as such term is defined in the Plan.

          (c) “CEO” means the Chief Executive Officer of Company.

          (d) “Measurement Period” means each of the 2011, 2012, 2013, 2014 and 2015 calendar
years. In the event of a Change in Control during any such year, the Measurement Period shall be
the period beginning on the first day of such year and ending on the date of the Change in Control.

          (e) “Participant” means each of the individuals whose names are set forth in Appendix
A attached hereto and who is employed during the Measurement Period, and such other individuals as
the Committee may determine taking into consideration the recommendations of the CEO. Within 60
days after the end of any Measurement Period, the Committee shall, taking into consideration the
recommendations of the CEO, identify those individuals in addition to those identified on Appendix
A who shall be entitled to participate for such Measurement Period and shall determine the
percentage of the Bonus Pool to be received by each Participant for such Measurement Period. In
the event a Change in Control occurs

 

 

within the Measurement Period, the Committee shall make such determinations within 60 days
prior to the date of the Change in Control.

          (f) “Senior Management” means the Chief Executive Officer, Chief Operating Officers,
and Chief Financial Officer of the Company.

          (g) “Shares” means “Common Shares” as defined in the Plan.

     3. Bonus Pool.

          (a) For each Measurement Period in which the Company has any Consolidated Net After-Tax
Profits, the Company shall pay to each Participant, in cash, Bonus Shares, or a combination
thereof, as determined by the Committee, an amount determined by multiplying the Bonus Pool by the
percentage (expressed as a decimal) of the Bonus Pool allocated to each Participant. The portion
of such amount to be paid to the Participant in Bonus Shares (rounded down to the nearest whole
number of Shares) shall be determined by dividing the portion of the Bonus Pool payable to the
Participant in Bonus Shares by the Share Value (based on the average Share Value over the 5 trading
days following the release of the Company’s earnings for the Measurement Period). Awards settled
in Bonus Shares will be payable under the Program to the extent that Shares remain available for
issuance under the Plan. If the total number of Bonus Shares to be awarded with respect to any
Measurement Period exceeds the number of Shares available for issuance under the Plan, then the
number of Bonus Shares payable to each Participant will be reduced on a pro rata basis based on
each individual Participant’s percentage for that Measurement Period, and Participants will receive
the unpaid portion of their Award as a cash payment instead.

          (b) The following terms shall be defined as set forth below:

               (1) “Bonus Pool” means, for any Measurement Period, a percentage of the Company’s
Consolidated Net After-Tax Profits for such Measurement Period. The guideline for this percentage
is 15% but this percentage can be varied by the Committee for any Measurement Period no later than
30 days from the end of the Measurement Period. If, for any Measurement Period, the Company does
not have any Consolidated Net After-Tax Profits, the Bonus Pool for such Measurement Period shall
be zero.

               (2) “Share Value” means “Fair Market Value” as defined in the Plan.

               (3) “Consolidated Net After-Tax Profits” means for each year ending on December 31,
the net earnings for that year as recorded in the Company’s Consolidated Statements of Earnings
plus any bonus expense recorded in the Company’s Consolidated Statements of Earnings for such year.

          (c) Within 60 days after the end of the Measurement Period, the Committee shall notify each
Participant of the Award (if any) to such Participant under the Program. If an Award is to be paid
under the Program, it shall be paid to Participants no later than March 31 following the applicable
Measurement Period (or, if a Change in Control occurs during a Measurement Period, within 30 days
after the last day of the Measurement Period ending on the date of the Change in Control).

2

 

     4. Beneficiary Designation.

          (a) Each Participant shall designate the person(s) or entities as the beneficiary(ies) to whom
the Participant’s Award shall be paid in the event of the Participant’s death prior to the payment
of such Award to him or her. Each beneficiary designation shall be substantially in the form set
forth in Appendix B attached hereto and shall be effective only when filed with the Committee
during the Participant’s lifetime.

          (b) Any beneficiary designation may be changed by a Participant without the consent of any
previously designated beneficiary or any other person or entity, unless otherwise required by law,
by the filing of a new beneficiary designation with the Committee. The filing of a new beneficiary
designation shall cancel all beneficiary designations previously filed.

          (c) If any Participant fails to designate a beneficiary in the manner provided above, or if
the beneficiary designated by a Participant predeceases the Participant, the Committee shall direct
such Participant’s Award to be paid to the Participant’s surviving spouse or, if the Participant
has no surviving spouse, then to the Participant’s estate.

     5. Delivery to Guardian. If an Award is payable under this Program to a minor, a
person declared incompetent or a person incapable of handling the disposition of property, the
Committee may direct the payment of the Award to the guardian, legal representative or person
having the care and custody of the minor, incompetent or incapable person. The Committee may
require proof of incompetency, minority, incapacity or guardianship as the Committee may deem
appropriate prior to the delivery. The payment shall completely discharge the Committee, the
members of the Board of Directors of the Company or any Related Corporation, the Company and any
Related Corporation from all liability with respect to the Award paid.

     6. Source of Shares. This Program shall be unfunded, and the payment of Bonus Shares
shall be pursuant to the Plan. Each Participant and beneficiary shall be a general and unsecured
creditor of the Company and any Related Corporation to the extent of the Award determined
hereunder, and the Participant shall have no right, title or interest in any specific asset that
the Company or any Related Corporation may set aside, earmark or identify as for the payment of an
Award under the Program. The obligations of the Company and any Related Corporation under the
Program shall be merely that of an unfunded and unsecured promise to pay cash and Bonus Shares in
the future.

     7. Administration. This Program shall be administered by the Committee.

     8. Amendment and Termination. The Board of Directors of the Company reserves the
right to amend the Program with respect to any Measurement Period, by written resolution, at any
time within 90 days of the commencement of such Measurement Period.

     9. Tax Withholding. The payment of cash and Bonus Shares to a Participant or
beneficiary under this Program shall be subject to any applicable tax withholding.

     10. Headings. The headings of the Sections and subsections of the Program are for
reference only. In the event of a conflict between a heading and the content of a Section or
subsection, the content of the Section or subsection shall control.

     11. Plan. Because Bonus Shares may be awarded under the Program, the terms and
conditions of the Plan are hereby incorporated by reference in connection with issuance of Bonus

3

 

Shares. If any terms of the Program conflict with the terms of the Plan, the terms of the Program
shall control. Nothing contained herein shall limit the ability of the Committee to issue Bonus
Shares under the Plan.

4

 

APPENDIX A

ENSTAR GROUP LIMITED

2011-2015 ANNUAL INCENTIVE COMPENSATION PROGRAM

PARTICIPANTS

	 

	Name

	Dominic Silvester

	Paul O’Shea

	Nicholas Packer

	Richard Harris

	David Rocke

Such other individuals as the Committee may determine from time to time taking into
account the recommendations of Senior Management.

 A-1 

 

APPENDIX B

ENSTAR GROUP LIMITED

2011-2015 ANNUAL INCENTIVE COMPENSATION PROGRAM

BENEFICIARY DESIGNATION FORM

     This Form is for your use under the Enstar Group Limited 2011-2015 Annual Incentive
Compensation Program (the “Program”) to name a beneficiary for an Award that may be paid to you
from the Program. You should complete the Form, sign it, have it signed by your employer, and date
it.

* * * *

     I understand that in the event of my death before I receive an Award that may be payable to me
under the Program, the Award will be paid to the beneficiary designated by me below or, if none or
if my designated beneficiary predeceases me, to my surviving spouse or, if none, to my estate. I
further understand that the last beneficiary designation filed by me during my lifetime and
accepted by the Company cancels all prior beneficiary designations previously filed by me under the
Program.

     I hereby state that ____________________________ [insert name], residing or having its
principal place of business at _____________________ [insert address], [whose Social Security
number is __________________,] [whose employer identification or similar number is
________________] is designated as my beneficiary.

	 	 	 	 	 	 

	 

	 	 
	 	 

	Signature of Participant

	 	 	 	Date
	 
	 	 	 	 
	 

	 	 	 	ACCEPTED:
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	 	 	[insert name of employer]
	 
	 	 	 	 
	 

	 	 	 	By:	 
	 

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	Date

 B-1exv10w54

Exhibit 10.54

CONFIDENTIAL RETIREMENT AGREEMENT

AND GENERAL RELEASE OF CLAIMS

     1. Christos Lagomichos (“Executive”) has been employed by Trident Microsystems, Inc. (the
“Company”) since February 8, 2010, and he is currently employed by the Company as its President.
Executive wishes to retire from his employment with the Company (and his employment, if any, with
any of the Company’s direct or indirect subsidiaries), and it is the Company’s desire to ensure
that there is a smooth and orderly transition of Executive’s duties, to provide Executive with
certain separation benefits, and to resolve any claims that Executive has or may have against the
Company. Accordingly, Executive and the Company agree as set forth below. This Agreement will
become effective on the eighth day after it is signed by Executive, provided that Executive has not
revoked this Agreement (by email notice to shirley.olerich@tridentmicro.com) prior to that date.

     2. Executive hereby elects to retire voluntarily from any positions that he holds as an
officer or employee of the Company (and, to the extent applicable, its direct and indirect
subsidiaries) effective as of February 9, 2011 (the “Retirement Date”), and thus the parties agree
that all such employment will terminate upon the Retirement Date. Executive shall promptly execute
and return to the Company any additional documents reasonably necessary to effectuate his
retirement from any such positions.

     3. During the period between the date of this Agreement and the Retirement Date (the
“Transition Period”), Executive will continue to perform his duties for the Company in a
professional and timely manner to the full satisfaction of the Company. Executive shall also work
with the Company to ensure an orderly and complete transition of his duties by the Retirement Date.
During the Transition Period, the Company will continue to provide Executive with his current base
salary and employee fringe benefits, and Executive’s unvested stock options and restricted stock
shall continue to vest during the Transition Period. Upon the Retirement Date, Executive will be
paid all of his accrued, unused paid time off that he earned during his employment with the
Company. Executive will also receive the following compensation and benefits:

          (a) Payment of any unpaid bonus earned by Executive under the Company’s 2010 Executive Bonus
Plan (the “Bonus”), which bonus, if any, will be determined by the Compensation Committee of the
Board; to the extent the Compensation Committee determines that Executive has earned any Bonus,
the Company shall pay the Bonus to Executive on the earlier of (i) the date on which bonuses are
paid to other Company executives under the 2010 Executive Bonus Plan, or (ii) the Retirement Date;
and

          (b) Global relocation services up to a maximum of $10,000 in actual costs incurred from Plus
Relocation Services, Inc. for the purpose of assisting Executive in the shipment of Executive’s
household goods, within 60 days of the Retirement Date, from Sunnyvale, CA to a location identified
by Executive, and one-way economy class tickets for family members to relocate to such location.

     4. Subject to Executive’s strict compliance with all the terms of this Agreement, and to his
extension of the release of claims in Paragraphs 5 and 6 as described below without revocation:

          (a) the Company will provide Executive with a lump sum retirement payment of $1,256,000, which
shall be subject to applicable withholding and will be paid to Executive on or before March 14,
2011;

          (b) in the event that Executive timely elects to obtain continued Company group health,
vision, dental and Employee Assistance Program benefits pursuant to the Consolidated Omnibus Budget
and Reconciliation Act (“ COBRA”) following the Retirement Date, the Company will pay the premiums
for such COBRA coverage through the earlier of (i) February 28, 2012, or (ii) the first date on
which Executive becomes eligible to obtain other group health insurance coverage; thereafter,
Executive may elect to purchase continued group health insurance

					
	 	 	 	 	 
	Christos Lagomichos Retirement Agreement and Release
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coverage under COBRA at his own expense. Executive must timely submit completed COBRA Qualifying
Event Notification enrollment forms directly to Jenkins Insurance Company in order to obtain the
benefits described in this Paragraph 4(b).

     In the event of any material breach by Executive of any of the provisions of this Agreement,
Executive shall not be entitled to receive any payments or benefits under this Paragraph 4, and his
failure to receive any of these payments and/or benefits as a result of his material breach shall
not affect or impair the validity of the remainder of this Agreement, including, but not limited
to, Paragraphs 5 through 9. Executive acknowledges and agrees that he shall not be entitled to any
payments or benefits from the Company other than those expressly set forth in Paragraphs 3 and 4.

     5. In consideration of the payments and benefits described in Paragraph 4, Executive and his
successors release the Company, its parents, divisions, direct and indirect subsidiaries, and
affiliated entities, and each of those entities’ respective current and former shareholders,
investors, directors, officers, employees, agents, attorneys, insurers, legal successors and
assigns of and from any and all claims, actions and causes of action, whether now known or unknown,
which Executive now has, or at any other time had, or shall or may have against those released
parties based upon or arising out of any matter, cause, fact, thing, act or omission whatsoever
occurring or existing at any time up to and including the date on which Executive signs this
Agreement, including, but not limited to, any claims of breach of contract, wrongful termination,
retaliation, fraud, defamation, infliction of emotional distress or national origin, race, age,
sex, sexual orientation, disability or other discrimination or harassment under the Civil Rights
Act of 1964, the Age Discrimination In Employment Act of 1967, the Americans with Disabilities Act,
the Fair Employment and Housing Act or any other applicable law. As further consideration for the
payments and benefits described in Paragraph 4, Executive shall extend this release of claims
through and including the Retirement Date by re-executing this Agreement on the space provided at
the end of the Agreement on or after the Retirement Date. Notwithstanding the above release of
claims, it is expressly understood that this release does not apply to, and shall not be construed
as, a waiver or release of any claims or rights that cannot lawfully be released by private
agreement, including any applicable statutory indemnity rights under the California Labor Code.

     6. Executive acknowledges that he has read section 1542 of the Civil Code of the State of
California, which states in full:

A general release does not extend to claims which the creditor does not know
or suspect to exist in his or her favor at the time of executing the release,
which if known by him or her must have materially affected his or her
settlement with the debtor.

Executive waives any rights that he has or may have under section 1542 (or any similar provision of
the laws of any other jurisdiction) to the full extent that he may lawfully waive such rights
pertaining to this general release of claims, and affirms that he is releasing all known and
unknown claims that he has or may have against the parties listed above.

     7. Executive acknowledges and agrees that he shall continue to be bound by and comply with the
terms of (a) any proprietary rights, assignment of inventions and/or confidentiality agreements
between the Company or any of its subsidiaries and Executive, (b) any indemnification
agreement between the Company or any of its subsidiaries and Executive, (c) the 2010 Equity
Incentive Plan (the “Equity Plan”), and (d) any agreement between the Company or any of its
subsidiaries and Executive evidencing an equity award granted under the Equity Plan.

     8. On or before the Retirement Date, Executive will return to the Company, in good
working condition, all Company property and equipment that is in Executive’s possession or control,
including, but not limited to, any files, records, computers, computer equipment, cell phones,
credit cards, keys, programs, manuals, business

 
					
	 	 	 	 	 
	Christos Lagomichos Retirement Agreement and Release
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	 	Confidential

 

 

plans, financial records, and all documents (whether in electronic, paper, or other format,
and all copies thereof) that Executive prepared or received in the course of his employment with
the Company.

     9. Executive further agrees that he will not, at any time in the future, make any critical or
disparaging statements about the Company, or any of its products or its employees, except to the
extent that such statements are made truthfully in response to a subpoena or other compulsory legal
process.

     10. Executive agrees that for a period of one year following the Retirement Date, he will not,
on behalf of herself or any other person or entity, directly or indirectly solicit any employee of
the Company to terminate his/his employment with the Company.

     11. If any provision of this Agreement is deemed invalid, illegal, or unenforceable, that
provision will be modified so as to make it valid, legal, and enforceable, or if it cannot be so
modified, it will be stricken from this Agreement, and the validity, legality, and enforceability
of the remainder of the Agreement shall not in any way be affected. In the event of any legal
action relating to or arising out of this Agreement, the prevailing party shall be entitled to
recover from the losing party its attorneys’ fees and costs incurred in that action.

     12. The Company intends that income provided to the Executive pursuant to this Agreement will
not be subject to taxation under Section 409A of the Internal Revenue Code (“Section 409A”). The
provisions of this Agreement shall be interpreted and construed in favor of satisfying any
applicable requirements of Section 409A of the Code. However, the Company does not guarantee any
particular tax effect for income provided to the Executive pursuant to this Agreement. In any
event, except for the Company’s responsibility to withhold applicable income and employment taxes
from compensation paid or provided to the Executive, the Company shall not be responsible for the
payment of any applicable taxes incurred by the Executive on compensation paid or provided to the
Executive pursuant to this Agreement. In the event that any compensation to be paid or provided to
Executive pursuant to this Agreement may be subject to the excise tax described in Section 409A,
the Company may delay such payment for the minimum period required in order to avoid the imposition
of such excise tax.

     13. This Agreement constitutes the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior negotiations and agreements between the parties,
whether written or oral, with the exception of the agreements described in Paragraph 7. The
parties agree that the employment agreement of February 5, 2010 between Executive and the Company
is hereby terminated and of no further force or effect. This Agreement may not be modified or
amended except by a document signed by an authorized officer of the Company and Executive.

EXECUTIVE UNDERSTANDS THAT HE SHOULD CONSULT WITH AN ATTORNEY PRIOR TO SIGNING THIS AGREEMENT
AND THAT HE IS GIVING UP ANY LEGAL CLAIMS (AS DESCRIBED ABOVE IN PARAGRAPHS 5 AND 6) HE HAS AGAINST
THE PARTIES RELEASED ABOVE BY SIGNING THIS AGREEMENT. EXECUTIVE FURTHER UNDERSTANDS THAT HE MAY
HAVE UP TO 21 DAYS TO CONSIDER THIS AGREEMENT, THAT HE MAY REVOKE IT AT ANY TIME DURING THE 7 DAYS
AFTER HE SIGNS IT, AND THAT IT SHALL NOT BECOME EFFECTIVE UNTIL THAT 7-DAY PERIOD HAS PASSED.
EXECUTIVE ACKNOWLEDGES THAT HE IS SIGNING THIS AGREEMENT KNOWINGLY, WILLINGLY AND VOLUNTARILY IN
EXCHANGE FOR THE COMPENSATION AND BENEFITS DESCRIBED IN PARAGRAPH 4, WHICH COMPENSATION AND
BENEFITS HE WOULD NOT OTHERWISE BE ENTITLED TO RECEIVE.

	 	 	 	 	 
	 	 	 
	Dated: January 19, 2011 	

 /s/ Christos Lagomichos	 
	 	Christos Lagomichos 	 
	 	 	 

 
					
	 	 	 	 	 
	Christos Lagomichos Retirement Agreement and Release
	 	3
	 	Confidential

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	TRIDENT MICROSYSTEMS, INC.

 	 
	Dated:  January 20, 2011 	By:  	/s/ David L. Teichmann
 	 
	 	 	David L. Teichmann 	 
	 	 	Its:  	Executive Vice President, General Counsel
& Corporate Secretary 	 
	 

By re-signing this Agreement on or after the Retirement Date, I hereby extend the release of claims
set forth in Paragraphs 5 and 6 above so as to include any and all such claims that exist or arise
at any time up to and including the Retirement Date. I also acknowledge and agree that I have been
paid all wages (including base salary, paid time off, and bonuses) that I earned during my
employment with the Company. I understand that I may revoke this extension of the release of
claims at anytime within the seven days following my re-execution of this Agreement, which
revocation must be made in the manner described in the last sentence of Paragraph 1.

	 	 	 	 	 
	 	 	 
	Dated: February 9, 2011 	/s/ Christos Lagomichos
 	 
	 	Christos Lagomichos 	 
	 	 	 
	 

 
					
	 	 	 	 	 
	Christos Lagomichos Retirement Agreement and Release
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