Document:

Amendment to offer letter to John L. Berisford

 Exhibit 10.33 
 

 

					
	The McGraw-Hill Companies	  	Harold McGraw III	  	1221 Avenue of the Americas
		  	 Chairman, President and
 Chief
Executive Officer
	  	 New York, NY 10020-1095
 212
512 6205 Tel
 212 512 4502 Fax

hmcgraw@mcgraw-hill.com

 December 9, 2011 
 Mr. John L. Berisford 
 7 Turtle Ridge Road 

Ridgefield, CT 06877 
 Dear John: 

As you know, on December 6, 2011, the Compensation and Leadership Development Committee of the Board of Directors approved an
amendment to the bridge-payment provisions in The McGraw-Hill Companies, Inc.’s (the “Company”) offer letter to you of October 27, 2010. Prior to amendment, the offer letter contemplated that you would be eligible to receive a
cash payment from the Company on each of April 15, 2012 and April 15, 2013, in the amount of $350,000, subject to certain conditions set forth therein. The amendment eliminates the two cash bridge payments contemplated by the offer letter
and replaces the bridge payments with a one-time grant of 16,710 cash-based restricted stock units (the “RSUs”) on the terms set forth on the attached agreement. Each RSU entitles you to a cash payment equal to the value of a share of the
Company’s common stock on the settlement date. The vesting payment terms applicable to the eliminated bridge payments apply to the RSUs, such that the cash-based RSUs for you will generally vest and settle in two equal installments, on
April 15, 2012 and April 15, 2013, respectively, subject to your continued employment with the Company through the applicable vesting date. 
 If you are in agreement with this amendment, kindly sign below and return a copy of this letter to me at your earliest convenience. 

 

	
	Sincerely,
	
	

  

	
	Agreed:
	
	/s/ John L. Berisford
	 John L. Berisford
 Date:

 RESTRICTED STOCK UNIT AWARD AGREEMENT 

AGREEMENT made as of the 8th day of December 2011 by and between The McGraw-Hill Companies, Inc., a New York corporation (the “Company”
or “The McGraw-Hill Companies”), and John L. Berisford (the “Employee”). 
 WHEREAS, the Board of Directors
of the Company has designated the Compensation Committee of the Board (the “Committee”) to administer the 2002 Stock Incentive Plan (the “Plan”); 
 WHEREAS, capitalized terms not otherwise defined herein shall have the meanings set forth for such terms in the Plan; 
 WHEREAS, the management of the Company, subject to the approval of the Committee, has determined that the Employee should be granted a Restricted Stock Unit Award under the Plan for the number of shares
of Common Stock $1.00 par value, of the Company (“Unit”) as specified below; 
 WHEREAS, the Employee is accepting the
Restricted Stock Unit Award subject to the terms and conditions set forth below: 
 1. Grant of Award: The grant of this
Restricted Stock Unit Award (the “Award”) is subject to the terms and conditions hereinafter set forth with respect to 16,710 units covered by this Award. Payment will be made in cash based on the Fair Market Value on the vesting date for
the number of Units vested hereunder, with each Unit corresponding to one share of Stock, together with an amount in cash equal to the value of the Dividend Equivalents on such shares. 

 2. Restrictions. The restrictions on the Units covered by this Award shall lapse and
such units shall vest in accordance with the following table (“Installments”) following completion of the mandatory restriction period specified for each Installment in the following table (the “Restriction Period”), provided
that, for any given Installment, the Employee remains an employee of the Company during the entire Restriction Period relating to such Installment. 
  

					
	 Installment
	  	Restriction Period
For Installment	  	Date Installment
Vests and Restrictions
Lapse
	 50%
	  	4/14/2012	  	4/15/2012
	 50%
	  	4/14/2013	  	4/15/2013

 3. Distribution Following Maturity Date of Award. If the Employee remains an employee of the
Company during the entire Restriction Period relating to any given Installment of the Award, the restricted units covered by such Installment shall become unrestricted and fully vested, converted into cash based on the Fair Market Value on the
vesting date and shall be delivered to the Employee. Before the payments are delivered to the Employee, the Company must withhold Social Security, Federal income tax, and (where applicable) state and local income taxes as well. 

4. Termination of Employment During Restriction Period. Except as provided under Section 5 hereof in the event of a Change in
Control, if the Employee’s employment with the Company is terminated for a) termination with Cause or b) resignation from employment by the employee (other than pursuant to an adverse change in conditions of employment as defined in the Senior
Executive Severance Plan (“adverse change in employment”)) prior to the end of the Restriction Period for any given Installment of the Award, the Employee shall forfeit the right to the Unit covered by such Installment, unless the
Committee, in its sole discretion, may otherwise determine. If the Employee’s employment with the Company is terminated for death, 

  
 2 

 
disability or involuntary termination of employment (other than Cause) or adverse change in employment, prior to the end of the Restriction Period for any given Installment of the Award, the
award will fully vest and be paid in cash to the Employee or his estate, as the case may be. 
 5. Change in Control. In
the event of a Change in Control, as that term is defined under Section 11 of the Plan, prior to the end of the Restriction Period for any given Installment of the Award the Units will become fully vested and converted to cash upon the
consummation of the Change in Control. Any such cash payment to Employee shall be made on the earlier of (i) termination of Employee’s employment (other than for Cause or resignation) or termination by the Employee due to an adverse change
in employment, and (ii) the expiration of the applicable Restriction Period. 
 6. Voting and Dividend Rights. Prior to
the payments covered by this Award, the Employee shall not have the right to vote or to receive any dividends with respect to such shares. Notwithstanding the foregoing, dividend equivalents will be earned during the restriction periods and will be
paid in cash to the Employee upon the vesting of each Installment. 
 7. Transfer Restrictions. This Award is
nontransferable, and may not be transferred, sold, assigned, pledged or hypothecated and shall not be subject to execution, attachment or similar process. Any attempt to effect any of the foregoing shall be null and void. 

  
 3 

 8. Non-Solicitation. (a) In consideration for receiving this award, if for any reason
the Employee resigns from or voluntarily leaves the Company or the Company terminates the Employee’s employment for Cause, during or up to one year after any Restriction Period (the date of any such event referred to as the “Termination
Date”), the Employee agrees as follows: 
  

	 	(i)	Because the Employee’s solicitation of employees of The McGraw-Hill Companies under certain circumstances would necessarily involve the use or disclosure of
Confidential Information, the Employee shall not, either directly or indirectly, for a period of one year after the Termination Date, recruit or solicit or participate or assist in the recruitment or solicitation of any person who at the time of the
Termination Date is an employee of The McGraw-Hill Companies and who is employed in an executive, management, financial, sales, analytical, editorial, or administrative position (“The McGraw-Hill Companies Employee”), to become an employee
of or independent consultant to a competitor of The McGraw-Hill Companies; 

  

	 	(ii)	To further ensure the non-disclosure or use of Confidential Information, notwithstanding any provision hereof to the contrary, the Employee shall notify any new
employer of the above-stated restrictions by letter, with a copy to the Chairman and CEO of The McGraw-Hill Companies, before accepting employment therewith. The Employee acknowledges and agrees that The McGraw-Hill Companies may notify any new
employer of the Employee of these provisions if The McGraw-Hill Companies does not receive the letter described in the preceding sentence after learning of the Employee’s employment or if it reasonably believes that the Employee has not
complied with the terms hereof, after ten (10) days notice to the Employee. 

 For purposes of the foregoing
section, the term “Confidential Information” shall mean the names, addresses, requirements, compensation, prices being charged or any other confidential information concerning or relating to any of the former or existing employees,
customers, or advertisers of The McGraw-Hill Companies or any secret, proprietary or confidential information concerning or relating to the business of The McGraw-Hill Companies. 

  
 4 

 (b) The Employee agrees that nothing in this Section 8 restricts or limits in any way
the provisions of or The McGraw-Hill Companies rights under Section 4 hereof. 
 (c) The Employee agrees that in the event
of violation of this Section 8, to the extent that the Employee may have received payment of any award hereunder during the one-year period prior to the Termination Date, the Employee shall return the payments here under to the Company.

 (d) In the event the provisions of this Section 8 should ever be deemed to exceed the time, geographic or any other
limitations permitted by applicable laws, then such provisions shall be deemed amended to permit the maximum restrictions permitted by applicable laws. 
 9. Miscellaneous. The terms of this Award document (a) shall be binding upon and inure to the benefit of any successor to the Company, (b) shall be governed by the laws of the State of
New York, and any applicable laws of the United States, and (c) may not be amended without the written consent of both the Company and the Employee. Consent on behalf of the Company may only be given through a writing signed, dated and
authorized by the Chief Executive Officer of The McGraw-Hill Companies, Inc., which directly refers to this Agreement. No other modifications to the terms of this Award document are valid under any circumstances. No contract or right of employment
shall be implied by this Award document. If this Award is assumed or a new award is substituted therefore in any corporate reorganization (including, but not limited to, any transaction of the type referred to in Section 424(a) of the Internal
Revenue Code of 1986, as amended (the “Code”)), employment by such assuming or substituting corporation or by a parent corporation or subsidiary thereof shall be considered for all purposes of this Award to be employment by the Company.

  
 5 

 10. Section 409A. This Award is intended to provide for the “deferral of
compensation” within the meaning of Section 409A(d)(1) of the Code and to meet the requirements of Section 409(a)(2), (3) and (4) of the Code, and it shall be interpreted and construed in accordance with this intent.

 11. Incorporation of Plan Provisions. This Award is made pursuant to the Plan and the provisions of said Plan shall
apply, except where otherwise specifically noted herein, as if the same were fully set forth herein. 
  

					
	EMPLOYEE	 		 	THE MCGRAW-HILL COMPANIES, INC.
			
	/s/ John L. Berisford	 		 	/s/ Harold McGraw III
	John L. Berisford	 		 	 Harold McGraw III
 Chairman, President & CEO

  
 6Communication regarding the equity enhancements

 Exhibit 10.34 
 

 
 Memorandum 
  

							
				
	To	  	Employees with Outstanding Equity Awards	  	From	  	John Berisford
				
	Dept.	  		  	Dept.	  	Human Resources
				
	Location	  		  	Location	  	1221 – 49th Floor
				
	Subject	  	Equity Enhancements Under the Growth and Value Severance Program	  	Date	  	January 25, 2012

 This memo under the Growth & Value Enhanced Severance Period which is scheduled to run through
December 31, 2012, describes important enhancements to the treatment of outstanding equity awards. No action is required by an employee for these changes to take effect. Employees should keep this memorandum with other equity award
documentation. 
 We previously announced the Company’s Enhanced Severance Program for U.S. employees in connection with the
Company’s Growth and Value Program for U.S. employees (the “GV Severance Program”). The GV Severance Program generally provides enhanced severance pay and benefits (“Enhanced Severance”) for U.S.
employees who receive written notice from the Company of an involuntary termination of employment other than for Cause during the period beginning on January 1, 2012, and ending on December 31, 2012 (the “GV
Period”). 
 The GV Severance Program also provides enhancements to Stock Options, Performance Share Unit awards, Restricted Stock
Unit awards and any Special Restricted Stock grants previously granted that are outstanding as of January 1, 2012, if an employee’s employment ends under circumstances entitling the employee to Enhanced Severance. We refer to these as the
“Equity Enhancements”. 
 Employees should consult the severance plan in which they participate to determine when and if
Enhanced Severance will be payable. The purpose of this memorandum is to describe the Equity Enhancements that apply if Enhanced Severance becomes payable to an employee. 

 When is an employee eligible for the Equity Enhancements? 

U.S. employees will be eligible for the Equity Enhancements only if their employment with the Company ends under circumstances entitling the employee to
Enhanced Severance under the severance plan in which he or she participates. As a general matter, Enhanced Severance will only be payable if an employee is notified of an involuntary termination of employment other than for Cause during 2012 and the
employee satisfies the payment conditions in the applicable severance plan. Employees must consult the terms of the applicable severance plan to determine the circumstances under which the employee would be eligible for Enhanced
Severance. 
 Non-U.S. employees will be eligible for the Equity Enhancements if they are notified during the GV Period of a termination
of their employment in a manner that entitles them to severance under the applicable plan or local law. 
 Which equity awards are covered by
the Equity Enhancements? 
 The Equity Enhancements apply to any Stock Options, Performance Share Unit awards, Restricted Stock Unit awards
and any Special Restricted Stock grants previously granted by the Company and outstanding as of January 1, 2012 (the “Covered Equity Awards”). Awards granted after that date will not be Covered Equity Awards and will not
benefit from the Equity Enhancements, unless the Company’s Compensation and Leadership Development Committee (the “Compensation Committee”) elects in its sole discretion at the time of grant to have the Equity Enhancements
apply to these awards. 
 What will happen to the Covered Equity Awards if an employee’s employment is terminated under circumstances
entitling the employee to Enhanced Severance? 
 If an employee is entitled to Enhanced Severance as a result of an employment termination,
or a non-U.S. employee is entitled to severance under applicable local law or local severance plan (a “GV Termination”), then the following Equity Enhancements will apply to such employee’s Covered Equity Awards:

  

	 	•	 	 Stock Options will vest in full and will remain exercisable for six months following the end of the employee’s separation pay period, unless the
employee is eligible for Normal Retirement or Early Retirement, in which case the employee’s Stock Options will remain exercisable for the remainder of their original terms. In no event will the Equity Enhancements result in a Stock Option
remaining exercisable for longer than its original term. 

  

	 	•	 	 The 2010 Performance Share Unit awards will remain outstanding and will be paid on or before January 15, 2013, based on performance through the
applicable Maturity Date, as if the employee’s employment had not terminated. 

  
 -2-

	 	•	 	 The 2011 Performance Share Unit awards will remain outstanding and will be paid on or before March 15, 2014, based on the performance through the
applicable Maturity Date, as if the employee’s employment had not terminated. 

  

	 	•	 	 Restricted Stock Unit awards will remain outstanding and will be paid on the Payment Date specified in the applicable award terms and conditions, as if
the employee’s employment had not terminated. 

  

	 	•	 	 Special Restricted Stock grants will vest in connection with the GV Termination, and the Company will withhold at the time of vesting a sufficient
number of shares of Restricted Stock to satisfy applicable federal, state and local tax withholding requirements. The shares of Restricted Stock remaining after such tax withholding will continue to be non-transferable until the end of the
Restriction Period specified in the applicable award terms and conditions 

 Will an employee be required to sign a Release
in order for the Equity Enhancements to apply in the event of a GV Termination? 
 Yes. In order to receive the Equity Enhancements, an
employee will be required to sign and deliver an irrevocable release to the Company in the event of a GV Termination. The release must be delivered in the form and manner contemplated by the severance plan in which the employee participates.

 If an employee is eligible under the applicable severance plan to receive Enhanced Severance as a result of a “Good Reason”
resignation, will the employee also be eligible in that situation for the Equity Enhancements? 
 Yes. However, employees should consult the
terms of the applicable severance plan to determine the circumstances under which a Good Reason resignation is a basis for Enhanced Severance. 

What happens if there is a change in control during the GV Period prior to a GV Termination? 

If, during the GV Period, there is a change in control of the Company (as defined in the applicable plan and award terms and conditions) prior to an
employee receiving or providing written notice of GV Termination, the employee will no longer be eligible for the Equity Enhancements. In such instance, the Covered Equity Awards will receive treatment under the change in control provisions of the
applicable plan and award terms and conditions. 

  
 -3-

 What happens if there is a sale or divestiture during the GV Period? 

Similarly, if an employee’s employment with the Company is terminated during the GV Period in connection with a sale or other divestiture (including
a spin-off) of the subsidiary, business unit or division with which the employee is employed or performs services, the Equity Enhancements will not apply to the Covered Equity Awards. In such instances, the Covered Equity Awards will be treated in
accordance with the applicable plan and the terms and conditions of the award or as otherwise determined by the Compensation Committee in connection with the transaction. 
 Is an employee required to take any actions in order to become eligible for the Equity Enhancements to apply to the Covered Equity Awards? 
 No. This memorandum amends the Covered Equity Awards and no further action is required by an employee for the amendments to apply to these awards. Any ambiguity or question of interpretation arising from
the application of the Equity Enhancements to the Covered Equity Awards will be resolved by the Compensation Committee and will be binding on employees and the Company. 
 Who do employees call if they want more information? 
 If employees have any questions
regarding the GV Severance Program or the Equity Enhancements or would like a copy of the severance plan applicable to the employee, please contact Christine Tierney, Manager, Executive Compensation at Extension 1-2925. 

Except as set forth in this memorandum, all other terms and conditions of the Covered Equity Awards remain in full force and effect. 

  
 -4-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00198-of-00352.parquet"}]]