Document:

exv10w2

 

Exhibit 10.2

October 20, 2006

Mr. Jim Jenness

Kellogg Company

One Kellogg Square

Battle Creek, MI 49017

Dear Jim,

     We are very excited that you will be the Chairman of Kellogg Company (the “Company”). Like
you, we believe that David Mackay is the right person to be the next Chief Executive Officer for
the Company, and we are delighted that you will continue as Chairman as David transitions into his
new role.

     The purpose of this letter (the “Agreement”) is to outline certain compensation and other
related matters.

     1. Compensation Arrangements

     As we discussed, on December 31, 2006 (the first day of the Company’s 2007 fiscal year) (the
“Start Date”), David will assume the role of CEO, and you will be Chairman. Despite the time and
effort required to fulfill the responsibilities of Chairman, your preference is not to receive the
compensation commensurate with the role. Jim, we understand and respect your views, as well as your
affection for and commitment to Kellogg Company and its shareholders. Consequently, from the Start
Date through the period you are employed with the Company (the “Employment Period”), you would not
receive any base salary, be eligible for any bonus awards under the 2007 or subsequent Annual
Incentive Plans, or receive any incentives under the long term incentive program (which would mean
that you would not receive any more stock option grants or grants under any future Executive
Performance Plan (EPP)). You also understand that you would no longer participate in the Company’s
Change of Control Policy after the Start Date.

     To be clear, you will retain the equity awards (the “Equity Awards”) that have been previously
awarded to you. During the Employment Period, you will continue to vest in stock options that were
granted in 2005 and 2006 (but will not receive any additional grants in 2007 or thereafter), the
stock grant you received when you joined the Company, and the EPP grant from the 2005 — 2007 plan,
each in accordance with the relevant plans. However, you have agreed to forfeit your EPP award
under the 2006 —2008 plan.

     In addition, you will be eligible to retire from the Company at the end of the Employment
Period. You shall be entitled to a pension payment (either in a single life

 

 

Mr. Jim Jenness

Page 2

October 20, 2006

annuity, joint survivor annuity or lump sum, as such alternatives are described in the Kellogg
Company Salaried Pension Plan, the Kellogg Company Supplemental Retirement Plan, the Kellogg
Company Excess Benefit Plan and the Kellogg Company Key Executive Benefits Plan (the “Pension
Plans”)). To be in compliance with Section 409A of the Internal Revenue Code of 1986, the pension
payments will commence on January 1, 2008. If you elect the single life annuity payment, your
annual aggregate payout would be equal to $155,167 per year, less any payments you are otherwise
entitled to under the Pension Plans. You shall make your election in writing to the Company’s
General Counsel within 30 days of the date of this Agreement.

     If your employment is terminated for “Cause” during the Employment Period, you would forfeit
any right or interest in and to any of the Equity Awards and the supplemental pension payments.

     For purposes of this Agreement, termination for “Cause” means termination by the Company
because of (i) your willful engaging in illegal conduct or gross misconduct pursuant to which the
Company has suffered a loss, or (ii) your willful and continued failure to perform substantially
your duties hereunder in any material respect; provided, however, that in the case of clause (ii),
the Company must provide written notice of such breach or failure within thirty (30) days of its
discovery thereof, and you shall have thirty (30) days from such written notice to cure such breach
or failure.

     You will also remain eligible to receive your bonus under the Kellogg Company 2006 Annual
Incentive Plan with respect to the Company’s 2006 fiscal year, based on the terms of the plan.
During the Employment Period, you will also remain eligible (except as set forth above) to
participate in the Company’s other employee benefit plans and senior executive benefit plans, as in
effect from time to time such as the Company’s life insurance, medical insurance, dental plan, and
savings and investment plan. You will also receive the retiree medical insurance, relocation and
home sale benefits as described in the letter agreement between you and the Company dated December
20, 2004. You acknowledge that you will not be entitled to additional compensation or benefits from
the Company other than as set forth or described in this Agreement or other benefits vested and
accrued as of the end of the Employment Period. Without limiting the foregoing, you acknowledge
you will have no entitlement to receive severance benefits from the Company.

     2. Release. In consideration of the compensation and benefits provided pursuant to
this Agreement, the sufficiency of which is hereby acknowledged, you, for yourself and for any
person who may claim by or through you, irrevocably and unconditionally release, waive and forever
discharge the Company and its past, present and future subsidiaries, divisions, affiliates,
successors, and their respective officers, directors, attorneys, agents and employees, from any and
all claims or causes of action that you had, have or may have, known or unknown, relating to your
employment with
the Company up until the date of this Agreement, including but not limited to, any claims
arising under Title VII of the Civil Rights Act of 1964, as amended, Section 1981 of the Civil
Rights Act of 1866, as amended, the Civil Rights Act of 1991, as amended, the

 

 

Mr. Jim Jenness

Page 3

October 20, 2006

Family and Medical Leave Act, the Age Discrimination in Employment Act, as amended by the
Older Workers Benefit Protection Act of 1990, the Americans with Disabilities Act, the Employee
Retirement Income Security Act; claims under any other federal, state or local statute, regulation
or ordinance; claims for discrimination or harassment of any kind, breach of contract or public
policy, wrongful or retaliatory discharge, defamation or other personal or business injury of any
kind; and any and all other claims to any form of legal or equitable relief, damages, compensation
or benefits (except rights you may have under the Employee Retirement Income Security Act of 1974
to recover any vested benefits), or for attorneys fees or costs. You additionally waive and release
any right you may have to recover in any lawsuit or proceeding against the Company brought by you,
an administrative agency, or any other person on your behalf or which includes you in any class.
You understand that he you are entitled to consider this Agreement for at least twenty-one (21)
days before signing it. However, after due deliberation, you may elect to sign this Agreement
without availing yourself of the opportunity to consider its provisions for at least twenty-one
(21) days. You hereby acknowledge that any decision to shorten the time for considering this
Agreement prior to signing it is voluntary, and such decision is not induced by or through fraud,
misrepresentation, or a threat to withdraw or alter the provisions set forth in this Agreement in
the event you elected to consider this Agreement for at least twenty-one (21) days prior to signing
it. You understand that you may revoke this Agreement as it relates to any potential claim that
could be brought or filed under the Age Discrimination in Employment Act, 29 U.S.C. §§621-634,
within seven (7) days after the date on which you sign this Agreement, and that this Agreement as
it relates to such a claim does not become effective until the expiration of the seven (7) day
period. In the event that you to revoke this Agreement within the seven (7) day period, you
understand that you must provide such revocation in writing to the Company, Attn: General Counsel.

     3. Section 409A. This letter and the agreements herein will be interpreted to avoid
any penalty sanctions under Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”) and to deliver the full economic value of all the benefits provided herein. If any payment
or benefit cannot be provided or made at the time specified herein without incurring sanctions
under Section 409A of the Code, then such benefit or payment shall be provided in full at the
earliest time thereafter when such sanctions will not be imposed. Upon your request, the Company
agrees to make any changes to this letter and the agreements herein that will assure that no
sanctions will be imposed under Section 409A of the Code.

     4. No Other Representations. You represent and warrant that no promise or inducement
has been offered or made except as herein set forth and that you are entering into and executing
this Agreement without reliance on any statement or
representation not set forth within this Agreement by the Company, or any person(s) acting on
its behalf.

     5. Non-Assignment of Rights. You represent and warrant that you have not sold,
assigned, transferred, conveyed or otherwise disposed of to any third party, by operation of law or
otherwise, any action, cause of action, debt, obligation, contract,

 

 

Mr. Jim Jenness

Page 4

October 20, 2006

agreement, covenant, guarantee, judgment, damage, claim, counterclaim, liability or demand of
any nature whatsoever relating to any matter covered in this Agreement.

     6. Non-Compete. You agree that, for a period beginning at the end of the Employment
Period and ending on the second anniversary of such date (the “Restricted Period”), you shall not,
without the prior written consent of the CEO of the Company:

	 	(a)	 	directly or indirectly, accept any employment, consult for or with, or
otherwise provide or perform any services of any nature to, for or on behalf of any
person, firm, partnership, corporation or other business or entity that manufactures,
produces, distributes, sells or markets any of the Products (as hereinafter defined) in
the Geographic Area (as hereinafter defined); or
	 
	 	(b)	 	directly or indirectly, permit any business, entity or organization which
Employee, individually or jointly with others, owns, manages, operates, or controls, to
engage in the manufacture, production, distribution, sale or marketing of any of the
Products in the Geographic Area.

For purposes of this Paragraph, the term “Products” shall mean ready-to-eat and hot cereal
products; toaster pastries; cereal bars; granola bars; frozen waffles, pancakes, and French toast;
fruit snacks; crispy marshmallow squares, cookies, crackers, ice cream cones, any other grain-based
convenience food, or meat substitutes; and the term “Geographic Area” shall mean any country in the
world where the Company manufactures, produces, distributes, sells or markets any of the Products
at any time during the applicable Restricted Period.

     7. Non-Solicitation. You agree that during the Restricted Period, you shall not,
without the prior written consent of the Chief Executive Officer of the Company, directly or
indirectly employ, or solicit the employment of (whether as an employee, officer, director, agent,
consultant or independent contractor) any person who is or was at any time during the year prior to
such employment or solicitation an officer, director, or employee of the Company (except for
solicitation pursuant to an advertisement of general solicitation not directed at such parties).

     8. Non-Disparagement of the Company. You agree not to engage in any form of conduct or
make any statements or representations that disparage, criticize or otherwise are critical, or
otherwise impair the reputation, goodwill or commercial interests, of the Company, or its past,
present and future subsidiaries, divisions, affiliates, successors, officers, directors, attorneys,
agents and employees.

     9. Continuation of Indemnification and Insurance. The Company shall continue to
indemnify you in accordance with its Bylaws to the fullest extent permitted by law for your acts
while an officer or director of the Company, and shall continue to provide coverage under the
Company’s Directors and Officers Insurance policy for such acts.

 

 

Mr. Jim Jenness

Page 5

October 20, 2006

     Upon your execution (and non-revocation) of this letter agreement, it will become a
binding agreement between you and the Company.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	/s/ Gordon Gund 	 
	 	Gordon Gund 	 
	 	Chairman, Nominating and
Governance Committee 	 
	 

	 	 	 	 	 
	Acknowledged and agreed this

20th day of October, 2006

 	 	 
	/s/ James M. Jenness
 	 	 
	James M. Jennessexv4w2

 

Exhibit
4.2

GOODRICH PETROLEUM CORPORATION

Grant of Restricted Phantom Stock

	 	 	 	 	 
	Grantee:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Grant Date:

	 	December 6, 2005	 	 

	1.	 	Grant of Restricted Phantom Stock. Goodrich Petroleum Corporation (the “Company”)
hereby grants to you ___restricted shares of Phantom Stock (“Restricted Stock”). This
Restricted Stock grant is subject to the approval of the First Amendment to the Goodrich
Petroleum Corporation 1995 Stock Option Plan (the “Plan”) by the stockholders of the Company
at the 2006 Annual Meeting of the Stockholders of the Company (the “2006 Meeting”). If the
First Amendment is approved by the stockholders at the 2006 Meeting, this Restricted Stock
grant shall be incorporated into and made a part of the Plan and shall be subject to the terms
of the Plan. If the First Amendment is not approved by the stockholders at the 2006 Meeting.
Upon vesting, you will be entitled to receive the vested amount of the Restricted Stock in
            shares of Common Stock of the Company or, as determined by the Company in its sole discretion,
in cash.

	2.	 	Regular Vesting. Except as otherwise provided above and in Paragraph 3 below, the
            shares of Restricted Stock granted hereunder shall vest on the anniversaries of the above
Grant Date as follows:

	 	 	 	 	 
	 	 	Cumulative
	Grant Date	 	Vested Percentage
	 
	 	 	 	 
	1st Anniversary

	 	 	331⁄3	%
	 
	 	 	 	 
	2nd Anniversary

	 	 	662⁄3	%
	 
	 	 	 	 
	3rd Anniversary

	 	 	100	%

Vesting with respect to a fractional share shall be rounded up to the next whole share.

	3.	 	Events Occurring Prior to Regular Vesting. Subject to the further provisions of this
Section 3,

	 	(a)	 	Death or Disability. If, prior to becoming fully vested in the shares
of Restricted Stock hereby granted, you cease to be an employee of the Company as a
result of your death or a disability that entitles you to benefits under the Company’s
long-term disability plan, the shares of Restricted Stock then held by you
automatically will become fully vested upon such termination.

 

 

	 	(b)	 	Other Terminations. If you terminate from the Company for any reason
other than as provided in paragraph 3(a), all unvested shares of Restricted Stock then
held by you automatically shall be forfeited without payment upon such termination.
	 
	 	(c)	 	Change of Control. All outstanding shares of Restricted Stock held by
you at the time of a Change of Control automatically shall become fully vested upon the
Change of Control.

Notwithstanding any of the foregoing, the shares of Restricted Stock shall not become vested
in whole or in part prior to the approval of the First Amendment by the stockholders of the
Company.

	4.	 	Stock Certificates. Upon vesting, the Company shall cause a stock certificate to be
issued in your name for the shares of Restricted Stock that become vested, except to the
extent the Compensation Committee, in its discretion, provides for the payment of cash equal
to the Fair Market Value of a share of Common Stock in lieu of the issuance of a share of
Common Stock.
	 
	5.	 	Limitations Upon Transfer. All rights under this Agreement shall belong to you alone
and may not be transferred, assigned, pledged, or hypothecated by you in any way (whether by
operation of law or otherwise), other than by will or the laws of descent and distribution and
shall not be subject to execution, attachment, or similar process. Upon any attempt by you to
transfer, assign, pledge, hypothecate, or otherwise dispose of such rights contrary to the
provisions in this Agreement or the Plan, or upon the levy of any attachment or similar
process upon such rights, such rights shall immediately become null and void.
	 
	6.	 	Restrictions. By accepting this grant, you agree that any shares of stock which you
may acquire upon the vesting and payment of this award, if any, will not be sold or otherwise
disposed of in any manner which would constitute a violation of any applicable federal or
state securities laws. The Company intends to register the shares under the Plan on Form S-8
filed with the Securities and Exchange Commission.
	 
	7.	 	Withholding of Tax. To the extent that the grant or vesting of Restricted Stock
results in the receipt of compensation by you with respect to which the Company or an
affiliate has a tax withholding obligation pursuant to applicable law, unless other
arrangements have been made by you that are acceptable to the Company or such affiliate, you
shall deliver to the Company or the affiliate such amount of money as the Company or the
affiliate may require to meet its withholding obligations under such applicable law. No
issuance of a share of stock shall be made pursuant to this Agreement until you have paid or
made arrangements approved by the Company or the affiliate to satisfy in full the applicable
tax withholding requirements of the Company or affiliate.
	 
	8.	 	Phantom Dividends. If during the period the shares of Restricted Stock are held by
you the Company pays a dividend on its common stock, you will be credited with additional
shares of Restricted Stock hereunder equal to the Fair Market Value of such

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dividends. Such additional shares of Restricted Stock shall be subject to the same vesting
provisions and other provisions of this Agreement as if part of the tandem Restricted Stock
to which the phantom dividend relates.

	9.	 	Binding Effect. This Agreement shall be binding upon and inure to the benefit of any
successor or successors of the Company and upon any person lawfully claiming under you.

	10.	 	Entire Agreement. This Agreement constitutes the entire agreement of the parties
with respect to the subject matter hereof, and contains all the covenants, promises,
representations, warranties and agreements between the parties with respect to the Restricted
Stock granted hereby. Without limiting the scope of the preceding sentence, all prior
understandings and agreements, if any, among the parties hereto relating to the subject matter
hereof are hereby null and void and of no further force and effect. Any modification of this
Agreement shall be effective only if it is in writing and signed by both you and an authorized
officer of the Company.

	11.	 	Governing Law. This grant shall be governed by, and construed in accordance with,
the laws of the State of Texas, without regard to conflicts of laws principles thereof.

	12.	 	General. You agree that this Restricted Stock grant is governed by the terms and
conditions of this Agreement and, if the grant becomes incorporated into the Plan as provided
above, by the terms of the Plan. After such incorporation, in the event of any conflict, the
terms of the Plan shall control. Unless otherwise defined herein, the terms defined in the
Plan shall have the same defined meanings in this Agreement.

	 	 	 	 	 	 	 
	Agreed and accepted
by Grantee	 	Goodrich Petroleum Corporation
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

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