Document:

exhibit10_5.htm

 

 

Exhibit 10.5

2011 Cash-Settled Restricted Stock Unit Grant Terms and Conditions

Pursuant to the Brunswick Corporation 2003 Stock Incentive Plan (the “Plan”)

	
Purpose

	
To encourage retention of key managers so as to support the execution of business strategies and achieve future goals.

 

	
Cash-Settled Restricted 

Stock Units

	
Cash-settled Restricted Stock Units valued on the same basis as Brunswick Corporation common stock where one unit equals one share.  Dividend equivalents will be reinvested in additional cash-settled restricted stock units.  There are no voting rights attached to cash-settled restricted stock units.

 

	
Vesting

	
Cash-settled restricted stock units will vest and be distributed the earlier of:

§ Three years from date of grant, subject to continued employment;

§ In the case of a termination of employment (other than for “cause” (willful misconduct in the performance of duties) or due to death or permanent disability (as defined below)) on or after (i) the first anniversary of the date of grant and (ii) the date on which age plus years of service equal 70 or more or age is 62 or more, all of the award will be distributed three years from date of grant;

§ In the case of a termination of employment (other than for cause or due to death or permanent disability) (i) prior to the first anniversary of the date of grant and (ii) on or after the date on which age plus years of service equals 70 or more or age is 62 or more, a pro-rata portion of the award will be distributed three years from date of grant.  For purposes of the foregoing sentence, a “pro-rata portion” will mean the product of (x) the number of cash-settled restricted stock units awarded that would have vested on the normal vesting date and (y) a fraction, the numerator of which is the number of days that have elapsed since the date of grant through the date of termination of the recipient’s employment, and the denominator of which is 365.  All remaining cash-settled restricted stock units will be forfeited;

§ On a Change in Control (as defined in the Plan); provided, however, for those whose age and years of service could equal 70 or more or age will be 62 or more, in either case prior to January 1, 2013,  all of the award will be distributed three years from the date of grant; provided, further, that if the Change in Control is a “change in control event” within the meaning of Internal Revenue Code Section 409A and applicable regulations issued thereunder (except that in no event shall an acquisition of assets under Treasury Regulation §1.409A-3(i)(5)(vii) constitute a change in control event, unless such event is also a sale or disposition of at least all or substantially all of the Company’s assets), then all cash-settled restricted stock units shall be distributed upon such “change in control event;” or

§ On death or termination due to permanent disability.

 

	
Termination of Employment

	
Forfeiture of cash-settled restricted stock units in the event employment terminates prior to vesting, except if age and years of service equals 70 or more or age is 62 or more (the Rule of 70/age 62 provisions do not apply for grants made to residents of the European Union).

	
Timing of Distribution

	
Distributions will occur as soon as practical, but no later than 2-1⁄2 months after the distribution date provided above (and, in no event later than March 15, 2014), except that in the case of any “specified employee” (as such term is defined under Code Section 409A) who (i) could meet the Rule of 70 or will reach age 62, in either case prior to January 1, 2013, and (ii) experiences a separation from service, the distribution will not be made before 6 months after separation from service (or, if earlier, death, termination due to permanent disability or three years from date of grant).

 

	
Tax Withholding

 

	
For those meeting the Rule of 70 or age 62 prior to the year of scheduled distribution, tax withholding liability to meet required FICA must be paid via payroll or participant check by the end of the year of meeting the Rule of 70 or reaching age 62, except that the FICA taxes on amounts vesting during the first December after grant for those who have met the Rule of 70 or age 62 during the year of grant will be collected during the next calendar quarter.  Subsequent Federal, State and local income tax withholding will be deducted from the gross payment upon distribution.

 

For all others, tax withholding liability (to meet required FICA, federal, state, and local withholding) will be deducted from the gross payment upon distribution.

 

	
Form of Distribution

	
Distribution will be in the form of a cash payment in an amount equal to the number of units multiplied by the share price at the time of vesting, less applicable withholding.

 

	
Additional Terms and

 Conditions

	
Grants are subject to the terms of the Plan.  To the extent any provision herein conflicts with the Plan, the Plan shall govern.  The Human Resources and Compensation Committee of the Board administers the Plan.  The Committee may interpret the Plan and adopt, amend and rescind administrative guidelines and other rules as deemed appropriate.  Committee determinations are binding.

 

Permanent disability means the inability, by reason of a medically determinable physical or mental impairment, to engage in any substantial gainful activity, which condition, in the opinion of a physician selected by the Committee, is expected to have a duration of not less than 120 days; provided, however, that for recipients who could meet the Rule of 70 or will reach age 62, in either case prior to January 1, 2013, permanent disability means that the recipient is “disabled” within the meaning of Treasury Regulation §1.409A-3(i)(4).

 

The Plan may be amended, suspended or terminated at any time.  The Plan will be governed by the laws of the State of Illinois, without regard to the conflict of law provisions of any jurisdiction.demicagreement.htm

Exhibit 10.1

March 31, 2011

Ms. Susana D’Emic

16 McCarthy Drive

Ossining, NY 10562

Dear Sue,

It is my pleasure to confirm our offer of employment for the position of Senior Vice President and Controller, which is the designated Chief Accounting Officer for the Company.  The work location for this position will be our Stamford, CT office and you will be reporting to Don Shassian, Chief Financial Officer.  Your start date will be April 15th, 2011.

Your executive compensation program includes five principle components:

	
  

	
1) Annual base salary of $270,000 (less applicable taxes) paid on a semi-monthly basis,

	
  

	
2) Frontier Bonus Plan with an annual target incentive of 50% ($135,000) which is paid out based on company and personal performance. Your first year payout will be pro-rated based on your date of employment.

	
  

	
3) Frontier’s Equity Award Program (“EAP”) which includes Restricted Stock Awards, generally in the first quarter of each year and dividends paid quarterly. Eligibility for any given plan does not guarantee award values since Frontier’s Executive Compensation Program is based on performance of the company and the executive. The target for the SVP level is $160,000 annually.  These shares will vest in four equal 25% annual installments commencing one year from grant date, and you will be paid dividends on the unvested shares.

	
  

	
4) In addition and upon hire, you will be granted 20,000 shares of Frontier Communications Corporation Common Stock. This Restricted Stock Award is subject to approval by the Compensation Committee of the Board of Directors. These shares will vest in four equal 25% annual installments commencing one year from your hire date.

	
  

	
5) You will also receive a $30,000 sign-on bonus (subject to applicable taxes) contingent upon execution of a twelve (12) month pro-rated promissory note (attached).  The sign-on bonus is paid within four weeks of your start date.

This offer will additionally include an enhanced severance package equal to twenty-six (26) weeks of your base salary should Frontier cease your employment not for cause (for cause would include performance related or gross misconduct) or voluntary resignation.

Please be advised that your health and welfare benefits will begin on your 30th day of employment and as a Frontier employee, you will be eligible to participate in a full range of benefits.  Please bring all of the original paperwork with you on your first day of work.

This offer and subsequent employment is contingent upon Frontier’s receipt of acceptable results of a background check and reference checks including, criminal record check, drug screening, and verification of education, employment and professional references.  Certain positions will also require a motor vehicle or credit check.

  

  

  

Page 2

S. D’Emic

All drug screens must be completed within 48 hours of execution of this offer.  The drug test will be registered by Frontier Communications.

Federal law requires that you provide documentation (I-9) confirming your eligibility to work in the United States.  A list of documents that you may use to establish your identity and employment eligibility can be found in your New Hire Kit.  Please bring the appropriate documents with you when you report to work on your first day.

Assuming the contingencies noted above are met and you commence employment with Frontier, as a condition of accepting this offer of employment with Frontier you agree that should you leave employment with Frontier at anytime in the future for any reason, you will not solicit, either directly or indirectly, any Frontier employee for employment with any other employer for a period of one (1) year after you leave employment with Frontier.

This offer is not an express or implied contract, promise or guarantee of employment, of any particular position, or of any particular term or condition of employment.  Your employment by Frontier is at will and is subject to the conditions set forth in Frontier’s Code of Conduct as well as all other Frontier policies and applicable Federal, State and local laws.  Frontier reserves the right to change or discontinue compensation plans at its own discretion.

On behalf of Don and Frontier, I welcome you to our team!  Please do not hesitate to contact me with any questions regarding this offer.  To acknowledge your acceptance of this offer, please sign the bottom of this offer letter and fax (203-614-5054) or email a scanned copy back to me directly.  Please return the original signed offer letter with your original new hire paperwork as soon as convenient.

 

 

Sincerely,

/s/ Tara Smith

Tara Smith

Senior Manager, Talent Acquisition

Acceptance of Offer

By signing below, I hereby accept the Frontier’s contingent offer of employment.  I understand that I will not have a contract of employment with Frontier for a specified period of time.  I further agree to abide by the employment policies and procedures established by Frontier.

/s/ Susana D’Emic                                                                                                           March 31, 2011            

(Susana D’Emic)   Signature                                                                                                     Date

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