Document:

Exhibit 10.13

 

RESTRICTED STOCK UNIT AWARD

OFFICER

 

(PERFORMANCE BASED)

 

	
   Award   Number:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
   Award   Date

    	
 
    	
   Number   of Units
    	
 
    	
   Final   Vesting Date
    

 

THIS CERTIFIES THAT SureWest Communications (the “Company”) has on the Award Date specified above granted to [Recipient’s Name] (“Participant”) an award (the “Award”) to receive that number of restricted stock units (the “Restricted Stock Units”) indicated above in the box labeled “Number of Units,” each Restricted Stock Unit representing the right to receive on achieving the performance targets within the time constraints provided for in the Notice of Grant of Award, one share of SureWest Communications Common Stock (the “Common Stock”), plus an additional amount pursuant to Section 1(b), subject to certain restrictions and on the terms and conditions contained in this Award and the SureWest Communications 2000 Equity Incentive Plan (the “Plan”), and the Notice of Grant of Award,  all terms and conditions of which are incorporated herein by reference.  A copy of the Plan is available upon request.  In the event of any conflict between the terms of the Plan and this Award, the terms of the Plan shall govern.  Any terms not defined herein shall have the meaning set forth in the Plan.

 

1.                                                                                       Rights of the Participant with Respect to the Restricted Stock Units.

 

(a)                                  No Shareholder Rights.  The Restricted Stock Units granted pursuant to this Award do not and shall not entitle Participant to any rights of a shareholder of Common Stock.

 

(b)                               Additional Restricted Stock Units.  As long as Participant holds Vested Restricted Stock Units granted pursuant to this Award, the Company shall credit to Participant, on each date that the Company pays a cash dividend to holders of Common Stock generally, an additional number of Restricted Stock Units (“Additional Restricted Stock Units”) equal to the total number of whole Vested Restricted Stock Units and Additional Vested Restricted Stock Units previously credited to Participant under this Award multiplied by the dollar amount of the cash dividend paid per share of Common Stock by the Company on such date, divided by the Fair Market Value of a share of Common Stock on such date.  Any fractional Restricted Stock Unit resulting from such calculation shall be included in the Additional Restricted Stock Units.  A report showing the number of Additional Restricted Stock Units so credited shall be sent to Participant periodically as determined by the Company.  The Additional Restricted Stock Units so credited shall be subject to the same terms and conditions as the Restricted Stock Units to which such Additional Restricted Stock Units relate.

 

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(c)                                Conversion of Restricted Stock Units; Issuance of Common Stock.  Shares of Common Stock shall be issued to Participant to the extent of the vesting of the Restricted Stock Units only upon the Participant’s “separation from service” (within the meaning of Section 409A of the Internal Revenue Code (the “Code”)and applicable regulations) and in no event earlier than six months after separation of service or such other period as necessary to comply with Section 409A and applicable regulations of the Internal Revenue Code.  Neither this Section 1(c) nor any action taken pursuant to or in accordance with this Section 1(c) shall be construed to create a trust of any kind.  The value of any fractional Restricted Stock Unit or Additional Restricted Stock Unit shall be paid in cash in accordance with the foregoing timing rules.

 

2.                                                                                       Vesting. The shares vest in installments upon achieving the performance targets within the time constraints provided for in the Notice of Grant of Award, provided the eleven day average closing stock price for the period commencing five days before the Target Date, and ending five days after the Target Date, equals or exceeds the amounts set forth opposite the Target Date (Metric), or, at any later Target Date, if the Metric is achieved at such later Target Date as determined in the same manner, but in no event shall any shares corresponding to a Target Date vest prior to such corresponding date.  Vesting is subject to all other terms and conditions of this Award,  and the restrictions with respect to the Restricted Stock Units shall lapse, on vesting..

 

3.                                                                                       Forfeiture or Early Vesting Upon Termination of Service.

 

(a)                                  Termination of Service Generally.  If, prior to vesting of the Restricted Stock Units pursuant to Section 2 or 3, Participant ceases to serve as an employee of the Company, for any reason (voluntary or involuntary) other than death, permanent long-term disability or Retirement (as defined below), or a Qualifying Termination pursuant to any Change in Control as defined in any Change in Control Agreement between Participant and the Company (in which event benefits will be determined by such Agreement) then, except as otherwise set forth in this Section 3, Participant’s rights to all of the unvested Restricted Stock Units shall be immediately and irrevocably forfeited, including the right to receive Additional Restricted Stock Units.

 

(b)                                 Death or Permanent Long-Term Disability.  If Participant dies while serving as an employee of the Company or its subsidiaries, or if Participant’s service is terminated due to a permanent long-term disability which renders Participant incapable of performing his or her duties, then all unvested Restricted Stock Units shall become immediately vested and exercisable, and the restrictions with respect to all of the Restricted Stock Units shall lapse, as of the date of such long-term disability or death, except that no distribution shall be permitted except as necessary to comply with Section 409A and applicable regulations of the Internal Revenue Code, including all applicable definitions relating to death and disability.  No transfer by will or the applicable laws of descent and distribution of any Restricted Stock Units that vest by reason of Participant’s death shall be effective to bind the Company unless the Committee shall have been furnished with written notice of such transfer and a copy of the will or such other evidence as the committee of the Board of Directors administering the Plan (the “Committee”) may deem necessary to establish the validity of the transfer.

 

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4.                                                                                       Restriction on Transfer.  The Restricted Stock Units and any rights under this Award may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of by Participant otherwise than by will or by the laws of descent and distribution, and any such purported sale, assignment, transfer, pledge, hypothecation or other disposition shall be void and unenforceable against the Company.  No transfer by will or the applicable laws of descent and distribution of any Restricted Stock Units upon Participant’s death shall be effective to bind the Company unless the Committee shall have been furnished with written notice of such transfer and a copy of the will or such other evidence as the committee of the Board of Directors administering the Plan (the “Committee”) may deem necessary to establish the validity of the transfer.  Notwithstanding the foregoing, Participant may, in the manner established by the Committee, designate a beneficiary or beneficiaries to exercise the rights of Participant and receive any property distributable with respect to the Restricted Stock Units upon the death of Participant.

 

5.                                                                                       Adjustments to Restricted Stock Units.  In the event that any dividend or other distribution (whether in the form of cash, shares of Common Stock, other securities or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Common Stock or other securities of the Company or other similar corporate transaction or event affecting the Common Stock would be reasonably likely to result in the diminution or enlargement of any of the benefits or potential benefits intended to be made available under the Award (including, without limitation, the benefits or potential benefits of provisions relating to the vesting of the Restricted Stock Units), the Committee shall, in such manner as it shall deem equitable or appropriate in order to prevent such diminution or enlargement of any such benefits or potential benefits, make adjustments to the Award, including adjustments in the number and type of shares of Common Stock Participant would have received upon vesting of the Restricted Stock Units; provided, however, that the number of shares into which the Restricted Stock Units may be converted shall always be a whole number.

 

6.                                                                                       Income Tax Matters.

 

(a)                                In order to comply with all applicable federal and state income tax laws or regulations, the Company may take such action as it deems appropriate to ensure that all applicable federal or state payroll, withholding, income or other taxes, which are the sole and absolute responsibility of Participant, are withheld or collected from Participant.

 

(b)                                 In accordance with the terms of the Plan, and such rules as may be adopted by the Committee under the Plan, Participant may elect to satisfy Participant’s federal and state income tax withholding obligations arising from the receipt of, or the lapse of restrictions relating to, the Restricted Stock Units, by (i) delivering cash, check (bank check, certified check or personal check) or money order payable to the Company, (ii) having the Company withhold a portion of the shares of Common Stock otherwise to be delivered having a Fair Market Value equal to the amount of such taxes, or (iii) delivering to the Company shares of Common Stock already owned by Participant having a Fair Market Value equal to the amount of such taxes.  Any shares already owned by Participant referred to in the preceding sentence must have been owned by Participant

 

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for no less than six months prior to the date delivered to the Company if such shares were acquired upon the exercise of an option or upon the vesting of restricted stock or other restricted stock units.  The Company will not deliver any fractional share of Common Stock but will pay, in lieu thereof, the Fair Market Value of such fractional share.  Participant’s election must be made on or before the date that the amount of tax to be withheld is determined.

 

7.                                                                                       Miscellaneous.

 

(a)                                  This Award does not confer on Participant any right with respect to the continuance of any relationship with the Company or its subsidiaries, nor will it interfere in any way with the right of the Company to terminate such relationship at any time.

 

(b)                                 The Company shall not be required to deliver any shares of Common Stock upon vesting of any Restricted Stock Units until the requirements of any federal or state securities laws, rules or regulations or other laws or rules (including the rules of any securities exchange) or rules under the Internal Revenue Code, including 409A, as may be determined by the Company to be applicable are satisfied.

 

(c)                                  An original record of this Award and all the terms hereof, executed by the Company, is held on file by the Company.  To the extent there is any conflict between the terms contained in this Award and the terms contained in the original held by the Company, the terms of the original held by the Company shall control.

 

(d)                                 The Plan Administrator has discretionary authority with respect to the construction and interpretation of this Award including in determining and deciding whether the performance targets have been achieved and if so, when they have been achieved, and the timing of payments as necessary or required under Internal Revenue Code 409A.  In any dispute between or among Participant, the Committee, Board, Plan Administrator, Beneficiary or Alternate Payee, the court or arbitrator or other decision-maker with authority to resolve the dispute shall defer to the Plan Administrator’s construction or interpretation of the Award. Similarly, the decision-maker shall defer to any findings of fact by the Plan Administrator or other determination with respect to the Participant’s, Beneficiary’s or Alternate Payee’s entitlement to benefits hereunder.

 

* * * *

 

By your signature and the signature of the Company’s representative below, you and the Company agree that these Restricted Stock Units are granted under and governed by the terms and conditions of the Plan and this Restricted Stock Unit Award.

 

 

 

	
RECIPIENT:
    	
 
    	
SUREWEST   COMMUNICATIONS,
    
	
 
    	
 
    	
a   California corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
[Type   in Name]
    	
 
    	
 
    	
Name,   Title
    
	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    
					

 

4Exhibit 10.16

 

SUREWEST COMMUNICATIONS

 

CHANGE IN CONTROL SEVERANCE PLAN

 

AND

 

SUMMARY PLAN DESCRIPTION

 

 

Plan Effective Date: February 7, 2011

 

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SUREWEST COMMUNICATIONS

CHANGE IN CONTROL SEVERANCE PLAN

AND

SUMMARY PLAN DESCRIPTION

 

The SureWest Communications Change in Control Severance Plan (the “Plan”) provides severance benefits to a select group of management or highly compensated employees of SureWest Communications, a California corporation (the “Company”).  The Plan is effective for eligible employees who receive and execute a Change in Control Severance Agreement (an “Agreement”) and who otherwise satisfy the conditions set forth in such Agreement and the provisions of this Plan (“Covered Employees”).

 

This Plan is designed to be an “employee welfare benefit plan,” as defined in Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  This Plan is governed by ERISA and, to the extent applicable, the laws of the State of California, without reference to the conflict of law provisions thereof.

 

This document and your Agreement constitute both the official plan document and any required summary plan description under ERISA.

 

I.                                         ELIGIBILITY

 

You will become a Covered Employee participant in the Plan only if you: (i) are selected by the Company to be eligible to participate in this Plan, (ii) receive and sign the Agreement (attached hereto as Exhibit A) indicating your agreement to be bound by the terms of this Plan and the Agreement and (iii) timely return such signed Agreement to the Company.

 

II.                                     BENEFITS

 

If you are a Covered Employee, you shall be eligible for severance benefits at such times and in such amounts as may be specified in your Agreement.

 

III.                                 OTHER IMPORTANT INFORMATION

 

A. Plan Administration.  As the Plan Administrator, the Company has the full and sole discretionary authority to administer and interpret the Plan, including discretionary authority to determine eligibility for participation in and for benefits under the Plan, to determine the amount of benefits (if any) payable per participant, and to any terms of this document.  All determinations by the Plan Administrator will be final and conclusive upon all persons and be given the maximum possible deference allowed by law.  The Plan Administrator is the “named fiduciary” of the Plan for purposes of ERISA and will be subject to the applicable fiduciary standards of ERISA when acting in such capacity.  The Company may delegate in writing to any other person all or a portion of its authority or responsibility with respect to the Plan.

 

B. Source of Benefits.  The Plan is unfunded, and all severance benefits will be paid from the general assets of the Company or its successor.  No contributions are required under the Plan.

 

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C. Claims Procedure.  If you are a Covered Employee and believe you have been incorrectly denied a benefit or are entitled to a greater benefit than the benefit you received under the Plan, you may submit a signed, written application to the Company’s Vice President of Human Resources (“Claims Administrator”).  You will be notified in writing of the approval or denial of this claim within ninety (90) days of the date that the Claims Administrator receives the claim, unless special circumstances require an extension of time for processing the claim.  In the event an extension is necessary, you will be provided written notice prior to the end of the initial ninety (90) day period indicating the special circumstances requiring the extension and the date by which the Claims Administrator expects to notify you of approval or denial of the claim.  In no event will an extension extend beyond ninety (90) days after the end of the initial ninety (90) day period.  If your claim is denied, the written notification will state specific reasons for the denial, make specific reference to the Plan provision(s) on which the denial is based, and provide a description of any material or information necessary for you to perfect the claim and why such material or information is necessary.  The written notification will also provide a description of the Plan’s review procedures and the applicable time limits, including a statement of your right to bring a civil suit under section 502(a) of ERISA following denial of your claim on review.

 

You will have sixty (60) days from receipt of the written notification of the denial of your claim to file a signed, written request for a full and fair review of the denial by a review panel which will be a named fiduciary of the Plan for purposes of such review.  This request should include the reasons you are requesting a review and may include facts supporting your request and any other relevant comments, documents, records and other information relating to your claim.  Upon request and free of charge, you will be provided with reasonable access to, and copies of, all documents, records and other information relevant to your claim, including any document, record or other information that was relied upon in, or submitted, considered or generated in the course of, denying your claim.  A final, written determination of your eligibility for benefits shall be made within sixty (60) days of receipt of your request for review, unless special circumstances require an extension of time for processing the claim, in which case you will be provided written notice of the reasons for the delay within the initial sixty (60) day period and the date by which you should expect notification of approval or denial of your claim.  This review will take into account all comments, documents, records and other information submitted by you relating to your claim, whether or not submitted or considered in the initial review of your claim.  In no event will an extension extend beyond sixty (60) days after the end of the initial sixty (60) day period.  If an extension is required because you fail to submit information that is necessary to decide your claim, the period for making the benefit determination on review will be tolled from the date the notice of extension is sent to you until the date on which you respond to the request for additional information.  If your claim is denied on review, the written notification will state specific reasons for the denial, make specific reference to the Plan provision(s) on which the denial is based and state that you are entitled to receive upon request, and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to your claim, including any document, record or other information that was relied upon in, or submitted, considered or generated in the course of, denying your claim.  The written notification will also include a statement of your right to bring an action under section 502(a) of ERISA.

 

If your claim is initially denied or is denied upon review, you are entitled to receive upon request, and free of charge, reasonable access to, and copies of, any document, record or other information that demonstrates that (1) your claim was denied in accordance with the terms of the Plan, and (2) the provisions of the Plan have been consistently applied to similarly situated Plan

 

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participants, if any.  In pursuing any of your rights set forth in this section, your authorized representative may act on your behalf.

 

If you do not receive notice within the time periods described above, whether on initial determination or review, you may initiate a lawsuit under Section 502(a) of ERISA.

 

D. Prior Plans Superseded.  With the exception of any individual employment agreements or equity compensation agreements with the Company that are in effect as of the effective date of the Covered Employee’s Agreement, the Plan supersedes any and all prior separation, change in control, severance and salary continuation arrangements, programs and/or similar plans that may previously have been offered or provided by the Company (and its predecessors-in-interest) to Covered Employees.

 

E. Plan Amendment or Termination.  Subject to the terms of any then-outstanding Agreement, the Company. reserves the right to amend or terminate the Plan at any time, in whole or in part, and in any manner, and for any reason.  Notwithstanding the foregoing, unless a Covered Employee provides his/her written consent, no such termination or amendment of the Plan will result in a reduction of benefits that the Covered Employee would have otherwise been able to receive under the pre-amended Plan.

 

F. At-Will Employment.  No provision of the Plan is intended to provide you with any right to continue as an employee with the Company or in any other capacity, for any specific period of time, or otherwise affect the right of the Company to terminate the employment or service of any individual at any time for any reason or no reason, with or without cause.

 

G. Section 409A of the Internal Revenue Code.  This Plan is intended to provide severance benefits pursuant to an employee welfare benefit plan subject to ERISA.  The Plan is not intended to constitute a “nonqualified deferred compensation plan” within the meaning of Section 409A of the Internal Revenue Code (“Code”).  Notwithstanding the foregoing, in the event this Plan or any benefit paid under this Plan to a Covered Employee is deemed to be subject to Code Section 409A, such Covered Employee consents to the Company’s adoption of such conforming amendments as the Company deems advisable or necessary, in its sole discretion, to comply with Code Section 409A and avoid the imposition of taxes under Code Section 409A.  Each payment made pursuant to any provision of this Plan shall be considered a separate payment and not one of a series of payments for purposes of Code Section 409A.  While it is intended that all payments and benefits provided under this Plan to Covered Employees will be exempt from or comply with Code Section 409A, the Company makes no representation or covenant to ensure that the payments under this Plan are exempt from or compliant with Code Section 409A.  The Company will have no liability to Covered Employees or any other party if a payment or benefit under this Plan is challenged by any taxing authority or is ultimately determined not to be exempt or compliant.  The Covered Employees further understand and agree that the Covered Employees will be entirely responsible for any and all taxes on any benefits payable to the Covered Employees as a result of this Plan.  In addition, if upon a Covered Employee’s “separation from service” within the meaning of Code Section 409A, he or she is then a “specified employee” (as defined in Code Section 409A), then solely to the extent necessary to comply with Code Section 409A and avoid the imposition of taxes under Code Section 409A, the Company shall defer payment of “nonqualified deferred compensation” subject to Code Section 409A payable as a result of and within six (6) months following such “separation from service” under this Plan until the earlier of (i) the first business day of the

 

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seventh month following the Covered Employee’s “separation from service,” or (ii) ten (10) days after the Company receives written confirmation of the Covered Employee’s death.  Any such delayed payments shall be made without interest.

 

H. Indemnification.  The Company agrees to indemnify its officers and employees and the members of the Board of Directors of the Company from all liabilities from their acts or omissions in connection with the administration, amendment or termination of the Plan, to the maximum extent permitted by applicable law.

 

I. Severability.  If any provision of the Plan is held invalid or unenforceable, its invalidity or unenforceability will not affect any other provision of the Plan, and the Plan will be construed and enforced as if such provision had not been included.

 

J. Headings.  Headings in this Plan document are for purposes of reference only and will not limit or otherwise affect the meaning hereof.

 

IV.                                STATEMENT OF ERISA RIGHTS

 

As a participant in the Plan you are entitled to certain rights and protections under ERISA.  ERISA provides that all Plan participants shall be entitled to:

 

A. Receive Information About Your Plan and Benefits

 

Examine, without charge, at the Plan Administrator’s office and at other specified locations, such as work sites, all documents governing the Plan.

 

Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan.  The Plan Administrator may make a reasonable charge for the copies.

 

B. Prudent Actions by Plan Fiduciaries

 

In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit plan.  The people who operate your Plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries.  No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA.

 

C. Enforce Your Rights

 

If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

 

Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request a copy of Plan documents and do not receive it within 30 days, you may file suit in a federal court.  In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110.00 per day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator.  If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or

 

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federal court after you have completed the Plan’s administrative appeals process.  If you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court.  The court will decide who should pay court costs and legal fees.  If you are successful, the court may order the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

 

D. Assistance With Your Questions

 

If you have any questions about the Plan, you should contact the Plan Administrator.  If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory, or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210.  You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.

 

ADDITIONAL PLAN INFORMATION

 

	
Name   of Plan:
    	
 
    	
SureWest   Communications Change in Control Severance Plan
    
	
 
    	
 
    	
 
    
	
SureWest   Communications Sponsoring Plan:
    	
 
    	
SureWest   Communications
    
	
 
    	
 
    	
8150   Industrial Avenue, Building A
    
	
 
    	
 
    	
Roseville,   CA 95678
    
	
 
    	
 
    	
 
    
	
Employer   Identification Number:
    	
 
    	
68-0365195
    
	
 
    	
 
    	
 
    
	
Plan   Number:
    	
 
    	
502
    
	
 
    	
 
    	
 
    
	
Plan   Year:
    	
 
    	
Calendar   Year
    
	
 
    	
 
    	
 
    
	
Plan   Administrator:
    	
 
    	
SureWest   Communications
    
	
 
    	
 
    	
c/o   Vice President, Administration
    
	
 
    	
 
    	
8150   Industrial Avenue, Building A
    
	
 
    	
 
    	
Roseville,   CA 95678
    
	
 
    	
 
    	
Telephone   No.  916-786-1123
    
	
 
    	
 
    	
 
    
	
Agent   for Service of Legal Process:
    	
 
    	
Plan   Administrator, at the above address
    
	
 
    	
 
    	
 
    
	
Type   of Plan:
    	
 
    	
Employee   Welfare Benefit Plan providing for severance benefits
    
	
 
    	
 
    	
 
    
	
Plan   Costs:
    	
 
    	
The   cost of the Plan is paid by SureWest Communications
    
	
 
    	
 
    	
 
    
	
Type   of Administration:
    	
 
    	
Self-administered   by the Plan Administrator
    

 

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