Document:

EXHIBIT 10.1

 

AECOM TECHNOLOGY CORPORATION CHANGE IN CONTROL SEVERANCE POLICY FOR KEY EXECUTIVES

 

SCHEDULE A

 

(Updated as of November 15, 2016)

 

	
Key Executive
    	
 
    	
Severance Payment Multiple
    
	
Michael S. Burke
    	
 
    	
2 Times
    
	
Stephen M. Kadenacy
    	
 
    	
1.5 Times
    
	
Daniel P. McQuade
    	
 
    	
1.5 Times
    
	
Frederick W. Werner
    	
 
    	
1.5 Times
    
	
Randall A. Wotring
    	
 
    	
1.5 Times
    
	
Carla J. Christofferson
    	
 
    	
1.5 Times
    
	
Mary E. Finch
    	
 
    	
1.5 Times
    
	
William T. Rudd
    	
 
    	
1.5 TimesExhibit

      Exhibit 10.7

            

17021 Aldine Westfield 
Houston, Texas 77073
www.bakerhughes.com

December 30, 2016

Ms. Kimberly A. Ross
99 S Tranquil Path 
Spring, TX 77380

Dear Kimberly:

In connection with the transactions (collectively referred to as the “Merger”) contemplated by the Transaction Agreement and Plan of Merger (the “Merger Agreement”), dated as of October 30, 2016 among General Electric Company (“GE”), Baker Hughes Incorporated (hereinafter referred to as the “Company”) and certain subsidiaries of the Company, this letter agreement (“Agreement”) sets forth certain agreements and understandings regarding, among other things, your termination of employment following the closing of the Merger.
When you and the Company have signed this Agreement, it and documents referred to herein (including the Change in Control Agreement and the Indemnification Agreement, each as defined below) will constitute a complete agreement on all of these issues.  For the avoidance of doubt, nothing herein lessens or abridges your rights or obligations under that certain Change in Control Agreement entered into by and between you and the Company effective as of October 22, 2014 (the “Change in Control Agreement”). Further, for the avoidance of doubt, nothing herein lessens or abridges your obligations under the Executive Agreement between you and the Company dated September 4, 2014.
TERMINATION OF EMPLOYMENT:
We have agreed that you will incur a termination of employment by the Company without Cause (as defined in the Change in Control Agreement) and you will resign as Senior Vice President and Chief Financial Officer of the Company and any other position with the Company and its subsidiaries effective upon the day following the closing of the Merger (such date on which the closing of the Merger occurs is referred to as the “Closing Date”); accordingly, unless your employment terminates earlier than the Closing Date, your employment will terminate the day following the Closing Date. The actual date of the termination of your employment is referred to in this Agreement as the “Effective Date.” You will resign from all positions with the Company upon the Effective Date without any further action on your part. For the avoidance of doubt, upon your termination of employment with the Company on the day following the Closing Date (i) you will be treated as having incurred a termination of employment by the Company without “Cause” within the meaning of the Change in Control Agreement, and (ii) you will be entitled to receive the full benefits set forth in the Change in Control Agreement, including the compensation set forth in Sections 3.1 and 3.3 of the Change in Control Agreement. For the further avoidance of doubt, nothing herein lessens or abridges your rights or the Company’s obligations under the Change in Control Agreement, including such rights and obligations that may arise as the result of the termination of your employment prior to the Closing Date. 

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2017 EQUITY VESTING AND BONUS:

2016 H1 Short-Term Performance Bonus – As you are aware, you are eligible for a bonus for the 2016 performance period under both the Baker Hughes Incorporated Annual Incentive Compensation Plan for Employees as in effect on the date hereof (“ICP”) and the performance scorecard bonus program. For the first six months of 2016, the ICP and the performance scorecard bonus have been “guaranteed” in the aggregate fixed amount of $400,000 (the “2016 H1 Bonus”). You will be paid the 2016 H1 Bonus in the amount of $400,000 on December 30, 2016. For the avoidance of doubt, you will be paid the amount of the ICP and the performance scorecard bonus for the second six months of 2016 (the “2016 H2 Bonus”), to the extent earned, at the same time as bonuses for the 2016 performance period are paid to other ICP and performance scorecard bonus program participants (the “Regular Bonus Payment Date”). If, prior to the Regular Bonus Payment Date, your employment is terminated by the Company for Cause or by you without “Good Reason” (within the meaning of the Change in Control Agreement), then promptly following such termination, you will repay to the Company the net after-tax amount of the 2016 H1 Bonus (i.e., net of applicable tax withholding). For the avoidance of doubt, you will be eligible for a grant of a short-term incentive compensation award opportunity with respect to the 2017 performance period.

2015 and 2016 Restricted Stock Unit Awards – The portion of your 2015 and 2016 Restricted Stock Unit Awards otherwise scheduled to vest in January of 2017, which consists of 20,837 units under your 2015 Restricted Stock Unit Award and 29,850 units under your 2016 Restricted Stock Unit Award (such units, the “Accelerated Units”), shall automatically be, without further action of the Company or its Board of Directors (or any committee thereof), fully vested and will be paid to you in shares of the Company’s Common Stock on December 30, 2016. The remainder of the outstanding units under the Restricted Stock Unit Awards previously granted to you in 2015 and 2016 will be paid in accordance with their terms and the terms of the Change in Control Agreement. If, prior to the scheduled vesting date of the Accelerated Units, your employment is terminated by the Company for Cause or by you without Good Reason, then promptly following such termination, you will surrender to the Company the shares issued to you in settlement of the Accelerated Units (or, if applicable, you will repay to the Company the net after-tax amount of the cash received by you on any sale of such shares (i.e., net of applicable tax withholding)). For the avoidance of doubt, you will be eligible for a grant of a long-term incentive compensation award in 2017.

Indemnification Rights – You will be entitled to all indemnification rights provided for (i) under that certain Indemnification Agreement by and between you and the Company as in effect on the date hereof and as may be expanded by contract for other senior executives of the Company (the “Indemnification Agreement”), and (ii) as otherwise are provided to other senior executives of the Company (whether insured, by contract, by resolution, pursuant to Company organization or governance documents, under applicable law or otherwise) as in effect as of the Closing Date inuring to your benefit as a result of your employment with the Company and service to the Company or any of its affiliates (except as may be limited by law). Such indemnification rights shall survive after the Closing Date in accordance with their applicable terms.

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MISCELLANEOUS:

Exclusive Choice of Law – This Agreement constitutes an agreement that has been executed and delivered in the State of Texas, and the validity, interpretation, performance, and enforcement of this Agreement shall be governed by the laws of that State. 
Tax Withholding – The Company may withhold from all payments made pursuant to this Agreement all federal, state, local, and other taxes and withholdings as may be required pursuant to any law or governmental regulation or ruling.
Agreement Not an Employment Contract – This Agreement is not a contract between the Company and you that gives you the right to be retained in the employment of the Company. Likewise, this Agreement is not intended to interfere with the rights of the Company to terminate your employment at any time and with or without cause or to interfere with your right to terminate your employment at any time.  
Severability and Headings – The invalidity or unenforceability of a term or provision of this Agreement shall not affect the validity or enforceability of any other term or provision of this Agreement, which shall remain in full force and effect. Any titles or headings in this Agreement are for convenience only and shall have no bearing on any interpretation of this Agreement.
Please initial each page and sign below. The remainder of this page is intentionally blank. 

3

                

ENTERED INTO in Houston, Texas as of the 30th day of December, 2016.
BAKER HUGHES INCORPORATED

By: /s/ Martin S. Craighead
      Martin S. Craighead    
      Chairman and Chief Executive Officer 

ENTERED INTO in Houston, Texas as of the 30th day of December, 2016.
KIMBERLY A. ROSS

/s/ Kimberly A. Ross

4Exhibit

Exhibit 10.41

BAKER HUGHES INCORPORATED 
DIRECTOR RESTRICTED STOCK UNIT AWARD AGREEMENT 

Awardee 

Date of Award: 
Number of Restricted Stock Units: 

AWARD OF RESTRICTED STOCK UNITS

        The Board of Directors (the “Board”) of Baker Hughes Incorporated, a Delaware corporation (the “Company”), pursuant to the Baker Hughes Incorporated 2002 Director & Officer Long-Term Incentive Plan (the “Plan”), hereby awards to you, the above-named awardee, effective as of the Date of Award set forth above (the “Date of Award”), that number of restricted stock units (the “Restricted Stock Units”) set forth above, on the following terms and conditions:  

The Restricted Stock Units that are awarded hereby to you shall be subject to the prohibitions and restrictions set forth herein with respect to the sale or other disposition of such Restricted Stock Units and the obligation to forfeit and surrender such Restricted Stock Units to the Company (the “Forfeiture Restrictions”). The Forfeiture Restrictions shall lapse as to the Restricted Stock Units that are hereby awarded on the earlier to occur of:

		
	(a)
	the first anniversary of the Date of Award (the “General Lapse Date”) provided that your service on the Board has not terminated prior to such date; and

		
	(b)
	the date of the annual meeting of the stockholders of the Company next following the date of your 75th birthday, provided that your service on the Board has not terminated prior to such date of annual meeting of the stockholders of the Company. 

If a Change in Control of the Company occurs or you cease to be a member of the Board before the General Lapse Date, your rights to the Restricted Stock Units under this Agreement will be determined as provided in the attached Terms and Conditions of Award Agreements (the “Terms and Conditions”). 

Upon the lapse of the Forfeiture Restrictions applicable to a Restricted Stock Unit that is awarded hereby, the Company shall issue to you one share of the Company’s Common Stock, $1.00 par value per share , or, in the event of the consummation of the transactions (the “Merger”) contemplated by the Transaction Agreement and Plan of Merger entered into as of October 30, 2016 among General Electric Company, the Company, Bear MergerSub, Inc. and Bear Newco, Inc.  (the “GE Agreement”), one share of Class A Common Stock as defined in the GE Agreement (in either case, the “Common Stock”), in exchange for such Restricted Stock Unit and thereafter you shall have no further rights with respect to such Restricted Stock Unit. On the date of the lapse of the Forfeiture Restrictions the Company shall cause to be delivered to you stock representing those shares of the Common Stock issued in exchange for Restricted Stock Units awarded hereby, and such shares of the Common Stock shall be transferable by you (except to the extent that any proposed transfer would, in the opinion of counsel satisfactory to the Company, constitute a violation of applicable federal or state securities law). 

If during the period you hold any Restricted Stock Units awarded hereby the Company or Bear Newco, Inc., a Delaware corporation and direct wholly owned subsidiary of the Company declares a dividend in cash with respect to the outstanding shares of the Common Stock (a “Cash Dividend”), then the Company will credit to an account established for you by the Company under the Plan (the “Account”) an amount equal to the product of (a) the Restricted Stock Units awarded hereby that have not been forfeited to the Company or exchanged by the Company for shares of the Common Stock as of the record date for the Cash Dividend and (b) the amount of the Cash Dividend paid per share of the Common Stock (the “Dividend Equivalent Credit”).  The Company shall pay to you, in cash, an amount equal to the Dividend Equivalent Credits credited to the Account with respect to a Restricted Stock Unit on the date the Forfeiture Restrictions applicable to that Restricted Stock Unit lapse, or, if the Forfeiture Restrictions applicable to that Restricted Stock Unit lapse prior to the date of payment of the Cash Dividend,  the date on which the Cash Dividend 

Exhibit 10.41

is paid (and in no case later than the end of the calendar year in which the Forfeiture Restrictions applicable to that Restricted Stock Unit lapse or, if later, the 15th day of the third month following the date the Forfeiture Restrictions applicable to that Restricted Stock Unit lapse).  

        If during the period you hold any Restricted Stock Units awarded hereby and the Company pays a dividend in shares of the Common Stock with respect to the outstanding shares of the Common Stock, then the Company will increase the Restricted Stock Units awarded hereby that have not then been exchanged by the Company for shares of the Common Stock by an amount equal to the product of (a) the Restricted Stock Units awarded hereby that have not been forfeited to the Company or exchanged by the Company for shares of the Common Stock and (b) the number of shares of the Common Stock paid by the Company per share of the Common Stock (collectively, the “Stock Dividend Restricted Stock Units”). Each Stock Dividend Restricted Stock Unit will be subject to the same Forfeiture Restrictions and other restrictions, limitations and conditions applicable to the Restricted Stock Unit for which such Stock Dividend Restricted Stock Unit was awarded and will be exchanged for shares of the Common Stock at the same time and on the same basis as such Restricted Stock Unit.
 
        The Restricted Stock Units may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of (other than by will or the applicable laws of descent and distribution). Any such attempted sale, assignment, pledge, exchange, hypothecation, transfer, encumbrance or disposition in violation of this Agreement shall be void and the Company shall not be bound thereby. 

        Any shares of the Common Stock issued to you in exchange for Restricted Stock Units awarded hereby may not be sold or otherwise disposed of in any manner that would constitute a violation of any applicable federal or state securities laws. You also agree that (a) the Company may refuse to cause the transfer of any such shares of the Common Stock to be registered on the stock register of the Company if such proposed transfer would in the opinion of counsel satisfactory to the Company constitute a violation of any applicable federal or state securities law and (b) the Company may give related instructions to the transfer agent, if any, to stop registration of the transfer of such shares of the Common Stock. 

The shares of Common Stock that may be issued under the Plan are registered with the Securities and Exchange Commission under a Registration Statement on Form S-8. A Prospectus describing the Plan and the shares of Common Stock and the Terms and Conditions can be found on the Baker Hughes Direct website at www.bakerhughesdirect.com. You may obtain a copy of the Plan Prospectus by requesting it from the Company. 

Capitalized terms that are not defined herein shall have the meaning ascribed to such terms in the Plan or the Terms and Conditions.  The term “Change in Control of the Company” has the meaning ascribed to that term in the Terms and Conditions. 

In accepting the award of Restricted Stock Units set forth in this Agreement you accept and agree to be bound by all the terms and conditions of the Plan, this Agreement and the Terms and Conditions. 

	
			
	 
	 
	 

	 
	 
	BAKER HUGHES INCORPORATED

	 
	 
	 

	 
	 
	 

	 
	 
	Martin S. Craighead
President and Chief Executive Officer

  

Exhibit 10.41

BAKER HUGHES INCORPORATED 
TERMS AND CONDITIONS 
OF 
DIRECTOR RESTRICTED STOCK UNIT AWARD AGREEMENTS
GRANTED AFTER OCTOBER 30, 2016
 

	
			
	1.
	 
	TERMINATION OF SERVICE. The following provisions will apply in the event your service on the Board terminates before the General Lapse Date set forth under the terms of the Restricted Stock Unit Award Agreement awarded to you (the “Agreement”):

		
	1.1
	Termination Generally. Subject to Section 2, if your service on the Board terminates on or before the General Lapse Date for any reason other than one of the reasons described in Sections 1.2 through 1.5, the Forfeiture Restrictions then applicable to the Restricted Stock Units shall not lapse and the number of Restricted Stock Units then subject to the Forfeiture Restrictions shall be forfeited to the Company on the date your service on the Board terminates. 

		
	1.2
	Disability. Notwithstanding any other provision of the Agreement or these Terms and Conditions to the contrary, if you become permanently disabled before the General Lapse Date and before your service on the Board terminates, all remaining Forfeiture Restrictions shall immediately lapse on the date your service on the Board terminates due to your becoming permanently disabled. For purposes of this Section 1.2, you will be “permanently disabled” if you are unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months. 

		
	1.3
	Death. Notwithstanding any other provision of the Agreement or these Terms and Conditions to the contrary, if you die before the General Lapse Date and before your service on the Board terminates, all remaining Forfeiture Restrictions shall immediately lapse on the date your service on the Board terminates due to death. 

		
	1.4
	Completion of Term. Notwithstanding any other provision of the Agreement or these Terms and Conditions to the contrary, if you complete before the General Lapse Date the term for which you were elected to the Board (the “Term”) and as a result thereof your service on the Board terminates, all remaining Forfeiture Restrictions shall immediately lapse on the last day of the Term. 

		
	1.5
	Attainment of Retirement Age. Notwithstanding any other provision of the Agreement or these Terms and Conditions to the contrary, if you attain the age of 75 and  your service on the Board has not terminated prior to the date of the annual meeting of the stockholders of the Company that next follows your 75th birthday, all remaining forfeiture restrictions shall immediately lapse on such date of annual meeting of the stockholders of the Company.

Exhibit 10.41

	
			
	2.
	 
	CHANGE IN CONTROL OF THE COMPANY.   Notwithstanding any other provision of the Agreement or these Terms and Conditions to the contrary, if a Change in Control of the Company occurs before the General Lapse Date and before you cease to be a member of the Board, then all remaining Forfeiture Restrictions shall immediately lapse on the effective date of the Change in Control of the Company provided that the transaction qualifies as a change in the ownership or effective control of the Company, or in the sale of a substantial portion of the assets of the Company, within the meaning of section 409A of the Internal Revenue Code of 1986, as amended and Department of Treasury regulations issued thereunder.

	 
	 
	 

	3.
	 
	NONTRANSFERABILITY. The Agreement is not transferable by you otherwise than by will or by the laws of descent and distribution.

	 

	4.
	 
	CAPITAL ADJUSTMENTS AND REORGANIZATIONS. The existence of the Restricted Stock Units shall not affect in any way the right or power of the Company or any company the stock of which is awarded pursuant to the Agreement to make or authorize any adjustment, recapitalization, reorganization or other change in its capital structure or its business, engage in any merger or consolidation, issue any debt or equity securities, dissolve or liquidate, or sell, lease, exchange or otherwise dispose of all or any part of its assets or business, or engage in any other corporate act or proceeding.

	 
	 
	 

	5.
	 
	RESTRICTED STOCK UNITS DO NOT AWARD ANY RIGHTS OF A SHAREHOLDER. You shall not have the voting rights or any of the other rights, powers or privileges of a holder of the Common Stock with respect to the Restricted Stock Units that are awarded hereby. Only after a share of the Common Stock is issued in exchange for a Restricted Stock Unit will you have all of the rights of a shareholder with respect to such share of Common Stock issued in exchange for a Restricted Stock Unit.

	 
	 
	 

	6.
	 
	SECURITIES ACT LEGEND. You consent to the placing on any certificate for the shares of Common Stock issued under the Agreement an appropriate legend restricting resale or other transfer of the Shares except in accordance with the Securities Act of 1933, as amended and all applicable rules thereunder.

	 
	 
	 

	7.
	 
	LIMIT OF LIABILITY. Under no circumstances will the Company be liable for any indirect, incidental, consequential or special damages (including lost profits) of any form incurred by any person, whether or not foreseeable and regardless of the form of the act in which such a claim may be brought, with respect to the Plan or the Company’s role as Plan sponsor.

	 
	 
	 

	8.

	 
	MISCELLANEOUS. The Agreement is awarded pursuant to and is subject to all of the provisions of the Plan, including amendments to the Plan, if any. In the event of a conflict between these Terms and Conditions and the Plan provisions, the Plan provisions will control. The term “you” and “your” refer to the Awardee named in the Agreement. Capitalized terms that are not defined herein shall have the meanings ascribed to such terms in the Plan or the Agreement.

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