Document:

exhibit10_2.htm

    

     

    Exhibit
10.2

    

    2008
Performance Share Grant Terms and Conditions

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

    

    
      	 Grant    	 	
               Shares
      of Brunswick Corporation common stock (the “Common Stock”) where the
      number of shares delivered is based on attainment of certain Performance
      Criteria set forth herein.  Shares subject to this Grant shall
      be referred to herein as “Performance Shares”.

               

            
	
              Grant
      Date

               

            	 	
              March
      13, 2008

               

            
	
              Performance
      Period

               

            	 	
              3-year
      period commencing January 1, 2008 and ending December 31,
      2010.

               

            
	
              Target
      Award

               

            	 	
              Performance
      Shares is the target against which Performance Criteria will
      apply.

               

            
	
              Performance
      Criteria

            	 	
              • Performance
      metrics are tied to specific financial goals related to transformational
      success.

               

              • Payout
      of 50% to 125% of the Target Award is based solely on performance against
      Performance Criteria (sales per salaried employee, sales per capital
      employed, and return on capital employed) as approved by the Human
      Resources & Compensation Committee.  Each of the Performance
      Criteria shall be weighted equally.

               

              • Plus
      an additional 25% of the Target Award if Brunswick’s Common Stock price is
      $25 or more (determined as the average for last 20 business days of the
      Performance Period) and relative total shareholder return (TSR)
      performance versus the S&P 500 is equal to or greater than the 60th
      percentile as of the performance measurement date (December 31,
      2010).

               

              • No
      Performance Shares shall be delivered pursuant to this Grant should
      Brunswick’s Common Stock price not exceed $20 (average for last 20
      business days of the Performance Period).

               

              • Funding
      shall be based on interpolation between payout levels.

               

            
	
              Termination
      of Employment

            	 	
              In
      the event of a Grantee’s termination of employment for any reason prior to
      the end of the Performance Period, the Performance Shares shall be
      forfeited; provided that in the event
      of the Grantee’s termination of employment due to death or Long-Term
      Disability (as defined below), the Grantee shall be entitled to a Pro-Rata
      Portion of the Performance Shares that would otherwise be paid out at the
      end of the Performance Period in accordance with the
      foregoing.  For purposes of the foregoing sentence, Pro-Rata
      Portion shall mean the product of (x) the number of
      Performance Shares that would otherwise be paid out at the end of the
      Performance Period and (y) a fraction, the
      numerator of which is the number of days that have elapsed since the
      beginning of the Performance Period through the date of termination of the
      Grantee’s employment due to death or Long-Term Disability, and the
      denominator of which is the number of days in the Performance
      Period.  Such Performance Shares shall be delivered to the
      Grantee in accordance with the terms of this Grant under "Timing of
      Distribution."  Fractional shares shall be rounded down to the
      nearest whole share.  The portion of the Grant that does not
      vest as a result of the Grantee's termination of employment due to death
      or Long-Term Disability shall be forfeited.

               

            
	
              Timing
      of Distribution

               

            	 	
              • Performance
      Shares shall be delivered to the Grantee as soon as administratively
      practical after attainment of the Performance Criteria has been certified
      by the Human Resources and Compensation Committee and the number of shares
      (which shall be rounded down to the nearest whole share) to be delivered
      has been determined by the Human Resources and Compensation Committee, but
      in no event later than 60 days after the end of the Performance
      Period.

               

              • Notwithstanding
      the foregoing provisions, in the event that (i) the Grantee is a "Covered
      Employee" (as defined under Section 162(m) of the Internal Revenue Code of
      1986 (the “Code”), as amended) with respect to the taxable year in which
      the Performance Shares would otherwise be delivered, and (ii) the sum of
      the value of the Performance Shares deliverable to the Grantee and other
      compensation payable by Brunswick to the Grantee with respect to such
      taxable year exceeds $1.5 million, the portion of the Performance Shares
      that, when added to such other compensation would result in the Grantee
      receiving total compensation in excess of $1.5 million shall be converted
      into deferred stock units and be automatically deferred pursuant to
      Brunswick's Automatic Deferred Compensation Plan.  Performance
      Shares converted into deferred stock units shall be payable to the Grantee
      in accordance with the terms of the Automatic Deferred Compensation
      Plan.

               

            

    

     

     

    
      
        
        

      

      
        1

        
        

      

      
        
        

      

    

     

    
      

       

      Exhibit
10.2

    

     

     

    
      	
              Change
      in Control

            	 	
              On
      a Change in Control (as defined under Section 409A of the Internal Revenue
      Code (the “Code”)), a Pro-Rata Portion of the Grant shall vest, and the
      remainder of the Performance Shares shall be forfeited.  For
      purposes of the foregoing sentence, Pro-Rata Portion shall mean the
      product of (x)
      the number of Performance Shares subject to 100% of the Target Award and
      (y) a fraction,
      the numerator of which is the number of days that have elapsed since the
      beginning of the Performance Period through the Change in Control, and the
      denominator of which is the number of days in the Performance
      Period.  Fractional shares shall be rounded down to the nearest
      whole share.  Such vested Performance Shares shall be delivered
      on the date of the Change in Control.

               

            
	
              Tax
      Withholding

               

            	 	
              Tax
      withholding liability must be paid via share reduction upon
      distribution.

               

            
	
              Additional
      Terms and Conditions

            	 	
              • This
      Grant is subject to terms of the Plan.  To the extent any
      provision herein conflicts with the Plan, the Plan shall govern; provided that the definition of Change in
      Control shall be determined under this grant.  To the extent
      that any provision herein conflicts with any other agreement or
      understanding between the Grantee and Brunswick, the terms of this Grant
      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.

               

              • “Long-Term
      Disability" shall mean the Grantee's mental or physical condition which
      would render the Grantee eligible to receive disability benefits under
      Brunswick's long-term disability plan then in effect.

               

            

    

    

    Nothing
contained in this Grant or the Plan shall constitute or is intended to create a
contract of continued employment.  Employment is at-will and may be
terminated by either the Grantee or Brunswick (including affiliates) for any
reason at any time.

               

    
      
         

      

      
        2exhibit10_3.htm

    

     

    Exhibit
10.3

    

    2008
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.

               

            
	
              Restricted
      Stock Units

               

            	 	
              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 restricted stock units.  There are no
      voting rights attached to restricted stock units.

               

            
	
              Vesting

            	 	
              Restricted
      stock units will vest the earlier of:

               

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

              § On
      a Change in Control (as defined in the Plan), or,

              § On
      death or termination due to long-term disability.

               

            
	
              Termination
      of Employment

            	 	
              Forfeiture
      of restricted stock units in the event employment terminates prior to
      vesting, except one-third will be distributed if termination occurs at
      least one year after grant date and two-thirds will be distributed if
      termination occurs at least two years after grant date if age and years of
      service equals 70 or more (the rule of 70 does not apply for grants made
      to residents of the European Union).

               

            
	
              Timing
      of Distribution

               

            	 	
              Distributions
      will occur as soon as practical after the vesting date.

               

            
	
              Tax
      Withholding

               

            	 	
              Tax
      withholding liability (to meet required FICA, federal, state, and local
      withholding) must be paid via share reduction upon
      distribution.

               

            
	
              Form
      of Distribution

               

            	 	
              Shares
      will be deposited to your existing Dividend Reinvestment Plan account or,
      if one is not currently on record, deposited into a newly created
      account.  Stock certificates will be issued on
      request.

               

            
	
              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.

               

              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.

            

    

    

    
    

     

    Nothing
contained in these Terms and Conditions or the Plan constitutes or is intended
to create a contract of continued employment.  Employment is at-will
and may be terminated by either the employee or Brunswick (including affiliates)
for any reason at any time.

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