Document:

EX-10.III.A.15

 

	 	 	 	 	 

EXHIBIT
10(iii)(A) 15

SUMMARY OF COMPENSATION TERMS

FOR

NON-EMPLOYEE DIRECTORS

The following is a summary of compensation arrangements for non-employee directors for 2006.

For 2006, each non-employee director’s annual retainer will be $165,000. The Chairman of the
Audit and Finance Committee will receive an additional retainer of $25,000, and the Chairman of
each of the Corporate Governance and Nominating Committee and the Leadership Development and
Compensation Committee will receive an additional retainer of $15,000. Each of the other members
of the Audit and Finance Committee will receive an additional annual retainer of $5,000. In fiscal
2006, the lead director will receive an additional $50,000. At least 50% of all retainers and fees
must be taken in common stock, and amounts not paid in common stock will be paid in cash.EX-10.III.A.17

 

EXHIBIT
10(iii)(A)17

	 	 	 
	To:

	 	Cindy Christy
	 
	 	 
	From:

	 	Henry Schacht
	 
	 	 
	Date:

	 	January 23, 2001
	 
	 	 
	Re:

	 	Officer Severance Policy

This is a challenging time for our company. While I am confident in our ability to successfully
work through the issues we are facing, I am also aware that our current business climate creates an
uncertainty and raises concerns that could distract you from the turnaround work at hand. To
address such concerns, I’m pleased to inform you that the Board of Directors has approved your
eligibility for enhanced severance coverage in the event your employment is terminated by Lucent
for reasons other than “cause.” This new severance benefit does not apply to all officers, so I ask
that you keep your eligibility confidential.

The severance benefit provides for continuation of salary and target bonus for 24 months if certain
events occur. During this 24-month period, your stock options and restricted stock units will
continue to vest. In addition, your coverage under many of Lucent’s benefit plans, including the
medical, dental, stock purchase and savings plans, will continue as normal. The attached outline
provides further detail of the new severance benefit. If you have any questions about the terms and
conditions of the new severance benefit, please contact Pam Kimmet at 908-582-8557.

Challenging times can be the most satisfying and rewarding times of our professional lives. With
your help we can take our company to new levels of success.

Attachment

 

 

Attachment

Officer Severance Policy

Eligibility

	•	 	Lucent or Agere Officer status
	 
	•	 	Participation for new officers is contingent upon Board/CEO approval
	 
	•	 	Company initiated termination, other than for “Cause” as defined on page 2
	 
	•	 	Contingent upon signing the standard, Lucent Release Agreement (including non-compete, non-solicitation provisions)
	 
	•	 	All payments and benefits listed below will be offset by any individually negotiated or legally required arrangement

Leave of Absence Payment

	•	 	24 months of base salary and target bonus
	 
	•	 	Base salary will be paid monthly. Target bonus will be paid annually in December. Both payments are benefits bearing.

Equity

Stock Options

	•	 	Options continue vesting as scheduled during the 24 month period.
	 
	•	 	At end of the 24 month period, your employment will end and options will follow normal termination provisions:

	 	•	 	Pension eligible — Keep vested remainder of term; unvested options cancel
	 
	 	•	 	Not Pension eligible — 90 days to exercise vested; unvested options cancel

Restricted Stock

	•	 	Restricted stock continues vesting as scheduled during the 24 month period.

ESPP

	•	 	Your participation will continue through payroll deductions.

Retirement Benefits

Service Pension

Retirement eligible: Your severance pay will count towards your pension.
Pension payments begin after termination of this arrangement.

Not retirement eligible: Deferred vested employees can elect to begin payment at the
termination of this arrangement. The severance period can be used to accrue
service/age toward achieving pension eligibility.

Cash Balance Pension

	•	 	Severance pay will count towards the cash balance plan. The cash balance
is payable at the end of the 24 month period or later at employee election.

401(k)

	•	 	Payroll deductions continue

Health and Welfare Benefits

	•	 	Medical, Dental, Disability, Life Insurance, Car Allowance, Financial Counseling benefits continue the same as actively employed Officers.
	 
	•	 	Company credit cards, home office equipment, voice mail and e-mail will be cancelled at the beginning of the 24 month period.

Termination Provisions

	•	 	In the event you need to terminate this arrangement during the 24 month leave
period for any reason (including conflict with another employer), the Company may
approve the payment of the remaining amount of base salary and target bonus in a
lump sum. The normal “voluntary” termination provisions for the stock and benefit
plans will apply.

Lucent Technologies Proprietary (Restricted)

Solely for Authorized Persons Having a Need to Know Pursuant to Company Instructions

 

 

Page 2

Officer Severance Policy

Change in Control Provisions

	•	 	Upon or after a Change in Control (as defined in the 1996 Long Term Incentive Program
or its successor plan as in effect immediately before the Change in Control) this policy will
remain in effect.
	 
	•	 	Upon or after a Change in Control (as defined in the 1996 Long Term Incentive Program or its
successor plan as in effect immediately before the Change in Control), you will also be entitled to
the benefits of this policy if you terminate your employment within three months of an event
constituting Good Reason. Good Reason is defined as follows:

	(i)	 	the assignment to you by the Board of Directors or another representative of the Company of
duties which represent a material decrease in responsibility and are materially inconsistent
with the duties associated with your position, any reduction in your job title, or a material
negative change in the level of Officer to whom you report, or
	 
	(ii)	 	a material negative change in the terms and conditions of your employment, including a reduction
by the Company of your annual base salary or a material decrease in your target opportunity for
a Short Term Incentive Award, or
	 
	(iii)	 	the requirement to change your work location to one in a different country, even for a comparable
or superior position.

“Cause” is defined as:

	(i)	 	violation of Lucent’s code of conduct, Business Guideposts;
	 
	(ii)	 	conviction of (including a plea of guilty or nolo contendere) of a felony or any crime
of theft, dishonesty or moral turpitude, or
	 
	(iii)	 	gross omission or gross dereliction of any statutory or common law duty of loyalty to Lucent.

Lucent Technologies Proprietary (Restricted)

Solely for Authorized Persons Having a Need to Know Pursuant to Company InstructionsEX-10.III.A.18

 

EXHIBIT 10(iii)(A)18

	 	 	 
	To:

	 	Frank D’Amelio
	 
	 	 
	From:

	 	Henry Schacht
	 
	 	 
	Date:

	 	January 23, 2001
	 
	 	 
	Re:

	 	Officer Severance Policy

This is a challenging time for our company. While I am confident in our ability to
successfully work through the issues we are facing, I am also aware that our current
business climate creates an uncertainty and raises concerns that could distract you from
the turnaround work at hand. To address such concerns, I’m pleased to inform you that
the Board of Directors has approved your eligibility for enhanced severance coverage in
the event your employment is terminated by Lucent for reasons other than “cause.” This
new severance benefit does not apply to all officers, so I ask that you keep your
eligibility confidential.

The severance benefit provides for continuation of salary and target bonus for 24 months
if certain events occur. During this 24-month period, your stock options and restricted
stock units will continue to vest. In addition, your coverage under many of Lucent’s
benefit plans, including the medical, dental, stock purchase and savings plans, will
continue as normal. The attached outline provides further detail of the new severance
benefit. If you have any questions about the terms and conditions of the new severance
benefit, please contact Pam Kimmet at 908-582-8557.

Challenging times can be the most satisfying and rewarding times of our professional
lives. With your help we can take our company to new levels of success.

Attachment

 

 

Attachment

Officer Severance Policy

Eligibility

	•	 	Lucent or Agere Officer status
	 
	•	 	Participation for new officers is contingent upon Board/CEO approval
	 
	•	 	Company initiated termination, other than for “Cause” as defined on page 2
	 
	•	 	Contingent upon signing the standard, Lucent Release Agreement (including non-compete, non-solicitation provisions)
	 
	•	 	All payments and benefits listed below will be offset by any individually negotiated or legally required arrangement

Leave of Absence Payment

	•	 	24 months of base salary and target bonus
	 
	•	 	Base salary will be paid monthly. Target bonus will be paid annually in December. Both payments are benefits bearing.

Equity

Stock Options

	•	 	Options continue vesting as scheduled during the 24 month period.
	 
	•	 	At end of the 24 month period, your employment will end and options will follow normal termination provisions:

	 	•	 	Pension eligible - Keep vested remainder of term; unvested options cancel
	 
	 	•	 	Not Pension eligible - 90 days to exercise vested; unvested options cancel

Restricted Stock

	•	 	Restricted stock continues vesting as scheduled during the 24 month period.

ESPP

	•	 	Your participation will continue through payroll deductions.

Retirement Benefits

Service Pension

Retirement eligible: Your severance pay will count towards your pension.
Pension payments begin after termination of this arrangement.

Not retirement eligible: Deferred vested employees can elect to begin payment
at the termination of this arrangement. The severance period can be used to
accrue service/age toward achieving pension eligibility.

Cash Balance Pension

	•	 	Severance pay will count towards the cash balance plan. The cash balance
is payable at the end of the 24 month period or later at employee election.

401(k)

	•	 	Payroll deductions continue

Health and Welfare Benefits

	•	 	Medical, Dental, Disability, Life Insurance, Car Allowance, Financial Counseling benefits continue the same as actively employed Officers.
	 
	•	 	Company credit cards, home office equipment, voice mail and e-mail will be cancelled at the beginning of the 24 month period.

Termination Provisions

	•	 	In the event you need to terminate this arrangement during the 24
month leave period for any reason (including conflict with another employer),
the Company may approve the payment of the remaining amount of base salary and
target bonus in a lump sum. The normal “voluntary” termination provisions for
the stock and benefit plans will apply.

Lucent Technologies Proprietary (Restricted)

Solely for Authorized Persons Having a Need to Know Pursuant to Company Instructions

 

 

Page 2

Officer Severance Policy

Change in Control Provisions

	•	 	Upon or after a Change in Control (as defined in the 1996 Long Term Incentive Program or its
successor plan as in effect immediately before the Change in Control) this policy will remain in
effect.
	 
	•	 	Upon or after a Change in Control (as defined in the 1996 Long Term Incentive Program or its
successor plan as in effect immediately before the Change in Control), you will also be entitled to
the benefits of this policy if you terminate your employment within three months of an event
constituting Good Reason. Good Reason is defined as follows:

	(i)	 	the assignment to you by the Board of Directors or another representative of the Company of
duties which represent a material decrease in responsibility and are materially inconsistent
with the duties associated with your position, any reduction in your job title, or a material
negative change in the level of Officer to whom you report, or
	 
	(ii)	 	a material negative change in the terms and conditions of your employment, including a reduction
by the Company of your annual base salary or a material decrease in your target opportunity for
a Short Term Incentive Award, or
	 
	(iii)	 	the requirement to change your work location to one in a different country, even for a
comparable or superior position.

“Cause” is defined as:

	(i)	 	violation of Lucent’s code of conduct, Business Guideposts;
	 
	(ii)	 	conviction of (including a plea of guilty or nolo contendere) of a felony or any crime of theft,
dishonesty or moral turpitude, or
	 
	(iii)	 	gross omission or gross dereliction of any statutory or common law duty of loyalty to Lucent.

Lucent Technologies Proprietary (Restricted)

Solely for Authorized Persons Having a Need to Know Pursuant to Company Instructions

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