Document:

BC 2015.04.04 EX 10.3 - PS BPP

Exhibit 10.3
2015 Brunswick Performance Plan (BPP)
Performance Share Participants Other Than Those in the Brunswick Corporation Senior Management Incentive Plan 
Summary Terms and Conditions

	
		
	Purpose
	Reward achievement of annual goals

	Eligibility
	Key managers identified on an individual basis.

	Performance Period
	2015 fiscal year.

	Performance Measures
	Bonuses based 100% on achievement against the following financial measures as of the end of the performance period.

§    For Corporate-level employees,
ü    50% based on Earnings Per Share (EPS ex. items),
ü    16.67% based on Mercury Marine Earnings Before Interest and Taxes (EBIT),
ü    16.67% based on Boat Group EBIT, and
ü    16.67% based on Life Fitness EBIT

§    For Division leaders, 
ü    50% based on EPS (ex. items), and
ü    50% based on applicable division EBIT

EPS (ex. items) and EBIT from continuing operations results for the year will be adjusted for:
•    Restructuring, exit and impairment costs (including debt extinguishment costs) and associated savings - variance from budget;
•    Acquisition or sale of “strategic” assets;
•    Impact of any “extraordinary” accounting charges (GAAP definition) or charges related to changes in accounting principles;
•    Pension liability settlement or plan amendment related charges; 
•    Unusual tax items (i.e., FIN 48, Discrete Tax Items, Valuation Allowance Reversals, etc.); and
•    Impact of change in tax law (e.g., extension of R&D tax credit) – variance from budget.

The Human Resources and Compensation Committee will determine the applicable performance goals and the bonuses payable upon attainment of such goals. 

	Funding  Review and Approval
	The following steps will be taken to review and approve funding:

§    CFO will review performance to evaluate required accruals;
§    CEO will review performance at end of performance period and recommend bonuses to the Human Resources and Compensation Committee as appropriate; and
§    Human Resources and Compensation Committee will review and approve bonuses as deemed appropriate.

	
		
	Individual Awards
	Individual awards will be determined on a discretionary basis using overall approved funding, evaluation of individual performance for the performance period, target incentives as a percentage of salary and covered salary (actual paid for year).  In no case shall an award exceed 200% of an individual’s target incentive opportunity.

Individuals must be employed at the end of the performance period to be eligible for an award, with ultimate payout at the discretion of the Human Resources and Compensation Committee.  Those employees whose employment terminates due to death, permanent and total disability, or as a result of restructuring activities or plant shutdown will be eligible to receive individual awards at the discretion of the CEO and Chief Human Resources Officer.  Any awards payable in the event of termination due to death, permanent disability, as a result of restructuring activities or plant shutdown shall be subject to the achievement of the applicable performance conditions and shall be paid as specified under “Timing and Form of Award Payments.”

	Timing and Form of Award Payments
	In 2016, after financial results are confirmed and appropriate approvals are obtained; provided, however, that any such award shall be paid to U.S.-based employees no later than March 15, 2016.  Payment may be made in cash, shares of Brunswick common stock granted under the Brunswick Corporation 2014 Stock Incentive Plan, a combination of cash or stock, or an alternate form of equity, as determined by the Human Resources and Compensation Committee. 

	Claw Back
	The Human Resources and Compensation Committee will evaluate the facts and circumstances of any restatement of earnings due to fraud or intentional misconduct that results in material noncompliance with any financial reporting requirement and, in its sole discretion, may require the repayment of all or a portion of bonus awards from individual(s) responsible for the restatement and others assigned to salary grade 21 and above, including senior executives, as deemed appropriate by the Human Resources and Compensation Committee.  In addition, bonus awards shall be subject to forfeiture, recovery by Brunswick or other action pursuant to any other clawback or recoupment policy which Brunswick may adopt from time to time, including without limitation any such policy which Brunswick may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

	Additional Terms & Conditions
	Payment of any bonus is in the sole discretion of the Human Resources and Compensation Committee.  The Human Resources and Compensation Committee may modify, revise, discontinue, cancel or terminate this plan or any payments associated with this plan at any time, without notice.

Nothing contained in these materials constitutes or is intended to create a promise of an individual incentive award or a contract of continued employment.  Employment is at-will and may be terminated by either the employee or Brunswick for any reason at any time.BC 2015.04.04 EX 10.4 - SS RSU

Exhibit 10.4
2015 Stock-Settled Restricted Stock Unit Grant Terms and Conditions
Pursuant to the Brunswick Corporation 2014 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 (“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.

	Grant Date
	February 11, 2015

	Award
	____________ Restricted Stock Units.

	Vesting
	Restricted stock units will vest and be distributed as follows:
§    Three years from the Grant Date, 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 Grant Date 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 vested and distributed three years from the Grant Date;
§    In the case of a termination of employment (other than for cause or due to death or permanent disability) (i) prior to January 1, 2016, 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 vested and distributed three years from the Grant Date.  For purposes of the foregoing sentence, a “pro-rata portion” will mean the product of (x) the number of 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 January 1 of the year of grant through the date of termination of the recipient’s employment, and the denominator of which is 365.  All remaining restricted stock units will be forfeited;
§    Within thirty (30) days following 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, 2017, all of the award will be vested and distributed three years from the Grant Date; 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 stock-settled restricted stock units shall be vested and distributed upon such “change in control event;” or
§    On death or termination due to permanent disability.

	Termination of Employment
	Forfeiture of 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, in which case all or a pro-rata portion of the restricted stock units will vest as described above (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 after the distribution date provided above (but in no event later than the last calendar day of the distribution year).

	
		
	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 must be paid via share reduction upon distribution.

For all others, 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 brokerage account on record with Shareholder Services.

	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, 2017, permanent disability means that the recipient is “disabled” within the meaning of Treasury Regulation §1.409A-3(i)(4).

This award and any shares delivered pursuant to this award are subject to forfeiture, recovery by Brunswick or other action pursuant to any clawback or recoupment policy which Brunswick may adopt from time to time, including without limitation any such policy which Brunswick may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

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.

Questions and instructions to exercise should be directed to:        Lesley Harling, Shareholder Services
Brunswick Corporation
1 N. Field Court
Lake Forest, Illinois 60045-4811
847-735-4294
lesley.harling@brunswick.com

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