Document:

exv10wk

 

Exhibit 10(k)

SUMMARY OF DIRECTOR AND NAMED EXECUTIVE OFFICER COMPENSATION

DIRECTOR COMPENSATION

Directors who are employees of Brown-Forman do not receive additional compensation for serving as
directors. The following sets forth a summary of compensation for non-employee directors.

	1.	 	Annual Retainer:

	 	(a)	 	$35,000 in cash, payable in six installments over the course of the board
service year. Directors may elect in advance of their board service year to receive
stock-settled stock appreciation rights in lieu of cash payments for all or part of
their retainer.
	 
	 	(b)	 	$40,000 in stock-settled stock appreciation rights.

	2.	 	Board Meeting Fee: $5,000 per meeting attended in person. $2,000 for telephonic
participation or for partial in person participation.
	 
	3.	 	Committee Meeting Fee: $5,000 per meeting attended in person. $2,000 for telephonic
participation or for partial in person participation.
	 
	4.	 	Additional Chairman Meeting Fee: $5,000 for personal attendance. $2,000 for telephonic
participation or for partial in person participation.
	 
	5.	 	Audit Committee Chairman Review: $3,000 per quarterly review with outside auditors conducted
independently of Audit Committee Meeting.
	 
	6.	 	International Travel Supplement: $3,000 per meeting, for directors who travel directly from
(and immediately back to) an overseas location for our meeting. This is no longer indexed to
the regular meeting fee but may be adjusted from time to time.
	 
	7.	 	Expense reimbursement: Directors are reimbursed for their reasonable and necessary expenses
incurred in connection with attending Board and Committee meetings. The product promotion
allowance for outside directors is $2,000 per year. Directors are also covered under the
company’s Travel Accident Insurance and D & O Liability insurance programs.

 

 

NAMED EXECUTIVE OFFICER COMPENSATION

Chief Executive Officer and Employee-Chairman

Target amounts of total compensation for the Chief Executive Officer of the Company and the
Company’s employee-Chairman are as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Annual	 	Long-Term	 	 
	 	 	 	 	 	 	Bonus	 	Bonus	 	Total
	 	 	 	 	 	 	Opportunity	 	Opportunity at	 	Compensation at
	Name and Title	 	Salary	 	at Target	 	Target	 	Target
	Paul Varga
	 	$	975,000	 	 	$	1,100,000	 	 	$	1,700,000	 	 	$	3,775,000	 
	CEO
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Owsley Brown II
	 	$	960,000	 	 	$	1,065,000	 	 	$	450,000	 	 	$	2,475,000	 
	Chairman
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

For Mr. Varga, the Long-Term Bonus Opportunity at Target takes the form of a performance-based
restricted share opportunity and a long-term cash bonus based on Company performance for the
performance period comprising fiscal 2007 through fiscal 2009 inclusive.

For Mr. Brown, the Long-Term Bonus Opportunity at Target takes the form of a long-term cash bonus
based on Company performance for the performance period comprising fiscal 2007 through fiscal 2009
inclusive.

Three Remaining Named Executive Officers

The
annualized salaries of the three remaining named executive officers
effective July 1, 2006
are as follows:

	 	 	 	 	 
	Phoebe A. Wood
	 	$	592,968	 
	James L. Bareuther
	 	$	529,166	 
	Michael B. Crutcher
	 	$	489,582	 

Target bonus opportunity for the three remaining named executive officers are as follows:

	—	 	Annual Bonus Opportunity at Target was set at $250,000 for target performance for
each of these three executive officers.
	 
	—	 	Long-Term Bonus Opportunity at Target was set within a range of $500,000 to
$611,520 for each of these three executive officers, and awarded in a combination
of stock-settled stock appreciation rights, performance-based restricted stock
opportunity, and cash long-term bonus for the performance period fiscal 2007
through fiscal 2009.

Bonus Element Descriptions

Under all cash bonus programs, the plan requires the Company to achieve certain levels of operating
income before any bonus can be paid. Target bonus is paid for targeted levels of operating income
attained, greater-than-target bonus is paid for higher levels of operating income attained and
lower-than-

 

 

target bonus is paid for lower levels of operating income attained. Short-term bonus is capped at
200% of target bonus; Long-term bonus is uncapped. Stock-settled stock appreciation rights have a
grant price equal to the closing market value of Brown-Forman Class B stock on the grant date of
July 27, 2006, have a term of ten fiscal years, and cannot be exercised in the first three fiscal
years. Restricted stock opportunity, designated in cash, is adjusted based on fiscal 2007
performance against operating income goals and converted to restricted Class A Common shares at the
end of fiscal 2007, with restrictions on shares remaining in place through April 30, 2011.EX-10.1

 

Exhibit
10.1

EXECUTION COPY

AMENDMENT
NO. 2 TO THE
CREDIT AGREEMENT

Dated as of July 24, 2006

     AMENDMENT NO. 2 TO THE CREDIT AGREEMENT among The North American Coal Corporation, a Delaware
corporation (the “Borrower”), the banks, financial institutions and other institutional
lenders parties to the Credit Agreement referred to below (collectively, the “Lenders”) and
Citibank, N.A., as agent (the “Agent”) for the Lenders.

PRELIMINARY STATEMENTS:

     (1) The Borrower, the Lenders and the Agent have entered into a Credit Agreement dated as of
March 8, 2005, as amended by Amendment No. 1 dated as of January 1, 2006 (as so amended, the
“Credit Agreement”). Capitalized terms not otherwise defined in this Amendment have the
same meanings as specified in the Credit Agreement.

     (2) The Borrower and the Required Lenders have agreed to further amend the Credit Agreement as
hereinafter set forth.

     SECTION 1. Amendments to Credit Agreement. Section 4.01(n) of the Credit Agreement
is, effective as of the date hereof and subject to the satisfaction of the conditions precedent set
forth in Section 2, hereby amended in full to read as follows:

	 	 	     (n) No ERISA Event (other than an ERISA Event described in Section 4043(c)(3) (decline
in the number of participants), Section 4043(c)(9) (change in the members of the controlled
group to the extent that the ERISA Event relates to an ERISA Affiliate other than the
Borrower or a Subsidiary), Section 4043(c)(9) (to the extent that the ERISA Event results
from a liquidation or merger of entities within the controlled group) or Section
4043(c)(11) (to the extent that the ERISA Event results from the declaration of an
extraordinary dividend payable to, or an extraordinary stock redemption of, an ERISA
Affiliate)) has occurred or is reasonably expected to occur with respect to any Plan.

 

 

     SECTION 2. Conditions of Effectiveness. This Amendment shall become effective as of
the date first above written when, and only when, the Agent shall have received counterparts of
this Amendment executed by the Borrower and the Required Lenders or, as to any of the Lenders,
advice satisfactory to the Agent that such Lender has executed this Amendment. This Amendment is
subject to the provisions of Section 8.01 of the Credit Agreement.

     SECTION 3. Representations and Warranties of the Borrower The Borrower represents and
warrants as follows:

     (a) The Borrower is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware.

     (b) The execution, delivery and performance by the Borrower of this Amendment and the Credit
Agreement, as amended hereby, are within the Borrower’s corporate powers, have been duly authorized
by all necessary corporate action and do not contravene (i) the Borrower’s charter or by-laws or
(ii) any applicable law or any material contractual restriction binding on or affecting the
Borrower.

     (c) No authorization or approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body or any other third party is required for the due
execution, delivery and performance by the Borrower of this Amendment or the Credit Agreement, as
amended hereby.

     (d) This Amendment has been duly executed and delivered by the Borrower. This Amendment and
the Credit Agreement, as amended hereby are legal, valid and binding obligations of the Borrower,
enforceable against the Borrower in accordance with their respective terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditor’s rights generally and by general equitable
principles (whether enforcement is sought by proceedings in equity or at law).

     (e) There is no pending or, to the knowledge of the Borrower, threatened action, suit,
investigation, litigation or proceeding, including, without limitation, any Environmental Action,
affecting the Borrower or any of its Subsidiaries before any court, governmental agency or
arbitrator that (i) could be reasonably likely to have a Material Adverse Effect (other than the
Disclosed Litigation) or (ii) purports to materially adversely affect the legality, validity or
enforceability of this Amendment or the Credit Agreement, as amended hereby.

     (f) After giving effect to this Amendment, no Default has occurred and is continuing.

     SECTION 4. Reference to and Effect on the Credit Agreement and the Notes. (a) On and
after the effectiveness of this Amendment, each reference in the Credit Agreement to “this
Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and
each reference in the Notes to “the Credit Agreement”, “thereunder”, “thereof”

2

 

or words of like import referring to the Credit Agreement, shall mean and be a reference to
the Credit Agreement, as amended by this Amendment.

     (b) The Credit Agreement and the Notes, as specifically amended by this Amendment, are and
shall continue to be in full force and effect and are hereby in all respects ratified and
confirmed.

     (c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of any Lender or the Agent under
the Credit Agreement, nor constitute a waiver of any provision of the Credit Agreement.

     SECTION 5. Costs and Expenses The Borrower agrees to pay on demand all costs and
expenses of the Agent in connection with the preparation, execution, delivery and administration,
modification and amendment of this Amendment and the other instruments and documents to be
delivered hereunder (including, without limitation, the reasonable fees and expenses of counsel for
the Agent) in accordance with the terms of Section 8.04 of the Credit Agreement.

     SECTION 6. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute but one
and the same agreement. Delivery of an executed counterpart of a signature page to this Amendment
by telecopier shall be effective as delivery of a manually executed counterpart of this Amendment.

     SECTION 7. Governing Law. This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 	 
	 	 	THE NORTH AMERICAN COAL CORPORATION
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By    /s/  K. Donald Grischow	 	 
	 

	 	 	 	 
	 

	 	 	 	Title: Treasurer

3

 

	 	 	 	 	 	 
	 	 	CITIBANK, N.A.,

as Agent and as Lender
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By     /s/ Anish
M. Shah	 	 
	 

	 	 	 	 
	 

	 	 	 	Title: Vice
President
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By     /s/
Thomas J. Purcell	 	 
	 

	 	 	 	 
	 

	 	 	 	Title: Senior Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	PNC BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By     /s/
Dale A. Stein	 	 
	 

	 	 	 	 
	 

	 	 	 	Title: Senior Vice
President
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	REGIONS BANK
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By     /s/
Jared Andersen	 	 
	 

	 	 	 	 
	 

	 	 	 	Title: Vice
President
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By     /s/
Scott J. Bell	 	 
	 

	 	 	 	 
	 

	 	 	 	Title: Senior Vice
President

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}]]