Document:

EX-10.1 FORM OF RESTRICTED STOCK UNIT AWARD AGRMT

 

Exhibit 10.1

United Parcel Service, Inc.

Restricted Stock Unit Award Agreement

2008 Long-Term Incentive Performance (LTIP) Awards

(Not Transferable)

     THIS
CERTIFIES THAT ____________ has been granted a target award of ____________ Restricted Stock
Units (“RSUs”). Each RSU has a value that equals the value of one share of the class A common
stock of UNITED PARCEL SERVICE, INC., a Delaware corporation (the “Company”). A RSU is sometimes
referred to as a “long-term incentive performance award” or “LTIP.”

Terms and Conditions

     1. Plan. This target award is granted pursuant to the United Parcel Service, Inc.
Incentive Compensation Plan (the “Plan”), and is subject to the conditions and limitations set
forth in the Plan document, as the same may be amended from time to time. All of the terms and
provisions of the Plan are incorporated herein by reference. Terms not defined in this award
agreement are defined in the Plan.

     2. Measurement Tranches.

          (a) General Rule. Ninety percent (90%) of your target award is divided into 3
substantially equal annual performance measurement tranches (one for each calendar year during the
3-year award cycle running from January 1, 2008 through December 31, 2010 (the “LTIP cycle”)) and
ten percent (10%) of your target award is based on satisfaction of an earnings per share target for
calendar year 2010 (the “earnings measurement tranche”):

	 	 	 
	Tranche	 	Target RSUs
	Performance Measurement — 2008

	 	 
	Performance Measurement — 2009
	 	 
	Performance Measurement — 2010
	 	 
	Earnings Measurement — 2010
	 	 

          (b)
Performance Measurement Tranches. The number of RSUs to be
credited to your account for each
performance measurement tranche will be determined after the end of the relevant calendar year
based on the achievement of specific performance targets established for that year and the
applicable performance target matrix (discussed below). The
performance criteria for 2008 - 2010
are growth in consolidated revenue (i.e., total company revenue as reported in the Company’s
quarterly and annual financial statements) and consolidated operating return on invested capital.
The Committee retains the discretion to adjust the Company’s results during the LTIP cycle to
exclude the effects of certain transactions and accounting changes for purposes of determining
achievement of the performance targets.

     For each RSU performance measurement tranche, the Committee will develop a performance target
matrix that will provide for 100% payment of the target RSUs for the tranche upon 100% achievement
of the performance targets for the year. The performance target matrix also may provide for
payment of a percentage less than or more than 100% of the target RSUs for the tranche based on
achievement of performance targets at a percentage less than or more than, respectively, 100%.
Your performance target matrix for 2008 is attached as Exhibit A. Performance target
matrices for 2009 and 2010 will be provided to you in the first quarter of the applicable year.
After the end of each year, the Committee will certify the extent to which the performance targets
have been achieved and the resulting RSUs to be credited to your
account. Once the payment percentage for
a particular tranche has been applied to a performance measurement tranche, the number of RSUs in
that tranche is fixed. After the number of RSUs in a performance measurement tranche becomes
fixed, the RSUs in that tranche will be credited to your RSU account.

4

 

          (c) Earnings Per Share Measurement Tranche. The earnings per share target for
calendar year 2010 is set forth on the attached Exhibit A. You will receive this portion
of your award only if the Company meets the earnings per share target for the 2010 calendar year
and you are employed in an eligible job classification by the Company or a Subsidiary on January
31, 2011. If the earnings per share target is not met or you are not employed in an eligible job
classification with the Company or a Subsidiary on January 31, 2011, you will not receive this
portion of your award. For this purpose, earnings per share is as reported in the Form 10-K filed
by the Company with the Securities and Exchange Commission for the year ending December 31, 2010,
as adjusted in the Committee’s discretion to exclude the effects of certain transactions and
accounting changes for purposes of determining achievement of the earnings per share target. After
the Form 10-K for the year ending December 31, 2010 is filed, the Committee will certify if the
earnings per share target has been met and the RSUs credited to your account, if any, for the
earnings per share measurement tranche.

     3. Bookkeeping Account. A bookkeeping account will be maintained to keep track of the
RSUs and any dividend equivalents attributable to your RSUs as described below.

     4. Dividend Equivalents. The RSUs credited to your account that are attributable to a
particular performance measurement tranche will be credited quarterly with dividend equivalent
units for dividends paid on a share of the Company’s class A common stock, by

	 	—	 	multiplying the cash (or stock) dividend paid per share of the Company’s class A
common stock by the number of RSUs (and previously credited dividend equivalent units)
attributable to that tranche prior to adjustment for dividends, and
	 
	 	—	 	dividing the product determined above by the New York Stock Exchange closing
price of the Company’s class B common stock on the day the dividend is declared.

Each dividend equivalent unit has a value equal to one share of the Company’s class A common stock.
The Committee will authorize the crediting of the dividend equivalent units for each quarter.
Dividend equivalent units will vest at the same time as the underlying RSU tranche (discussed
below).

     5. Vesting.

          (a) General Rule. The RSUs and dividend equivalent units credited to your account
during the LTIP cycle will vest on January 31, 2011; provided that you are employed by the Company
or a Subsidiary on that date. The benefit payable to you will be based entirely on the number of
vested RSUs and dividend equivalent units credited to your account at the time the award becomes
payable, generally, on March 11, 2011 following the completion of the LTIP cycle.

          (b) Demotion. If you are demoted before January 31, 2011 to a position that would
have been ineligible to receive a LTIP award under the 2008 LTIP program, you will forfeit any
right to RSUs for the performance measurement tranche for the year in which your demotion occurs
and any performance measurement tranche commencing after your demotion. You also will forfeit any
right to RSUs for the earnings measurement tranche. You will retain any RSUs and dividend
equivalent units credited to your account prior to your demotion, subject to satisfaction of the
vesting requirements of Section 5(a) or (c) of this award agreement.

          (c) Death, Disability or Retirement. If your employment terminates by reason of your
death, disability or retirement (as defined in the Plan) before January 31, 2011, you immediately
will vest in any RSUs and dividend equivalent units for a performance measurement tranche that was
completed prior to your termination. You will forfeit any right to RSUs for the performance
measurement tranche for the year in which your termination occurs and any performance measurement
tranche commencing after your termination. You also will forfeit any right to RSUs for the
earnings measurement tranche. Further, if you terminate employment before January 31, 2011 other
than by reason of death, disability or retirement, you will forfeit this award in its entirety.

5

 

     6. Shares. A number of shares of the Company’s class A common stock equal to the
number of vested RSUs and dividend equivalent units credited to your account (less shares withheld
to pay taxes) will be transferred to you on March 11, 2011, except that if your employment
terminates by reason of your death, the shares will be transferred to your estate no later than the
March 11 that follows the calendar year of your death.

     7. Nontransferable. This award and your RSUs and dividend equivalent units are not
transferable except by will or the laws of descent and distribution.

     IN WITNESS WHEREOF, UNITED PARCEL SERVICE, INC. has caused this Restricted Stock Unit Award to
be issued as of March ___, 2008.

	 	 	 
	ATTEST:

	 	UNITED PARCEL SERVICE, INC.
	 
	 	 
	Secretary

	 	Chairman and Chief Executive Officer

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Exhibit A

	 	 	 
	Revenue growth

	 	___%
	Operating ROIC

	 	___%

Earnings Per Share Target $__ as of December 31, 2010

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revenue Growth	 
	 	 	 	 	 	 	 	 	 	 	____%	 	 	____%	 	 	____%	 	 	____%	 	 	____%	 	 	____%	 	 	____%	 	 	____%	 	 	 	 
	 	 	____%	 	 	____% to	 	 	to	 	 	to	 	 	to	 	 	to	 	 	to	 	 	to	 	 	to	 	 	to	 	 	_____%	 
	Operating ROIC	 	or less	 	 	_____%	 	 	_____%	 	 	_____%	 	 	_____%	 	 	_____%	 	 	_____%	 	 	_____%	 	 	_____%	 	 	_____%	 	 	or more	 
	____% or more 
	 	 	105	%	 	 	110	%	 	 	115	%	 	 	120	%	 	 	125	%	 	 	130	%	 	 	135	%	 	 	140	%	 	 	145	%	 	 	150	%	 	 	150	%
	____% to ____%
	 	 	100	%	 	 	105	%	 	 	110	%	 	 	115	%	 	 	120	%	 	 	125	%	 	 	130	%	 	 	135	%	 	 	140	%	 	 	145	%	 	 	150	%
	____% to ____%
	 	 	95	%	 	 	100	%	 	 	105	%	 	 	110	%	 	 	115	%	 	 	120	%	 	 	125	%	 	 	130	%	 	 	135	%	 	 	140	%	 	 	145	%
	____% to ____%
	 	 	90	%	 	 	95	%	 	 	100	%	 	 	105	%	 	 	110	%	 	 	115	%	 	 	120	%	 	 	125	%	 	 	130	%	 	 	135	%	 	 	140	%
	____% to ____%
	 	 	85	%	 	 	90	%	 	 	95	%	 	 	100	%	 	 	105	%	 	 	110	%	 	 	115	%	 	 	120	%	 	 	125	%	 	 	130	%	 	 	135	%
	____% to ____%
	 	 	80	%	 	 	85	%	 	 	90	%	 	 	95	%	 	 	100	%	 	 	105	%	 	 	110	%	 	 	115	%	 	 	120	%	 	 	125	%	 	 	130	%
	____% to ____%
	 	 	75	%	 	 	80	%	 	 	85	%	 	 	90	%	 	 	95	%	 	 	100	%	 	 	105	%	 	 	110	%	 	 	115	%	 	 	120	%	 	 	125	%
	____% to ____%
	 	 	70	%	 	 	75	%	 	 	80	%	 	 	85	%	 	 	90	%	 	 	95	%	 	 	100	%	 	 	105	%	 	 	110	%	 	 	115	%	 	 	120	%
	____% to ____%
	 	 	65	%	 	 	70	%	 	 	75	%	 	 	80	%	 	 	85	%	 	 	90	%	 	 	95	%	 	 	100	%	 	 	105	%	 	 	110	%	 	 	115	%
	____% to ____%
	 	 	60	%	 	 	65	%	 	 	70	%	 	 	75	%	 	 	80	%	 	 	85	%	 	 	90	%	 	 	95	%	 	 	100	%	 	 	105	%	 	 	110	%
	____% to ____%
	 	 	55	%	 	 	60	%	 	 	65	%	 	 	70	%	 	 	75	%	 	 	80	%	 	 	85	%	 	 	90	%	 	 	95	%	 	 	100	%	 	 	105	%
	____% to ____%
	 	 	50	%	 	 	55	%	 	 	60	%	 	 	65	%	 	 	70	%	 	 	75	%	 	 	80	%	 	 	85	%	 	 	90	%	 	 	95	%	 	 	100	%
	____% or less
	 	 	0	%	 	 	50	%	 	 	55	%	 	 	60	%	 	 	65	%	 	 	70	%	 	 	75	%	 	 	80	%	 	 	85	%	 	 	90	%	 	 	95	%Exhibit 10.1

 

EXHIBIT 10.1

 

September 28, 2007

Mr. Pierre Rougeau

394 Lakeshore Rd

Beaconsfield, Quebec

H9W 4H9

Re: Offer letter

Dear Pierre,

We are pleased to offer you the position of Senior Vice President North American Newsprint
Business, in the new AbitibiBowater, Inc. The following are details as agreed upon on this date:

Location:     Montreal, Quebec, Canada

Effective Date:

The offer is contingent on conclusion of the Merger and will be effective at such date.

Compensation:

Your annual base salary, effective the date of the merger, will be US$450,000. You will be
eligible to participate in a short-term incentive plan with a target level of 70% of your base
salary. In addition, you will receive a signing bonus of US$50,000, to be paid as soon as
practical following the closing.

We will request that the Human Resources and Compensation Committee (HRCC) of the new company, at
its first meeting, approve base compensation and incentive targets for the new executive team and
approve several compensation redesigns. We anticipate closing the 2007 Annual Incentive Plan
effective with the merger and will substitute a new plan for the remainder of 2007 and all of
2008, emphasizing achievement of synergies.

Additionally, for executives at your level, we will request an equity award tied to synergy
achievement. We anticipate continuing annual equity grants of similar value as you currently
receive and a target level of ownership of common shares may be required. Previous equity awards
will roll-over into the New Company and will be paid according to the initial payout schedule.

You will also be eligible for a perquisite allowance of US$12,000 per year as well as a complete
annual medical examination.

	 	 	 
	 
	 	 
	Offer
Letters — ACI in Mtl P Rougeau 2

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Other benefits:

Subject to the approval of the new HRCC, you will be covered by an employment agreement and a
new Change in Control (CIC) agreement.

You will maintain your current participation in various benefit plans such as pension, group
insurance and vacation. However, following the merger, the new company intends to harmonize
certain benefits offered to salaried employees, including senior executives, which may lead to
changes in the current benefits. You will be informed about any changes at the appropriate
time.

We are excited about the prospects of the combination of the two companies and look forward to
having you join us on the leadership team. It will be a challenge.

Please acknowledge receipt of this offer letter and agreement with its terms by signing the two
originals and returning one copy to Viateur Camiré on or before October 3, 2007.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ John W. Weaver
 

John W. Weaver

	 	 
	 	/s/ David J. Paterson
 

David J. Paterson
	 	 
	Executive Chairman

	 	 	 	President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	I accept this offer:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Pierre Rougeau
 

	 	 
	 	OCT, 4, 2007
 

	 	 
	Pierre Rougeau

	 	 	 	Date	 	 

	 	 	 
	 
	 	 
	Offer
Letters  —  ACI in Mtl P Rougeau 2

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