Document:

exv10w8

 

EXHIBIT 10.8

	 	 	 
	[ACCO WORLD Logo]

	 	ACCO WORLD CORPORATION
	

	 	300 Tower Parkway
	

	 	Lincolnshire, IL 60069-3640
	

	 	Tel 847.541.9500
	

	 	Fax 847.478.0068

September 8, 1999

	 	 	 
	TO:

	 	Neal Fenwick
	 
	 	 
	FROM:

	 	Simon Nash
	 
	 	 
	Cc:

	 	Bruce Gescheider, Jo Ann Hirsimaki
	 
	 	 
	SUBJECT:

	 	Details of Employment Offer

Neal,

We are pleased to confirm our offer to you of an international secondment to ACCO World as Vice
President, Finance and Administration reporting to Bruce Gescheider, effective on or around October
18, 1999. The initial period of this assignment will be for four years, subject to review
thereafter.

This position involves relocation to the United States. Your place of work will be Lincolnshire,
Illinois. Your previous employment with ACCO Europe, which commenced on October 1, 1984, will be
treated as unbroken service with this employment.

Following are the provisions of our offer:

Base Salary
– In recognition of the increased responsibility level of your new role, your
base salary will be $8,333.33 paid semi-monthly, which equates to $200,000 annually (before
deduction of your UK pension contribution). Your base salary will be reviewed effective April 1,
2000, and each April 1st thereafter.

Leadership Incentive
Plan – You will participate in the ACCO World Leadership Incentive
Plan at a targeted level of 40% of annual base salary which will be payable for achievement of
results. For 1999, your incentive will be prorated based on the ACCO Europe targets that have been
agreed for the portion of the year you spent in the UK plus the ACCO World targets agreed for the
remainder of the year.

 

 

ACCO World LTIP – You will continue to participate in the ACCO World Long Term Incentive
Plan, however, pay-out (if any) for all current plans will be prorated between previously offered
units and 150 units effective October 18, 1999. Your units will be increased to 150 for the 2000 -
2002 plan, and allocation will be dependent upon performance for future three-year plans.

Fortune Brands Long Term Incentive (Stock Options) – You will continue to be eligible for
grants of Fortune Brands, Inc. Stock Options. Based upon the current method of allocation we
expect your future allocation of options to be in the range of 7,000 to 10,000.

Benefits -

Welfare Plans - You will be eligible to participate immediately in U.S./Lincolnshire based welfare
benefits, including medical, dental, life insurance, and short term disability. Full plan
descriptions will be available upon your arrival.

Qualified Plans - During your assignment, you will be excluded from participation in ACCO’s U.S.
tax qualified retirement plans, including pension, 401(k), and profit sharing. Your coverage under
the ACCO Europe Pension and Life Assurance Scheme will continue uninterrupted while you are
seconded to the U.S. Your notional salary will begin as £127,800 plus actual paid MIP. This
notional salary is based on market information for your new job size from the UK Hay Board Room
Survey for Foreign Owned Companies. We will continue to benchmark your notional salary each year
from this executive level survey.

Executive Benefits - You will participate immediately in the ACCO World Executive Benefits program
which provides the following:

	 	•  	Executive Life Insurance – A variable life insurance product that provides a death
benefit of one times your base salary plus your targeted short term incentive. Several
voluntary options are also available through this product, which will be explained to
you by a licensed broker when you arrive.
	 
	 	•  	Executive Long Term Disability – This program provides a tax-free monthly disability
benefit equal to 60% of your monthly base salary plus 1/12 of your targeted incentive,
in the event you become totally and permanently disabled from performing your job
duties.
	 
	 	•  	Executive Auto Policy – This program provides a three year interest free loan with
which to purchase an automobile.
	 
	 	•  	Executive Vacation Policy – This program will allow you to bank up to 10 days per
year of unused vacation for pay-out at a later date. (Vacation entitlement – Due to
your previous service with ACCO, you will be entitled to 5 weeks paid annual leave plus
normal statutory and personal days.)

 

 

	 	•  	Executive Tax Preparation Reimbursement – Since your tax preparation will be handled
by Price Waterhouse Coopers, in lieu of this program, you will be reimbursed up to
$2,500 for estate planning and will preparation by the attorney of your choice.

Tax Consultants – Price Waterhouse Coopers will coordinate your personal tax issues arising
from your relocation to U.S. and your annual tax return preparation thereafter. Your contact in the
U.S. will be Mr. Jim Muth at 973-236-4228. Your contact in the UK will be Mr. Richard Wallace at
0171 804 1975. Please make an appointment to discuss your personal tax situation with Mr. Wallace
prior to your move from the UK.

Relocation Provisions – You will be provided with the standard relocation program which
covers fees associated with home sale and purchase, solicitor fees, up to three points on mortgage,
temporary living expenses, shipment of household goods (including antiques, wine collection and
birds, as discussed), and temporary storage of household goods if necessary. Please note that
temporary living expenses will be extended beyond 60 days in the event you are unable to close on a
home in the U.S. in this timeframe.

You and your family will also be provided one trip home per each twelve months (business class
fare). ACCO asks, however, that you schedule a portion of your home leave around a business trip,
if possible.

In addition, the following one-time payments will apply:

Mobility Premium - You will receive a Mobility Premium equal to 10% of your base salary upon
arrival in the U.S. This will be paid in one lump sum and is subject to taxation.

Relocation Allowance - You will receive a lump sum payment equal to $20,000 (grossed up for taxes).

Spousal Assistance - You will receive a lump sum payment equal to $2,500 to compensate for Tina’s
temporary disruption in employment.

Vehicle Disposal - You will receive reimbursement of up to $2,500 for the difference between the
“book value” and forced sale price of your personal vehicle. In order to receive payment, please
furnish a copy of receipt of sale and the “book value” documentation.

Electrical Allowance - We will reimburse up to $2,500 for the expense associated with electrical
replacement or conversion of your appliances. In order to receive reimbursement, please furnish
receipts.

 

 

Educational Assistance - During your initial four years, ACCO will support the cost of annual
tuition for Jennifer and Lawrence at the Lake Forest Country Day School. Invoicing for this
expense should be coordinated through Jo Ann. This expense will be grossed up (if necessary) to
cover any personal tax liability.

In addition, in the event the transaction of the sale of your home has not been completed in time
for you to close on your home purchase in Illinois, ACCO will provide an interest free bridge loan
up to the amount of equity in your current home and meet your short term duplicate UK mortgage
interest cost. If this becomes necessary, we will need to be provided with documentation detailing
the equity portion. Should your transaction fail to close before you move to the U.S. you may take
advantage of the Rowan home purchase program being offered to relocating ACCO Europe teammates.

Cultural Training – Prior to taking up your assignment you will be provided with a cultural
training seminar to help prepare you for living and doing business in the U.S.

Notice Period – Although the terms of your UK employment contract will not apply to your
employment in the U.S., the notice period contained in your current contract both to and from ACCO
shall be deemed to apply for up to four years from your U.S. start date.

Change in Control – If, following this event, your employment is terminated during your
initial assignment period (4 years) or within twelve months of Change in Control date, whichever is
later, you will be eligible for a minimum severance benefit equal to twelve months worth of base
salary, paid in one lump sum. (Please note that this particular benefit is non-inclusive of your
notice period referenced above). This change of control provision will apply to a change in
control of either ACCO or Fortune Brands Inc.

Repatriation – If your employment is terminated by ACCO during the initial period of this
assignment, you and your family will be repatriated at ACCO’s expense (effectively the reverse of
the relocation process except that the educational assistance will not apply).

If due to personal circumstances you resign during your secondment, ACCO will repatriate you and
your family as described above subject to the following:

	-   	You complete a reasonable period of notice to enable replacement of you
position.
	 
	-   	You accept and understand that if there is no suitable alternative position in the U.K. that this will bring your
employment with ACCO to an end and there will be no compensation or termination payments due from the company.
	 
	-   	Relocation cost repayment will apply as described below.

 

 

Relocation cost repayment

If within the first 24 months of your secondment you decide to leave ACCO and take up employment
with a non Fortune Brands company or if you return to the U.K. permanently at your request during
the first 24 Months of your secondment, you will be required to refund the following amounts of
your relocation expenses to ACCO:

	 	 	 	 	 	 
	 	Month 1-12
	 	 	100%	 
	 	Month 13-18
	 	 	  75%	 
	 	Month 19-24
	 	 	  50%	 
	 	Month 25+
	 	 	    0%	 
	 

Refundable relocation expenses include all costs paid by the Company except Rowan fees (if used),
funding costs (bridging loan) and relocation allowance.

Neal, we are looking forward to your joining the ACCO World staff in Lincolnshire and are confident
you will be able to make an immediate positive impact.

Please indicate your acceptance of the terms of this memo by signing below.

Regards,

	 	 	 
	/s/ Simon Nash

	 	 
	 	 	 

	 	 	 
	 

	 	/s/ Neal V. Fenwick
	 	 	 
	

	 	Signature: Neal V. Fenwickexv10w9

 

Exhibit 10.9

ACCO EXECUTIVE SEVERANCE PLAN

AND SUMMARY PLAN DESCRIPTION

(As Amended and Restated Effective October 1, 2002)

ACCO BRANDS, INC. (the “Company”) established the ACCO Executive Severance Plan effective as of
September 1, 2000 (the “Plan”). The Plan was previously amended and is further amended and
restated in its entirety effective as of October 1, 2002. The Plan is intended to provide
severance benefits to certain executive employees of the Company, ACCO World Corporation, Boone
International, Inc. and Day-Timers, Inc. (referred to collectively as the “Employers” and
individually as an “Employer”). This Plan supersedes any other severance plan maintained by the
Employers for executive employees.

SEVERANCE PLAN BENEFITS:

Coverage

All domestic (U.S.) full-time salaried employees of the Employer in salary grade 9 or above and who
are terminated under the circumstances described in A, B or C below are covered by the Plan.

Eligibility

Employees in salary grade 9 or above are eligible for the severance pay set forth in the Plan in
the event of:

	A.  	Involuntary separation from employment from the Employer for any reason other than
resignation, retirement, death, disability, or cause; provided the employee remains employed
until the date designated by the Employer as his or her termination date. The term “cause”
includes but is not limited to misconduct, negligence, dishonesty, criminal act, excessive
absenteeism, and willful failure to perform job responsibilities and other conduct determined
by the Employer to be “cause”.
	 
	B.  	Voluntary separation from employment if, as a result of corporate restructuring, an
employee’s job location has been relocated more than 35 miles from the employee’s former job
location.
	 
	C.  	Voluntary separation from employment due to a demotion of two or more salary grades or a
decrease in salary of 25% or more. An employee will not be eligible for severance pay if he
or she accepts the demotion or decrease in pay.

An employee is not eligible for severance pay if (i) the employee is offered a comparable position
(as reasonably determined by the Employer) with the Employer, an affiliate of the Employer, or a
successor employer as a result of a reorganization of the Employer or the sale of stock or assets
of the Employer, and (ii) such position is located within a 35 mile radius of the employee’s former
job location.

 

 

In addition, if an employee is offered and accepts another position with the Employer or any
affiliate or business unit of Fortune Brands, Inc. prior to commencement of severance pay benefits,
no severance pay will be provided.

Employees who terminate employment with an Employer under the circumstances described in A, B or C
above may not be rehired by an Employer during the Severance Period. The term “Severance Period”
means a period that begins on the employee’s date of termination and is equal to the number of
weeks or months of severance pay that an employee is eligible to receive. In limited
circumstances, the Vice President of Human Resources of ACCO Brands, Inc. may allow an exception to
the restriction on rehiring by an Employer during the Severance Period. If an employee is rehired
by the Employer or any affiliate or business unit of Fortune Brands, Inc. after severance pay
benefits have been paid but during the Severance Period, the employee must repay a portion of the
severance pay previously received. Such portion will be determined by multiplying the total
severance benefits paid by a fraction, the numerator of which is the number of weeks remaining in
the Severance Period as of the employee’s rehire date, and the denominator of which is the number
of weeks in the entire Severance Period.

Amount of Severance Pay – General

The amount of severance pay provided for terminations in the ordinary course (i.e., not following a
Change of Control) will be calculated by the following schedule:

	 	 	 
	Salary Grade	 	Amount of Severance
	18 – 19

	 	24 months of base salary

plus two years of bonus
	 
	 	 
	14 – 17

	 	18 months of base salary

plus one year of bonus
	 
	 	 
	9 – 13

	 	12 months of base salary

plus one year of bonus

For purposes of the above schedule, “base salary” shall be determined as of the date of the
employee’s termination of employment and “bonus” shall be based on target bonus for the year of the
employee’s termination.

Amount of Severance Pay – Change of Control

If any employee’s employment is terminated within 18 months following a Change of Control of the
Employer, the General schedule regarding severance pay (above) will not apply and severance pay
will be determined under this Change of Control Section. “Change of Control” means a Change of
Control as defined in Attachment A to the Plan.

	A.  	Payment of severance pay under this Section will be provided if employment terminates under
the conditions described in paragraphs A or B under Eligibility above and the

2

 

	   	employee’s termination follows a Change of Control. In addition, severance pay under this
Section will be provided if an employee is demoted to a lower salary grade level following a
Change of Control.
	 
	B.  	Eligibility for the severance pay provided under this Section upon a Change of Control
applies only to terminations of employment or demotions that occur within a period ending 18
months following the Change of Control of the Employer. After that 18-month period, this
Section will not apply.
	 
	C.  	The amount of severance pay provided for terminations following a Change of Control will be
calculated based on the following schedule:

	 	 	 
	Salary Grade 	 	Amount of Severance
	18 – 19

	 	36 months of base salary

plus three years of bonus
	 
	 	 
	14 – 17

	 	24 months of base salary

plus one year of bonus
	 
	 	 
	9 – 13

	 	18 months of base salary

plus one year of bonus

For purposes of the above schedule, “base salary” shall be determined as of the date of the
employee’s termination of employment and “bonus” shall be based on the greater of (i) target bonus
for the year of the employee’s termination, or (ii) the bonus that would be paid using the
Employer’s most recent financial performance outlook report that is available as of the employee’s
termination date.

Payment of Severance

Eligible separated employees will receive payment of severance in a single lump sum payment as soon
as administratively practicable. Payment is subject to normal payroll taxes and required
withholding, and deductions for applicable medical, dental and flexible spending account coverage,
and may be reduced by any amounts the employee owes the Employer. If an employee dies after
signing the separation letter and release and waiver of claims but before receipt of severance pay,
payment will be made to the employee’s estate.

Benefit Coverage

Medical, dental and flexible spending account coverage will cease as of the last day of the month
in which employment ends. Medical, dental and health care spending account coverage may then be
continued pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) for the
Severance Period on the same terms and conditions and at the same contribution rates that apply to
employees. Thereafter, such coverage will be at the standard COBRA rates. Severance payments will
not be considered as pensionable earnings, and the period of time that severance payments are made
will not count toward credited service and

3

 

vesting service under the Employer’s pension plans. Payments under the Plan are not eligible for
contributions to the Employer’s 401(k) plan. All other employee benefit plans terminate on the
separated employee’s last day of work.

If during the Severance Period a former employee accepts employment with a new employer, any
medical and dental benefits provided under the Employer’s plans at the employee contribution rates
pursuant to the preceding paragraph will be discontinued when the former employee is eligible for
coverage under the new employer’s plans. Coverage may be continued at standard COBRA rates only in
accordance with the COBRA provisions of the Employer’s medical and dental plans. A former employee
must notify the Human Resources Department in writing when he or she obtains coverage under a new
employer’s plans.

Vacation

Employees will receive pay for all unused and accrued vacation for the year of termination as a
part of their final regular pay. Payment will be made in conformance with prevailing state laws.

Other Company Payments

Notwithstanding any provision of this Plan to the contrary, the severance pay under this Plan shall
be reduced by the severance benefits then payable to an employee under any other agreement,
understanding, plan, policy, program or arrangement of the Employer or a subsidiary or affiliate of
the Employer.

Employee Release

In no event will an employee be eligible for severance payment under this Plan until the employee
signs a separation letter along with a release and waiver of claims in the form proposed by the
Employer.

Administration

This Plan is administered by the Company (the “Plan Administrator”). The Plan Administrator may
designate persons to carry out its responsibilities under this Plan. The Plan Administrator
reserves absolute discretionary authority to determine all matters arising in connection with the
administration, interpretation and application of this Severance Plan, including all questions of
coverage, facts, eligibility and methods of providing and arranging for any benefits. Benefits
will be paid under this Plan only if the Plan Administrator decides in its discretion that an
individual is entitled to them.

4

 

Amendment and Termination

The statements contained in this Plan are not intended to create nor are they to be construed to
constitute conditions of employment or a contract of employment between the Employer and any
employee. Except as provided in the following sentence, the Company reserves the right to modify,
suspend or terminate the Plan or the benefits provided at any time without prior notice to
employees. Solely with respect to the provisions under “Amount of Severance Pay – Change of
Control”, no amendment of such provisions will be effective until 18 months following the date a
notice of such amendment is provided to employees of the Company.

Benefit Claim Process

The Employer will notify eligible employees of any amounts of severance benefits payable under this
Plan. If an employee does not receive severance pay benefits within 60 days of his or her date of
termination, he or she may assume that the Plan Administrator has determined that such employee is
not eligible for severance pay benefits. If any employee believes that he or she has been denied
severance pay benefits to which he or she may be entitled, the employee should submit a written
claim for severance pay benefits to the Director, Compensation, Benefits and HRIS of the Company.
The Director, Compensation, Benefits and HRIS of the Company has the full discretion of the Plan
Administrator in deciding claims for benefits.

The Director, Compensation, Benefits and HRIS of the Company will notify the employee of any claim
for severance pay that is denied, in whole or in part, within 90 days of the date the claim is
received (unless special circumstances required additional time for processing the claim). The
notice will contain:

	 	•  	the specific reason(s) why the claim was denied;
	 
	 	•  	the specific Plan provision(s) on which the denial was based;
	 
	 	•  	a description of additional information required by the Company and the reasons why
such information is needed;
	 
	 	•  	the procedure for review of the denial.

Benefit Claim Appeal Process

If a claim is denied, the employee and/or his or her authorized representative may file a written
appeal to the Salary Committee of the Company within 60 days of the date the notice of denial is
received. The employee and/or his or her authorized representative may review Plan documents and
other documents that affect the claim. The request for a review should state the reason(s) why the
employee feels the claim was improperly denied. Additional data, questions or comments should also
be submitted.

The Salary Committee will render a decision on the appeal within 60 days after receipt of a request
for review unless special circumstances require an extension of time for review, in which case the
time limit will not be later than 120 days after receipt. The decision will be in writing, will
include the specific reasons for the decision and specific references to the pertinent Plan
provisions on which the decision is based.

5

 

OTHER TERMS

No Vesting

Neither the use of service time in calculating severance nor any other provision of this Plan shall
be construed as giving rise to or granting any vested right to receive severance benefits.

Merger/Acquisition

For purposes of this Plan, in no event does merger or acquisition of the Employer, or the purchase
of a portion of the Employer, by or with another company constitute termination of employment with
the Employer when employment continues with the merged, acquiring or purchasing company.

GENERAL INFORMATION

	 	 	 
	Plan Sponsor and Plan Administrator:

	 	ACCO Brands, Inc.
	

	 	300 Tower Parkway
	

	 	Lincolnshire, IL 60069
	

	 	(847) 541-9500

Funding

Severance pay provided under this Plan is payable solely from the general assets of the Employer.

6

 

ATTACHMENT A

A “Change of Control” of the Employer shall be deemed to have occurred if (i) any person (as that
term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), as in effect on February 28, 2000) other than Fortune Brands, Inc. (“Fortune”) or
an entity controlled by Fortune is or becomes the beneficial owner (as that term is used in Section
13(d) of the Exchange Act, and the rules and regulations promulgated thereunder, as in effect on
February 28, 2000) of 20% or more of the combined voting power of the outstanding voting securities
entitled to vote generally in the election of directors (“Voting Securities”) of the Employer, and
Fortune Brands, Inc. ceases to own at least 60% directly or indirectly of the Voting Securities,
excluding, however (A) any acquisition by an employee benefit plan (or related trust) sponsored or
maintained by Fortune or an entity (including the Employer) controlled by Fortune, or (B) any
acquisition by an entity controlled by Fortune; (ii) the Employer shall be merged or consolidated
with, or, in any transaction or series of transactions, substantially all of the business or assets
of the Employer shall be sold or otherwise acquired by, another corporation or entity unless, as a
result thereof, Fortune shall beneficially own, directly or indirectly, at least 60% of the
combined Voting Securities of the surviving, resulting or transferee corporation or entity
(including without limitation, a corporation that as a result of such transaction owns the Employer
or all or substantially all of the Employer’s assets either directly or through one or more
subsidiaries); or (iii) the approval of a complete liquidation or dissolution of the Employer by
its stockholder(s).

7

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