Document:

exhibit10_2.htm

Exhibit 10.2

2011 Brunswick Performance Plan (BPP)

Summary Terms and Conditions

	
Purpose

	
Reward achievement of annual goals

 

	
Eligibility

	
Key managers identified on an individual basis.

 

	
Performance Period

	
2011 fiscal year.

 

	
Performance Measures

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

 

▪ For Corporate-level employees,

ü 25% based on Earnings Per Share (EPS),

ü 25% based on overall Brunswick Free Cash Flow (“FCF”),

ü 12.5% based on Mercury Marine Earnings Before Interest and Taxes (EBIT),

ü 12.5% based on Boat Group EBIT, weighted 80% BBG (excl. Hatteras & Sealine), 10% Hatteras, and 10% Sealine

ü 12.5% based on Life Fitness EBIT, and

ü 12.5% based on Bowling & Billiards EBIT

 

▪ For Division leaders,

ü 25% based on EPS,

ü 25% based on overall Brunswick FCF, and

ü 50% based on applicable division EBIT

 

FCF is defined as cash flow from operating and investing activities excluding the impacts related to changes in investment balances and purchases of marketable securities.

 

FCF, EPS and EBIT results for the year will be adjusted for:

· Restructuring 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.

 

Payments will be capped at 200% of target payout.

 

	
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 funding to Human Resources and Compensation Committee as appropriate; and

§ Human Resources and Compensation Committee will review and approve funding 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 percent of salary and covered salary (actual paid for year).

 

Individuals must be employed at the end of the performance period to receive an award.  Those terminating due to death, permanent and total disability 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 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 2012, after financial results are confirmed and appropriate approvals are obtained; provided, however, that any such award shall be paid no later than March 15, 2012.  Payment may be made in cash, shares of Brunswick common stock, or in a combination of cash or stock, as determined by the 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 Committee.

 

	
Additional Terms & Conditions

	
Payment of any bonus is in the sole discretion of the Human Resources and Compensation Committee.  The Committee may modify, revise, discontinue, cancel or terminate this plan or any payments associated with this plan at any time, without notice.exhibit10_3.htm

Exhibit 10.3

2011 Stock-Settled Stock Appreciation Right Grant Terms and Conditions

Pursuant to the Brunswick Corporation 2003 Stock Incentive Plan (the “Plan”)

	
Purpose

	
To promote Brunswick’s long term financial interests and growth.

 

	
Stock-Settled Stock Appreciation Right

 

	
The right to receive a payment in Brunswick Stock (as defined in the Plan) equal to the excess of the Stock’s Fair Market Value (as defined in the Plan) at exercise over the exercise prices as established on the date of grant attributable to the number of underlying Stock-Settled Stock Appreciation Rights (“Stock-Settled SARs”) granted.

 

By exercising Stock-Settled SARs, you agree to the terms and conditions of the grant.

 

	
Exercise Price

	
$ Closing price as reported on the New York Stock Exchange Composite Transactions Tape on the date of grant.

 

	
Vesting

	
Stock-Settled SARs vest and become exercisable upon the earliest of:

§ One-fourth of the Stock-Settled SARs granted on each of the first, second, third, and fourth anniversaries of the date of grant, so long as employment by Brunswick or its designated affiliates continues on each such anniversary date;

§ 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 date of grant and (ii) the date on which age plus years of service equals 70 or more or age is 62 or more, vesting will continue on the normal vesting schedule described immediately above;

§ In the case of a termination of employment (other than for cause or due to death or permanent disability) (i) prior to the first anniversary of the date of grant 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 vest on each anniversary of the date of grant pursuant to the normal vesting schedule described above.  For purposes of the foregoing sentence, a “pro-rata portion” will mean the product of (x) the number of shares underlying the Stock-Settled SAR award that would have vested on the applicable anniversary of the date of grant pursuant to the normal vesting schedule and (y) a fraction, the numerator of which is the number of days that have elapsed since the date of grant through the date of termination of the recipient’s employment, and the denominator of which is 365.  All remaining shares will be forfeited;

§ Termination due to death or permanent disability; or,

§ A Change in Control (as defined in the Plan).

 

	
Grant Term

	
Vested Stock-Settled SARs will remain exercisable as follows:

§ Until the termination of employment, if involuntarily terminated for cause, or

§ Based on eligibility as of the last day employed, the latest of the following:

· 30 days after voluntary termination;

· One year after involuntary termination without cause (for example, reductions-in-force or reorganization), or if your employer ceases to be a Subsidiary (as defined in the Plan) of Brunswick, unless the Committee (as defined in the Plan) provides otherwise;

· Two years after termination following a Change in Control (as defined in the Plan);

· Five years after termination due to death or permanent disability (as defined below); or

· Five years after termination of employment  (other than for cause or due to death or permanent disability), provided that such termination occurs on or after the date on which your age plus years of service equals 70 or more or your age is 62 or more,

§ But, in no event may your Stock-Settled SAR be exercised later than ten years from the date of grant.

 

	
Exercise Settlement-Payment / Tax Withholding

	
On exercise, the number of shares of Brunswick Stock delivered will be determined as follows:

 

§ The difference between the Fair Market Value on date of exercise and the per share exercise price will be determined.

§ This difference will be multiplied by the number of Stock-Settled SARs being exercised to determine the total dollar gain.

§ The total dollar gain will be divided by the Fair Market Value on date of exercise.

 

Should you elect to have the required tax withholding satisfied by delivery of shares, then the ultimate Stock delivered will be reduced by an amount necessary to accommodate the required tax withholding.

 

Tax withholding liability (to meet required FICA, federal, state, and local withholding) can be paid in any combination of the following:

 

§ Reduction in shares delivered to accommodate the required minimum tax withholding, or

§ Cash or check

 

	
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 will govern.  The Committee 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.

 

The rule of 70/age 62 provisions do not apply for grants made to residents of the European Union.

 

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.

 

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.exhibit10_4.htm

 

Exhibit 10.4

2011 Stock-Settled Restricted Stock Unit Grant Terms and Conditions

Pursuant to the Brunswick Corporation 2003 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 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.

 

	
Vesting

	
Restricted stock units will vest and be distributed the earlier of:

§ Three years from date of grant, 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 date of grant 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 distributed three years from date of grant;

§ In the case of a termination of employment (other than for cause or due to death or permanent disability) (i) prior to the first anniversary of the date of grant 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 distributed three years from date of grant.  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 the date 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;

§ On 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, 2013, all of the award will be distributed three years from the date of grant; 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 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 (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, but no later than 2-1⁄2 months after the distribution date provided above (and, in no event later than March 15, 2014), except that in the case of any “specified employee” (as such term is defined under Code Section 409A) who (i) could meet the Rule of 70 or will reach age 62, in either case prior to January 1, 2013, and (ii) experiences a separation from service, the distribution will not be made before 6 months after separation from service (or, if earlier, death, termination due to permanent disability or three years from date of grant).

 

	
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 existing Dividend Reinvestment Plan account or, if one is not currently on record, deposited into a newly created account.  Stock certificates will be issued on request.

 

	
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, 2012, permanent disability means that the recipient is “disabled” within the meaning of Treasury Regulation §1.409A-3(i)(4).

 

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.

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