Document:

Ex101_CEO_21418

		

			Exhibit 10.1

		

		
			February 11, 2018
		

		
			﻿
		

		
			﻿
		

		
			Brian R. Niccol
		

		
			﻿
		

		
			﻿
		

		
			Dear Brian:
		

		
			We are pleased to offer you employment with Chipotle Mexican Grill, Inc. (the “Company”) on the terms and subject to the conditions set forth below.
		

		
			Start Date
		

		
			You shall commence employment with the Company on March 5, 2018 (the “Start Date”).  It is expected that you will engage in a total review of the operations and strategy of the Company immediately following your commencement of employment with the Company.
		

		
			Position; Reporting
		

		
			Effective as of the Start Date, you shall be appointed to serve as Chief Executive Officer of the Company, reporting to the Board of Directors of the Company (the “Board”).  In addition, you shall be appointed to the Board effective as of the Start Date.
		

		
			Base Salary
		

		
			Your base salary shall be at an annual rate of $1,200,000 (“Base Salary”), payable in accordance with the Company’s payroll practices as in effect from time to time.
		

		
			Annual Bonus
		

		
			For the Company’s 2018 fiscal year, you shall be eligible to participate in the Company’s Annual Incentive Plan (the “AIP”) based on performance objectives established by the Compensation Committee of the Board (the “Committee”), with a target bonus opportunity of 150% of Base Salary (“2018 Target Bonus”), which shall be guaranteed for 2018 (without proration), and a maximum bonus opportunity of 225% of Base Salary.  Payment of your annual bonus for the 2018 fiscal year is subject to your continued employment through the date on which AIP bonuses are paid to senior executives of the Company generally.  Any payment under the AIP for the 2018 fiscal year in excess of the 2018 Target Bonus shall be payable in the discretion of the Committee and may be paid in the form of cash or equity awards, at the discretion of the Committee.
		

		
			For the Company’s fiscal years following 2018, you shall be eligible to participate in the AIP based on performance objectives and bonus opportunities established by the Committee with your input.
		

		

		

		 

		

			

		

		

			 

		

 

		

			 

		

		Long-Term Incentive Compensation
		

		
			2018 Annual Grants
		

		
			On the later of (1) the Start Date and (2) the date on which 2018 annual equity awards are granted to senior executives of the Company generally, you shall be granted (a) an award of performance shares having an aggregate grant date fair market value (as determined by the Committee in accordance with its customary valuation methodology for performance share awards) based on target performance equal to $3,000,000 (the “2018 Performance Share Award”); and (b) a stock-only stock appreciation rights (“SOSAR”) award (the “2018 SOSAR Award”) having an aggregate grant date fair value (as determined by the Committee in accordance with its customary Black-Scholes valuation methodology for SOSARs) of $2,000,000 and an exercise price equal to the Fair Market Value (as defined in the Company’s 2011 Stock Incentive Plan (the “Equity Plan”)) of a share of the Company’s common stock (“Common Stock”) on the date of grant.  The 2018 SOSAR Award and the 2018 Performance Share Award shall have the same terms and conditions as applicable to SOSAR awards and performance share awards, respectively, granted to senior executives of the Company generally in 2018;  provided,  however, that, if your employment is terminated prior to full vesting of the 2018 SOSAR Award either by the Company without Cause (as defined in the Equity Plan) or by you with Good Reason (as defined in the Equity Plan), then the unvested portion of the 2018 SOSAR Award shall fully vest as of the date of such termination of employment.
		

		
			Inducement Grant
		

		
			On or as soon as practicable following the Start Date,  you shall be granted a SOSAR award (the “Inducement Award”) having an aggregate grant date fair value (as determined by the Committee in accordance with its customary Black-Scholes valuation methodology for SOSARs) of $4,000,000 and an exercise price equal to 125% of the Fair Market Value of a share of Common Stock on the date of grant.  The Inducement Award shall (1) vest in three equal installments on each of the first three anniversaries of the date of grant, subject to your continued employment through each applicable vesting date,  (2) notwithstanding clause (1), shall fully vest (to the extent unvested) as of the date of your termination of employment if your employment is terminated prior to full vesting either by the Company without Cause or by you with Good Reason, (3) have a maximum term of seven years, and (4) otherwise have terms and conditions (excluding vesting terms and conditions) consistent with SOSAR awards granted to senior executives of the Company generally.
		

		
			Make-Whole Awards
		

		
			SOSAR Award
		

		
			On or about the Start Date,  you shall be granted a SOSAR award (the “Make-Whole SOSAR Award”) having an aggregate grant date fair value (as determined by the Committee in accordance with its customary Black-Scholes valuation methodology for SOSARs) of $9,650,000 and an exercise price of 110% of the Fair Market Value of a share of Common Stock on the date of grant.  The Make-Whole SOSAR Award shall (1) vest in three equal installments on each of the first three anniversaries of the date of grant, subject to your continued 
		

		 

		

			-2-

		

 

		

			 

		

		employment through each applicable vesting date,  (2) notwithstanding clause (1), shall fully vest (to the extent unvested) as of the date of your termination of employment if your employment is terminated prior to full vesting either by the Company without Cause or by you with Good Reason, (3) have a maximum term of seven years, and (4) otherwise have terms and conditions (excluding vesting terms and conditions) consistent with SOSAR awards granted to senior executives of the Company generally.
		

		
			RSU Award
		

		
			On or as soon as practicable following the Start Date,  you shall be granted an award of restricted stock units (the “Make-Whole RSU Award”) having an aggregate grant date fair market value (as determined by the Committee in accordance with its customary valuation methodology for restricted stock unit awards) of $9,650,000.  The Make-Whole RSU Award shall (1) vest in three equal installments on each of the first three anniversaries of the date of grant, subject to your continued employment through each applicable vesting date, (2) notwithstanding clause (1), shall fully vest as of the date of your termination of employment if your employment is terminated prior to full vesting either by the Company without Cause or by you with Good Reason, and (3) shall otherwise have terms and conditions (excluding vesting terms and conditions) consistent with restricted stock unit awards granted to employees of the Company generally.
		

		
			Employee Benefits
		

		
			You shall be eligible for employee benefits on the terms generally provided by the Company from time to time.
		

		
			Signing Bonus
		

		
			Within 10 business days following the Start Date, the Company shall pay you a cash signing bonus in an amount equal to $1,000,000 (the “Signing Bonus”).  If, prior to the first anniversary of the Start Date, your employment is terminated by the Company with Cause or by you without Good Reason, then you shall repay the Signing Bonus to the Company within 10 business days after such termination of employment.
		

		
			Termination of Employment
		

		
			If, prior to the fifth anniversary of the Start Date, your employment is terminated by the Company without Cause or by you with Good Reason, then, subject to your execution and delivery of a general release of claims in favor of the Company and its affiliates in the Company’s customary form for senior executives (the “Release”) within 45 days following such termination of employment (and your non-revocation of the Release during the time period set forth therein), the Company shall pay you an amount in cash equal to the product of (a) 2.0 and (b) the sum of (i) your then-current Base Salary and (ii) your then-current target bonus opportunity (or, if higher, the amount of the annual bonus paid to you under the AIP for the fiscal year immediately preceding the fiscal year in which such termination of employment occurs) (the “Severance Payment”), which amount shall be paid to you in equal monthly installments during the 24-month period following such termination of employment; provided,  however, that the first such installment shall be paid on the 60th day following the date of such termination of employment and such first installment shall include any portion of the Severance Payment that 
		

		 

		

			-3-

		

 

		

			 

		

		would have otherwise been payable during the period between such date of termination and such payment date.
		

		
			Restrictive Covenants
		

		
			Confidential Information
		

		
			You agree to hold the Confidential Information (as defined below) in the strictest of confidence and further agree that, during your employment and at all times after your termination of employment for any reason, you shall not, in any capacity, directly or indirectly, use, disclose, publish, or make available to any person or entity any Confidential Information, except as may be necessary on behalf of the Company, on a “need to know” basis, in the ordinary course of your employment with the Company.  Notwithstanding the foregoing, the confidentiality obligations under this paragraph shall not apply to any (1) information that is now in the public domain or subsequently enters the public domain by publication or otherwise through no action or fault of yours; or (2) information required to be disclosed by law or by a government agency or necessary to defend or prosecute a claim brought against you.  For purposes of this letter, “Confidential Information” means the Company’s and its affiliates’ trade secrets and other secret or confidential information, knowledge, or data concerning the Company’s and its affiliates’ businesses, strategies, operations, clients, customers, prospects, financial affairs, organizational and personnel matters, policies, procedures, and other nonpublic matters, or concerning those of third parties.
		

		
			Noncompetition
		

		
			You acknowledge that, in the course of your employment with and service to the Company and its affiliates (including their predecessor and any successor entities), you will become familiar with Confidential Information, and that your employment with the Company will be of special, unique, and extraordinary value to the Company and its affiliates.  Therefore, you agree that, during your employment with the Company and for the one-year period commencing on the date on which your employment terminates for any reason, you shall not, directly or indirectly, own, manage, operate, control, be employed by (whether as an employee, director, consultant, independent contractor, or otherwise, and whether or not for compensation), or render services, advice, or assistance in any capacity to, a Competing Business (as defined below) anywhere in the continental United States where the Company or any of its affiliates conducts business.  For purposes of this letter, a “Competing Business” means any person, firm, corporation, or other entity, in whatever form, that operates fast-casual, quick-service, or casual dining restaurants (including, but not limited to, multi-unit, multi-market Mexican food, or burrito restaurant concepts offering dine-in, carry-out, catering, and delivery services).  Nothing herein shall prohibit you from being a passive owner of not more than 1% of the outstanding equity interest in any entity that is publicly traded, so long as you have no active participation in the business of such entity.
		

		
			Nonsolicitation
		

		
			You agree that, during your employment with the Company and for the two-year period commencing on the date on which your employment terminates for any reason, you shall not 
		

		 

		

			-4-

		

 

		

			 

		

		(1) solicit or hire, directly or by assisting others, any individual who is, on the date on which your employment terminates for any reason (or was, during the six-month period prior to such date), employed by the Company or its affiliates to terminate or refrain from renewing or extending such employment or to become employed by or become a consultant to any other individual or entity other than the Company or its affiliates, (2) contact or communicate with any employees of the Company or its affiliates for the purpose of inducing other employees to terminate their employment with the Company or its affiliates, or (3) induce or attempt to induce any supplier, licensee, or other business relation of the Company or its affiliates to cease doing business with the Company or its affiliates, or in any way interfere with the relationship between any such supplier, licensee, or business relation, on the one hand, and the Company or its affiliates, on the other hand.
		

		
			Nondisparagement
		

		
			You shall not at any time make any written or oral statements, representations, or other communications that disparage the business or reputation of the Company or any of its affiliates or any officer, director, employee, stockholder, agent, or representative of, or consultant to, the Company or any of its affiliates, other than to the extent necessary to respond in an appropriate and truthful manner to any legal process or give appropriate and truthful testimony in a legal or regulatory proceeding.  The Company shall instruct its officers and directors not to make any written or oral statements, representations, or other communications that disparage your reputation, other than to the extent necessary to respond in an appropriate and truthful manner to any legal process or give appropriate and truthful testimony in a legal or regulatory proceeding.  Nothing in this paragraph is intended to (1) prevent either party from conferring in confidence with their respective legal representatives, or (2) prevent either party from responding publicly to incorrect, disparaging, or derogatory public statements to the extent reasonably necessary to correct or refute such statements.
		

		
			Remedies
		

		
			You acknowledge and agree that:  (1) the purpose of the restrictive covenants set forth herein is to protect the goodwill and trade secrets and other Confidential Information of the Company; and (2) because of the nature of the business in which the Company and its affiliates are engaged and because of the nature of the trade secrets and other Confidential Information to which you will have access, it would be impractical and excessively difficult to determine the actual damages of the Company if you breached the restrictive covenants set forth herein.  In the event of your breach of this section, the Company shall be entitled to cease payment of the Severance Payment (if any).  In addition to the foregoing remedies and other remedies that may be available, the Company shall be entitled to seek specific performance and other injunctive relief.  If any portion of the covenants set forth in this section is finally held to be invalid, illegal, or unenforceable (whether in whole or in part), such covenant shall be deemed modified to the extent, but only to the extent, of such invalidity, illegality, or unenforceability and the remaining covenants shall not be affected thereby.  In the event of any dispute between the parties regarding the interpretation of terms contained in this letter, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and costs from the other party.
		

		

		

		 

		

			-5-

		

 

		

			 

		

		Whistleblower Rights
		

		
			Nothing set forth in this section is intended to, and this section shall be interpreted in a manner that does not, limit or restrict you from exercising any legally protected whistleblower rights (including pursuant to Rule 21F under the Securities Exchange Act of 1934, as amended).
		

		
			Legal Expenses
		

		
			The Company shall reimburse you for the legal fees and expenses incurred by you in connection with the negotiation of this letter, subject to a maximum aggregate reimbursement of $25,000.
		

		
			Section 409A
		

		
			This letter is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), or an exemption or exclusion therefrom and shall in all respects be administered in accordance with Section 409A of the Code.  Any payments that qualify for the “short-term deferral” exception under Treasury Regulations § 1.409A-1(b)(4), the “separation pay” exception under Treasury Regulations § 1.409A-1(b)(9)(iii), or any other exception under Section 409A of the Code shall be paid under the applicable exceptions to the greatest extent possible.  Each payment under this letter shall be treated as a separate payment for purposes of Section 409A of the Code.
		

		
			With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A of the Code, (1) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (2) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, and (3) such payments shall be made on or before the last day of your taxable year following the taxable year in which the expense was incurred.
		

		
			Notwithstanding any other provision of this letter to the contrary, if you are considered a “specified employee” for purposes of Section 409A of the Code (as determined in accordance with the methodology established by the Company as in effect on the date of your termination of employment), any payment that constitutes “nonqualified deferred compensation” within the meaning of Section 409A of the Code that is otherwise due to you under this letter during the six-month period following your “separation from service” (as determined in accordance with Section 409A of the Code) on account of your separation from service shall be accumulated and paid to you on the first business day of the seventh month following your separation from service (the “Delayed Payment Date”).  If you die during the period between the date on which your employment terminates and the Delayed Payment Date, the amounts and entitlements delayed on account of Section 409A of the Code shall be paid to the personal representative of your estate on the first to occur of the Delayed Payment Date or 30 days after the date of your death.
		

		
			Miscellaneous
		

		
			By accepting this offer, you agree to devote all of your professional time and attention to the duties required by your positions with the Company.  To that end, you represent and warrant to the Company that you are not subject to any obligation, written or oral, containing any 
		

		 

		

			-6-

		

 

		

			 

		

		noncompetition provision or any other restriction (including, without limitation, any confidentiality provision) that would result in any restriction on your ability to accept and perform this or any other position with the Company or any of its affiliates.  Notwithstanding the foregoing, you shall be permitted to serve as a member of the board of directors of other companies and organizations; provided that you have secured permission in writing in advance from the Board.  As of the Start Date, the Board approves your service as a member of the board of directors of Harley Davidson, Inc.  You acknowledge and agree that a breach of the foregoing representation and warranty shall constitute Cause.
		

		
			This letter contains the entire agreement and understanding between you and the Company and its affiliates relating to your employment and there are no other written or oral agreements, understandings, or representations relating to such employment.  Your employment will be “at-will,” and as such, either the Company or you may terminate the employment relationship at any time for any or no reason at all.  This letter does not constitute an employment contract for any specific period of time.  The Company may assign this letter to any parent or direct or indirect subsidiary of the Company, or any successor to all or substantially all of its assets and business by means of liquidation, dissolution, merger, consolidation, transfer of assets, sale of stock, or otherwise.  Your obligations hereunder are personal to you and may not be assigned by you, except by the laws of descent and distribution.  You hereby agree that, if, on the date on which your employment with the Company terminates, you are a member of the Board or the board of directors of any subsidiary or affiliate of the Company, or hold any other position with the Company or its subsidiaries or affiliates, you shall be deemed to have resigned from all such positions effective as of the date of your termination of employment.  You agree to execute such documents and take such other actions as the Company may request to reflect such resignations.
		

		
			This letter may not be amended or modified, except by an instrument in writing signed by you and the Company.  This letter shall be governed by, and construed in accordance with, the laws of the State of Colorado without reference to conflict of law rules.  All benefits hereunder are subject to withholding for applicable income and payroll taxes or otherwise as required by law.
		

		
			The offer of employment contained in this letter is contingent on you (1) executing and delivering this letter to the Company by February 11, 2018, (2) notifying your current employer of your resignation of employment on February 12, 2018, and (3) commencing employment with the Company on the Start Date, and shall be null and void ab initio if any such condition is not satisfied.  This offer is also contingent upon proof of employment eligibility in the United States.  Should you accept this offer, as required by law, we must verify your employment eligibility on a Form I-9.  You will be asked on the first day of your employment to provide documentation that establishes your identity and authorizes you to work in the United States.  You will also be required to present your original Social Security Card for payroll and tax purposes.
		

		
			You and the Committee agree to meet no less than annually to review your compensation.
		

		
			To accept this offer, please sign below and return this letter to my attention.  Please let me know if you have any questions.  Thank you.
		

		
			****
		

		
			﻿
		

		
			 
		

		

		

		 

		

			-7-

		

 

		

			 

		

		Please confirm your agreement to the foregoing by executing this letter as indicated below.
		

		
			Sincerely,
		

		
			﻿
		

		
			CHIPOTLE MEXICAN GRILL, INC.
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			By: _/s/ Steve Ells____________________
		

		
			       Name:  Steve Ells
		

		
			       Title:    Chief Executive Officer
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			Acknowledged and Agreed:
		

		
			﻿
		

		
			﻿
		

		
			_/s/ Brian R. Niccol_______________
		

		
			Brian R. Niccol
		

		 

		

			[Signature Page to Offer Letter]comm-ex1039_17.htm

			
	
 
	
 
	
Exhibit 10.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMSCOPE HOLDING COMPANY, Inc.

Non-Employee DIRECTOR COMPENSATION PLAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amended November 28, 2017

 

 

 

LEGAL02/35874214v3

			
	
 
	
 
	
 

 

COMMSCOPE HOLDING COMPANY, Inc.

Non-Employee DIRECTOR COMPENSATION PLAN

 

ARTICLE 1

PURPOSE

 

1.1.BACKGROUND.  The Plan is considered to be and shall be operated as a subplan of the LTIP.  The Plan was amended September 9, 2015, to, among other things, change the date of the Annual Stock Grant under Article 6, and was further amended on November 28, 2017 to contemplate potential Supplemental Cash Retainers for additional board positions.    

 

1.2.Purpose.  The purpose of the Plan is to attract, retain and compensate highly-qualified individuals who are not employees of the Company or any of its Affiliates for service as members of the Board by providing them with competitive compensation and an equity interest in the Company.  The Company intends that the Plan will benefit the Company and its stockholders by allowing Non-Employee Directors to have a personal financial stake in the Company through an ownership interest in the Company’s Stock and will closely associate the interests of Non-Employee Directors with that of the Company’s stockholders.  

 

1.3.ELIGIBILITY.  Non-Employee Directors of the Company who are Eligible Participants, as defined below, shall automatically be participants in the Plan.

 

ARTICLE 2

DEFINITIONS

 

2.1.DEFINITIONS.  Capitalized terms used herein and not otherwise defined shall have the meanings given such terms in the LTIP.  Unless the context clearly indicates otherwise, the following terms shall have the following meanings:

 

	
 
	
(a)
	
“Annual Meeting Date” means the date on which an annual meeting of the Company’s stockholders is held.

 

	
 
	
(b)
	
“Annual Stock Retainer” means with respect to each Non-Employee Director for each Plan Year, the dollar value to be delivered in the form of annual stock awards under the Plan, as set forth on Schedule I hereto and as may be amended from time to time be the Committee.

 

	
 
	
(c)
	
“Basic Cash Retainer” means the annual cash retainer (excluding any Supplemental Cash Retainer, Meeting Fees (if any) and expenses) payable by the Company to a Non-Employee Director pursuant to Section 5.1 hereof for service as a director of the Company, as set forth on Schedule I hereto and as may be amended from time to time by the Committee.  

 

	
 
	
(d)
	
“Board” means the Board of Directors of the Company.

 

	
 
	
(e)
	
“Committee” means the Compensation Committee of the Board.

 

	
 
	
(f)
	
“Company” means CommScope Holding Company, Inc., a Delaware corporation, or any successor corporation.

 

LEGAL02/35874214v3

			
	
 
	
 
	
 

 

	
 
	
(g)
	
“Effective Date” of the Plan means October 25, 2013. 

 

	
 
	
(h)
	
“Eligible Participant” means any person who is a Non-Employee Director on the Effective Date or becomes a Non-Employee Director while this Plan is in effect. 

 

	
 
	
(i)
	
“Equity Award” means stock options, stock awards, restricted stock, restricted stock units, stock appreciation rights, or other awards based on or derived from the Stock which are authorized under the LTIP for awards to Non-Employee Directors. 

 

	
 
	
(j)
	
“LTIP” means the CommScope Holding Company, Inc. 2013 Long-Term Incentive Plan, and any subsequent equity compensation plan approved by the stockholders and designated by the Board as the LTIP for purposes of this Plan.

 

	
 
	
(k)
	
“Meeting Fees” means fees for attending a meeting of the Board or one of its Committees as set forth in Section 5.3 hereof.

 

	
 
	
(l)
	
“Non-Employee Director” means a director of the Company who is not an employee of the Company or any of its Affiliates; provided, that, for the avoidance of doubt, “operating executives” of the Principal Stockholder shall be deemed “Non-Employee Directors” under this Plan.

 

	
 
	
(m)
	
“Plan” means this CommScope Holding Company, Inc. Non-Employee Director Compensation Plan, as amended from time to time.

 

	
 
	
(n)
	
“Plan Year(s)” means the approximate twelve-month periods between Annual Meeting Dates, which, for purposes of the Plan, are the periods for which annual retainers are earned. 

 

	
 
	
(o)
	
“Supplemental Cash Retainer” means the supplemental annual cash retainer (excluding Basic Cash Retainer, Meeting Fees (if any) and expenses) payable by the Company to a Non-Employee Director pursuant to Section 5.2 hereof for service as Chairman of the Board, Lead Director, or as a chair or member of a committee of the Board, as set forth on Schedule I hereto and as may be amended from time to time be the Committee.  

 

 

ARTICLE 3

ADMINISTRATION

 

3.1.ADMINISTRATION.  The Plan shall be administered by the Committee.  Subject to the provisions of the Plan, the Committee shall be authorized to interpret the Plan, to establish, amend and rescind any rules and regulations relating to the Plan, and to make all other determinations necessary or advisable for the administration of the Plan.  The Committee’s interpretation of the Plan, and all actions taken and determinations made by the Committee pursuant to the powers vested in it hereunder, shall be conclusive and binding upon all parties concerned including the Company, its stockholders and persons granted awards under the Plan.  The Committee may appoint a plan administrator to carry out the ministerial functions of the Plan, but the administrator shall have no other authority or powers of the Committee.  

 

3.2.RELIANCE.  In administering the Plan, the Committee may rely upon any information furnished by the Company, its public accountants and other experts.  No individual will have personal 

LEGAL02/35874214v3

			
	
 
	
 
	
 

 

liability by reason of anything done or omitted to be done by the Company or the Committee in connection with the Plan.  This limitation of liability shall not be exclusive of any other limitation of liability to which any such person may be entitled under the Company’s articles of incorporation or otherwise.

 

ARTICLE 4

SHARES

 

4.1.SOURCE OF SHARES FOR THE PLAN.  Equity Awards that may be issued pursuant to the Plan shall be issued under the LTIP, subject to all of the terms and conditions of the LTIP.  The terms contained in the LTIP are incorporated into and made a part of this Plan with respect to Equity Awards granted pursuant hereto, and any such awards shall be governed by and construed in accordance with the LTIP.  In the event of any actual or alleged conflict between the provisions of the LTIP and the provisions of this Plan, the provisions of the LTIP shall be controlling and determinative.  This Plan does not constitute a separate source of shares for the grant of the Equity Awards described herein.

 

ARTICLE 5

CASH COMPENSATION

 

5.1.BASIC CASH RETAINER.  Each Eligible Participant shall be paid a Basic Cash Retainer for service as a director during each Plan Year, payable in quarterly installments in advance.  The amount of the Basic Cash Retainer is set forth on Schedule I, which may be amended from time to time by the Committee.  Each person who first becomes an Eligible Participant on a date other than an Annual Meeting Date shall be paid a pro rata amount of the Basic Cash Retainer for that Plan Year to reflect the actual number of days such Person will serve on the Board in the Plan Year (a “Prorated Basic Cash Retainer”).  The first installment of a Prorated Basic Cash Retainer shall be paid on or about the first day that such Person becomes an Eligible Participant and shall be a pro rata amount of the Basic Cash Retainer for that fiscal quarter to reflect the actual number of days such Person will serve on the Board in that fiscal quarter, with normal quarterly installments to follow for the remainder of the Plan Year, as described above.

 

5.2.SUPPLEMENTAL CASH RETAINER.  The Chairman of the Board, Lead Director, and chairs and members of committees of the Board may be paid a Supplemental Cash Retainer during a Plan Year, payable in quarterly installments in advance at the same times as installments of the Basic Cash Retainer are paid.  The amount of the Supplemental Cash Retainer, if any, for each eligible position, is set forth on Schedule I, which may be amended from time to time by the Committee, and may be different for the eligible positions.  A pro rata portion of the Supplemental Cash Retainer (a “Prorated Supplemental Cash Retainer”) will be paid to any Eligible Participant who is elected or appointed by the Board to a position eligible for a Supplemental Cash Retainer on a date other than an Annual Meeting Date, to reflect the actual number of days such Person will serve in such capacity during the Plan Year. The first installment of a Prorated Supplemental Cash Retainer shall be paid on or about the first day that such Eligible Participant is elected or appointed to such position and shall be a pro rata amount of the Supplemental Cash Retainer for that fiscal quarter to reflect the actual number of days such Person will serve in such position in that fiscal quarter, with normal quarterly installments to follow for the remainder of the Plan Year, as described above.  If an Eligible Participant who is in a position eligible for a Supplemental Cash Retainer is elected or appointed by the Board to a different eligible position on a date other than an Annual Meeting Date and such new position is entitled to a higher Supplemental Cash Retainer than the Eligible Participant was receiving prior to such change in position, such Person shall receive a Prorated Supplemental Cash Retainer based upon the difference between the higher Supplemental Cash Retainer and the lower Supplemental Cash Retainer for such partial period.

LEGAL02/35874214v3

			
	
 
	
 
	
 

 

 

5.3.MEETING FEES.  Unless otherwise determined by the Committee and set forth on Schedule I, as amended from time to time by the Committee, Eligible Participants shall not be paid a fee for meetings of the Board or a committee thereof in which he or she participates.  For purposes of this provision, in the event the Committee decides to provide for meeting fees, casual or unscheduled conferences among directors shall not constitute an official meeting.  

 

5.4.EXPENSE REIMBURSEMENT.  All Eligible Participants shall be reimbursed for reasonable travel and out-of-pocket expenses in connection with attendance at meetings of the Board and its committees, or other Company functions at which the Chief Executive Officer requests the director to participate.  

 

ARTICLE 6

EQUITY COMPENSATION

 

6.1.STOCK AWARDS.  Subject to share availability under the LTIP, each Eligible Participant shall be granted an award of Restricted Stock Units on the day that he or she first becomes an Eligible Participant (“Initial Stock Grant”).  Each person who first becomes an Eligible Participant on a date other than an Annual Meeting Date shall receive a pro rata amount of the Initial Stock Grant to reflect the actual number of months remaining between the date such person first becomes an Eligible Participant and the next anniversary of the Annual Meeting Date.  In addition to the Initial Stock Grant, subject to share availability under the LTIP, each Eligible Participant in service on an Annual Meeting Date will receive an award of Restricted Stock Units on such date (“Annual Stock Grant” and collectively with the Initial Stock Grant, the “Stock Grants”).  Notwithstanding the foregoing, any Eligible Participant who first becomes an Eligible Participant on an Annual Meeting Date will not receive the Initial Stock Grant (but will receive the Annual Stock Grant).  The Stock Grants shall have the following terms and conditions:

 

(a)Number of Initial Stock Grants.  The number of shares in the Initial Stock Grant to an Eligible Participant shall be determined by multiplying the Proration Factor (as defined below) by the amount determined by (A) dividing the Annual Stock Retainer as in effect for that Plan Year, by the Fair Market Value of the Stock on the Grant Date, and (B) rounding to the nearest whole number.  The Proration Factor is a fraction, the numerator of which is the number of full months between the Grant Date and the next anniversary of the most recent Annual Meeting Date, and the denominator of which is 12.

 

(b)Number of Annual Stock Grants.  The number of shares in the Annual Stock Grant to an Eligible Participant shall be determined by (A) dividing the Annual Stock Retainer as in effect for that Plan Year, by the Fair Market Value of the Stock on the Grant Date, and (B) rounding to the nearest whole number.  

 

(c)Vesting.  The Stock Grants shall vest on the first anniversary of the Grant Date, subject to the Non-Employee Director’s Continuous Service on each vesting date.

 

(d)Other Plan Conditions.  To the extent not specified herein, the Stock Grants shall be subject to the terms and conditions of the LTIP.

 

6.2.ADJUSTMENTS.  For the avoidance of doubt, the adjustment provisions of the LTIP (along with all of the other provisions of the LTIP) shall apply with respect to all Equity Awards granted pursuant to this Plan.

LEGAL02/35874214v3

			
	
 
	
 
	
 

 

 

6.3.AWARD AGREEMENTS.  All Equity Awards granted pursuant to this Plan shall be evidenced by an Award Certificate, which shall include such provisions, not inconsistent with the Plan or the LTIP, as may be specified by the Committee.  

 

ARTICLE 7

Amendment, Modification and Termination

 

7.1.AMENDMENT, MODIFICATION AND TERMINATION. The Committee may, at any time and from time to time, amend, modify or terminate the Plan without stockholder approval; provided, however, that if an amendment to the Plan would, in the reasonable opinion of the Committee, require stockholder approval under applicable laws, policies or regulations or the applicable listing or other requirements of a securities exchange on which the Stock is listed or traded, then such amendment shall be subject to stockholder approval; and provided further, that the Committee may condition any other amendment or modification on the approval of stockholders of the Company for any reason.  Modification of Equity Awards granted under this Plan shall be subject to the provisions of the LTIP.

 

ARTICLE 8

General Provisions

 

8.1.DURATION OF THE PLAN.  The Plan shall remain in effect until terminated by the Board or the Committee or the earlier termination or expiration of the LTIP, including any successor plans.

 

8.2.EXPENSES OF THE PLAN.  The expenses of administering the Plan shall be borne by the Company.

 

************

LEGAL02/35874214v3

			
	
 
	
 
	
 

 

The foregoing is hereby acknowledged as being the CommScope Holding Company, Inc. Non-Employee Director Compensation Plan, adopted by the Board to be effective as of October 25, 2013, as amended September 9, 2015, and November 28, 2017.

 

 

COMMSCOPE HOLDING COMPANY, Inc.

 

By:   /s/ Frank B. Wyatt, II

Its:   Senior Vice President

 

 

 

LEGAL02/35874214v3

			
	
 
	
 
	
 

 

SCHEDULE I

 

NON-EMPLOYEE DIRECTOR COMPENSATION SCHEDULE

 

The following shall be effective November 9, 2017, and shall remain in effect until changed by the Committee:

 

Basic Cash Retainer, Supplemental Cash Retainer and Annual Stock Retainer:

 

		
	
 
	
 

	
Basic Cash Retainer
	
$80,000

	
Supplemental Cash Retainer
	
 

	
Lead Independent Director
	
$30,000

	
Audit Committee Chair*
	
$30,000

	
Audit Committee Member
	
$15,000

	
Compensation Committee Chair*
	
$20,000

	
Compensation Committee Member
	
$10,000

	
Nominating Committee Chair*
	
$15,000

	
Nominating Committee Member
	
$10,000

	
 
	
 

	
Annual Stock Retainer (FMV)
	
$160,000

 

*In lieu of (and not in addition to) the Supplemental Cash Retainer as a member of such committee.

 

The Chairman of the Board shall not receive a Supplemental Cash Retainer.

 

Meeting Fees:

 

No additional fees for attendance at meetings.

 

 

 

 

LEGAL02/35874214v3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}]]