Document:

exv10w73

 

Exhibit 10.73

AmericanAirlines

Note: The presence of brackets indicates that the item being addressed within
the brackets is no longer in effect.

	 	 	 
	THOMAS J. KIERNAN

SENIOR VICE PRESIDENT

	 	November 11, 1999

Human Resources

Will Ris

Dear Will:

The letter agreement dated May 29, 1996 detailed your compensation and benefits
arrangements at American Airlines (collectively “AMR”, “American” or the
“Company”) during the term of your initial three-year employment contract. We
wish to extend the term of your employment. This letter sets forth the terms
under which your employment will continue.

Compensation

Your base salary will continue to be reviewed on an annual basis at the same
time we review other senior officer’s salaries. [You will also be eligible for
an annual cash award under the terms of our Incentive Compensation Plan which
currently pays awards based on the Company’s cash flow return on gross assets
(CFROGA) and its relative performance measured against our competitors. Your
target incentive award will be 60% of base salary. Your actual award will be
adjusted for Company and individual performance.]

Subject to approval by the Compensation Committee of AMR’s Board of Directors,
you will continue to be eligible to receive stock awards annually at the same
time other senior officers receive their annual stock awards. Vesting and
payout provisions will follow the terms of the individual contracts and the
Company’s Long Term Incentive Plan (“LTIP”).

Benefits

You will continue to be offered medical, dental, short and long term
disability, and life insurance through the Company’s flexible benefits program,
which provides a set amount of benefit pay annually. Following your retirement,
the Company will provide health benefits to you, your spouse and your
dependents in accordance with our standard benefit program for retirees [,
which is subject to prefunding provisions]. In the case of your disability, the
Company will continue coverage for two years, then COBRA coverage may be
purchased for an additional 36 months. In the case of your death, the Company
will continue coverage for three months, then COBRA coverage may be purchased
for an additional 33 months.

P.O. Box 619616, Dallas/Fort Worth Airport, Texas 75261-9616

 

 

Will Ris, September 17, 1999, page 2

You will continue to participate in the Company’s Retirement Benefit Plan (RBP)
and the Supplemental Executive Retirement Plan (SERP). We will continue to
provide you with double credit for each year of service as an employee of AMR
for the purposes of all compensation and benefits based on longevity.

Severance

In the event that the Company terminates your employment without cause, you
would be eligible for a severance payment equal to one year’s salary [and
target incentive award]. Stock awards would be treated according to the terms
set forth in the individual stock contracts and in the Company’s LTIP. For
purposes of this letter, “cause” has the meaning set forth in the Company’s
LTIP.

Travel

You will continue to be provided with unlimited positive space personal travel
privileges for you, your spouse and your dependent children on American
Airlines and American Eagle at modest service charges. Company policy provides
the continuation of these benefits following your retirement, death after
retirement, and death prior to retirement with at least ten years of service.
Pursuant to your request for double credit for each year of service, you will
be eligible for post retirement and post-death personal travel privileges with
only five years of service.

Officer Perquisites

You will continue to participate in the senior officer [car and financial
planning] programs for so long as such benefits are provided to other senior
officers. In addition, the Company will continue to pay your [country club and]
dining club dues, as well as to provide you with an Admirals Club membership.

Subject to our Board of Director’s approval, we will continue to allow you to
participate on the Board of Directors for one for-profit and as many
not-for-profit organizations as are in the Company’s interests. However,
independent speaking and writing engagements will not be permitted during your
employment with the Company.

[Remainder of page left blank]

P.O. Box 619616, Dallas/Fort Worth Airport, Texas 75261-9616

 

 

Will Ris, September 17, 1999, page 3

We are glad to have you! Please indicate your concurrence with these terms by
signing a copy of this letter in the space provided below.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	/s/ Thomas J. Kiernan
 	 
	 	 	 
	 	 	 
	 

Concur: /s/ Will K. Ris       Date:<PAGE>

                                                                  EXHIBIT 10.41

    [COVAD LOGO]  4250 Burton Street Santa Clara, CA 95054   T 408.987.1000
                     www.covad.com                           F 408.987.1680

May 29, 2001

Mr. Charlie Hoffman

Dear Charlie,

Covad's Board of Directors (the "Board"), and the management team, have been
impressed by our discussions with you and your visit here. We believe you are
exactly the type of individual we are looking for to lead Covad Communications
Group, Inc. ("Covad" or the "Company") to the next level. I am very pleased to
extend to you this offer to join Covad on the terms described below.

We would like you to join Covad as a full time employee in the role of
President and Chief Executive Officer, reporting to the Board and starting as
close to June 15, 2001 as possible. You will also be elected a member of
Covad's Board at the next scheduled board meeting after you commence employment
with the Company. Your monthly salary will be forty one thousand six hundred
sixty seven dollars ($41,667).

You will also receive a signing bonus of one hundred thousand dollars
($100,000), which will be paid within two weeks following commencement of your
employment with the Company. Additionally, the company will pay for reasonable
and actual moving expenses for you from your Toronto condominium to California
including broker commission, closing costs and the transportation of your
personal belongings and up to two automobiles. You will be required to return
the bonus and moving expense payment if you resign, or are terminated for Cause
(as defined below) less than twelve (12) months after you commence employment
with the Company.

In addition, you will be offered an option to purchase two million five hundred
thousand (2,500,000) shares of Covad's Common Stock at its closing price on the
day of the first Board meeting following the commencement of your employment
with the Company. This stock will vest in accordance with Covad's standard
vesting schedule (six forty eighth's of the shares vested on your six-month
anniversary with the Company and one forty eighth per month for the next
forty-two months). Stock options granted under the Company's stock option plan
are also subject to acceleration in certain events following a change of
control.

Also, as we discussed, you will participate in an annual bonus program that will
pay a cash bonus based on your performance as measured by the objectives you and
the Board of Directors will set for the senior management of the Company. At
100% performance to objectives the bonus for this year will be seventy five
percent (75%) of your base salary. The bonus will vary from this amount
depending on your actual performance to the objectives as determined by the
Board and will be prorated from your hiring date for the remaining months of the
year. If you achieve your annual objectives and remain employed by the Company,
the bonus is payable in the first calendar quarter of the following year.

In the event that you are asked to leave the Company other than for Cause, the
company will continue your base salary for an additional one year from your
termination date, provided that you do not become employed by a company
directly competing with Covad. For purposes of this offer, Cause is defined to
mean (i) conviction of, or plea of no lo contendere to, a felony; (ii) habitual
neglect of your duties (other than on account of disability) which habitual
neglect materially adversely affects the performance of your duties and
continues for thirty (30) days following your receipt of notice from the Board
which specifically identifies the nature of the habitual neglect and the duties
that are materially adversely affected and states that, if not cured, such
habitual neglect constitutes grounds for termination; or (iii) the engaging by
you in serious misconduct to the extent that, in the reasonable judgment of the
Board, your credibility and reputation no longer conform to the standard of the
Company's executives.

<PAGE>

As with all employees, you will be responsible for paying all applicable taxes
related to your employment with Covad including income and other taxes on your
salary and bonus, capital gains taxes on Covad stock and stock options and any
income or excise taxes that apply to severance or change of control payments
that may be made to you. The Company will pay for the one-time consulting
services of a compensation attorney for you to use to review this offer and its
tax implications. Additionally, the company will pay for your personal tax
preparation for the tax year 2001.

At Covad Communications, benefits are also an important part of our total
compensation. Covad provided benefits include: comprehensive health coverage
under either an HMO, PPO or POS option, dental coverage, vision care, a
tax-advantaged 401(k) plan, a flexible spending plan account, disability
insurance, group life insurance and three weeks of paid vacation/sick leave per
year. As a Covad employee you will be eligible to participate in these benefit
programs starting on the first day of your employment with the Company. Covad's
health benefits can also be extended to cover your wife and your dependent
children.

I know that this is a highly competitive hiring environment, especially for
successful individuals such as you. You can find jobs that offer higher
salaries, or more stock. I would ask you to consider carefully the combination
Covad can offer:

         -  Highly competitive cash compensation and benefits with
         -  Significant company stock ownership levels at
         -  An extremely attractive stock price in
         -  A leader in a whole new communications industry
         -  Where you can be the CEO and a key driver of our success

Charlie, our offer to you is contingent on the completion of several
requirements:

1)  We will ask you to sign Covad's Employee Confidentiality and Inventions
    Agreement which, among other things, obligates you not to reveal any Covad
    confidential information, not to bring with you to Covad any non-public,
    proprietary information of your previous employer or any other party, not
    to disclose such information to Covad, and to continue to honor any
    existing confidentiality obligations you have to your previous employer or
    any other company. It also assigns Covad any rights you may have in work
    related inventions you may develop while at Covad.

2)  In accordance with our standard policy for all employees, we will ask you
    to complete a drug screening.

We ask you to sign and return this offer by June 5, 2001 acknowledging the
employment terms contained here, including our mutual understanding that these
terms constitute your entire compensation package, that your employment is "at
will" and not subject to any employment agreement, that you will devote your
full time to Covad and that you will not engage in any other employment or
contracting without the prior written consent of Covad.

Charlie, I believe that you can be a tremendous asset to Covad and look
forward to welcoming you on board. If you have any questions about this offer,
feel free to call me at work on (408) 987-1720 or on my cellular phone at
(650) 619-6700.

Sincerely,                                        Agreed and Accepted

/s/ Charles J. McMinn
                                                  /s/ Charlie Hoffman
                                                  ------------------------
                                                       30 May 2001

Charles J. McMinn                                 Charlie Hoffman
Chairman of the Board
Covad Communications Group, Inc.                  Date: 30 May 2001
                                                       ------------

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