Document:

10.16 Eckersley Offer Letter

Exhibit 10.15

October 3, 2013

Mr. Tim Eckersley
[Redacted]

Dear Tim:

I am pleased to present you with an offer of employment to join Allegion as Senior Vice President (“SVP”), President Americas reporting directly to me. This position will be located in Carmel, Indiana. Your employment with Allegion in this role will begin on the day that the residential security and commercial security businesses are successfully spun-off from Ingersoll Rand (“Transaction Date”) and Allegion is formed as a new standalone publicly traded company.  In addition, you will become an Officer of Allegion.  I look forward to your acceptance of this offer and becoming a part of the Allegion leadership team.

The compensation, benefits and other aspects of your offer are outlined below and will become effective on the Transaction Date:
		
	1.
	Your base salary will be set at an annual rate of $408,807 (Four Hundred Eight Thousand Eight Hundred and Seven U.S. dollars) which will be paid bi-weekly.  You will be eligible for merit increase consideration during the annual merit increase cycle.  You will continue to earn a base salary at your current rate through the Transaction Date.

		
	2.
	This position is “incentive eligible,” which means you will participate in the Allegion Annual Incentive Plan (“AIP”) which will be designed and approved prior to the Transaction Date.  Your annual opportunity is targeted at 60% of your base salary or $245,284.  The actual award that you may receive can range from 0% to 200% of the targeted amount depending upon your performance and the performance of Allegion.

For 2013, you will continue to participate in the Ingersoll Rand 2013 AIM program at current compensation levels.  The financial metrics used to determine your 2013 AIM award will be the Corporate, Security Technologies and Security Technologies-Americas financial metrics for the entire performance year.
		
	3.
	You will be eligible to receive annual equity awards under the Allegion Incentive Stock Plan (“ISP”) as administered by the Allegion Compensation Committee of the Board (“Committee”).  The ISP will be developed and approved for implementation prior to the Transaction Date.  Your annual opportunity has a targeted value of $380,000 and the number of stock options, Restricted Stock Units (“RSUs”), and/or Performance Share Units (“PSUs”) granted will be based on the Fair Market Value (“FMV”) of Allegion’s ordinary shares on the date the Committee approves the award.  The mix of equity awards, the terms, and the design of the Performance Share Program (“PSP”) is intended to be similar in nature as provided to Ingersoll Rand plan participants, however, the final design will be determined by the Committee.  The PSP will measure performance over a three-year period, therefore, the award granted to you in 2014 would be settled in early 2017 (based on performance during the 2014 to 2016 measurement period).  Your first grant of stock options, RSUs, and/or PSUs is expected to occur within 90 days of the Transaction Date.  Annual equity grants are contingent on and variable with your sustained performance and demonstrated leadership potential.

		
	4.
	When you consider each of the above items, your Total Annual Direct Compensation (“TDC”) target is $1,034,091. 

		
	5.
	You will receive two additional Allegion PSU grants, which are expected to occur within 90 days of the Transaction Date.  The target number of PSUs awarded will be based on the FMV of Allegion’s ordinary shares on the date the Committee approves the award:

		
	a.
	The first grant will have a target value of $68,700, with the actual number of PSUs earned (0% to 200% of target) based on 2014 performance.  The actual number of PSUs earned will be based on metrics established by the Committee and will be settled in early 2015.

		
	b.
	The second grant will have a target value of $137,300, with the actual number of PSUs earned (0% to 200% of target) based on 2014 to 2015 performance.  The actual number of PSUs earned will be based on metrics established by the Committee and will be settled in early 2016.

		
	6.
	You will be eligible for continued participation in the Transition Bonus program with a $400,000 opportunity.  This cash bonus will be paid to you in two installments (50% on the Transaction Date and 50% one year later).  To be eligible for a payment, you must be actively employed by Allegion on each of the payment dates.  This bonus is contingent on the transaction actually taking place.  If the transaction is not finalized, the bonus will not be paid.

		
	7.
	You will participate in a Supplemental Executive Retirement Plan (“SERP”) at Allegion and your benefits will accrue in accordance with the terms and provisions of the Ingersoll Rand Key Management Supplemental Program (“KMP”).  Service credits earned under the Ingersoll Rand KMP will transfer to the Allegion SERP (you will be provided with a statement documenting this service credit transfer within 30 days after accepting this offer).  

		
	8.
	You will be eligible to participate in all applicable benefit programs offered to Allegion salaried employees in accordance with the terms and conditions of those programs including qualified and non-qualified 401k and pension plans.  Please note that your medical, dental and life insurance coverage with Allegion will commence on January 1, 2014, however, you will continue to be covered under the Ingersoll Rand plans through December 31, 2013.

9.    You will be eligible to participate in the following programs offered to Officers of Allegion:
		
	a.
	Deferred Compensation Plan:      You will be eligible to participate in a deferred compensation plan that will be established by Allegion. The value of accrued benefits under the IR deferred compensation plan will be transferred to the Allegion plan.

		
	b.
	Company Car:      You will be eligible for a monthly car allowance in the amount of $1,250 per month ($15,000 annually) which represents the approximate value of the automobile benefit provided to you by Ingersoll Rand.  In addition, you will be given an opportunity to purchase your current Ingersoll Rand company-provided automobile at book value.  All of this allowance will be imputed to your annual income.

		
	c.
	Financial Counseling:      You will be eligible for a tax, estate, and financial planning services allowance up to $11,000 in your first (and last) year and $9,000 per year thereafter.  The cost for these services is imputed to your annual income.

		
	d.
	Executive Health Program:  You will be eligible to participate in an executive physical examination program that will be established for Allegion in an amount not to exceed $1,500 annually.

		
	10.
	You will be eligible for paid vacation, which in your case is four (4) weeks.  Vacation days will be earned and accrued on a monthly basis each calendar year.  

		
	11.
	You will participate in the Allegion Change in Control Plan (“CIC Plan”), which provides economic security in the form of cash payments to the participant and enhanced coverage under certain benefit plans in the event of a loss of job caused by the sale of all or a substantial part of Allegion (in accordance with the CIC Plan).  Your severance payment under the CIC Plan will be equal to 2.0 times your base salary plus 

your annual incentive target.  No excise tax gross-ups will be provided, however, your CIC related cash severance benefit will be adjusted to provide you with the greater after-tax benefit between:
		
	a.
	Cash severance payments paid in full, with you being responsible for all taxes incurred, 

or 
		
	b.
	Cash severance payments reduced to avoid triggering excise taxes.

Furthermore, under the terms of the stock awards, unvested stock options (if applicable) and Restricted Stock Units (if applicable) would vest in full and outstanding Performance Share Units (if applicable) would vest on a pro-rated basis at target award levels.
You will be provided with a copy of the CIC Plan within 30 days of your acceptance of this offer.
		
	12.
	Based on your role in Allegion, you are restricted from transactions involving ordinary shares of Company stock (exercising options, moving in or out of ordinary shares held in company plans, or buying or selling ordinary shares on the open market) except during designated window periods.  Furthermore, you will be required to comply with the Allegion stock ownership requirements, which is $1,000,000 for your role.  You will have 5 years to reach this ownership level (at a rate of 20% per year).

This offer is contingent upon your acceptance of the Non-Compete and Proprietary Information agreements attached hereto.  To accept this offer, please sign as indicated under the Candidate Acceptance section below. In addition, sign the Non-Compete and Proprietary Information Agreements and return all of these materials to Ray Lewis, SVP, Human Resources & Communications, Allegion. 
Subject to the confirmation of the transaction, this letter will be a contractual obligation of Allegion effective on the Transaction Date.  Nothing in this letter alters your at-will employment status with Allegion.  In addition, nothing in this letter prevents Allegion from changing or modifying plans, benefit designs, or compensation on a going forward basis.  Allegion may also require you to sign documents e.g., non-compete, other documents as part of its on-boarding process.  Any compensation or benefits payable pursuant to this offer will be subject to applicable claw-back policies of Allegion as in effect from time to time.  
Tim, we all believe that you will make a significant contribution to Allegion and I look forward to you accepting this offer.  If you have any questions about this offer, please feel free to call Ray Lewis at [Redacted] or Jeff Blair at [Redacted].  For any other questions, please feel free to contact me at [Redacted].

Sincerely,

David D. Petratis
Chairman, President and Chief Executive Officer, Allegion

cc:     Ray Lewis
Jeff Blair    

Attachments:    
	
	
	Proprietary Agreement
Non-Compete Agreement 

Conditions of Offer:

This offer is contingent upon the following:

		
	1.
	Understanding and agreement that your employment is to be “at will”.  This means that you or Allegion, for any reason or no reason, may terminate employment and that nothing in this offer is intended to create a contract of employment for any period of time.

		
	2.
	Understanding, agreeing, signing and returning the Non-Compete and Proprietary Information agreements. 

CANDIDATE ACCEPTANCE

I accept your offer of employment with Allegion as SVP, President Americas and agree to the conditions herein and in the offer letter.

/s/ Tim Eckersley        10/18/13    
Mr. Tim Eckersley    DateExhibit 4.15 9.30.2013 10Q

Exhibit 4.15

SECOND SUPPLEMENTAL INDENTURE
This Second Supplemental Indenture, dated as of September 25, 2013 (this “Supplemental Indenture” or “Guarantee”), among ChecksByDeluxe.com, LLC, a Minnesota limited liability company, Direct Checks Unlimited, LLC, a Colorado limited liability company, Direct Checks Unlimited Sales, Inc., a Colorado corporation, Safeguard Acquisitions, Inc., a Texas corporation, Safeguard Franchise Systems, Inc., a Texas corporation (collectively, the “Guarantors”), Deluxe Corporation (together with its successors and assigns, the “Company”), each other Subsidiary Guarantor listed on the signature pages hereto (collectively, the “Existing Guarantors”) and U.S. Bank National Association, as Trustee under the Indenture referred to below.
W I T N E S S E T H:
WHEREAS, the Company, the Existing Guarantors and the Trustee have heretofore executed and delivered an Indenture, dated as of November 27, 2012 (as amended, supplemented, waived or otherwise modified, the “Indenture”), providing for the issuance of 6.000% Senior Notes due 2020 of the Company (the “Securities”); 
WHEREAS, Section 3.7 of the Indenture provides that under certain circumstances the Company is required to cause each Restricted Subsidiary that Guarantees any Indebtedness of the Company to execute and deliver to the Trustee a supplemental indenture pursuant to which such Restricted Subsidiary will unconditionally Guarantee, as primary obligor and not merely as surety, jointly and severally with each other Subsidiary Guarantor, the full and punctual payment of the principal of, premium, if any, and interest on the Securities and all other monetary obligations of the Company under the Indenture; and
WHEREAS, pursuant to Section 10.1 of the Indenture, the Trustee, the Company, the Existing Guarantors and the Guarantors are authorized to execute and deliver this Supplemental Indenture to amend or supplement the Indenture, without the consent of any Holder; 
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guarantors, the Company, the Existing Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Securities as follows:
ARTICLE I

Definitions

SECTION 1.1    Defined Terms. As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recitals hereto are used herein as therein defined, except that the term “Holders” in this Supplemental Indenture shall refer to the term “Holders” as defined in the Indenture and the Trustee acting on behalf or for the benefit of such Holders. The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

Article II

Agreement to be Bound; Guarantee

SECTION 2.1    Agreement to be Bound. The Guarantors hereby become parties to the Indenture as Subsidiary Guarantors and as such will have all of the rights and be subject to all of the obligations and agreements of Subsidiary Guarantors under the Indenture, including, but not limited to Article XI thereof.

ARTICLE III

Miscellaneous

SECTION 3.1    Notices. All notices and other communications to a Guarantor shall be given as provided in this Supplemental Indenture to such Guarantor, at its address set forth below, with a copy to the Company as provided in the Indenture for notices to the Company. 

SECTION 3.2    Parties. Nothing expressed or mentioned herein is intended or shall be construed to give any Person, firm or corporation, other than the Holders and the Trustee, any legal or equitable right, remedy or claim under or in respect of this Supplemental Indenture or the Indenture or any provision herein or therein contained.

SECTION 3.3    Governing Law. This Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of New York.

SECTION 3.4    Ratification of Indenture; Supplemental Indenture Part of Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Securities heretofore or hereafter authenticated and delivered shall be bound hereby. The Trustee makes no representation or warranty as to the validity or sufficiency of this Supplemental Indenture.

SECTION 3.5    Counterparts. The parties hereto may sign one or more copies of this Supplemental Indenture in counterparts, all of which together shall constitute one and the same agreement.

SECTION 3.6    Headings. The headings of the Articles and the Sections in this Guarantee are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

SECTION 3.7    Trustee. The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture. The recitals and statements herein are deemed to be those of the Guarantors and not of the Trustee.

[Signature pages follow.]

2

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed as of the date first above written.
CHECKSBYDELUXE.COM, LLC,
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson            
Name:       Terry D. Peterson
Title:         Vice President and Treasurer
Address:   c/o Deluxe Corporation
     3680 Victoria St. N.
     Shoreview, Minnesota 55126
     Fax: (651) 787-2749
     Attention: General Counsel

DIRECT CHECKS UNLIMITED, LLC,
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson            
Name:       Terry D. Peterson
Title:         Vice President and Treasurer
Address:   c/o Deluxe Corporation
     3680 Victoria St. N.
     Shoreview, Minnesota 55126
     Fax: (651) 787-2749
     Attention: General Counsel

DIRECT CHECKS UNLIMITED SALES, INC.,
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                
Name:       Terry D. Peterson
Title:         Vice President and Treasurer
Address:   c/o Deluxe Corporation
     3680 Victoria St. N.
     Shoreview, Minnesota 55126
     Fax: (651) 787-2749
     Attention: General Counsel

[Signature Page to Second Supplemental Indenture to 2012 Indenture]

SAFEGUARD ACQUISITIONS, INC.,
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Vice President and Treasurer
Address:   c/o Deluxe Corporation
     3680 Victoria St. N.
     Shoreview, Minnesota 55126
     Fax: (651) 787-2749
     Attention: General Counsel

SAFEGUARD FRANCHISE SYSTEMS, INC.,
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Vice President and Treasurer
Address:   c/o Deluxe Corporation
     3680 Victoria St. N.
     Shoreview, Minnesota 55126
     Fax: (651) 787-2749
     Attention: General Counsel

U.S. BANK NATIONAL ASSOCIATION,
as Trustee

By:    /s/ Donald T. Hurrelbrink            
Name: Donald T. Hurrelbrink
Title: Vice President

DELUXE CORPORATION

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Senior Vice President, Chief Financial Officer

[Signature Page to Second Supplemental Indenture to 2012 Indenture]

CUSTOM DIRECT, INC., 
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Vice President and Treasurer

CUSTOM DIRECT LLC, 
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Vice President and Treasurer

DELUXE BUSINESS OPERATIONS, INC., 
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Vice President and Treasurer

DELUXE ENTERPRISE OPERATIONS, INC., 
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Vice President and Treasurer

DELUXE FINANCIAL SERVICES, INC., 
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Vice President and Treasurer

[Signature Page to Second Supplemental Indenture to 2012 Indenture]

DELUXE MANUFACTURING OPERATIONS, INC., 
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Vice President and Treasurer

DELUXE SMALL BUSINESS SALES, INC., 
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Vice President and Treasurer

HOSPTOPIA.COM INC., 
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Vice President and Treasurer

ORANGESODA, INC., 
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Vice President and Treasurer

SAFEGUARD BUSINESS SYSTEMS, INC., 
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Vice President and Treasurer

[Signature Page to Second Supplemental Indenture to 2012 Indenture]

SAFEGUARD HOLDINGS, INC., 
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Vice President and Treasurer

VERTICALRESPONSE, INC., 
as a Subsidiary Guarantor

By:    /s/ Terry D. Peterson                    
Name:       Terry D. Peterson
Title:         Vice President and Treasurer

[Signature Page to Second Supplemental Indenture to 2012 Indenture]

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