Document:

exh10_2.htm

 

Exhibit 10.2

 

Side Letter To

Executive Employment Agreement

 

A.           Stillwater Mining Company (“Employer”) and Michael J. McMullen (“Executive”) are parties to an Executive Employment Agreement dated as of December 3, 2013 (the “Agreement).

 

B.           Employer wishes to provide Executive with relocation benefits as an alternative to those described in Section 5.7 of the Agreement.

 

Agreement

 

In consideration of the foregoing recitals and the covenants and promises contained in this Side Letter, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged, Employer and Executive agree that notwithstanding Section 5.7 of the Agreement, Employer agrees to provide Executive with the following relocation benefits:

 

Section 1.1 Alternative Reimbursements.

 

a. Employer will reimburse Executive for the cost of business class airfare for Executive, his spouse and children incurred in connection with Executive’s relocation to Billings, Montana, USA.  Reimbursement will be made no later than March 15, 2014.  Reimbursement will not exceed the cost of business class airfare from Perth, Australia to Billings, Montana, USA.

 

b. Employer will pay Executive the sum of $48,598 representing the estimated cost for the cost of business class airfare for Executive, his spouse and children to return to Perth, Australia from Billings, Montana, USA following Executive’s separation from service with Employer.  Payment will be made as soon as practicable following Executive’s separation from service (and subject to Section 1.2(d) of this Side Letter).

 

c. In lieu of reimbursement under Employer’s relocation policy for the cost of shipping household goods, Employer will pay Executive the sum of $43,103 on the Effective Date of the Agreement in consideration for household goods that are not feasible for Executive to move from his current home in Perth, Australia in order to commence employment with Employer.

 

d. In lieu of reimbursement under Employer’s relocation policy for the cost of selling his home in Perth, Australia, Employer will pay Executive a maximum amount of $400,000 to account for Executive’s loss (if any) relating to the sale of Executive’s personal residence in Billings, Montana, USA following Executive’s separation from service with Employer.  The amount of loss (if any) will be calculated relative to Executive’s initial purchase price for the personal residence.  Reimbursement will be made no later than the end of the calendar year following the calendar year in which Executive separates from service.

 

e. In the event that Executive’s personal residence in Billings, Montana, USA is not sold after being listed with a realtor for 6 months, then Employer will purchase such personal residence at its then fair market value (determined as the average of two independent appraisals, one obtained by Executive and one by Employer), and Employer will in addition pay Executive the amount of loss (if any) calculated as described in the previous paragraph (d) no later than the end of the calendar year following the calendar year in which Executive separates from service.

 

  

  

  

f. Except as provided above, Executive is entitled to additional relocation benefits in accordance with Employer’s relocation policy.

 

Section 1.2 Miscellaneous Provisions.

 

a. The Employer shall be entitled to withhold from any amounts payable under this Side Letter or otherwise, an amount sufficient to satisfy all foreign, federal, state and local income and employment tax withholding requirements with respect to any and all amounts paid to Executive by Employer.

 

b. Any dispute arising out of or relating to this Side Letter will be settled by binding arbitration as provided in the Agreement.

 

c. This Agreement shall be governed by the laws of the State of Montana.

 

d. The intent of the parties is that payments and benefits under this Agreement (including all attachments, exhibits and annexes) be exempt from or comply with Section 409A of the Internal Revenue Code of 1986, to the extent subject thereto, and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted and be administered to be in compliance therewith.  Notwithstanding anything contained herein to the contrary, to the extent required in order to avoid accelerated taxation and/or tax penalties under Code Section 409A, Executive shall not be considered to have terminated employment with the Employer for purposes of this Agreement, and no payment shall be due to Executive under this Agreement, until Executive would be considered to have incurred a “separation from service” from the Employer within the meaning of Code Section 409A.  Each amount to be paid or benefit to be provided to Executive pursuant to this Agreement that constitutes deferred compensation subject to Code Section 409A shall be construed as a separate identified payment for purposes of Code Section 409A.  Notwithstanding anything to the contrary in this Agreement, to the extent that any payments to be made to the Executive upon his or her separation from service would result in the imposition of any individual penalty tax imposed under Code Section 409A by reason of Executive’s status as a “specified employee,” the payment shall instead be made on the first business day after the earlier of (i) the date that is six months following such separation from service and (ii) Executive’s death.  To the extent that the Agreement provides for the reimbursement of specified expenses incurred by the Executive, such reimbursement shall be made in accordance with the provisions of the Agreement, but in no event later than the last day of the Executive’s taxable year following the taxable year in which the expense was incurred.  The amount of expenses eligible for reimbursement or in-kind benefits provided by the Employer in any taxable year of the Executive shall not affect the amount of expenses or in-kind benefits to be reimbursed or provided in any other year (except in the case of maximum benefits to be provided under a medical reimbursement arrangement, if applicable).

 

2

  

  

The parties have executed this Side Letter effective as the Effective Date of the Agreement.

 

 

	 	 EMPLOYER:
	 	 
	 	 Stillwater Mining Company
	 	 
	 	 
	 	 /s/ Brian Schweitzer                                                           
	 	 Brian Schweitzer
	 	 Chairman of the Board
	 	 
	 	 
	 	 
	 	 EXECUTIVE:
	 	 
	 	 /s/ Michael J. McMullen                                                     
	 	 Michael J. McMullen
	 	 

 

 

 

 

3Exhibit 10.1

 

 

December 4, 2013

 

Scott B. Ullem
 [Address]
 [City, State, Zip Code]

 

Dear Scott:

 

On behalf of Edwards Lifesciences Corporation, we are pleased to confirm our offer of employment for the position of Corporate Vice President, Chief Financial Officer.

 

Your start date has been tentatively scheduled for January 2, 2014, to be confirmed after successful completion of a preliminary drug screening and background check.

 

Your 2014 bi-weekly salary will be $20,192.31 which is equivalent to $525,000 annually. Additionally, you will be eligible to participate in the Edwards Lifesciences Incentive Plan (EIP) for the calendar year at a target bonus of $380,000. The Compensation and Governance Committee Chairman has approved that your 2014 annual compensation package will also include a recommendation to the Edwards Lifesciences Board of Directors in February for an equity grant of $1.3M to be awarded to you in May 2014.  Equity is priced on the date of award, in this case May 2014, as described below.

 

Additionally, the Compensation and Governance Committee Chairman has approved that your offer includes a recommendation for an equity grant valued at $5.25M:  $1.75M in stock options as an inducement grant and a $3.5M buyout grant in restricted stock units.  The recommendation will be submitted to the Edwards Lifesciences Board of Directors for their approval at the next regularly scheduled meeting following your start date.  The number of stock options and restricted stock units will be determined on the day of that meeting, which will also be the grant date.  Stock options will be valued using a Black Scholes valuation model and the stock option price will be set based on the closing price of the common stock on the grant date. These options will vest 25% per year over four years of employment with Edwards from the date they were granted. The options will have a term of seven years from the grant date subject to earlier termination upon your termination of employment. The value of the restricted stock units is based on the closing price of the common stock on grant date and will vest 25% per year over four years of employment with Edwards from the date they were granted.  The options and restricted stock units will be granted under and be subject to the terms of the Edwards Lifesciences Long-Term Stock Incentive Compensation Program (as amended from time to time) and the form grant agreements thereunder.

 

You will also receive a lump sum sign-on bonus in the amount of $250,000 (gross) to be paid on the first available payroll cycle. This payment is subject to all applicable taxes and withholding.  In the event that you separate from Edwards Lifesciences prior to two (2) years of employment for a reason other than death, disability, termination without cause or termination with good reason as defined in the Edwards Lifesciences Change-in-Control Severance Agreement, the bonus will be repayable to Edwards Lifesciences on a pro-rated basis. For example, should the separation occur after nine (9) months of employment, the prorated amount due would be calculated as follows [(24-9)/24] * (250,000) = $156,250.

 

Edwards Lifesciences Corporation

One Edwards Way · Irvine, CA USA · 92614

Phone: 949.250.2500 · Fax: 949.250.2525 · www.edwards.com

 

 

Edwards will provide you with relocation benefits for your move from Neenah, Wisconsin to the Orange County, California area. You will be contacted by a representative from Plus Relocation, our relocation partner, to initiate the process. If you have any questions throughout the duration of your relocation, please contact your Edwards relocation resource, [Edwards Contact], at [Telephone]. The details of your relocation package are outlined in Addendum I.  In the event that you should separate from Edwards Lifesciences prior to two (2) years of employment (except through a workforce reduction and/or job elimination), all relocation expenses will be repayable to Edwards Lifesciences on a pro-rated basis. For example, should the separation occur within the first twelve (12) months of employment, the pro-rated amount due would be 100% of all relocation expenses incurred to date.  Should the separation occur within the second twelve (12) months of employment, the pro-rated amount due would be 50% of all relocation expenses incurred to date.

 

You will be eligible to participate in the Edwards Lifesciences Employee Benefits Program. The details of eligibility and participation will be outlined in an enrollment packet that you will receive from our Benefits Administrator. If you do not receive your packet within 2 weeks from your start date, please contact the Edwards Benefits Center at [Telephone]. Please note that your benefits will be effective on the first day of employment, provided you complete your enrollment within 30 days from your hire date (January 2, 2014). Because we value your well-being, you will accrue five weeks of vacation per year.  Additional details on the benefits program will be provided in the New Employee Orientation, which will be held in Irvine.

 

CONDITIONS OF EMPLOYMENT:

 

·                  Drug Screening: Your employment offer is contingent upon completing your drug test within 48 hours of your receipt of this letter and upon satisfactory drug screening results consistent with company policy. If deemed necessary by our Health Services Department, a pre-placement physical examination may also be required. Drug screening results must be obtained before your start date.  Additional information regarding your drug screen will be provided via email.

 

·                  Background Checking: Your employment is contingent upon the results of a background check that will be conducted by Edwards Lifesciences or on behalf of Edwards Lifesciences.

 

·                  Authorization to Work: In order to comply with federal regulations relative to authorization to work (Immigration Reform Act of 1986), you will be required to present forms of documentation which establish your eligibility to work in the United States. Please complete Section I of the Form I-9 available through your onboarding portal and bring it with you on your first day of employment with either: one document from List A; or two documents - one from List B and one from List C. Documents presented must be originals.

 

·                  Non-Debarment, Suspension or Exclusion: This offer of employment is conditioned upon the verification that you are not: (i) currently debarred, suspended, excluded or otherwise ineligible to participate in any federal or state healthcare program; or (ii) currently under investigation or involved in any proceeding that might result in your debarment, suspension, exclusion or ineligibility to participate in any federal or state healthcare program. Edwards will not employ or contract with any individual who is debarred, suspended, excluded or otherwise ineligible to participate in any federal program.

 

Your start date may be postponed if there is a significant delay in the receipt of your background or drug screening results. You will receive additional instruction on the completion of new hire forms through your onboarding process.

 

2

 

This offer, if accepted, creates an employment-at-will relationship between you and Edwards Lifesciences and may be terminated at any time by you or Edwards Lifesciences. It is not intended, nor should it be construed, as a contract of continued employment. This employment offer is also subject to your compliance with the requirement to sign the form of employment agreement provided and complete all requested new hire forms.  Please review them carefully, print, sign and return your offer letter to me as soon as possible.

 

Should you be terminated from Edwards within one year from your hire date for any reason other than termination with cause or termination without good reason as defined in the Edwards Lifesciences Change-in-Control Severance Agreement (the “CIC Agreement”), you will be paid severance of $905,000 less all applicable taxes and withholding; provided that, on or after your last day of employment with Edwards and not later than forty-five (45) days after your last day of employment with Edwards, you fully execute and return to Edwards (and you do not revoke pursuant to any revocation rights afforded by applicable law) a general release agreement in a the form attached to the CIC Agreement.  The severance benefit will be paid on the 60th day following your separation from service with Edwards.

 

This offer letter should be construed and interpreted to comply with, and avoid any tax under, Section 409A of the Internal Revenue Code.  Except for tax withholding, however, you are solely responsible for any and all tax liability that may result from your compensation and benefits.

 

Scott, we are confident that you will make a significant contribution to Edwards Lifesciences. If you have any questions, please contact me at [Telephone].

 

Best regards,

 

 

	
/s/   Christine McCauley
    	
 
    	
 
    
	
Christine   McCauley
    	
 
    
	
Corporate   Vice President, Human Resources
    	
 
    
	
 
    	
 
    
	
cc:         Employee File
    	
 
    
	
 
    	
 
    
	
OFFER   ACCEPTED:
    	
 
    
	
 
    	
 
    
	
/s/   Scott B. Ullem
    	
 
    	
12/4/2013
    
	
Scott   B. Ullem
    	
 
    	
Date
    

 

3

 

ADDENDUM I

 

Relocation Benefits Summary

 

The following table contains a summary of the relocation benefits you are eligible for:

 

	
Type of Benefit
    	
 
    	
Description
    
	
Household Goods Shipment
    	
 
    	
·             Discard   and Donate pre-move service

·             Packing, transporting,   full unpacking, and insuring

·             Two   automobiles, if over 400 miles

·             30 days of   storage

·             2-Day   Quick Start Unpack and Organize service

·             2 debris   pick-ups
    
	
En Route
    Trip
    	
 
    	
·             One-way   economy airfare, if over 400 miles OR mileage for two automobiles at current   IRS rate

·             Reasonable lodging reimbursed and $35/adult   and $25/child meal per diem provided (based on traveling a minimum of 400   miles per day)
    
	
Homefinding
    Trip
    	
 
    	
·             1 trip (5 days/4 nights) for   employee and one family member

·             Round-trip   economy airfare OR mileage for one car at current IRS rate

·             Reasonable lodging and car rental   reimbursed and $35/adult and $25/child meal per diem provided

·             1⁄2 day area   orientation
    
	
Temporary Housing
    	
 
    	
·             Furnished apartment

·             Up to 60 days OR temporary living allowance   (grossed-up)

·             No meals or incidentals
    
	
Departure
    Home
    Sale Assistance
    	
 
    	
·             SELL SMART!SM Marketing Assistance

·             Buyer Value Option (BVO)

·             Must use PLUS agent and list within 103% of   average of 2 BMAs
    
	
Home Sale
    Incentive
    	
 
    	
·             3% of sales price, capped at $15,000 if   home sold within first 45 days (payroll taxes deducted)
    
	
Loss on Sale
    	
 
    	
·             Capped at $50,000, 100% on first $25,000,   50% on next $50,000
    
	
Mortgage Subsidy
    	
 
    	
·             Applicable when relocating to a higher   cost-of-living area

·             Preferred mortgage provider must be used
    
	
Destination
    Home Purchase Assistance
    	
 
    	
·             BUY SMART!SM Assistance

·             Must have been homeowners previously

·             Customary closing costs (no pre-paids)

·             Up to 3% of the purchase price
    
	
Preferred Mortgage Provider
    	
 
    	
·             If preferred lender is   utilized, closing costs will be direct billed and a discount of up to 1 point   for loan origination will be covered
    
	
Miscellaneous Allowance
    	
 
    	
·             1 month’s base salary (payroll taxes   deducted)
    
	
Spousal Assistance
    	
 
    	
·             Maximum benefit $1,500
    
	
Tax Assistance
    	
 
    	
·             Simplified Tax Return Method
    

 

To the extent that any of these benefits are taxable to you, we will only pay or reimburse for benefits that you incur in 2014.  We agree to provide any applicable reimbursements timely, and in all events (as required by Section 409A) not later than the end of the taxable year following the taxable year in which the related expense was incurred.  You agree to provide Edwards prompt notice of any reimbursable expenses (along with required supporting documentation) in order to facilitate timely reimbursement of the same.  The benefits and reimbursements outlined above in this summary are not subject to liquidation or exchange for another benefit.

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}]]