Document:

ex10-1.htm

Exhibit 10.1

 

 

 

July 30, 2010

Glenn S. Johnson

President

Horizon Air Industries, Inc.

Dear Glenn:

This letter will document the agreement between Horizon Air Industries, Inc, and you regarding certain retirement benefits at the time of your election to the position of President of Horizon Air Industries, Inc. (“Horizon”).

Alaska Airlines Salaried Retirement Plan Benefits

As you know, you cease to accrue additional benefits under the Alaska Airlines Salaried Retirement Plan (“DB Plan”) due to your transfer to Horizon.  This is because Horizon does not offer the DB Plan or any other similar plan. ERISA laws preclude continued benefit accruals by a participant who transfers to a company that does not offer the DB Plan to its employees.

Special Supplemental Retirement Benefit

In connection with your election to the position of President, Horizon agrees to supplement the retirement benefits you will receive under the DB Plan with the benefits described in this letter. The supplemental retirement benefit will equal the difference between (a) the retirement benefits you actually receive under the DB Plan, and (b) the retirement benefits you would have received under the DB Plan if your compensation and service earned while you are the President of Horizon were treated as compensation and service with Alaska Airlines.  This supplemental benefit will be determined on your separation from service from Alaska Air Group and all of its subsidiaries, as defined in the Alaska Air Group, Inc. 1995 Elected Officers Supplementary Retirement Plan (“1995 OSRP”).  The supplemental benefit will be paid at the same time and in the same payment form as the benefit paid under the 1995 OSRP.  In the event of your death before payments under the 1995 OSRP begin, this supplemental benefit will be paid to your beneficiary (as designated under the 1995 OSRP), at the same time and in the same payment form as that beneficiary receives your 1995 OSRP benefit. In the event you become disabled, as defined in the 1995 OSRP, the supplemental benefit shall be 100% vested.

This letter agreement represents the entire agreement between you and Horizon as to the matters described herein and supersedes any prior oral agreement.  The sole method of changing this agreement is by written amendment signed by you and Horizon.

Although the calculation of this benefit is based upon the DB Plan, the special supplemental retirement benefit would not be paid out of the DB Plan.  Under this agreement, your rights to these supplemental benefits are as a general, unsecured creditor of Horizon.  The supplemental benefits will be paid only to you, or to your beneficiary in the event of death, and the benefits cannot be assigned or alienated.

The ERISA claims procedures in Section 8.8 of the Alaska Air Group, Inc. 1995 Elected Officers Supplementary Retirement Plan, as amended, are incorporated into this letter by reference and apply to the supplemental retirement benefit described in this agreement.

  

  

  

Alaska Air Group, Inc. 1995 Elected Officers Supplementary Retirement Plan

You became a participant in the Alaska Air Group, Inc. 1995 Elected Officers Supplementary Retirement Plan (“1995 OSRP”) on July 16, 2003.  Under the 1995 OSRP, you will earn retirement benefits based upon your years of service as the President of Horizon and as an Elected Officer of Alaska Air Group, Inc. or Alaska Airlines, Inc.  Under the 1995 OSRP as restated by the Board of Directors on January 1, 2009, the OSRP benefit otherwise payable to plan participants is reduced by any benefits under the DB Plan that are earned while serving as an elected officer. Your 1995 OSRP benefit will be similarly reduced by the special supplemental retirement benefits described in this agreement.  Also, because of your participation in the 1995 OSRP, you will not be eligible to participate in the Horizon Air Supplemental Savings Plan.

Horizon Savings Investment 401(k) Plan

As a Horizon employee, you are eligible to make contributions and receive employer-matching contributions under the Horizon Air Industries, Inc. Savings Investment Plan (“401(k) Plan”), per the 401(k) Plan terms.  As you know, employees of Horizon are not eligible to make contributions to the Alaskasaver 401(k) Plan, thus, you will no longer be able to contribute to the Alaskasaver 401(k) Plan.

Retiree Medical Insurance Coverage

If upon your retirement from Horizon, Alaska Airlines is offering retiree medical insurance to similarly situated employees, Horizon agrees to provide medical insurance until the age at which a similarly situated Alaska Airlines employee would have received retiree medical insurance.

Please sign this letter and the other two originals confirming your agreement with the terms outlined above, retain one of the three originals for your files and return the two other signed originals to Keith Loveless.

/S/ William S. Ayer                                                                      

William S. Ayer

Chairman and Chief Executive Officer, Horizon Air Industries, Inc.

Chairman, President and Chief Executive Officer, Alaska Air Group, Inc.

I agree to the terms outlined above:

/S/  Glenn S. Johnson                                      Date:  /July 30, 2010/                                           

Glenn S. Johnson

President, Horizon Air Industries, Inc.ex10_1-20102q.htm

EXHIBIT 10.1

CHANGES TO

2007 RETURN ON EQUITY INCENTIVE AWARD

GRANT AGREEMENT

1.           Section 2 of the Grant Agreement is amended by adding the following after the end of the paragraph:

 

“Further, Grantee shall retain Beneficial Ownership of Shares equal to not less than 100% of the net after-tax Shares received under this Agreement until the third anniversary date of the vesting of the Shares under this Award (the “Beneficial Ownership Period”). Compliance with the foregoing requirement shall be determined by reference to the reports filed by the Grantee on Forms 3, 4, and 5, as applicable, pursuant to Section 16(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) and the aggregate number of Shares reported as Beneficially Owned during the Beneficial Ownership Period shall be not less than the sum of the number of Shares then required to be so owned pursuant to this Grant Agreement and any other Grant Agreement containing this or a similar requirement.  For purposes of this Agreement, “Beneficial Ownership” has the meaning ascribed in Rule 16a-1(2) under the Exchange Act.”

2.           Section 5 of the Grant Agreement is deleted in its entirety and the following is substituted in its stead:

 

“1.           Payment of Awards.  Up to and including 200% of the Target Incentive Amount, as adjusted pursuant to Sections 4 and 6 of this Agreement, will be settled 50% in cash and 50% in Shares.  The number of Shares shall be determined by dividing the amount to be settled in Shares by the last reported sale price of a share of Common Stock on the New York Stock Exchange Composite Transactions on the date the Administrator certifies attainment of the Performance Goal.  Payment will be made to the Grantee as promptly as practicable after the Administrator’s certification of the attainment of the Performance Goal or the Change in Control Event, as the case may be, which, in the case of payment upon attainment of the Performance Goal, shall be made no later than the 15th day of the third month following the end of the first taxable year in which the award is no longer subject to a substantial risk of forfeiture.”

3.           Section 8 of the Grant Agreement is amended by deleting the second sentence in its entirety and substituting the following in its stead:

 

“If the Company must withhold any tax in connection with granting or vesting of this Return on Equity Incentive Award, the Grantee by acknowledging this Agreement agrees that, so long as the Grantee is an employee of the Company for tax purposes, all or any part of any such withholding obligation shall be deducted 50% from any cash amount payable under this Agreement and 50% from the amount to be paid in Shares by deducting an appropriate number of shares corresponding to the tax withholding from the number of Shares to be issued or transferred to the Grantee pursuant to this Agreement, unless the Grantee otherwise instructs the Company in writing not less than thirty (30) days prior to the end of the Performance Period, to satisfy such tax withholding by deducting a specified percentage, greater than 50%, from any cash amount payable under this Agreement and the remaining amount from the Shares portion to be  issued or transferred to the Grantee pursuant to this Agreement.”

 

4.           Except as provided herein, all other terms and conditions of the Grant Agreement remain in full force and effect.ex10_2-20102q.htm

EXHIBIT 10.2

 

Description of Automatic Grant of Directors’ Restricted Stock Awards

Pursuant to the Terms of the

Occidental Petroleum Corporation 2005 Long-Term Incentive Plan

 

 

In May 2010, pursuant to section 4.5 of the Corporation’s 2005 Long-Term Incentive Plan (the “Plan”), the Board of Directors (the “Board”) restated its resolutions adopted in February 2006 and 2007 with respect to annual and special restricted stock awards to be granted automatically to non-employee directors (the “Automatic Grants”) pursuant to the Plan to increase the grant to the Lead Independent Director and to provide for special grants to Committee Chairs appointed other than at an Annual Meeting.  All other provisions of the automatic grants, including the form of award, remain unchanged. The following sets forth the restated automatic grant program:

 

(a) Annual Awards.  On the first business day following each annual meeting during the term of the Plan, each Non-Employee Director who is then a member of the Board shall be awarded five thousand (5,000) whole shares of Restricted Stock.

 

(b) Special Awards.  On the first business day following each annual meeting during the term of the Plan:

 

 (i) each Non-Employee Director who is then serving as a Chairman of one or more committees of the Board shall be awarded eight hundred (800) whole shares of Restricted Stock with respect to each such position, in addition to any Award he or she may be granted pursuant to (a) above; and

 

(ii) the Non-Employee Director who is then serving as Lead Independent Director shall be awarded three thousand (3,000) whole shares of Restricted Stock with respect to such position, in addition to any Award he or she may be granted pursuant to (a) and (b)(i) above.

 

(c) Interim Awards.

 

(i)           If, following an annual meeting, a Non-Employee Director is elected during the term of the Plan other than at an annual meeting, then on the first business day following his or her election as a member of the Board, such newly elected Non-Employee Director shall be awarded the number of shares (rounded up to the nearest whole share) of Restricted Stock equal to five thousand (5,000) multiplied by a fraction, the numerator of which is the number of regularly scheduled Board meetings from the date of his or her election until the next annual meeting and the denominator of which is the number of regularly scheduled Board meetings between the immediately preceding annual meeting and the next scheduled annual meeting, provided that such Non-Employee Director did not receive an Annual Award in the immediately preceding twelve months; and

 

  

  

  

  

(ii)           If a Non-Employee Director is appointed to serve as a Chairman of one or more committees of the Board at any time other than at an annual meeting, then, on the first business day following the next regularly scheduled annual meeting during the term of the Plan, such Non-Employee Director shall be awarded with respect to each such position the number of shares (rounded up to the nearest whole share) of Restricted Stock equal to eight hundred (800) multiplied by a fraction, the numerator of which is the number of regularly scheduled committee meetings, to which he or she has been appointed Chairman of, remaining from the date of his or her selection as Chairman of one or more Board committees until the next annual meeting and the denominator of which is the number of regularly scheduled committee meetings, to which he or she has been appointed Chairman of,  between the immediately preceding annual meeting and the next regularly scheduled annual meeting; provided however, that if following the appointment of such Non-Employee Director as a Chairman of a Board Committee, the number of such positions held by such Non-Employee Director has not increased from the number of positions for which he or she received a Special Award following the immediately preceding annual meeting, then the Non-Employee Director shall not be entitled to an Interim Award.

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