Document:

EXHIBIT 10.1

 

SUBSIDIARY SERVICE AGREEMENT

This SUBSIDIARY SERVICE AGREEMENT (“Agreement”), by and between HRG GROUP, INC., a Delaware corporation (formerly, Harbinger Group Inc., “HRG”), and DAVID MAURA (“Executive”) (collectively, the “Parties”) is made as of January 20, 2016. Capitalized terms used but not otherwise defined in this Agreement shall have the meanings ascribed to such terms in the HRG Agreement (defined below).

WHEREAS, HRG and Executive have entered into an amended and restated employment agreement, dated as of February 11, 2014 (the “HRG Agreement”);

WHEREAS, Spectrum Brands Holdings, Inc., a Delaware corporation and subsidiary of HRG, and its subsidiaries (collectively, “SPB”), desire to retain Executive to serve as SPB’s Executive Chairman and Executive is willing to provide such service (the “Service Arrangement”) and in connection therewith Executive and Spectrum Brands Holdings, Inc. have entered into an employment agreement, dated January 20, 2016 (the “SPB Agreement”); and

WHEREAS, on the terms and conditions set forth in this Agreement, the Parties have outlined their arrangements and understanding with respect to the Service Arrangement, including the manner in which certain compensation received, and to be received, by Executive under the HRG Agreement will be reduced by certain compensation received, and to be received, by Executive under the SPB Agreement.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants, understandings, representations, warranties, undertakings and promises hereinafter set forth, intending to be legally bound thereby, the Parties agree as follows:

		1.	Duration. This Agreement shall be effective during the SPB Period.

		2.	Payment Timing. No portion of the HRG Bonus shall be paid or granted (as applicable) with respect to a given fiscal year until the corresponding SPB Bonus for such fiscal year has been paid and SPB Equity Award has been granted for such fiscal year; provided that, for each fiscal year the HRG Bonus shall not be unreasonably delayed .

		3.	Base Salary Offset.  During the SPB Period, Executive shall not be paid his HRG Base Salary from HRG while he is being paid his SPB Base Salary.

		4.	Benefits. Commencing three months following the date hereof and during the remainder of the SPB Period, Executive shall not participate in benefits and perquisite plans, programs and arrangements of HRG other than the FlexNet program to the extent HRG continues to maintain such program.

		5.	SPB Initial Equity Grant.  Prior to any reductions required under Sections 6 or 7 of this Agreement, the HRG Bonus for fiscal year 2016 shall be reduced, but not below zero, by the amount of the SPB Initial Equity Award in the following order of priority: (i) Vested HRG Equity Award; (ii) Unvested HRG Equity Award; (iii) Vested HRG Cash Bonus (iv) Unvested HRG Cash Bonus; (v) vested HRG Options; (vi) unvested HRG Options; and (vii) Unvested HRG Equity Awards for years prior to 2016 in reverse chronological order; provided, that for purposes of valuing HRG Equity Awards pursuant to this clause (vii), the value of such HRG Equity Awards shall be based on the same VWAP calculation methodology the Company has used to issue the Executive a bonus at HRG in fiscal 2015; (viii) the per share value of unvested HRG Options for years prior to 2016 in reverse chronological

 

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			order; provided, that for purposes of this clause (viii) and of the following clause (ix) the per share value of HRG Options shall be the excess, if any, of the exercise per share price over the fair market value per HRG share (as determined in accordance with the terms of the HRG plan under which the HRG Option was granted) on the date the reduction is determined; and (ix) vested amount from prior HRG Equity as directed by the Executive.

 

		6.	Annual Cash Bonus. During the SPB Period, for a given fiscal year, prior to any reductions required under Section 7 of this Agreement the HRG Bonus shall be reduced, but not below zero, by the amount of the SPB Bonus in the following order of priority: (i) Vested HRG Cash Bonus; (ii) Unvested HRG Cash Bonus; (iii) Vested HRG Equity Award; (iv) Unvested HRG Equity Award; (v) vested HRG Options and (vi) unvested HRG Options.

		7.	Annual Equity Awards. During the SPB Period, for a given fiscal year, the amount of the HRG Bonus will be reduced, but not below zero, by amount of the SPB Equity Award in the following order of priority: (i) Unvested HRG Equity Award; (ii) Vested HRG Equity Award; (iii) Unvested HRG Cash Bonus; (iv) Vested HRG Cash Bonus; (v) unvested HRG Options and (vi) vested HRG Options.

		8.	Severance.   To the extent Executive’s employment with HRG and SPB terminates in related events or otherwise within a six month timeframe, then the amount of the HRG Severance will be reduced by the amount of the SPB Severance.  If Executive’s employment is terminated by SPB for Cause pursuant to the SPB Agreement, HRG may terminate Executive’s employment within 30 days following such termination without advance notice to the Executive and HRG shall have no obligation to pay any amounts pursuant to Section 5(c) of the HRG Agreement and such termination shall be treated as a termination for Cause under the HRG Agreement.

		9.	Intent.   It is the intent of the Parties to this Agreement, that notwithstanding any section references with respect to the HRG Agreement or SPB Agreement contained herein, that the provisions of this Agreement shall apply broadly to any compensation, and any types thereof, subject to offset hereunder whether provided by SPB or HRG under existing or future contracts or on a non-contractual basis during the SPB Period such that any amounts of bonus or equity compensation paid by SPB to Executive for a given fiscal year during the SPB Period will be subject to offset by reduction of any bonus or equity compensation payable by HRG in respect of such fiscal year consistent with foregoing principles of this Agreement.  For the avoidance of doubt, other than as specifically permitted pursuant to Section 5 hereof, SPB compensation in respect of one fiscal year cannot be offset from HRG compensation prior fiscal years.  Unless otherwise expressly provided in the Agreement, all measurements with respect to HRG Equity Awards and SPB Equity Awards shall be based on Fair Market Value.  Annex A attached hereto sets

 

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			forth certain examples of the offset arrangement embodied in this Agreement for purposes of illustration only.

 

		10.	Definitions.  The following definitions shall apply for purposes of this Agreement:

“Fair Market Value” shall mean the following: (i) with respect to stock options – the grant date fair value of the options based on the same methodology used to report such value in the company’s proxy statement; (ii) with respect to share awards that vest based on attainment of performance metrics – the fair market value as of the grant date of the number shares under such award that would vest based on the attainment of metrics at the target level; and (iii) with respect to share awards that vest based on continuing employment on the vesting dates, the fair market value as of the grant date of the total number shares under such award.

“HRG Base Salary” shall mean the base salary payable to Executive pursuant to Section 4(a) of the HRG Agreement.

“HRG Bonus” shall mean the annual bonus payable to Executive pursuant to Section 4(b) of the HRG Agreement that is comprised of the Vested HRG Cash Bonus, the Unvested HRG Cash Bonus and the HRG Equity Award.

“HRG Equity Award” shall mean, for a given fiscal year, the portion of the HRG Bonus paid in the form of equity, which shall exclude the HRG Options.

“HRG Options” shall mean, for a given fiscal year, the portion of the HRG Bonus paid in the form of stock options.

“HRG Severance” shall mean the severance provided to Executive pursuant to Section 5(c)(i) of the HRG Agreement.

“SPB Base Salary” shall mean the base salary payable to Executive pursuant to Section 3(a) of the SPB Agreement.

“SPB Bonus” shall mean the annual bonus payable to Executive pursuant to Section 3(b) of the SPB Agreement.

“SPB Equity Award” shall mean, for a given fiscal year, the annual equity awards granted to Executive pursuant to Sections 3(d), (e) and (f)  of the SPB Agreement, which shall, for the avoidance of doubt, include, without limitation, the EIP Award (as such term is defined in the SPB Agreement) granted in Fiscal 2016 and future years.

“SPB Initial Equity Award” shall mean the fully vested $6 million equity award granted to Executive pursuant to Section 3(j) of the SPB Agreement.

“SPB Period” shall mean period commencing on the first day of the fiscal year of HRG in which the SPB Agreement commences and ending on the last day of the first fiscal year of HRG in which Executive’s employment under either the HRG Agreement or the SPB

 

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Agreement is terminated and thereafter until all amounts subject to the reduction/offset under this Agreement have been satisfied.

“SPB Severance” shall mean the severance provided to Executive pursuant to Section 5(b)(i) of the SPB Agreement.

“Vested HRG Cash Bonus” shall mean, for a given fiscal year, the amount of the HRG Bonus payable in vested cash that is not subject to vesting pursuant to the terms of the applicable HRG Bonus arrangement.

“Vested HRG Equity Award” shall mean, for a given fiscal year, the portion of the HRG Equity Award (excluding stock options) that is vested at grant.

“Unvested HRG Cash Bonus” shall mean, for a given fiscal year, the amount of the HRG Bonus payable in cash that is subject to vesting pursuant to applicable HRG Bonus arrangement.

“Unvested HRG Equity Award” shall mean, for a given fiscal year, the portion of the HRG Equity Award (excluding stock options) that is subject to vesting.

		11.	Arbitration.  The arbitration provisions of Section 18 of the HRG Agreement are hereby incorporated into this Agreement by reference and shall apply mutatis mutandis to any dispute relating to the terms of this Agreement; provided, however, that in the event of any dispute under this Agreement, the Parties agree to first attempt to negotiate a resolution to such dispute in good faith before seeking resolution through arbitration.

		12.	Relationship to HRG Agreement. The terms of the offset arrangement as set forth in this Agreement will supersede the terms of the HRG Agreement to the extent necessary to give effect to the arrangements contemplated by this agreement.

		13.	Further Assurances.  The Parties hereby agree, at the request of any other party, to execute and deliver all such other and additional instruments and documents and to do such other acts and things as may be reasonably necessary or appropriate to carry out the intent and purposes of this Agreement.

		14.	Other Terms. Sections 16, 17, 19, 20, 25, 26, 27 and 28 of the HRG Agreement are hereby incorporated into this Agreement by reference and shall apply mutatis mutandis to this Agreement.

		15.	 Counterparts. This Agreement may be executed in separate counterparts, each of which is deemed to be an original and all of which taken together constitute one and the same agreement.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

	
 

	
HRG GROUP , INC.

	
 

	
 

	
 

	
 

	
 

	 			
	
 

	
By:

	
/s/ George C. Nicholson

	
 

	
 

	
Name:

	
George C. Nicholson

	
 

	
 

	
Title:

	
Senior Vice President, Chief Accounting  Officer & Acting Chief Financial Officer

	
 

	 			
	 			
	 	DAVID MAURA	
	 			
	 			
	 	By:	/s/ David Maura	
	 	Name:	David Maura	

 

 

Signature Page to Subsidiary Service AgreementEX-4.2

 Exhibit 4.2 

MONDELĒZ INTERNATIONAL, INC. 

OFFICERS’ CERTIFICATE 

January 21, 2016 

Reference is made to (i) Section 301 of the Indenture dated as of March 6, 2015 (the “Indenture”), by and
between Mondelēz International, Inc., a Virginia corporation (the “Company”), and Deutsche Bank Trust Company Americas, as Trustee (the “Trustee”), (ii) the Terms Agreement dated January 13, 2016 (the
“Terms Agreement”), which incorporates the Amended and Restated Underwriting Agreement dated February 28, 2011 (the “Underwriting Agreement”), by and among the Company and BNP Paribas, Deutsche Bank AG, London
Branch and Merrill Lynch International, as representatives of the underwriters named therein, relating to the offer and sale by the Company of €700,000,000 aggregate principal amount of its 1.625% Notes due 2023 (the “Notes”).

 Capitalized terms used but not otherwise defined herein shall have the respective meanings given such terms in the Indenture, the
Underwriting Agreement or the Terms Agreement, as the case may be. 
 The undersigned VP, Investor Relations and Treasurer, in the case of
Dexter Congbalay, and Vice President and Corporate Secretary, in the case of Carol J. Ward, of the Company, hereby certify that the VP, Investor Relations and Treasurer has authorized the issue and sale of the Notes by the Company, and, in
connection with such issue, has determined, approved or appointed, as the case may be, the following: 
  

	 	(a)	Title: 1.625% Notes due 2023. 

  

	 	(b)	Principal Amount: €700,000,000 aggregate principal amount. Principal payments in respect of the Notes shall be made in euro. 

 

	 	(c)	Interest: Interest on the Notes is payable annually on January 20 of each year, commencing on January 20, 2017, to persons in whose name a Note is registered at the close of business on the business day
before the relevant interest payment date (or to the applicable depositary, as the case may be). The Notes will bear interest at a rate per annum of 1.625%. Interest on the Notes will be computed on the basis of the actual number of days in the
period for which interest is being calculated and the actual number of days from and including the last date on which interest was paid on the Notes (or January 21, 2016, if no interest has been paid on the Notes) to, but excluding, the next
scheduled interest payment date. This payment convention is referred to as ACTUAL/ACTUAL (ICMA) as defined in the rulebook of the International Capital Market Association. Interest payments in respect of the Notes shall be made in euro.

  

	 	(d)	 Form and Denominations: Fully-registered book-entry form, as a Registered Security, only, represented by one or more permanent Global
Securities registered with BT Globenet Nominees Limited as nominee of Deutsche Bank AG, London Branch, the common depositary (the “Depositary”) for, and in respect of interests

	 	
held through, Euroclear Bank S.A./N.V., as operator of the Euroclear System (“Euroclear”), and Clearstream Banking, société anonyme
(“Clearstream”), in denominations of €100,000 (one hundred thousand euro) and integral multiples of €1,000 (one thousand euro) in excess thereof. The Company shall issue the Notes in definitive form in exchange for the
applicable Global Securities if the Depositary is at any time unwilling or unable to continue as depositary for any of the Global Securities and a successor depositary is not appointed by the Company within 90 days or if an Event of Default has
occurred with regard to the Notes represented by the Global Securities and has not been cured or waived. In addition, the Company may at any time and in its sole discretion determine not to have the Notes represented by the Global Securities and, in
that event, shall issue the Notes in definitive form in exchange for the Global Securities. In any such instance, a Holder of a beneficial interest in the Global Securities will be entitled to physical delivery in definitive form of the Notes
represented by the Global Securities equal in principal amount to such beneficial interest and to have such Notes registered in its name. The Notes so issued in definitive form shall be issued as registered in minimum denominations of €100,000
and integral multiples of €1,000 in excess thereof, unless otherwise specified by the Company. Definitive Notes may be transferred by presentation for registration to the Registrar and Transfer Agent at its office and must be duly endorsed by
the Holder or the Holder’s attorney duly authorized in writing, or accompanied by a written instrument or instruments of transfer in form satisfactory to the Company or the Registrar and Transfer Agent duly executed by the Holder or the
Holder’s attorney duly authorized in writing. The Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any exchange or registration of transfer of definitive Notes.

  

	 	(e)	Maturity: The Notes will mature on January 20, 2023. 

  

	 	(f)	Optional Redemption: (i) Prior to October 20, 2022, the Company may, at its option, redeem the Notes, in whole at any time or in part from time to time (in €1,000 increments, provided that any
remaining principal amount thereof shall be at least the minimum authorized denomination thereof), at a redemption price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed and (ii) the sum of the present
values of the Remaining Scheduled Payments (as defined in the Global Securities representing the Notes attached hereto as Exhibit A) discounted to the redemption date, on an annual basis (ACTUAL/ACTUAL (ICMA)), at a rate equal to the Treasury
Rate (as defined in the Global Securities representing the Notes attached hereto as Exhibit A) plus 25 basis points plus, in either case, accrued and unpaid interest, if any, thereon to, but excluding, the redemption date, and (ii) on or
after October 20, 2022, the Company may, at its option, redeem the Notes, in whole at any time or in part from time to time (in €1,000 increments, provided that any remaining principal amount thereof shall be at least the minimum
authorized denomination thereof) at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, thereon to, but excluding, the redemption date, in each case as set forth in the
Global Securities representing the Notes attached hereto as Exhibit A. All payments of principal, interest and premium pursuant to the Optional Redemption provisions shall be in euro. 

	 	(g)	Redemption for Tax Reasons: The Company may, at its option, redeem the Notes in whole, but not in part, upon the occurrence of specified tax events as set forth in the Global Securities representing the Notes
attached hereto as Exhibit A. All payments of principal, interest and premium pursuant to the Redemption for Tax Reasons shall be in euro. 

  

	 	(h)	Payments in U.S. Dollars: If the euro is unavailable to the Company due to the imposition of exchange controls or other circumstances beyond the Company’s control or the euro is no longer used by the member
states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions by public institutions of or within the international banking community, then all payments in respect of the Notes will be made
in U.S. dollars until such currency is again available to the Company or so used. The amount payable on any date in euro will be converted into U.S. dollars by the Company on the basis of the most recently available Market Exchange Rate for the
euro, as determined by the Company. Any payments in respect of the Notes so made in U.S. dollars will not constitute an Event of Default under the Notes or the Indenture. “Market Exchange Rate” means the noon buying rate in The City of New
York for cable transfers of euro as certified for customs purposes (or, if not certified, as otherwise determined) by the Federal Reserve Bank of New York. The amount payable on any date in euro will be converted into U.S. dollars on the basis of
the most recently available Market Exchange Rate for the euro, in each case as certified by the Company to the Trustee and the Paying Agent pursuant to an Officers’ Certificate at least five Business Days prior to such payment date.

  

	 	(i)	Change of Control: Upon the occurrence of both (i) a change of control of the Company and (ii) a downgrade of the Notes below an investment grade rating by each of Moody’s Investors Service, Inc.
and Standard & Poor’s Ratings Services within a specified period, the Company will be required to make an offer to purchase the Notes at a price equal to 101% of the aggregate principal amount of the Notes, plus accrued and unpaid
interest to the date of repurchase as and to the extent set forth in the Prospectus Supplement dated January 13, 2016 under the caption “Description of Notes—Change of Control.” 

 

	 	(j)	Payment of Additional Amounts: The payment of additional amounts with respect to the Notes shall be as set forth in the Global Security representing the Notes attached hereto as Exhibit A. If the Company
is required to pay additional amounts with respect to the Notes, the Company shall notify the Trustee and the Paying Agent pursuant to an Officers’ Certificate that specifies the additional amounts payable. If the Trustee and the Paying Agent
do not receive such an Officers’ Certificate, the Trustee and the Paying Agent shall be fully protected in assuming that no such additional amounts are payable. 

	 	(k)	Sinking Fund: None. 

  

	 	(l)	Conversion or Exchange: The Notes will not be convertible or exchangeable into other securities of the Company or another Person. 

 

	 	(m)	Place of Payment; Transfer, Registration and Exchange; Notices and Demands: Payments of principal and interest on the Notes will be made as set forth in the Global Securities representing the Notes attached
hereto as Exhibit A. Transfer, registration and exchange of the Notes will be made as set forth in the Global Securities representing the Notes attached hereto as Exhibit A. Any notice required to be given under the Notes to the
Company or the Trustee, Paying Agent, Registrar or Transfer Agent under Section 105 of the Indenture shall be in English in writing and shall be delivered in person, sent by pre-paid post (first class if domestic, first class airmail if
international) or by facsimile addressed to: 

  

			
	The Company:	  	 Mondelēz International, Inc.
 Three
Parkway North
 Deerfield, Illinois 60015
 United States

Email: william.whisler@mdlz.com
 Fax: +1 (847) 943 4903

Attention: William Whisler,
 Assistant Treasurer

		
	 The Trustee, Paying Agent, Registrar,
 Transfer
Agent and Authentication
 Agent:
	  	 Deutsche Bank Trust Company
 Americas

60 Wall Street, 16th floor
 New York, New York 10005

United States
 Fax: +1 (732) 578 4635

Attention: Corporates Team /
 Mondelēz International,
Inc.

 Any notice required to be given under the Notes to Holders shall be in accordance with the procedures of the
applicable depositary. 
  

	 	(n)	Events of Default and Restrictive Covenants: As set forth in the Indenture. 

  

	 	(o)	Trustee, Paying Agent, Registrar, Transfer Agent and Authentication Agent: Deutsche Bank Trust Company Americas. 

  

	 	(p)	Form of Notes: Attached as Exhibit A to this Officers’ Certificate delivered in connection with the delivery of the Notes. The further terms of the Notes shall be as set forth in the Prospectus
Supplement dated January 13, 2016 and Exhibit A hereto. 

	 	(q)	Price to Public: 99.301% of the principal amount of the Notes, plus accrued interest, if any, from January 21, 2016. 

  

	 	(r)	Guarantees: The Notes shall not be issued with Guarantees. 

  

	 	(s)	Miscellaneous: (i) The terms of the Notes shall include such other terms as are set forth in the form of Notes attached hereto as Exhibit A and in the Indenture. In addition, the Global Securities for
the Notes shall include the following language: “To the extent the terms, conditions and other provisions of this Note modify, supplement or are inconsistent with those of the Indenture, then the terms, conditions and other provisions of this
Note shall govern.” (ii) Paragraph 6 of Section 303 of the Indenture shall not apply in respect of the Notes; the Depositary shall not be required to be a clearing agency registered under the Securities Exchange Act of 1934, as
amended, or any other applicable statute or regulation. (iii) In addition to the provisions of Section 1002 of the Indenture, the Company undertakes that, to the extent permitted by law, the Company will maintain a paying agent that will
not require withholding or deduction of tax pursuant to European Council Directive 2003/48/EC on the taxation of savings income or any law implementing or complying with, or introduced to conform to, such European Council Directive.

 IN WITNESS WHEREOF, the undersigned VP, Investor Relations and Treasurer, and Vice President and
Corporate Secretary, respectively, of the Company, have executed this Certificate as of the date first written above. 
  

			
	MONDELĒZ INTERNATIONAL, INC.
		
	By:	 	/s/ Dexter Congbalay
	Name:	 	Dexter Congbalay
	Title:	 	VP, Investor Relations and Treasurer
		
	By:	 	/s/ Carol J. Ward
	Name:	 	Carol J. Ward
	Title:	 	Vice President and Corporate Secretary

 [Officers’ Certificate under Section 301 of the Indenture]

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