SEC Contract Filing

Filing Date: 2016-02-09

Document Content:
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<TYPE>EX-10.1
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<FILENAME>exhibit10116_02x09xitem502.htm
<DESCRIPTION>EXHIBIT 10.1
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<a name="s6a86e1b6119e462cb3bde6842178b710"></a><div><div style="line-height:120%;padding-top:16px;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Exhibit 10.1</font></div></div><br><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">February 8, 2016&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Mr. E.C. Sykes</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">1019 Evergreen Farm Drive</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Temple, Texas 76502</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Dear E.C.:</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are pleased to offer you the position of President and Chief Executive Officer of Black Box Corporation (&#8220;Black Box&#8221; or the &#8220;Company&#8221;). Your position will be located at the Company&#8217;s headquarters in Lawrence, Pennsylvania. It is a condition of this offer that you reconfirm your commit to relocate your primary residence to the Pittsburgh, Pennsylvania area. Should you accept this offer, your annual salary as an exempt employee will be $650,000, paid in accordance with the Company&#8217;s payroll practices in effect from time-to-time. You also would be elected to our Board of Directors (the &#8220;Board&#8221;) effective with your appointment as President and Chief Executive Officer.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Your projected start date with Black Box is February 29, 2016. We note that you have already completed background checks, education verification and a drug screening. </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On your start date, you will receive an award of Restricted Stock Units (&#8220;RSUs&#8221;) for 40,000 shares of the Common Stock, par value $.001, of Black Box. These units will vest, pro rata, over a three-year period beginning on the first anniversary of your start date, resulting in the issuance of shares of Common Stock net of shares withheld for taxes. This award will be under and subject to the Black Box 2008 Long-Term Incentive Plan, as amended (the &#8220;Incentive Plan&#8221;), and the standard Black Box award agreement for RSU awards. Documents related to your RSU award, including the Incentive Plan and the RSU agreement, along with the related prospectus will be provided to you under separate cover.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In addition, you are eligible to participate in annual and long-term awards under the Incentive Plan for the Company&#8217;s fiscal year ending March 31, 2017. Subject to the recommendation of the Compensation Committee of the Board, and approval by the Board, we anticipate making you a cash annual incentive award equal to 100% of your base salary, and a long-term incentive award of approximately $2.0 million. In recent years, our long-term awards covered a performance period of three years and were comprised of RSUs for 20%, stock options for 30% and performance share units for 50% of the value of the award. </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">You also will receive an Agreement (the &#8220;Change in Control Agreement&#8221;), a copy of which is included. The Change in Control Agreement, subject to termination for cause or voluntary termination or retirement by you, provides you with a severance benefit equal to your monthly base salary times the greater of (i) the number of months remaining until the third anniversary of your start date, or (ii) twelve. The Change in Control Agreement also contains non-compete, non-solicitation and confidentiality provisions, and provisions for compensation in the event of a change in control of the Compa