Exhibit 10.39
RETIREMENT AGREEMENT
BETWEEN
JOHNSONDIVERSEY, INC. AND JOANNE
BRANDES
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Date:
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January 5,
2007
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From:
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Curt
Johnson
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PERSONAL &
CONFIDENTIAL
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To:
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JoAnne Brandes
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The following sets forth our mutual
agreement (“Agreement”) regarding your separation from
the Company:
1. Salary Continuation . Your
last day of work will be January 31, 2007 (“Termination
Date”). The Company will pay you an amount equal to one times
the sum of your annual base salary ($460,000) and performance bonus
objective (“PBO”) at your 2006 target rate ($299,000)
as salary continuation for 12 months following the Termination
Date. Payments of this salary continuation amount of $759,000 will
be paid in equal installments at the times and in the manner
consistent with Company payroll practices for executive employees.
Payments will have all federal, state and local taxes deducted, as
applicable.
2. Health Benefits . The
medical, dental and vision coverage you elected under the
JohnsonDiversey Choice Benefits Program will cease on your
Termination Date. At your option, you may continue your coverage
for a period of 18 months under COBRA. Please contact the JDI
Service Center at (866) 391-0760 for more detailed
information. At the end of the 18-month period, you will be
eligible for retiree medical benefits as provided under our plan as
in effect from time to time. Your retiree medical premiums will be
based on your age as of your Termination Date. The Company will pay
you a cash lump sum payment of $30,500 within 30 days following
your Termination Date to cover the sum of the present value of the
estimated difference in retiree medical premiums that you will be
required to pay based on your age as of your Termination Date and
those that you would have paid had you been age 55 at your
Termination Date and the estimated tax consequences of the
payment.
3. COBRA Assistance . If you
elect COBRA, the Company will subsidize the medical, vision and
dental rates for the 18 months’ coverage period so that for
the same coverage you will pay the same amount of contribution as
if you were an active employee.
4. Retiree Medical Savings
Account (RMSA) . You will retain any RMSA Employee and Company
Accounts to be used for payment of healthcare expenses.
5. Life Insurance . You will
receive Company-paid retiree life insurance of $15,000 and you will
have the option of purchasing additional retiree life as provided
under our plan as in effect from time to time. For options
regarding retiree life insurance and on converting any additional
life insurance coverage, please contact the JDI Service
Center.
6. Choice Benefits . As with
the health benefits, the coverage you elected will cease on your
Termination Date.
7. Service Recognition Award
. In recognition of your career with the Company, the Company will
pay you $1,130,000 in cash, one-half to be paid on the first
anniversary of the Termination Date and one-half on the second
anniversary of the Termination Date.
8. Supplemental Executive
Retirement Plan . As of the first day of the month following
your Termination Date, you will be paid under the JohnsonDiversey,
Inc. Supplemental Executive Retirement Plan a cash lump sum payment
equal to the actuarial equivalent value of a $50,000 annual
retirement benefit commencing at attainment of age 55 on a
single-life basis.
9. 2006 PBO . You will
receive a 2006 PBO payment based on actual performance. This
payment will be made on or before March 31, 2007 at the time
the Company pays such bonuses to other participants.
10. 2006-08 Cash LTIP . You
will receive a prorated Cash LTIP payment for the 2006-08
performance cycle based on actual performance, with your prorated
entitlement to be one-third of the otherwise earned benefit. This
payment will be made after the end of the 2006-08 performance cycle
and on or before March 31, 2009 at the time the Company pays
awards for the 2006-08 performance cycle to other
participants.
11. 2006 Transition Performance
Award . You will receive a 2006 transition performance award
payment based on actual performance. The final payment of such
award will be made during June 2007 at the time the Company makes
final payments of such awards to other participants.
12. 2006 Profit Hunt Incentive
Award . You will receive a 2006 profit hunt incentive award
based on actual performance. This payment will be made on or before
March 31, 2007 at the time the Company pays such bonuses to
other participants.
13. JohnsonDiversey Retirement
Plan/Non-qualified Retirement Plan . Your vested benefits under
these plans at your Termination Date will be available to you
pursuant to their terms. You will receive more detailed
information.
14. 401(k) Plan . You will
continue to participate in the 401(k) Plan based on your base
salary up to your Termination Date. Your Plan account will be based
on the date of distribution of your account to you. To access your
401(k) account, please call Fidelity at
(800) 890-4015.
15. Outplacement Assistance .
For one year following your Termination Date, the Company will
provide the services of the outplacement firm of Right Management
to assist you in your effort to secure other employment.
16. Separation Pay . You will
be entitled following your Termination Date to 14 weeks’ of
your base salary (the annual rate of which is $460,000) as provided
under the Company’s formal separation pay policy.
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17. Flexible Spending Account
. You will be entitled on July 1, 2007 to a payment of up to
$10,000 for reimbursement of retirement/financial planning service
expenses incurred after January 1, 2007 and prior to
July 1, 2007.
18. All Other
Benefits . All other benefits not specifically mentioned above
cease as of your Termination Date, and you will not be entitled to
any awards under our annual or long-term bonus or incentive plans
(including PBO, cash/equity LTIP, and profit hunt incentive awards)
for 2007 or later years. Your 2001 special restricted stock grant
with a grant date of December 10, 2001 (including the added
cash benefit under a SERP providing for a payment thereunder equal
to the difference between the value of the restricted stock at the
time of vesting and the value if the shares were valued at $139.25
per share) will be forfeited on your Termination Date in accordance
with its terms. You will be paid for unused 2006 vacation days plus
1/12 th
of your
2007 vacation in accordance with Company policy and the
requirements of Wisconsin law.
19. Corporate Credit Card .
You agree to file all expense reports on your Mastercard Corporate
Credit Card on or before your Termination Date. If any amount
remains outstanding, you agree that the Company will withhold said
amount from any monies due you under this Agreement.
20. Return of Company
Property . As soon as reasonably practicable but in no event
later than your Termination Date, you shall return all
Company-owned property in your possession, including but not
limited to all keys to buildings or property, credit cards, files,
equipment, software and computers, documents and papers (including
but not limited to reports, Rolodexes, sales data, product lists,
business plans, financial information, corporate governance
materials, notebook entries, and files), telephone cards, cellular
telephone(s), all Confidential Information, as defined herein, and
all other Company property in accordance with Company
guidelines.
21. Release . In
consideration of the Company’s provision for the severance
payments provided above, you agree, on behalf of yourself, your
spouse or any former spouse, dependents, heirs, attorneys,
successors and assigns, to release, hold harmless and forever
discharge JOHNSONDIVERSEY, INC., as well as its parent companies,
subsidiaries, affiliates, successors, predecessors, employees,
agents, directors and officers, past and present, stockholders and
estates in their individual and business capacities, jointly and
severally, (collectively referenced herein as “the Released
Parties”), from any and all claims, damages, fees, costs or
other equitable, legal, statutory or common law relief for any
causes of action, obligations, contracts, torts, claims, costs,
penalties, fines, liabilities, attorneys’ fees, demands or
suits, of whatever kind or character, known or unknown, fixed or
contingent, liquidated or unliquidated, whether asserted or
unasserted, arising out of or related to your prior employment with
the Company, your termination from employment with the Company, any
employment agreements, policies or practices governing terms of
your employment, and any acts or omissions by the Company or any of
the Company’s current and former officers, directors,
shareholders, principals, attorneys, agents, employees, affiliates,
parent companies, subsidiaries, successors and assigns, at any time
up through the Effective Date of this Agreement. This Agreement
shall specifically apply to, but shall not be limited to, claims
for violation of civil rights, including violations of Title VII of
the Civil Rights Act of 1964, the Equal Pay Act, the Americans With
Disabilities Act, the Age
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