Personal
and Confidential
Mr. Paul
Kerrigan
c/o Brookfield Homes Corporation
181 Bay Street, Suite 300
Toronto, ON M5J 2T3
Further
to our discussions related to your departure, we would like to
outline the following financial and other arrangements related to
your departure from Brookfield Homes Corporation
(“Brookfield”):
|
|
1.
|
|
You will remain on our payroll and continue to receive your regular
remuneration and full benefits in the normal way until
November 28, 2008 (the “Departure
Date”).
|
|
|
|
|
|
|
|
2.
|
|
The following will be paid to you with the first pay following the
Departure Date:
|
|
|
a.
|
|
A payment of $575,000.
|
|
|
|
|
|
|
|
b.
|
|
A $15,000 payment into your Registered Retirement Savings Plan
(“RRSP”).
|
|
|
|
|
|
|
|
c.
|
|
Any outstanding vacation entitlement which will be reconciled and
paid to you from 2008.
|
|
|
3.
|
|
Commencing on November 28, 2008 and until the earlier of
either the date you find Alternate Employment or August 29,
2009, you will continue to receive your “Salary”
(defined as $420,000 per annum), health, and dental, and life
insurance benefits (including Medcan assessment and fitness
reimbursement). For the purpose of this agreement “Alternate
Employment” is intended to cover any full-time employment,
part-time employment or consulting arrangements. Long Term
Disability and Accidental Death and Dismemberment benefits will
cease on your Departure Date. You may choose to convert your life
insurance as per the plan particulars within 31 days of the
end of coverage. Also, please be advised that Brookfield reserves
the right to add/delete or modify all or any portions of the
benefit plan during the aforementioned period up to
November 28, 2008.
|
|
|
|
|
|
|
|
4.
|
|
(a) If Alternate Employment commences prior to August 29,
2009, your salary, health, dental and life insurance benefits will
cease, effective upon the commencement of Alternate Employment and,
at that time you will receive a lump sum payment equivalent to the
sum of 50% of the Salary that would have been paid to you between
the commencement of Alternate Employment and December 29, 2009
and an additional $15,000 payment into your RRSP.
|
(b) If
you have not commenced Alternate Employment prior to
August 29, 2009, your Salary, health and dental benefits will
cease on August 29, 2009 and you will receive a lump sum
payment with your final Salary payment equivalent to $140,000 plus
an additional $15,000 payment into your RRSP.
|
|
5.
|
|
You will be required to exercise all vested Options to purchase
Brookfield Homes Corporation Common Shares (“Options”)
by the ear
|
|
