Employment Agreement – Qwest Communications International Inc. and Joseph P. Nacchio
Thomas J. Matthews
Executive Vice President
Human Resources
Telephone (303) 992-2106
Telecopier (303) 992-1723
August 13, 1999
Joseph P. Nacchio
1 Manor Hill Drive
Mendham, NJ 07945
The compensation committee of the Board of Directors is pleased to offer
you a non-qualified stock option grant on August 13, 1999 of options for 9
million shares at a price of $28.50 per share. These options will be subject
to the vesting provisions and other terms and conditions contained in the
attached option agreement. As provided in the attached agreement, 500,000 of
these options are contingent upon the published closing price of Qwest common
stock being no less than $45 a share for 30 consecutive trading days ending
on before the second anniversary of the closing date of the merger with U S
WEST.
Upon consummation of the Qwest-U S WEST merger, your base salary will be
increased from $680,000 to $1,000,000 and your target bonus will be increased
from 110% to 150%. In addition, at the earlier of the consummation of the
Qwest-U S WEST merger and January 1, 2001, you will receive a cash payment of
$750,000.
It is also agreed that the growth share payment (in the amount of
$25,482,004) payable to you during the calendar year 2001 under the Growth
Share Plan, will be paid in full on January 1, 2001.
Further, your title and position shall remain a Chairman and the Chief
Executive Officer, and all references to President and Chief Executive
Officer in your employment agreement are hereby changed to Chairman and Chief
Executive Officer, it being understood that currently the Company has two
Chairmen and after the Qwest-U S WEST transaction the Company shall have
three Chairmen.
Please sign the enclosed option agreement and return it to Tom Matthews.
Sincerely,
Qwest Communications International Inc.
Compensation Committee
Philip F. Anschutz
Jordan L. Haines
W. Thomas Stephens
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