Termination and Change of Control Provisions

Pursuant to the current employment practices of Bombardier, the compensation of each of the Named Executive Officers is revised and set on an annual basis by the HRCC as described on the Remuneration of Named Executive Officers page.

Unless Bombardier has entered into an employment contract with an executive, when the employment of an executive is terminated, any termination settlement to which he/she might be entitled would then be determined either in accordance with applicable law or jurisprudence or by mutual agreement. For the executives for whom an offer of employment letter specifies the terms and conditions of settlement upon their termination of employment, the termination settlement will be made in accordance therewith. As part of any termination agreement with an executive, Bombardier usually requests the inclusion of non-solicitation, non-disclosure and non-compete provisions.

In the case of Mr. Bellemare, there is an agreement pursuant to which he would be entitled to receive a separation allowance in an amount equal to 12 months of his base salary and target bonus if his employment is terminated by the Corporation in the first 12 months following the effective date of his employment, 24 months of his base salary and target bonus if his employment is terminated by the Corporation after the first 12 months of employment but prior to age 60, and 12 months of his base salary and target bonus if his employment is terminated by the Corporation after age 60.

In the case of Mr. John Di Bert, there is an agreement pursuant to which he would be entitled to receive a separation allowance in an amount equal to 12 months of his base salary if his employment is terminated by the Corporation. The separation allowance will be equal to one month of his base salary per completed year of service if he has completed more than 12 years of service up to a maximum of 18 months of base salary.

In the case of Messrs. Frederick Cromer and David Coleal, there is an agreement pursuant to which they would be entitled to receive a separation allowance in an amount equal to 15 months of their base salary if their employment is terminated by the Corporation.

In the case of Mr. Laurent Troger, there is an agreement pursuant to which he would be entitled to receive a separation allowance in an amount equal to 18 months of his base salary if his employment is terminated by the Corporation.

For all NEOs listed above, the separation allowance will be paid only if the employment is terminated by the Corporation for any reason other than just cause.

As of the date of the 2016 Proxy, there are no other termination or severance agreements or arrangements, including change-of-control arrangements, between Bombardier and any of the other NEOs.

The following table sets forth estimates of the incremental amounts payable to each of the NEOs upon retirement, termination without cause or death, assuming that each such event would have taken place on December 31, 2015. The table does not include the value of insurance benefits that could be continued for a few months following the occurrence of the respective event since they are generally available to all salaried employees.

Read the Estimated Incremental Amounts Payable upon the Following Events Assumed to Occur on December 31, 2015

The following table describes the consequences resulting from different types of termination from employment on the entitlement to the benefits of the Bombardier compensation programs assuming the event took place on December 31, 2015. As a general rule, only the accrued and vested benefits are paid under each of the compensation plans. 

Read the Types of Termination table