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Exhibit 10-t
NORDSON CORPORATION
00000 XXXXXXX XXXX
XXXXXXXX, XXXX 00000-0000
October 31, 1999
Personal and Confidential
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Xx. Xxxxxx X. Xxxxxxxx
00000 Xxxxxxxxx Xxx
Xxx Xxxxxxx, XX 00000
Dear Xxx:
This letter sets forth the agreement (this "Agreement") we have reached
regarding the termination of your status as an officer and employee of Nordson
Corporation ("Nordson"), the compensation and benefits to be paid to you, and
certain other matters. You should review this Agreement with legal counsel of
your choice to be certain that you understand and agree with all of the
provisions of this Agreement.
1. Retire as an Officer Effective December 31,1999. On December 31, 1999, your
status as an officer of Nordson, and of any subsidiaries and other affiliates of
Nordson of which you are an officer, and your status as a trustee of The Nordson
Corporation Foundation will cease. By signing this Agreement, you hereby retire
as an officer of Nordson and each such subsidiary and affiliate, and as a
trustee of The Nordson Corporation Foundation, effective as of that date. After
December 31, 1999, you will not hold yourself out as being an officer or
trustee, or as having any authority to bind, Nordson, any such subsidiary or
affiliate, or The Nordson Corporation Foundation.
2. Continued Employment through Termination Date. You will continue as an
employee of Nordson through December 31, 1999, unless your employment with
Nordson is terminated before that date for cause. For this purpose, "for cause"
means a material breach of the provisions of this Agreement or the Standard
Employee Agreement, signed by you and accepted by Nordson on July 18, 1983 (the
"Standard Employee Agreement"), including but not limited to a material breach
of the confidentiality provisions and the covenant not to compete in the
Standard Employee Agreement, following notice of the breach and an opportunity
to cure for 30 days after receipt of the notice. As used in this Agreement,
"Termination Date" means the earlier of (a) December 31, 1999, and (b) the date
of any such termination for cause.
3. Compensation. In consideration of your execution of this Agreement, your
continued employment with Nordson through the Termination Date, and your
observance of the other terms and conditions hereof, Nordson will pay to you or
your estate the following amounts and provide you with the following benefits:
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October 31, 1999 Page 2
1. Salary; Lump Sum Termination Benefit. Through the Termination Date,
Nordson will continue to pay your salary at the annual rate of
$180,000. In the first week of January 2000, Nordson will pay you a
lump sum termination benefit in the amount of $240,000.
2. Bonus. For the fiscal year ended October 31, 1999, Nordson will pay a
bonus to you under the Nordson Corporation 1995 Management Incentive
Compensation Plan to the extent earned by you, payable in the first
week of January 2000. For the period from November 1, 1999 through the
Termination Date, you will receive a severance bonus in the amount of
$148,500, payable in the first week of January 2001.
3. Stock Options. No additional stock options will be granted to you. Each
outstanding stock option previously granted to you under the Nordson
Corporation 1993 Long-Term Performance Plan, as amended (the "Omnibus
Plan"), will vest in full at the Termination Date (to the extent not
therefore vested) and may be exercised at any time before its
expiration, notwithstanding the earlier termination of your employment.
Each outstanding stock option granted to you under any plan or program
other than the Omnibus Plan may be exercised by you until the earlier
of (a) the termination of the option and (b) three months after the
Termination Date. A schedule of the outstanding stock options granted
to you is set forth in Exhibit 1 hereto.
d. Other Benefits. You will be entitled to other benefits as and to the
extent provided under the Nordson Salaried Employees' Pension Plan, the
Nordson Corporation Excess Defined Benefit Pension Plan, the Nordson
Employees' Savings Trust Plan, the Nordson Corporation Excess Defined
Contribution Retirement Plan, the Nordson Corporation Non-Union
Employees Stock Ownership Plan and Trust, and the Nordson Corporation
Officers' Deferred Compensation Plan. The lump sum termination benefit
referred to in paragraph 3(a) and the severance bonus referred to in
paragraph 3(b) will not be counted for purposes of determining the
amount of your benefits under any of Nordson's benefit plans. During
the continuation of your employment, you will be entitled to benefits
as and to the extent provided under Nordson's medical, dental, life
insurance, and disability income plans and programs. You will be
entitled to a car allowance pro-rated through the Termination Date, tax
preparation assistance for the 1999 and 2000 tax years, and
reimbursement of up to $5,000 for out-of-pocket expenses incurred by
you in connection with the preparation for and taking of the bar
examination in the State of Florida. After the Termination Date, you
and your family will be entitled to all benefits customarily extended
to retirees of the Company, including but not limited to medical
insurance coverage, as and to the extent provided by Nordson's programs
for retirees, as those programs may be amended from time to time.
4. Nordson Equipment and Property. Not later than the Termination Date, you will
return to Nordson any equipment and property that belongs to Nordson, and all
materials that contain any
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Nordson confidential or proprietary information (including floppy disks and
other storage devices for computer files), that you may have in your possession.
After the Termination Date, you will not access any Nordson computer network,
whether directly or by use of a modem.
5. Termination of Change of Control Agreement. The Employment Agreement between
you and Nordson that is effective upon a change in control (the "Change of
Control Agreement") will be terminated as of the Termination Date, and, after
the Termination Date, you will have no rights or obligations under the Change of
Control Agreement.
6. Restrictions Applicable to Transactions in Nordson Common Shares. Even though
you will no longer be an officer of Nordson or of any subsidiary or other
affiliate of Nordson, certain restrictions will apply to any purchase or sale of
Nordson Common Shares by you. By signing this Agreement, you acknowledge that
you have received the summary of those restrictions that is attached to this
Agreement as Exhibit 2 hereto and agree that you will comply with those
restrictions.
7. Confidentiality; Nondisparagement; Cooperation. In consideration of the
payments and benefits to be provided to you by Nordson pursuant to this
Agreement:
1. You will not reveal any information regarding the substance of this
Agreement to any person or entity other than (i) your wife, (ii) your
personal accountant or other person preparing your tax returns, and
(iii) counsel retained by you in connection with this Agreement, and
you will be responsible to see to it that none of these people reveals
any information regarding the substance of this Agreement to any other
person or organization.
2. You will not disparage, attempt to discredit, or otherwise call into
disrepute Nordson, its affiliates, successors, assigns, officers,
directors, employees, or agents (in their capacity as agents of
Nordson), or any of their products or services, in any manner that
might damage the business or reputation of Nordson or its affiliates,
successors, assigns, officers, directors, employees, or agents. The
preceding sentence applies to any statement that disparages,
discredits, or calls into disrepute without regard to the truth or
falsehood of the statement.
3. You will not assist any party other than Nordson in any litigation or
investigation against Nordson or its affiliates, successors, assigns,
officers, directors, employees, or agents with respect to any facts or
circumstances existing at any time on or before the Termination Date,
except as may be required by law. If you believe any such action is
required by law, you will use your best efforts to afford Nordson the
opportunity to raise any objection that Nordson may have to the
purported requirement that such action be taken by you.
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Your obligations under this paragraph 7 will remain in effect without any
limitation as to time.
8. Nondisparagement. In consideration of your execution of this Agreement,
Nordson agrees that none of its officers who have actual knowledge of the terms
of this Agreement will disparage you, attempt to discredit you, or otherwise
call you into disrepute in any manner that might damage your reputation. The
preceding sentence applies to any statement that disparages, discredits, or
calls into disrepute without regard to the truth or falsehood of the statement.
Nordson's obligations under this paragraph 8 will remain in effect without any
limitation as to time.
9. Release. In consideration of the payments and benefits to be provided to you
by Nordson pursuant to this Agreement:
1. For yourself, your heirs, executors, administrators, successors, and
assigns, you hereby release and discharge forever Nordson, its
affiliates, successors, assigns, officers, directors, employees, and
agents from any and all claims, demands, causes of action, losses, and
expenses, whether known or unknown, arising out of or in any way
connected with any facts or circumstances existing on or occurring
before the date of this Agreement or arising out of or in any way
connected with your employment by Nordson, the termination of your
employment, or any breach of contract (express or implied), promissory
estoppel, wrongful discharge, intentional infliction of emotional harm,
defamation, libel, slander, or other tort, or any violation of federal,
state, or municipal law relating to discrimination in employment,
including Title VII of the Civil Rights Act of 1964 (42 U.S.C. Section
2000(e) et seq.), Ohio Revised Code Section 4112 et seq., the Americans
with Disabilities Act of 1990, 42 U.S.C. Section 12101, or any state
laws of similar import.
2. You agree not to bring any suit or action in any court or
administrative agency against any of the beneficiaries of this release
arising out of or relating to the subject matter of this release.
Nothing in this paragraph 9 will release Nordson from its obligations under this
Agreement or prevent you from bringing an action to enforce or seek damages for
breach of this Agreement by Nordson.
10. Certain Statements and Procedures.
1. Nordson will make the following statement regarding your termination of
employment:
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"Xxx Xxxxxxxx has retired as Vice President - Law of Nordson. Xxx
managed Nordson's legal affairs for 30 years, and we thank him for
his long and loyal service to the Company."
2. You may make the following statement regarding your termination of
employment:
"I retired on mutually agreed upon terms. I wish Nordson continued
success in the future."
c. If you request Nordson or any of its officers, directors, employees, or
agents to provide to any prospective employer a recommendation or
evaluation of your services to Nordson, they will be permitted to
provide the recommendation or evaluation to the employer. In that
event, you hereby waive any claim that you may have against them by
reason of the disclosure of the recommendation or evaluation, including
any claim that the recommendation or evaluation is unfair in any
respect.
d. Notwithstanding the foregoing, either party may communicate with its or
his own counsel, with counsel for the other party, and with such other
agents or representatives of the other party as may be authorized by
the other party.
11. Injunctive Relief. In the event of a breach by you of your obligations under
this Agreement or the Standard Employee Agreement, Nordson will be entitled to
an injunction against any further breach, as well as money damages suffered by
it or any of the beneficiaries of the release set forth in paragraph 9 above as
a result of the breach.
12. Legal Fees. If either party to this Agreement brings any suit or action to
enforce or seek damages for breach of this Agreement, the parties agree that the
court in which the suit or action is brought may, in its discretion, award to
the prevailing party recovery of his or its reasonable legal fees and expenses
incurred in the suit or action.
13. Governing Law; Venue. This Agreement will be governed by the laws of the
State of Ohio applicable to contracts made and to be performed entirely within
that state. Any suit, action, or other legal proceeding arising out of or
relating to this Agreement may only be brought in the Court of Common Pleas of
Cuyahoga County, Ohio. Nordson and you each (a) consents to the jurisdiction of
that court in any such suit, action, or proceeding and (b) waives, to the
fullest extent permitted by applicable law, any objection that it or he may have
to the laying of venue of any such suit, action, or proceeding in that court and
any claim that any such suit, action, or proceeding has been brought in an
inconvenient forum.
14. Withholding. All payments to be made by Nordson pursuant to this Agreement
are subject to applicable federal, state, and local tax withholding.
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15. Entire Agreement, Binding Nature. This Agreement and the Standard Employee
Agreement as modified hereby set forth the entire agreement between you and
Nordson regarding the subject matter hereof and supersede all prior agreements
and understandings, whether oral or written, between you and Nordson with
respect to the subject matter. This Agreement and the Standard Employee
Agreement as modified hereby will be binding upon and inure to the benefit of
you and your heirs, executors, administrators, personal representatives,
successors, and assigns and Nordson and its successors and assigns.
Sincerely,
NORDSON CORPORATION
By /s/ Xxxxxx X. Xxxxxxxx
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Xxxxxx X. Xxxxxxxx
President and Chief Executive Officer
I hereby accept and agree to all of the terms of this Agreement.
/s/ Xxxxxx X. Xxxxxxxx
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Xxxxxx X. Xxxxxxxx
October 31, 1999
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EXHIBIT 1
SCHEDULE OF OUTSTANDING STOCK OPTIONS
1. Options Granted under Omnibus Plan
Date of Grant No. of Options Exercise Price Expiration Date Date Must Exercise
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11/2/98 8,000 $44.81 11/2/08 11/2/08
11/3/97 6,000 $49.63 11/3/07 11/3/07
11/4/96 6,000 $55.25 11/4/06 11/4/06
10/30/95 6,000 $57.25 10/30/05 10/30/05
10/31/94 4,800 $57.00 10/31/04 10/31/04
11/1/93 4,800 $53.50 11/1/03 11/1/03
2. Options Granted under Other Plans or Programs
Date of Grant No. of Options Exercise Price Expiration Date Date Must Exercise
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11/2/92 4,800 $47.00 11/2/02 3/31/00
11/4/91 4,000 $42.50 11/4/01 3/31/00
10/29/90 1,600 $19.75 10/29/00 3/31/00
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EXHIBIT 2
STOCK TRANSFER ISSUES ARISING OUT OF
TERMINATION OF OFFICER STATUS
Xxxxxxx Xxxxxxx Prohibition.
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The prohibition on trading in Nordson Common Shares while you are in
possession of "inside information" will continue to apply to you after
you cease to be an officer of Nordson.
Affiliate Status.
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You have been an affiliate of Nordson because of your status as an
officer. You will continue to be deemed to be an affiliate for purposes
of federal securities laws until March 31, 2000, three months after you
cease to be an officer, but will not be deemed to be an affiliate
thereafter.
Accordingly, from December 31, 1999 through March 31, 2000, you will be
subject to the same restrictions on sales of your Nordson Common Shares
as applied while you were an officer of Nordson. You will be able to
sell Nordson Common Shares during this three-month period only in
compliance with the requirements of Rule 144.
After March 31, 2000, you will no longer be deemed to be an affiliate
of Nordson and, insofar as Rule 144 is concerned, there will be no
restrictions on your sale of (a) any unregistered Nordson Common Shares
that you have held for at least one year or (b) any registered Nordson
Common Shares, regardless of the holding period. We believe that all of
the Nordson Common Shares acquired by you from Nordson were registered,
and, therefore, that the one-year holding period does not apply to you.
Margin Restrictions.
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For so long as you might be prevented by federal securities laws from
selling Nordson Common Shares on any given day, you should not margin
any of your Nordson Common Shares. Doing so would subject you to a risk
of a margin call when the margined stock could not be sold.
Accordingly, you should not margin any Nordson Common Shares until
after March 31, 2000, when you will no longer be subject to
restrictions on the purchase and sale of Nordson Common Shares.
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Section 16.
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You have been subject to Section 16 and the requirement that any
profits on purchases and sales within six months be disgorged to
Nordson.
After you cease to be an officer, you will no longer be subject to
Section 16 except that any purchase or sale by you after you cease to
be an officer may be matched with any sale or purchase that was made
during the preceding six months while you were an officer of Nordson.
For example, if you purchase Nordson Common Shares on November 30,
1999, while you are still an officer of Nordson, that purchase could be
matched with a sale on or before April 30, 2000, even though you are no
longer an officer.
Reporting Obligation.
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Any sale or purchase that might be matched with a transaction while you
were still an officer of Nordson will have to be reported on a Form 4.
Accordingly, counsel to Nordson should be advised if you engage in any
purchase or sale of Nordson Common Shares before the later of (i)
December 31, 1999 and (ii) six months after any sale or purchase of
Nordson Common Shares by you while you were an officer of Nordson.
