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EXHIBIT (10) (iii)
THIRD AMENDMENT TO EMPLOYMENT AGREEMENT
THIS THIRD AMENDMENT TO THE EMPLOYMENT AGREEMENT dated as of September
1, 1999, as amended July 10, 2000, and October 2, 2000, (the "AGREEMENT") by and
between Commercial Metals Company, a Delaware corporation (the "COMPANY"), and
Xxxxxx X. XxXxxxx (the "EXECUTIVE") is made this 28th day of March, 2001.
RECITALS:
WHEREAS, the Company and the Executive entered into an Employment
Agreement as of September 1, 1999, which was amended by a First Amendment dated
July 10, 2000; and a Second Amendment dated October 2, 2000; and
WHEREAS, the Company and the Executive wish to further amend the
Agreement to provide Executive with funds for unanticipated expenses incurred by
the Executive and related to the Executive's relocation from Australia to the
United States;
NOW THEREFORE, in consideration of the mutual covenants and agreements
contained herein, the Company and Executive agree to amend the Agreement to add
to Article I, Section 1.4 Compensation a new paragraph 1.4(k) which shall read
as follows:
(k) Additional Loan. In addition to the mortgage relocation loan
and the other relocation expense loan referred to Paragraph
1.4(i), the Company shall loan the Executive an additional
Forty Thousand Dollars ($40,000.00) to be drawn down as
requested by the Executive on or before April 16, 2001. This
additional loan shall be evidenced by an appropriate
promissory note providing for payment of accrued interest in
ten equal payments of principal, each in the amount of Four
Thousand Dollars ($4,000.00), to be deducted from Executive's
net after-tax annual bonus payment as may be made by the
Company to Executive in October of each year commencing in
October, 2001. Should any annual bonus payment due Executive
not equal the installment then due, the unpaid balance of
principal only shall be added to the next year's installment
with all the remaining unpaid principal balance and accrued
interest due and payable on or before October 31, 2010. All
accrued interest for each period preceding a installment
payment date shall be paid by Executive no later than October
31 of each year either by deduction from Executive's net after
tax annual bonus payment or directly by Executive if the bonus
payment is not sufficient. The note evidencing this additional
loan shall further provide that it shall be due and payable in
full within 120 days of the termination of the Executive's
employment with the Company for any reason. Furthermore, the
note shall provide for interest at a rate equal to the
one-year United States Treasury constant maturity rate for the
month of July, 2000, as published by the Federal
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Reserve Board of Governors plus one percent (1%) and shall be
adjusted commencing September 1, 2001 and annually each
September 1 thereafter to the then most recently published one
year constant maturity rate for the month of July of each
succeeding year plus one percent (1%). At the option and
expense of the Company, the Executive's obligations under the
note may be secured by a second mortgage note on the
Australian Property.
Except as specifically provided herein, the Agreement is in all
respects ratified and confirmed, and all the terms, conditions and provisions
thereof shall be and remain in full force and effect for any and all purposes.
From and after the date of this Third Amendment, any and all references to the
Agreement shall refer to the Agreement as amended by the First, Second and Third
Amendments.
IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment
to be duly executed as of the date first above written.
/s/ XXXXXX X. XxXXXXX
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XXXXXX X. XxXXXXX
COMMERCIAL METALS COMPANY
BY: /s/ XXXXXXX X. XXXXX
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XXXXXXX X. XXXXX
Chairman, President and
Chief Executive Officer
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