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EXHIBIT 10.4
AMENDED
EMPLOYMENT RETENTION AGREEMENT
BETWEEN
SPECIALTY EQUIPMENT COMPANIES, INC.
AND
XXXXXX X. XXXXXX
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TABLE OF CONTENTS
PAGE
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1. Employment. 1
(a) Initial Term 1
(b) Extensions 1
2. Terms of Employment. 1
(a) Position and Duties 1
(b) Compensation 2
(c) Compensation for Lost Benefits 3
3. Termination of Employment. 3
(a) Death or Permanent Disability 3
(b) Cause 4
(c) Good Reason 4
(d) "Voluntary Termination" 5
(e) Notice of Termination 5
(f) Termination Date 5
4. Obligations of the Company Upon Termination. 5
(a) Termination of Employment for Good Reason or
Other Than for Cause 5
(b) Termination of Employment for Cause or
Voluntary Termination 6
5. Change of Control. 7
(a) Definition 7
(b) Effect of Change of Control 8
(c) Additional Payments 8
6. Confidential Information. 8
7. Non-competition. 8
8. Remedies. 8
9. Arbitration. 9
10. Full Settlement. 9
11. Successors. 9
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TABLE OF CONTENTS
(CONTINUED)
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(a) Of Executive 9
(b) Of Company 9
(c) Assumption 9
12. Miscellaneous. 10
(a) Payments after Death 10
(b) Nonalienation 10
(c) Illegality 10
(d) Amendment 10
(e) Notices 10
(f) No Mitigation 10
(g) Counterparts 11
(h) Governing Law 11
(i) Withholding 11
(j) Entire Agreement 11
13. Indemnification. 11
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AMENDED EMPLOYMENT RETENTION AGREEMENT
THIS AMENDED EMPLOYMENT RETENTION AGREEMENT ("Agreement") dated as of
_________________ ____, 2000 (the "Effective Date"), is made by and between
Specialty Equipment Companies, Inc., a Delaware corporation having its principal
place of business in the State of Illinois (the "Company"), and Xxxxxx X. Xxxxxx
(the "Executive"), a resident of 0000 Xxxxxx Xxxxx Xx., Xx. Xxxxxxx, Xxxxxxxx
00000.
This Agreement amends and restates effective as of the Effective Date
the Employment Retention Agreement (the "Original Agreement") by and between the
Company and the Executive dated as of February 29, 2000 (the "Original Effective
Date").
The Board of Directors of the Company (the "Board") has determined that
it is in the best interest of the Company and its stockholders to assure that
the Company will have the continued employment and dedication of the Executive.
Accordingly, in consideration of the mutual covenants of this
Agreement, and other good and valuable consideration, receipt of which is hereby
acknowledged, the Company and the Executive agree as follows:
1. Employment.
(a) Initial Term. The Company hereby agrees to employ the Executive,
and subject to Section 3 of this Agreement the Executive hereby agrees
to be employed by the Company, for the period commencing on May 1,
2000 and ending on the third anniversary of the Original Effective
Date (the "Initial Term").
(b) Extensions. As of the day after the first annual anniversary of
the Original Effective Date, the term of employment under this
Agreement shall automatically be extended daily so that the term of
employment under this Agreement will at all times be no less than two
years, unless the Company gives the Executive written notice of its
intent not to extend the Agreement, or the Executive gives the Company
written notice of the Executive's intent not to extend the Agreement.
If the Company gives the Executive written notice of its intent not to
extend the Agreement or the Executive gives the Company written notice
of the Executive's intent not to extend the Agreement, the term of
employment under this Agreement shall end on the later of the end of
the Initial Term or the second annual anniversary of the date such
notice is given. The Initial Term and each extension of the term of
employment under this Agreement shall be referred to as the
"Employment Period."
2. Terms of Employment.
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(a) Position and Duties.
(i) As of the Effective Date and during the Employment Period
thereafter, the Executive's position (including status,
perquisites, offices, titles, reporting requirements and
responsibilities), authority and duties shall be that of the
Company's Corporate Vice President and Chief Financial Officer
reporting directly to the Company's President. Such position
(including status, perquisites, offices, titles, reporting
requirements and responsibilities), authority and duties shall be
at least commensurate in all material respects with the most
significant of those held, exercised or assigned at any time
during the 365-day period immediately preceding the Effective
Date. The Executive's services shall be performed at the location
where the Executive was employed immediately preceding the
Effective Date or at an equivalent office and location not more
than 50 miles from such location.
(ii) During the Employment Period, and excluding any periods of
vacation, sick leave or disability to which the Executive is
entitled, the Executive agrees to devote the Executive's full
business attention and time to the business and affairs of the
Company and, to the extent necessary to discharge the duties
assigned to the Executive hereunder, to use the Executive's best
efforts to perform such duties faithfully and efficiently.
Notwithstanding such requirement the Executive may serve on
corporate, civic or charitable boards or committees, deliver
lectures, fulfill speaking engagements or teach at educational
institutions, and manage personal or family investments, provided
such activities do not significantly interfere with the
performance of Executive's duties under this Agreement. To the
extent that any such activities have been conducted by the
Executive during the Employment Period before the Effective Date,
the continued conduct of such activities (or activities similar
in nature and scope) after the Effective Date shall not be deemed
to interfere with the performance of the Executive's duties under
this Agreement.
(b) Compensation.
(i) Base Salary. As of the Effective Date and during the
Employment Period thereafter, the Company shall pay or cause to
be paid to the Executive a base salary ("Guaranteed Base
Salary"), in cash at an annual rate of at least $225,000. The
Guaranteed Base Salary shall be paid in the manner consistent
with the Company's payroll practices from time to time but such
payroll practices shall in no event be less favorable to
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Executive than such payroll practices in effect at any time
during the 365-day period immediately preceding the Effective
Date. During the Employment Period, the Guaranteed Base Salary
may be increased at any time and from time to time as shall be
determined in the discretion of the Compensation Committee of the
Board, subject to approval of the Board. An increase in
Guaranteed Base Salary shall not serve to limit or reduce any
other obligation to the Executive under this Agreement. The
Guaranteed Base Salary shall not be reduced after any such
increase, and the term "Guaranteed Base Salary" as used in this
Agreement shall refer to the Guaranteed Base Salary as so
increased.
(ii) Cash Incentive Plan. The Executive shall be entitled to
participate in the cash incentive plan of the Company, subject to
the discretion of the Compensation Committee of the Board and to
approval by the Board. Such cash incentive plan shall have a
target bonus percentage for Executive of at least 60% of the
Executive's Guaranteed Base Salary upon attainment of target EVA
in accordance with the Corporate EVA Incentive Plan, or upon the
attainment of such other target performance goals as the
Compensation Committee, with the approval of the Board, shall
from time to time establish. Notwithstanding the foregoing, the
Incentive Plan shall be subject to the minimum incentive payment
amounts outlined in the Company's employment offer to Executive
dated February 29, 2000 (the "Offer Letter") attached as Exhibit
A to this Agreement.
(iii) Other Benefits. The Executive shall be entitled to the
bridge loan, signing bonus, car allowance, stock options, term
life insurance and other benefits described in the Offer Letter.
The Executive shall be entitled to participate in (A) all other
bonus or incentive plans (including without limitation long-term
incentive plans such as the Company's Amended and Restated
Executive Long-Term Incentive Plan (the "Long-Term Incentive
Plan"), savings and retirement plans, practices, policies and
programs applicable to other senior executives of the Company,
(B) welfare benefit plans (including, without limitation,
medical, prescription, dental, disability, salary continuance,
employee life, group life, dependent life, accidental death and
travel, accident insurance plans and programs) applicable to
other senior executives of the Company, and (C) fringe benefits,
reimbursement of expenses practices, policies and procedures,
vacation and vacation benefits, and office and support staff
(including, without limitation, secretarial assistance)
applicable to other senior executives of the Company. The
benefits under this Section 2(b)(iii) shall not be less favorable
in the aggregate to Executive than those in effect
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for the Executive at any time during the 90-day period
immediately preceding the Effective Date.
(c) Compensation for Lost Benefits. Notwithstanding Sections 2(b)(ii)
and (iii), the Executive's benefits under Sections 2(b)(ii) and (iii)
may be reduced or eliminated if and to the extent the Company
furnishes the Executive with compensation or benefits with an actual
value to the Executive substantially equivalent to the value of the
benefits of which he has been deprived.
3. Termination of Employment.
(a) Death or Permanent Disability. The Executive's employment shall
terminate automatically upon the Executive's death during the
Employment Period and the Company may terminate Executive's employment
during the Employment Period for Permanent Disability. Permanent
Disability of the Executive shall be deemed to have occurred on the
date on which the Executive is certified as having incurred a
Permanent Disability by a physician who is selected by the Company or
its insurers and who is acceptable to the Executive or the Executive's
legal representative. If the Executive incurs a Permanent Disability
during the Employment Period, the Company shall give to the Executive
written notice in accordance with Section 3(e) of this Agreement of
its intention to terminate the Executive's employment. In such event,
the Executive's employment with the Company shall terminate effective
on the 30th day after receipt of such notice by the Executive (the
"Disability Effective Date"), unless within 30 days after such
receipt, the Executive shall have returned to full-time performance of
the Executive's duties. For purposes of this Agreement, "Permanent
Disability" means any mental or physical condition which renders the
Executive with or without accommodation unable or incompetent to carry
out the job responsibilities which the Executive held or the tasks to
which the Executive was assigned at the time the disability was
incurred, and which is expected to result in death or which has lasted
or can be expected to last for a continuous period of not less than
365 days.
(b) Cause. The Company may terminate Executive's employment during the
Employment Period for Cause. For purposes of this Agreement, "Cause"
means an Executive's habitual neglect of the Executive's duties (other
than on account of disability), habitual reckless conduct or willful
misconduct in carrying out his duties, breach of fiduciary duty to the
Company involving improper personal profits by the Executive, or
conviction of a felony involving moral turpitude, except that Cause
shall not mean:
(i) any act or omission believed by the Executive in good
faith to have been in or not opposed to the interest of the
Company;
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(ii) any act or omission with respect to which a determination
could properly have been made by the Board that the Executive met
the applicable standard of conduct under which indemnification or
reimbursement is permitted under the by-laws of the Company, or
under the laws and regulations under which the Company is
governed, in each case in effect at the time of such act or
omission, or under this Agreement; or
(iii) any act or omission with respect to which notice of
termination of employment of the Executive is given more than 12
months after the earliest date on which any member of the Board
who is not a party to the act or omission knew of such act or
omission.
(c) Good Reason. The Executive may terminate Executive's employment
during the Employment Period for Good Reason. For purposes of this
Agreement, "Good Reason" means any one of the following events:
(i) a material change by the Company in the Executive's title,
authority, working conditions, function reporting
responsibilities, status, or any other action by the Company
which would cause the Executive's position with the Company to
become one of materially less responsibility, importance, or
scope from the position and attributes thereof described in
Section 2(a)(i) above, or which material action or change would
unreasonably add to the burdens of his duties, excluding for this
purpose an isolated, insubstantial and inadvertent action not
taken in bad faith and which is remedied by the Company promptly
after receipt of notice thereof given by the Executive, provided,
however, that the hiring of additional executives whose
responsibilities overlap those of the Executive shall not
necessarily constitute Good Reason hereunder;
(ii) any failure by the Company to comply with any of the
provisions of Section 2(b) of this Agreement (as modified by
Section 2(c) of this Agreement), other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith
and which is remedied by the Company promptly after receipt of
notice thereof given by the Executive;
(iii) the Company incurs a Change of Control and within a period
of 90 days following the Change of Control, Executive for any
reason or no reason provides the Company with Notice of
Termination in accordance with Section 3(e) of this Agreement;
or
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(iv) any failure by the Company to comply with and satisfy
Section 11(c) of this Agreement.
(d) "Voluntary Termination" means a voluntary termination by the
Executive of his employment with the Company other than for Good
Reason.
(e) Notice of Termination. Any termination of the Executive's
employment by the Company (other than by reason of death) or by the
Executive shall be communicated by such party's giving written notice
of such termination ("Notice of Termination") to the other party in
accordance with Section 12(e) of this Agreement. In the case of a
termination by the Company for Cause or by the Executive for Good
Reason, the Notice of Termination shall (i) indicate the specific
termination provision in this Agreement relied upon, (ii) set forth in
reasonable detail the facts and circumstances claimed to provide a
basis for termination of the Executive's employment under the
provision so indicated and (iii) if the Termination Date (as defined
below) is other than the date of receipt of such Notice of
Termination, specify the Termination Date. The failure by the
Executive to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason shall not
waive any right of the Executive hereunder or preclude the Executive
from asserting such fact or circumstance in enforcing the Executive's
rights hereunder.
(f) Termination Date. "Termination Date" means the date of receipt of
the Notice of Termination or any later date specified therein (which
date shall be not more than fifteen days after the giving of such
notice), as the case may be; provided, however, that (i) if the
Executive's employment is terminated by the Company for Cause or by
the Executive as a Voluntary Termination, the Termination Date shall
be the date of receipt of such Notice of Termination and (ii) if the
Executive's employment is terminated by reason of death or Permanent
Disability, the Termination Date shall be the date of death of the
Executive or the Disability Effective Date (as defined in Section
3(a)), as the case may be.
4. Obligations of the Company Upon Termination.
(a) Termination of Employment for Good Reason or Other Than for Cause.
If, during the Employment Period, the Company shall terminate the
Executive's employment other than for Cause, or if the Executive shall
terminate employment under this Agreement for Good Reason, or if
Executive's employment terminates by reason of his death or Permanent
Disability, the Company shall provide Executive (directly or as
provided in Section 12(a)), in lieu of any bonus under the Company's
cash incentive plan for the year in which the Termination Date occurs,
but in addition to all vested rights arising from his employment, with
the following benefits:
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(i) If the Termination Date occurs before May 1, 2002, a cash
payment 30 days after the Termination Date in an aggregate amount
equal to (A) the greater of $450,000 or two times the Guaranteed
Base Salary in effect at the Termination Date, plus (B) the
greater of $167,500 or the sum of the cash incentive plan
payments declared for Executive, prorated upward in proportion to
the time employed if an incentive payment or payments were paid
with respect to less than 12 months for the time employed, for
the most recent two fiscal years plus (C) any deferred incentive
compensation (including without limitation Executive's EVA bonus
bank).
(ii) If the Termination Date occurs on or after May 1, 2002, a
cash payment 30 days after the Termination Date in an aggregate
amount equal to (A) the greater of $450,000 or two times the
Guaranteed Base Salary at the date of termination, plus (B) the
greater of $167,000 or the cash incentive plan payments declared
for Executive for the most recent two fiscal years, prorated
upward in proportion to the time employed if an incentive payment
or payments were declared with respect to less than 12 months for
the time employed, plus (C) any deferred incentive compensation
(including without limitation Executive's EVA bonus bank).
(iii) If the Termination Date occurs on or after a Change in
Control, than to the extent the payments required by this clause
are greater than those required under clause (i) or (ii) above
(whichever is applicable), a cash payment 30 days after the
Termination Date in an aggregate amount equal to (A) the greater
of $450,000 or two times the Annual Base Salary at the
Termination Date, plus (B) the greater of $167,000 or the
incentive payments declared for the most recent two fiscal years,
prorated upward in proportion to the time employed if an
incentive payment or payments were declared with respect to less
than 12 months for the time employed, plus (C) any deferred
incentive compensation (including without limitation Executive's
EVA bonus bank).
(iv) The Company shall continue to provide Executive with
welfare plan coverage as described in Section 2(b)(iii)(B) of
this Agreement (or the equivalent thereof of cash) ("Continuation
Benefits"), at the Company's expense, for a period (the
"Continuation Term") which shall be (A) if the Termination Date
occurs on or after a Change in Control, twenty-four months, or
(B) in all other cases, six months. Benefits under this clause
(iv) are in addition to, and not in lieu of, COBRA benefits and
any other benefits required by law. If the Executive's
Termination Date
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occurs after the expiration of this Agreement, there shall be no
Continuation Benefits, provided, however, that the Continuation
Term will in no event be shortened by expiration of this
Agreement after the Executive's Termination Date.
(v) Any options granted to Executive under the Long-Term
Incentive Plan (or any successor plan) that are held by Executive
but not immediately exercisable immediately before the
Termination Date shall immediately become fully vested and
exercisable. Those options and any other not yet exercised
options held by the Executive under the Long-Term Incentive Plan
will continue to be exercisable as provided by their terms and in
accordance with the Long-Term Incentive Plan. The Committee which
administers the Plan has authorized this acceleration of option
exercisability and waiver of restrictions and conditions
applicable to the options held by the Executive in accordance
with the Long-Term Incentive plan.
(vi) The Executive's rights to indemnification under Section 13
shall survive the termination of this Agreement.
(b) Termination of Employment for Cause or Voluntary Termination. If,
during the Employment Period, the Executive's employment shall be
terminated by the Company for Cause or by the Executive as a Voluntary
Termination, the Company shall continue to provide Continuation
Benefits at Company's expense for a period of 90 days after the
Termination Date (or the equivalent thereof in cash), plus COBRA and
any other benefits to the extent required by law, and this Agreement
shall then terminate without further obligation by the Company to the
Executive, other than (i) the obligation to pay to the Executive, in a
lump sum in cash within 30 days of the Termination Date, that portion
of the Guaranteed Base Salary which is payable to the Executive for
services performed as of the Termination Date to the extent
theretofore unpaid, (ii) the Executive's rights to indemnification
under Section 13, which shall survive termination of this Agreement,
and (iii) the Executive's benefits as explicitly provided upon
termination under the terms of any plan, policy or program of the
Company or as otherwise required by applicable law. Dismissal for
Cause or Voluntary Termination will result in a forfeiture of the
potential annual bonus and bonus bank as provided in the EVA Incentive
Plan Brochure.
5. Change of Control.
(a) Definition. For purposes of this Agreement, a "Change of Control"
shall mean, and be deemed to have occurred if and when after the
Effective Date:
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(i) any "person" or "group" (as such terms are used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934
(the "1934 Act") is or becomes the "beneficial owner" (as defined
in Rules 13d-3 and 13d-5 under the1934 Act, except that a person
shall be deemed to have beneficial ownership of all shares voting
capital stock that such person has the right to acquire, whether
such right is exercisable immediately or only after the passage
of time), directly or indirectly, of more than 50% of the total
voting power of all classes of voting capital stock of the
Company; or
(ii) during a period of two consecutive years, individuals who
at the beginning of such period constituted the Board (together
with any new members of the Board whose election to the Board, or
whose nomination for election by the holders of capital stock of
the Company, was approved by a vote of 66-2/3% of the members of
the Board then still in office who were either members of the
Board at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any
reason to constitute a majority of such Board then in office; or
(iii) the Company consolidates with or merges with or into any
person or conveys, transfers or leases all or substantially all
of its assets to any person, or any corporation or partnership
consolidates with or merges into or with the Company, in any such
event pursuant to a transaction in which the outstanding voting
capital stock of the Company is changed into or exchanged for
cash, securities or other property, other than any such
transaction where the persons who were the beneficial owners of
the voting capital stock of the Company immediately before the
transaction directly or indirectly own, immediately after the
transaction, in substantially the same proportions, at least 50%
of the then-outstanding voting capital stock of the surviving,
resulting or acquiring corporation or partnership, or
(iv) the Company is liquidated or dissolved or adopts a plan of
liquidation or dissolution.
(b) Effect of Change of Control. Upon a Change in Control, in addition
to the effects stipulated in Sections 4(a)(iii) and 4(a)(iv)(A), all
options granted to Executive under the Long-Term Incentive Plan (or
any successor plan) and held by Executive but not immediately
exercisable immediately before the Change of Control shall immediately
become fully vested and exercisable. Those options and any other not
yet exercised options held by the Executive under the Long-Term
Incentive Plan will continue to be
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exercisable as provided by their terms and in accordance with the
Long-Term Incentive Plan. The Committee which administers the
Long-Term Incentive Plan has authorized this acceleration of option
exercisability and waiver of restrictions and conditions applicable to
the options held by the Executive in accordance with the Long-Term
Incentive Plan.
(c) Additional Payments. In the event the Executive becomes subject,
with respect to compensation received or contemplated hereunder, to
the excise tax imposed under Internal Revenue Code Section 4999, the
Company, regardless of whether the Executive remains employed
hereunder at the time the Executive becomes so subject, shall
reimburse the Executive for the amount of the excise taxes due under
such Section and for the amount of any taxes and excise taxes imposed
on such reimbursement, provided, however, that the total amount of
such reimbursements shall not exceed five times the amount of such
excise taxes.
6. Confidential Information. The Executive shall hold in a fiduciary capacity
for the benefit of the Company all Confidential Information. "Confidential
Information" means all secret or confidential information, or other proprietary
information, including knowledge or data relating to the Company and its
businesses or acquired in connection with the Company's businesses which shall
have been obtained by the Executive during the Executive's employment by the
Company and which shall not be or become public knowledge (other than by acts by
the Executive or representatives of the Executive in violation of this
Agreement), other than disclosure ordered by a court or governmental agency.
After termination of the Executive's employment with the Company, the Executive
shall not, without the prior written consent of the Company, communicate or
divulge any Confidential Information to anyone other than the Company and those
designated by it except in connection with enforcing the Executive's rights
hereunder or if ordered by a court or governmental agency.
7. Non-competition. The Executive agrees that while he is employed hereunder,
the Executive shall not enter into or engage in or be connected with or engage
to work for any individual, firm or corporation which is engaged in or connected
with, any business in substantial competition with the Company in the
continental United States, unless he obtains the express written approval of the
Board in its sole discretion after full disclosure of the nature of the intended
arrangement.
8. Remedies. If, at any time, the Executive violates any of the covenants or
agreements set forth in paragraphs 6 or 7, the Company shall have the right to
terminate all of its obligations to make further payments under this Agreement,
including, but not limited to, the obligations set forth in Section 4(a) of the
Agreement, except that (i) the Company may not defer, withhold or terminate any
obligation to make any payment hereunder on the basis of a violation of Section
6 of this Agreement unless and until the fact of such violation shall have been
established in an arbitration proceeding pursuant to Section 9; and (ii) the
Company may not defer, withhold, terminate or limit under this Section 8 any
rights of the Executive under Section 13.
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9. Arbitration. Any controversy or claim arising out of or relating to this
Agreement, or the breach thereof, shall be settled by arbitration in accordance
with the Commercial Arbitration Rules of the American Arbitration Association,
and judgment upon the award rendered by the Arbitrator(s) may be entered in any
court having jurisdiction thereof. The Company shall pay the costs of such
arbitration which are incurred by the Executive and by the Company, regardless
of the outcome of such arbitration. Such costs shall include all legal fees,
including retainer fees, and other fees and expenses which the Executive may
reasonably incur as a result of the arbitration. All such reasonable costs and
fees incurred by Executive shall be paid by the Company as incurred without
regard to whether the arbitration has been completed.
10. Full Settlement. The Company's obligation to make the payments provided for
in this Agreement and otherwise to perform its obligations hereunder shall not
be affected by any circumstances, including, without limitation, set-off,
counterclaim, recoupment, defense or other claim, right or action which the
Company may have against the Executive or others. In no event shall the
Executive be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to the Executive under any of the
provisions of this Agreement, nor shall the amount of any payment hereunder be
reduced by any compensation earned by the Executive as a result of employment by
another employer.
11. Successors.
(a) Of Executive. This Agreement is personal to the Executive and
without the prior written consent of the Company shall not be
assignable by the Executive otherwise than by will or the laws of
descent and distribution. This Agreement shall inure to the benefit of
and be enforceable by the Executive's legal representatives.
(b) Of Company. This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.
(c) Assumption. The Company will negotiate in good faith to require
any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to assume expressly and agree to
perform this Agreement in the same manner and to the same extent that
the Company would be required to perform it if no such succession had
taken place. If this Agreement is not assumed, Executive will be
deemed to have been terminated by Company for reasons Other Than for
Cause. If such Agreement is assumed the term "Company" as used in this
Agreement, shall mean the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid which assumes and
agrees to perform this Agreement by operation of law, or otherwise,
and the Company and such successor shall be jointly and severally
liable hereunder.
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12. Miscellaneous.
(a) Payments after Death. If the Executive dies prior to receiving
amounts to which the Executive is entitled hereunder, such amounts
shall be paid in a lump sum payment as soon as practicable after the
date of death to the beneficiary designated in writing by the
Executive and if no such beneficiary is designated, to the Executive's
estate, provided that if such a lump sum payment is impracticable
because certain amounts to which the Executive is entitled are not yet
determinable, each amount to which the Executive is entitled hereunder
shall be paid as soon as practicable after the date of death.
(b) Nonalienation. Benefits payable under this Agreement shall not be
subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, charge, garnishment, execution or
levy of any kind, either voluntary or involuntary, prior to being
payable to the Executive, and any such attempt to dispose of any right
to benefits not yet payable hereunder shall be void.
(c) Illegality. If all or any part of this Agreement is declared by
any court or governmental authority to be unlawful or invalid, such
unlawfulness or invalidity shall not serve to invalidate any portion
of this Agreement not declared to be unlawful or invalid. Any
paragraph or part of a paragraph so declared to be unlawful or invalid
shall, if possible, be construed in a manner which will give effect to
the terms of such paragraph or part of a paragraph to the fullest
extent possible while remaining lawful and valid.
(d) Amendment. This Agreement shall not be altered, amended or
modified except by written instrument executed by the Company and
Executive. A party's waiver of any term, covenant, agreement or
condition contained in this Agreement shall not be deemed a waiver of
any other term, covenant, agreement or condition, and a party's waiver
of any default in any such term, covenant, agreement or condition
shall not be deemed a waiver of any later default thereof or of any
other term, covenant, agreement or condition.
(e) Notices. All notices and other communications hereunder shall be
in writing and delivered by hand or by first class registered or
certified mail, return receipt requested, postage prepaid, addressed
as follows:
If to the Executive: If to the Company:
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Xx. Xxxxxx X. Xxxxxx Specialty Equipment Companies, Inc.
0000 Xxxxxx Xxxxx Xx. 0000 Xxxxxxxxx Xxxxxxxxx, Xxxxx 000
Xx. Xxxxxxx, Xxxxxxxx 00000 Xxxxxx, Xxxxxxxx 00000
Attn: Xx. Xxxxxxx X. Xxxxxxxxxxx
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or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.
(f) No Mitigation. The Executive shall not have any duty to mitigate
the amounts payable by the Company under this Agreement by seeking new
employment or taking any other action following termination of
employment. All amounts payable under this Agreement shall be paid
without reduction regardless of any amounts of salary, compensation or
other amounts which may be paid or payable to the Executive as the
result of the Executive's employment by another employer.
Notwithstanding the foregoing, welfare plan coverage described in
Section 2(b)(iii)(B) that the Company is obligated to continue during
the Continuation Term as Continuation Benefits pursuant to Section
4(a) shall be secondary and the Company shall only be obligated to the
extent that comparable benefits are not provided or offered to
Executive and/or his family by reason of such new employment.
(g) Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed to be an original but all
of which together will constitute one and the same instrument
originals.
(h) Governing Law. This Agreement shall be interpreted and construed
in accordance with the laws of the State of Illinois, without regard
to its choice of law principles. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect.
(i) Withholding. The Company may withhold from any amounts payable
under this Agreement such federal, state or local taxes as shall be
required to be withheld pursuant to any applicable law or regulations.
(j) Entire Agreement. This Agreement contains the entire understanding
of the Company and the Executive with respect to its subject matter
and supercedes all other written or oral agreements between the
Company and the Executive with respect to its subject matter, except
that the Offer Letter is incorporated into and forms part of this
Agreement.
13. Indemnification. The Company shall indemnify and hold harmless the Executive
to the fullest extent permitted by Section 145 of the Delaware General
Corporation Law as now enacted or hereafter amended, with respect to acts,
omissions, and events occurring prior to the Effective Date or during the
Employment Period. Such indemnification shall survive the termination of this
Agreement, shall inure to the benefit of Executive's heirs, executors, and
administrators, and shall cover all expenses (including advances of expenses)
incurred by Executive (including, but not
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limited to, attorney's fees) and all liabilities and losses (including, but not
limited to, judgments, fines, ERISA or other excise taxes or penalties and
amounts paid or to be paid in settlement) incurred by Executive.
IN WITNESS WHEREOF, the parties have executed this Agreement on the
date first above written.
EXECUTIVE: SPECIALTY EQUIPMENT COMPANIES, INC.
By:
------------------------
Xxxxxx X. Xxxxxx Its:
ATTEST:
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