December 21, 2007
EXHIBIT 10.36
December 21, 2007
Mr. D. Xxxxxx Xxxx
Xxxxx 00
00000 Xxxxxxx
Xxxxxxx
Xxxxx 00
00000 Xxxxxxx
Xxxxxxx
Re: Separation Agreement — Retirement
Dear Xxxxxx:
As we discussed, your employment with Xxxxxx Inc. (the “Company”) and all subsidiaries will
terminate effective with your retirement on the close of business, February 29, 2008 (the
“Separation Date”). This letter confirms all of your entitlements arising out of your employment
with and separation from the Company. You will receive:
1.
|
Actual bonus for 2007 to be determined at the February 2008 Compensation Committee meeting (estimated at $238,056), and to be paid to you no later than March 14, 2008. | T-B-D | ||
2.
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Actual cash long-term incentive payout (for the 2004-2007 performance period estimated at $209,000). Amount to be determined by the Compensation Committee when the information used to determine the amount becomes available (which should be no later than its May 21, 2008 meeting), with this payment to be made to you on September 3, 2008. | T-B-D | ||
3.
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As of February 29, 2008, accelerated vesting in accordance with the applicable award agreement of the following equity awards: |
Grant Date | Award | Xxxxx Xxxxx | ||
February 22, 2006 |
2,133 SARS* | $25.8050 | ||
February 21, 2007 |
4,266 SARS* | $47.705 | ||
March 30, 2005 |
7,666 stock options* | $22.665 | ||
February 22, 2006 |
3,400 RSUs | |||
February 21, 2007 |
2,100 RSUs |
* | Note the expiration date on your SARS and stock options will be February 28, 2011 (three years after your retirement date of February 29, 2008). |
4.
|
Under COBRA, you may elect at your expense to continue your Belden Dental Plan coverage in effect on February 29, 2008, for a period up to eighteen (18) months. |
Mr. D. Xxxxxx Xxxx
December 21, 2007
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December 21, 2007
Page 2
5.
|
As additional consideration, we will (i) pay you $12,000 for continuance of private health insurance, (ii) pay you $28,000 to obtain financial and tax advice in connection with your retirement and (iii) turn over your Company computer to you provided that our IT department confirms that all Company software and Company proprietary information have been deleted. These payments/transfer of Company computer will take place no later than March 31, 2008. We also grant to you the right to purchase your Company car at the value established by the leasing company at the end of the lease term (February 2008). |
On February 29, 2008 (your retirement date), you will incur U.S. federal income tax from the
accelerated vesting of your RSUs noted above in Item 3. As we have done in the past, you can
instruct us to withhold shares to cover your tax withholding obligation. We must file a Form 4
with the SEC to reflect the tax withholding by March 4, 2008.
You are entitled to your accrued and unpaid salary through the Separation Date. You also are
entitled to all accrued, vested and unpaid benefits under all retirement, pension, and deferred
compensation plans of the Company in which you are participating on the Separation Date. All such
benefits shall be paid in accordance with the terms of the applicable plans and, where applicable,
your previous elections. You are not eligible for retirement plan contributions with respect to
payments made under section 1 or 2 above.
In addition to the SARs and stock options noted above in Item 3 that will be subject to
accelerated vesting, you may exercise the following equity awards following the Separation Date
until the earlier of the expiration date set forth in the applicable award or February 28, 2011
(three years after your retirement). The grant date, expiration date and price of all such awards
are noted below:
Grant Date | Expiration Date | Options/SARs | Xxxxx Xxxxx | |||||||
February 20, 1998 |
February 20, 2008 | 13,000 Options | $ | 39.5312 | ||||||
November 4, 1998 |
November 4, 2008 | 4 Options | $ | 16.9375 | ||||||
February 16, 2000 |
February 16, 2010 | 16,000 Options | $ | 21.7500 | ||||||
February 14, 2001 |
February 28, 2011 | 8,000 Options | $ | 26.3800 | ||||||
February 18, 2002 |
February 28, 2011 | 9,400 Options | $ | 20.8650 | ||||||
February 23, 2004 |
February 28, 2011 | 10,000 Options | $ | 19.0750 | ||||||
March 30, 2005 |
February 28, 2011 | 15,334 Options | $ | 22.6650 | ||||||
February 22, 2006 |
February 28, 2011 | 4,267 SARs | $ | 25.8050 | ||||||
February 21, 2007 |
February 28, 2011 | 2,134 SARs | $ | 47.705 | ||||||
February 21, 2007 |
2,100 RSUs |
Mr. D. Xxxxxx Xxxx
December 21, 2007
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December 21, 2007
Page 3
All other unvested stock options, RSUs, SARS, PSUs and other equity-based and long-term
incentive awards (whether or not equity-based) shall lapse, and all such unvested equity awards
shall not be exercisable, as of the Separation Date.
The Company will, to the extent required by applicable law, withhold from your amounts payable
above, the amount of any withholding tax due with respect to such amounts.
You agree to promptly return to the Company all tangible and intangible property of the
Company, whether prepared by you or otherwise coming into your possession, and whether written,
electronic or in any other format, including, without limitation, all files, records, documents,
customer lists, software and equipment (such as personal computers, disks, and disk drives, and
mobile communication devices).
Payment of the amounts and benefits set forth above will be contingent on your returning to us
by December 28, 2007 the signed General Release of All Claims that accompany this letter and the
revocation period set out in the general release having expired. All amounts hereunder also are
also contingent on your resignation from all offices of the Company and all subsidiaries held by
you, pursuant to the attached letter. You also reconfirm that you will (i) comply with the
non-compete covenants of your employment agreement and stock option/SAR awards agreements and (ii)
reimburse the Company for any taxes we may have paid on your behalf.
We ask that you sign this letter below confirming our understanding above. This letter may be
executed in one or more counterparts, each of which shall constitute an original for all purposes,
and all of which taken together shall constitute one and the same agreement.
XXXXXX INC. | ||||||
/s/ D. Xxxxxx Xxxx
|
By: | /s/ Xxxx Xxxxxx | ||||
D. Xxxxxx Xxxx | Name: Xxxx Xxxxxx | |||||
Title: President and Chief Executive Officer |