Exhibit
10.2
AGREEMENT
THIS RELEASE AGREEMENT
("Agreement") is made as of this 15th
day of July 2003, between Xxxxxxx X. Xxxx, Xx.
("Executive") and Metaldyne Corporation
("Employer").
INTRODUCTION
| I. |
Executive's last day of work will
be July 15, 2003 (the "Termination
Date"). |
| II. |
Employer is
not obligated to pay Executive any compensation, benefits or other
consideration after the Termination Date except as specifically set
forth in Paragraph 1. |
| III. |
Executive
has had the opportunity to review this Agreement and is encouraged to
consult with legal counsel prior to executing this Agreement to
ascertain whether Executive has any potential rights or remedies, which
are being waived and released by Executive's execution of this
Agreement. |
| IV. |
Executive and Employer,
without any admission of liability, desire to settle with finality,
compromise, dispose of, and release all claims, demands and causes of
action Executive has asserted or which Executive could assert against
Employer, whether arising out of the Executive's Employment
Agreement with Employer, dated June 18, 2001 ("Employment
Agreement"); any agreement with a predecessor to Employer;
the termination of the Employment Agreement; the employment
relationship; the termination of the employment relationship; or any
condition or benefit of employment or otherwise. This Agreement is not
and shall not be construed as an admission by Employer of any
liability, an admission against interest or any violation of
Employer's policies or procedures. |
AGREEMENT
Employer and Executive agree as
follows:
| 1. |
Severance
Package. As consideration for this Agreement, Employer agrees
to provide Executive the Severance Package set forth in this Paragraph
1. The payments and benefits provided under this Paragraph 1 are made
in lieu of any further payments or benefits to Executive under the
Employment Agreement, and Executive acknowledges that the payments and
benefits provided under this Paragraph 1 exceed the amounts that would
otherwise be owing to him under the Employment Agreement: |
| a. |
Base salary continuation for a period
of twenty-four (24) months in the gross amount of $710,326. (The gross
amount per pay period will be $13,660.11.) Payment to Executive will be
made in equal, bi-weekly installments, minus applicable withholding and
payroll taxes. |
| b. |
A gross bonus equal
to two hundred percent (200%) of the target bonus opportunity
under the Annual Value Creation Plan (AVCP), payable in equal
installments over the twenty-four (24) month period under the same
payment provisions described above. Executive's gross bonus
amount for this purpose is $426,195.60. (The gross amount per pay
period will be $8,196.07.) In addition, a pro rata bonus for 2003
through the Termination Date calculated at one hundred percent
(100%) of the bonus opportunity for target performance under the
AVCP. Executive's gross bonus amount for this purpose is
$112,095.26, subject to all applicable withholdings described above,
paid as a single sum within ten (10) days of the signing of this
Agreement. |
| c. |
Continuation of benefits
under any group medical, dental, and life insurance benefits
substantially similar to those which Executive was receiving
immediately prior to termination of employment until the earlier
of: |
| 1. |
the end of the twenty-four (24)
month period following the Termination Date, or |
| 2. |
the date on which Executive becomes
eligible to receive any benefits under any plan or program of any other
employer. |
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Employer
will pay the employer-portion of the medical, dental, and life
insurance coverage. Executive will be required to pay the
Executive-portion of the medical, dental, and life insurance premiums.
The Executive-portion of the premiums will be billed to the Executive
on a monthly basis. Health care continuation will be applied against
the COBRA notification period. If Employer is not able to provide
coverage under the existing plans, Executive will be paid cash in the
amount of the Employer's portion of the premium cost. |
| d. |
The effect of this termination on any
stock option grants is not addressed by this Agreement and is subject
to the plan documents governing such grants. |
| e. |
Employer shall pay for outplacement
services for Executive with a provider selected by Employer. Employer
shall make direct periodic payments for such services to the provider,
as needed, provided that such payments shall not in the aggregate
exceed Twenty-Thousand Dollars ($20,000). |
| f. |
Executive shall continue to
participate in the Metaldyne Executive Car Program for a period of six
months from the Termination Date in accordance with the terms of that
program. |
| g. |
Employer shall pay
Executive a lump sum amount of $10,000 in lieu of non-qualified
retirement plan benefits, for which Executive was not yet vested. This
payment will be made within 10 days of signing this Agreement and
subject to all applicable withholdings described above. |
| |
Executive agrees that he is
exclusively liable for the payment of any federal, state, city or other
taxes that may be due as a result of any severance benefits received by
Executive as provided in this Agreement. Executive further agrees to
indemnify and hold Employer harmless from any payment of taxes or
penalties, if any, that may be required of Executive as a result of any
severance benefits received by Executive pursuant to this
Agreement. |
| |
2. |
Termination
of Benefits. Notwithstanding benefits outlined in Paragraph 1
above, Executive shall cease to be an active participant under
Employer's retirement and other benefit plans pursuant to the
terms of those plans, and no additional benefits shall accrue to
Executive after the Termination
Date. |
| |
3. |
Non-Competition; Non-Solicitation;
Confidentiality; Release Consideration. Executive
acknowledges that he remains subject to the restrictive covenants and
remedies contained in Sections 13 and 14 of the Employment Agreement,
which covenants and remedies, including the Employer's right to
cause a forfeiture of further payments or benefits under the Severance
Package of Paragraph 1 and demand repayment of any payments or
benefits, are incorporated herein by reference and which by their terms
survive the termination of Executive's employment and the
Employment Agreement. Employer acknowledges that, by signing this
Agreement, Executive has satisfied the requirement of Section 13(f) of
the Employment Agreement, and Executive acknowledges that this
Agreement provides additional and sufficient consideration for the
release contained herein. |
| |
4. |
Return of
Property. Executive agrees to immediately return all Employer
property (and any copies of such property) of whatsoever kind and
character, including, without limitation, keys, credit cards,
documents, computers, computer software, discs and media, policy and
procedures manuals and all other tangible or intangible property of
Employer. |
| |
5. |
No Disparagement. Executive
agrees not to criticize, disparage or otherwise demean in any way
Employer or its respective affiliates, officers, directors, Executives
or Employer's products. Likewise, the Employer agrees not to
criticize, disparage or otherwise demean the
Executive. |
| |
6. |
Release. Executive, for
him, and his heirs, executors, administrators, successors and assigns,
hereby releases and forever discharges Employer, its affiliates and
respective officers, directors, agents, representatives, shareholders,
employees (current and former), employee benefit plans, successors,
predecessors, assigns, and any and all other persons, firms,
corporations and other legal entities associated with Employer
(collectively referred to as the "Released
Parties"), of and from any and all claims, demands,
actions, causes of action, debts, damages, expenses, suits, contracts,
agreements, costs and liabilities of any kind, nature or description,
whether direct or indirect, known or |
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unknown, in law or in equity, in contract,
tort or otherwise, which Executive ever had, now has or may have
against any of the Released Parties as of the date of execution of this
Agreement, whether known or unknown, suspected or unsuspected, or which
may be based upon pre-existing acts, claims or events occurring at any
time up to the present date including, but not limited to, claims
arising under the Employment Agreement, Title VII of the Civil
Rights Act of 1964 or state civil rights statutes, claims arising under
the Age Discrimination in Employment Act of 1967
("ADEA"), as amended by the Older Workers
Benefit Protection Act ("OWBPA"), claims
arising under the Americans with Disabilities Act
("ADA"), the Family and Medical Leave Act
("FMLA"), the Fair Labor Standards Act
("FLSA"), the National Labor Relations Act
("NLRA"), the Employee Retirement Income
Security Act ("ERISA"), claims for breach of
express or implied contract, breach of promise, promissory estoppel,
loss of income, back pay, reinstatement, front pay, impairment of
earning capacity, wrongful termination, discrimination, damage to
reputation, fraud, violation of public policy, retaliation, negligent
or intentional infliction of mental or emotional distress, intentional
tort or any other federal, state or local common law or statutory
claims, and all other claims and rights, whether in law or equity. It
is the intention of the parties that this paragraph will be construed
as broadly as possible; however, this paragraph does not include claims
arising under state workers' compensation laws, state
unemployment laws and any claims that arise after the signing of this
Agreement. This paragraph also does not affect Executive's right
to file a charge or otherwise participate in an EEOC proceeding insofar
as it is required by current EEOC regulations. Executive understands
that Employer will assert this Agreement as an affirmative defense
against any claim asserted by Executive in any forum. |
| |
7. |
Non-Disclosure. Executive shall not
disclose the fact of this Agreement or any of its terms to any third
parties other than Executive's spouse, tax advisors, accountants
and attorneys or as otherwise required by law. Executive agrees that
any violation of this non-disclosure paragraph will result in
substantial and irreparable injury to Employer. |
| |
8. |
References. In the event that Executive
seeks a reference for employment purposes, Executive agrees to direct
inquiries to Metaldyne's Human Resources Department. References
to be provided by Employer regarding Executive shall be limited to
dates of employment, positions held and compensation. Those making such
inquiries will be advised that it is the general policy of Employer to
provide only such neutral references in response to employment
inquiries. |
| |
9. |
Consideration Time and Revocation
Period. Consistent with the ADEA, this Agreement was first
given to Executive on July 15, 2003. Executive has twenty-one (21)
calendar days during which to review and consider this offer. Executive
is not required to, but may accept this Agreement by signing and
returning the Agreement at any time prior to August 5, 2003. In the
event Executive signs and returns the Agreement before that time,
Executive certifies, by such execution, that he knowingly and
voluntarily waives the right to the full twenty-one (21) days, for
reasons personal to Executive, with no pressure by Employer to do so.
Employer and Executive further agree that any changes, whether material
or immaterial, to this Agreement do not restart the running of the
twenty-one (21) day consideration period. |
Executive
understands that he may revoke this Agreement for a period of seven (7)
calendar days following his execution of the Agreement. Executive
understands that any revocation, in order to be effective, must be: (1)
in writing and either postmarked within seven (7) days of the
Executive's execution of the Agreement and addressed to
General Counsel, Metaldyne Corporation, 00000 Xxxxxxx Xxxxx,
Xxxxxxxx, XX 00000-0000, or (2) hand-delivered within seven (7)
days of Executive's execution of the Agreement to
Metaldyne's General Counsel at the address listed above.
If revocation is by mail, certified mail, return receipt requested is
required to show proof of mailing.
| |
10. |
No
Payment. No payments or benefits under this Agreement shall
be made to Executive until after the seven (7) day revocation period
has expired. If Executive does not revoke this Agreement within the
seven (7) day revocation period, then this Agreement shall become fully
and finally effective and the payments and benefits provided by the
terms of Paragraph 1 will be made to Executive. |
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11. |
Complete
Agreement. In executing this Agreement, Executive is doing so
knowingly and voluntarily and agrees that he has not relied upon any
oral statements by Employer or its representatives, and that this
Agreement, when signed by both parties, supersedes any and all prior
written agreements between the parties regarding the terms of
Executive's employment or the termination of such employment,
including, without limitation, the Employment Agreement (except to the
extent that provisions of the Employment Agreement are specifically
incorporated into this Agreement). |
| |
12. |
Severability. Should any provision of
this Agreement be declared or determined by any court to be illegal or
invalid, the remaining parts, terms or provisions shall not be affected
thereby, and said illegal or invalid part, term or provision shall be
deemed not to be a part of this Agreement. |
| |
13. |
Choice of Law. This Agreement shall be
deemed to be made and entered into in the State of Michigan and shall
in all respects be interpreted, enforced and governed under the laws of
the State of Michigan and the United States. |
Executive represents that he fully understands the terms
of this Agreement and executes it knowingly and voluntarily; that no
promise, inducement or agreement has been made to him other than those
specifically set forth in this Agreement; that this Agreement,
including the covenants incorporated by reference, contains the entire
Agreement between the parties and may not be modified except by a
subsequent written agreement, executed by both parties, which
specifically evidences an intent to modify this Agreement; and that
Executive has been advised to consult with legal counsel prior to
executing this Agreement.
Witnessed:
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| /s/
Xxxxxxx Xxxxx |
|
/s/ Xxxxxxx X. Xxxx,
Xx. |
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XXXXXXX X. XXXX,
XX. |
| |
|
| August
1, 2003 |
|
August 1, 2003 |
| DATE OF
WITNESS' SIGNATURE |
|
DATE OF
EXECUTIVE'S
SIGNATURE |
|
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METALDYNE
CORPORATION (EMPLOYER) |
|
BY: /s/ Xxx
Xxxxxxxx |
|
ITS: Vice
President, Human Resources |
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