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Document Preview Executive Severance Agreement |
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Title: |
Executive Severance Agreement |
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Entities: |
FMC Corp.; FMC Technologies, Inc.; Robert I. Harries |
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Date: |
2002 |
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Size: |
Preview shows 6KB of 39KB total |
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Price: |
$49 |
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ID: |
#227964 |
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FMC Corporation
Executive Severance Agreement
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THIS AGREEMENT is made and entered into as of the 31/st/ day of December,
------ --------
2001, by and between FMC Corporation (hereinafter referred to as the "Company")
and Robert I. Harries (hereinafter referred to as the "Executive").
-----------------
WHEREAS, the Board has approved the Company's entering into severance
agreements with certain key executives of the Company;
WHEREAS, the Executive is a key executive of the Company;
WHEREAS, should the possibility of a Change in Control of the Company
arise, the Board believes it is imperative that the Company and the Board should
be able to rely upon the Executive to continue in the Executive's position, and
that the Company should be able to receive and rely upon the Executive's advice,
if requested, as to the best interests of the Company and its shareholders
without concern that the Executive might be distracted by the personal
uncertainties and risks created by the possibility of a Change in Control;
WHEREAS, the Executive agrees that the terms of this Agreement completely
replace and supersede the provisions of any prior executive severance agreement
with the Company;
WHEREAS, should the possibility of a Change in Control arise, in addition
to the Executive's regular duties, the Executive may be called upon to assist in
the assessment of such possible Change in Control, advise management and the
Board as to whether such Change in Control would be in the best interests of the
Company and its shareholders, and to take such other actions as the Board might
determine to be appropriate;
WHEREAS, the Executive acknowledges that neither the IPO nor the
Distribution will result in a Change in Control; and
WHEREAS, the Executive and the Company desire that the terms of this
Agreement will completely replace and supersede the provisions set forth in the
Plan, setting forth the terms and provisions with respect to the Executive's
entitlement to payments and benefits following a Change in Control.
NOW THEREFORE, to assure the Company that it will have the continued
dedication of the Executive and the availability of the Executive's advice and
counsel notwithstanding the possibility, threat, or occurrence of a Change in
Control of the Company, and to induce the Executive to remain in the employ of
the Company, and for other good and valuable consideration, the Company and the
Executive agree as follows:
-1-
{PAGE}
Article 1. Establishment, Term, and Purpose
This Agreement will commence on the Effective Date and will continue in effect
for a three (3) year term, until the third anniversary of the Effective Date.
Upon each anniversary of the Effective Date, the term of this Agreement will be
extended automatically for one (1) additional year, unless the Committee
delivers written notice six (6) months prior to such anniversary to the
Executive that this Agreement will not be extended. In such case, this Agreement
will terminate at the end of the term, or extended term, then in progress.
However, in the event a Change in Control occurs during the original or any
extended term, this Agreement will remain in effect for the longer of: (i)
twenty-four (24) months beyond the month in which such Change in Control
occurred; and (ii) until all obligations of the Company hereunder have been
fulfilled, and until all benefits required hereunder have been paid to the
Executive.
Article 2. Definitions
Whenever used in this Agreement, the following terms will have the meanings set
forth below and, when the meaning is intended, the initial letter of the word is
capitalized.
2.1. Base Salary means the salary of record paid to an Executive as annual
-----------
salary, excluding amounts received under incentive or other bonus plans, whether
or not deferred.
2.2. Beneficiary means the persons or entities designated or deemed designated
-----------
by the Executive pursuant to Section 11.2 herein.
2.3. Board means the Board of Directors of the Company.
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2.4. Cause means:
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(a) the Executive's Willful and continued failure to substantially
perform the Executive's employment duties in any material respect (other
than any such failure resulting from physical or mental incapacity or
occurring after issuance by the Executive of a Notice of Termination for
Good Reason), after a written demand for substantial performance is
delivered to the Executive that specifically identifies the manner in which
the Company believes the Executive has failed to perform the Executive's
duties, and after the Executive has failed to resume substantial
performance of the Executive's duties on a continuous basis within thirty
(30) calendar days of receiving such demand;
(b) the Executive's Willfully engaging in conduct (other than conduct
covered under (a) above) which is demonstrably and materially injurious to
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