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2002 Change in Control, Severance And Non-Competition Agreement

 

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Title:

2002 Change in Control, Severance And Non-Competition Agreement

Entities:

Hitachi, Ltd.; Wolverine Tube Inc.

Date:

2002

Size:

Preview shows 9KB of 44KB total

Price:

$35

ID:

#344555

 

 

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                        2002 CHANGE IN CONTROL, SEVERANCE

AND NON-COMPETITION AGREEMENT

AGREEMENT, dated as of July 12, 2002 and effective as of July 12, 2002 by
and between Wolverine Tube, Inc., a Delaware corporation ("Wolverine" or
"Company"), and Dennis J. Horowitz, an individual residing at Huntsville,
Alabama (the "Executive").

W I T N E S S E T H:

WHEREAS, Wolverine recognizes the Executive's expertise in connection with
his employment by Wolverine or its subsidiaries or affiliates (collectively, the
"Company"); and

WHEREAS, the Company desires to provide the Executive with severance
benefits or the opportunity for continued employment in a different position if
the Executive's employment in his current position is terminated for the reasons
set forth herein and the Executive refrains from engaging in certain activities
in the event his employment is terminated, upon the terms and conditions
hereinafter set forth; and

WHEREAS, the Company and the Executive have heretofore in 1999 entered
into a Change in Control, Severance and Non-Competition Agreement containing
substantially the same terms and conditions as this Agreement (the "Prior
Agreement"); and

WHEREAS, the Company and the Executive believe that the Prior Agreement
should be amended and restated in its entirety in order to include a lump sum
payment election, to conform the provisions regarding bonuses, and to resolve
certain ambiguities contained therein; and

WHEREAS, the Company and the Executive have therefore agreed to enter into
this Agreement, which shall replace and supersede the Prior Agreement;

NOW, THEREFORE, in consideration of the premises and the mutual covenants
herein contained, the parties hereto hereby agree as follows:

1. Termination of Employment

(a) Termination for Cause; Resignation without Good Reason.

(i) If the Executive's employment is terminated by the Company for
Cause, as defined in Section 1(a)(ii) hereof, or if the Executive resigns from
his employment hereunder, other than for Good Reason, as defined in Section
1(a)(iii) hereof, unless said resignation comes within two (2) years of a Change
in Control, as discussed in Section 1(b)(i) below, the Executive shall be
entitled to only (A) severance benefits as provided by the Company's general
procedures and practices, if any, (B) payment of the pro rata portion of the
Executive's salary through and including the date of termination or resignation,
and (C) such employee benefits as may be due to the Executive pursuant to the
provisions of the benefit plans which govern such issues.



Page 1 of 10
{PAGE}
(ii) For purposes of this Agreement, termination for "Cause" shall
mean termination of the Executive's employment by the Company because of (A) the
Executive's conviction for, or guilty plea to, a felony or a crime involving
moral turpitude, (B) the Executive's commission of an act of personal dishonesty
in connection with his employment by the Company, (C) a breach of fiduciary duty
in connection with his employment with the Company which shall include, but not
be limited to, (1) investment in any person or organization with the knowledge
that such person or organization has or proposes to have dealings with the
Company, such person or organization competes with the Company, or the Company
is considering an investment in such person or organization (the reference to
"organization" excludes federal credit unions, publicly owned insurance
companies and corporations the stock of which is listed on a national securities
exchange or quoted on NASDAQ if the direct and beneficial stock ownership of the
Executive, including members of his immediate family, is not more than one
percent (1%) of the total outstanding stock of such corporation); (2) a loan
(including a guaranty of a loan) from or to any person or organization having or
proposing any dealings with the Company or in competition with the Company; (3)
participation directly or indirectly in any transaction involving the Company
other than as a director or as an officer or employee of the Company; (4)
acceptance from any person or organization having or proposing any dealings with
the Company or in competition with the Company of any gratuity, gift,
entertainment or favor which exceeds either nominal value or common courtesies
which are generally accepted business practice; or (5) service as an officer,
director, partner or employee of, or consultant to, any person or organization
having or proposing dealings with the Company or in competition with the
Company; (D) the Executive's failure to execute or follow the written policies
of the Company, including, but not limited to, the Company's policy against
discrimination or harassment, or (E) the Executive's refusal to perform the
essential functions of the job, following written notice thereof. Termination of
the Executive's employment as a result of his death or disability (if such
Executive is eligible for benefits under the Company's long-term disability plan
or would be eligible for such benefits were the Executive a participant in said
plan) shall constitute a termination by the Company with Cause for purposes of
this Agreement.

(iii) For purposes of this Agreement, resignation for "Good Reason"
shall mean the resignation of the Executive within a period of six (6) months
after (A) a reduction in the Executive's benefits or pay in an amount in the
aggregate in excess of five percent (5%) thereof, unless all individuals at the
same managerial level as the Executive experience a similar reduction in
benefits or pay or (B) a substantial adverse alteration occurs in the nature or
status of the Executive's responsibilities from those in effect on the date
hereof, disregarding change in title only.

(iv) The date of termination for Cause shall be the date of receipt
by the Executive of written notice of such termination, or such later date as
may be contained in said notice. The date of resignation without Good Reason
shall be the date of receipt by the Company of a written notice of such
resignation.



Page 2 of 10
{PAGE}
(b) Termination without Cause; Resignation for Good Reason or after a
Change in Control.

(i) If the Executive's employment is terminated by the Company
without Cause, or if the Executive resigns from his employment for any reason
within two (2) years following a Change in Control, the Executive shall be
entitled to receive the benefits described in subparagraphs (A), (B), (C) and
(D) below. If the Executive resigns for Good Reason (unless said resignation is
within two (2) years following a Change in Control, in which event his benefits
are described in the preceding sentence), he shall be entitled to those benefits
described in (A), (B) and (D) below only. In either case, said benefits will
only be paid if the Executive executes an Agreement and General Release, which
shall be drafted by the Company, and if the Executive complies with Section 2 of
this Agreement.

(A) The Company shall pay to the Executive either (x) during
the two years immediately following a Change in Control, in the event of (i)
termination by the Company without Cause, or (ii) resignation by the Executive
for any reason, an amount equal to three (3) years' salary; or (y) at any other
time, in the event of (i) termination by the Company without Cause or (ii)
resignation by the Executive for Good Reason, an amount equal to three (3)
year(s) salary; in either case to be paid at the rate in effect immediately
prior to the Severance Date (as defined in Section 1(b)(iv)) plus pay at the
same rate for all vacation time accrued during the calendar year in which the

 

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