Document:

Exhibit 10.9

 

 

 

 

EURAMAX HOLDINGS, INC. 
 2009 EXECUTIVE INCENTIVE PLAN

 

 

 

 

 

EURAMAX HOLDINGS, INC. 
 EXECUTIVE INCENTIVE PLAN

 

	
ARTICLE 1
    	
PURPOSE
    	
1
    
	
 
    	
 
    	
 
    
	
1.1
    	
General
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE 2
    	
DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
2.1
    	
Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE 3
    	
EFFECTIVE   TERM OF PLAN
    	
7
    
	
 
    	
 
    	
 
    
	
3.1
    	
Effective   Date
    	
7
    
	
 
    	
 
    	
 
    
	
3.2
    	
Term   of Plan
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE 4
    	
ADMINISTRATION
    	
8
    
	
 
    	
 
    	
 
    
	
4.1
    	
Committee
    	
8
    
	
 
    	
 
    	
 
    
	
4.2
    	
Actions   and Interpretations by the Committee
    	
8
    
	
 
    	
 
    	
 
    
	
4.3
    	
Authority   of Committee
    	
8
    
	
 
    	
 
    	
 
    
	
4.4
    	
Delegation
    	
9
    
	
 
    	
 
    	
 
    
	
4.5
    	
Award   Certificates
    	
9
    
	
 
    	
 
    	
 
    
	
4.6
    	
Grant   of Available Shares
    	
 
    
	
 
    	
 
    	
 
    
	
ARTICLE 5
    	
SHARES   SUBJECT TO THE PLAN
    	
10
    
	
 
    	
 
    	
 
    
	
5.1
    	
Number   of Shares
    	
10
    
	
 
    	
 
    	
 
    
	
5.2
    	
Share   Counting
    	
10
    
	
 
    	
 
    	
 
    
	
5.3
    	
Stock   Distributed
    	
10
    
	
 
    	
 
    	
 
    
	
ARTICLE 6
    	
ELIGIBILITY
    	
11
    
	
 
    	
 
    	
 
    
	
6.1
    	
General
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE 7
    	
RESTRICTED   STOCK AND RESTRICTED STOCK UNITS
    	
11
    
	
 
    	
 
    	
 
    
	
7.1
    	
Grant   of Restricted Stock and Restricted Stock Units
    	
11
    
	
 
    	
 
    	
 
    
	
7.2
    	
Issuance   and Restrictions
    	
11
    
	
 
    	
 
    	
 
    
	
7.3
    	
Forfeiture
    	
11
    
	
 
    	
 
    	
 
    
	
7.4
    	
Delivery   of Restricted Stock
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE 8
    	
PROVISIONS   APPLICABLE TO AWARDS
    	
11
    
	
 
    	
 
    	
 
    
	
8.1
    	
Term   of Awards
    	
11
    
	
 
    	
 
    	
 
    
	
8.2
    	
Form of   Payment of Awards
    	
12
    

 

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8.3
    	
Limits   on Transfer
    	
12
    
	
 
    	
 
    	
 
    
	
8.4
    	
Beneficiaries
    	
12
    
	
 
    	
 
    	
 
    
	
8.5
    	
Stock   Trading Restrictions
    	
12
    
	
 
    	
 
    	
 
    
	
8.6
    	
Acceleration   upon Death or Disability
    	
12
    
	
 
    	
 
    	
 
    
	
8.7
    	
Acceleration   upon a Change in Control
    	
13
    
	
 
    	
 
    	
 
    
	
8.8
    	
Acceleration   for Any Other Reason
    	
13
    
	
 
    	
 
    	
 
    
	
8.9
    	
Forfeiture   Events
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE 9
    	
CHANGES   IN CAPITAL STRUCTURE
    	
13
    
	
 
    	
 
    	
 
    
	
9.1
    	
Mandatory   Adjustments
    	
13
    
	
 
    	
 
    	
 
    
	
9.2
    	
Discretionary   Adjustments
    	
13
    
	
 
    	
 
    	
 
    
	
9.3
    	
General
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE 10
    	
AMENDMENT,   MODIFICATION AND TERMINATION
    	
14
    
	
 
    	
 
    	
 
    
	
10.1
    	
Amendment,   Modification and Termination
    	
14
    
	
 
    	
 
    	
 
    
	
10.2
    	
Awards   Previously Granted
    	
14
    
	
 
    	
 
    	
 
    
	
10.3
    	
Compliance   Amendments
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE 11
    	
GENERAL   PROVISIONS
    	
15
    
	
 
    	
 
    	
 
    
	
11.1
    	
Rights   of Participants
    	
15
    
	
 
    	
 
    	
 
    
	
11.2
    	
Withholding
    	
15
    
	
 
    	
 
    	
 
    
	
11.3
    	
Special   Provisions Related to Section 409A of the Code
    	
16
    
	
 
    	
 
    	
 
    
	
11.4
    	
Relationship   to Other Benefits
    	
16
    
	
 
    	
 
    	
 
    
	
11.5
    	
Expenses
    	
16
    
	
 
    	
 
    	
 
    
	
11.6
    	
Titles   and Headings
    	
16
    
	
 
    	
 
    	
 
    
	
11.7
    	
Gender   and Number
    	
16
    
	
 
    	
 
    	
 
    
	
11.8
    	
Fractional   Shares
    	
16
    
	
 
    	
 
    	
 
    
	
11.9
    	
Government   and Other Regulations
    	
16
    
	
 
    	
 
    	
 
    
	
11.10
    	
Governing   Law
    	
17
    
	
 
    	
 
    	
 
    
	
11.11
    	
Additional   Provisions
    	
17
    
	
 
    	
 
    	
 
    
	
11.12
    	
No   Limitations on Rights of Company
    	
17
    
	
 
    	
 
    	
 
    
	
11.13
    	
Indemnification
    	
17
    

 

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EURAMAX HOLDINGS, INC. 
 EXECUTIVE INCENTIVE PLAN

 

ARTICLE 1 
 PURPOSE

 

1.1.          GENERAL. The purpose of the Euramax Holdings, Inc. Executive Incentive Plan (the “Plan”) is to promote the success, and enhance the value, of Euramax Holdings, Inc. (the “Company”), by providing employees, officers, directors and consultants of the Company or any Affiliate (as defined below) with an opportunity to acquire an ownership interest in the Company, thereby encouraging such persons to contribute to and participate in the success of the Company. The Plan is further intended to provide flexibility to the Company in its ability to motivate, attract, and retain the services of employees, officers, directors and consultants upon whose judgment, interest, and special effort the successful conduct of the Company’s operation is largely dependent. Accordingly, the Plan permits the grant of incentive awards from time to time to selected employees, officers, directors and consultants of the Company and its Affiliates.

 

ARTICLE 2 
 DEFINITIONS

 

2.1.          DEFINITIONS. When a word or phrase appears in this Plan with the initial letter capitalized, and the word or phrase does not commence a sentence, the word or phrase shall generally be given the meaning ascribed to it in this Section or in Section 1.1 unless a clearly different meaning is required by the context. The following words and phrases shall have the following meanings:

 

(a)        “Affiliate” means (i) any Subsidiary or Parent, or (ii) an entity that directly or through one or more intermediaries controls, is controlled by or is under common control with, the Company, as determined by the Committee.

 

(b)        “Award” means any award of Restricted Stock or Restricted Stock Units granted to a Participant under the Plan.

 

(c)        “Award Certificate” means a written document, in such form as the Committee prescribes from time to time, setting forth the terms and conditions of an Award. Award Certificates may be in the form of individual award agreements or certificates or a program document describing the terms and provisions of an Award or series of Awards under the Plan. The Committee may provide for the use of electronic, internet or other non-paper Award Certificates, and the use of electronic, internet or other non-paper means for the acceptance thereof and actions thereunder by a Participant.

 

(d)        “Beneficial Owner” shall have the meaning given such term in Rule 13d-3 of the General Rules and Regulations under the 1934 Act.

 

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(e)        “Board” means the Board of Directors of the Company.

 

(f)         “Cause” shall mean (i) conviction of the Participant for a felony, a crime involving moral turpitude (excluding in each case vehicular offenses) or other act of willful omission involving dishonesty or fraud with respect to the Company, in each case, which causes material harm to the standing and reputation of the Company and after written notice to the Participant or (ii) other than by reason of death, Disability or following the occurrence of an event constituting Good Reason, the Participant’s continued failure to perform his duties (consistent with those duties previously performed by the Participant in his capacity as an employee, officer, consultant or director of the Company and those of a person in a similar position performing such duties for an organization of similar size and structure as the Company) to the Company and/or deliberate failure or deliberate refusal by the Participant to comply with a reasonable written directive of the Board or the Chief Executive Officer of the Company which is consistent with the method and manner of conducting the business of the Company, after written notice and, if susceptible to remedy or cure is not cured or remedied and continues for fifteen (15) business days after the Board has given written notice to the Participant specifying in reasonable detail the manner in which the Participant has continued to fail to perform his duties or refused to comply with such reasonable directive and after the Participant has been afforded an opportunity to be heard by the Board in respect thereto. The Company must notify the Participant of any event constituting Cause within ninety (90) calendar days following the Company’s knowledge of its existence or such event shall not constitute Cause under this Plan.

 

(g)        “Change in Control” means and includes the occurrence of any one of the following events:

 

(i)           during any consecutive 12-month period, individuals who, at the beginning of such period, constitute the Board of Directors of the Company (the “Incumbent Directors”) cease for any reason to constitute at least a majority of such Board, provided that any person becoming a director after the beginning of such 12-month period and whose election or nomination for election was approved by a vote of at least a majority of the Incumbent Directors then on the Board shall be an Incumbent Director; provided, however, that no individual initially elected or nominated as a director of the Company as a result of an actual or threatened election contest with respect to the election or removal of directors (“Election Contest”) or other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board (“Proxy Contest”), including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest, shall be deemed an Incumbent Director; or

 

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(ii)          any person becomes a Beneficial Owner, directly or indirectly, of either (A) 50% or more of the then-outstanding shares of common stock of the Company (“Company Common Stock”) or (B) securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of directors (the “Company Voting Securities”); provided, however, that for purposes of this subsection (ii), the following acquisitions of Company Common Stock or Company Voting Securities shall not constitute a Change in Control: (w) an acquisition directly from the Company, (x) an acquisition by the Company or a Subsidiary, (y) an acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, or (z) an acquisition pursuant to a Non-Qualifying Transaction (as defined in subsection (iii) below); or

 

(iii)         the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company or a Subsidiary (a “Reorganization”), or the sale or other disposition of all or substantially all of the Company’s assets (a “Sale”) or the acquisition of assets or stock of another corporation or other entity (an “Acquisition”), unless immediately following such Reorganization, Sale or Acquisition: (A) all or substantially all of the individuals and entities who were the Beneficial Owners, respectively, of the outstanding Company Common Stock and outstanding Company Voting Securities immediately prior to such Reorganization, Sale or Acquisition beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Reorganization, Sale or Acquisition (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets or stock either directly or through one or more subsidiaries, the “Surviving Entity”) in substantially the same proportions as their ownership, immediately prior to such Reorganization, Sale or Acquisition, of the outstanding Company Common Stock and the outstanding Company Voting Securities, as the case may be, and (B) no person (other than (x) the Company or any Subsidiary, (y) the Surviving Entity or its ultimate parent entity, or (z) any employee benefit plan (or related trust) sponsored or maintained by any of the foregoing) is the Beneficial Owner, directly or indirectly, of 50% or more of the total common stock or 50% or more of the total voting power of the outstanding voting securities eligible to elect directors of the Surviving Entity, and (C) at least a majority of the members of the board of directors of the Surviving Entity were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for

 

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such Reorganization, Sale or Acquisition (any Reorganization, Sale or Acquisition which satisfies all of the criteria specified in (A), (B) and (C) above shall be deemed to be a “Non-Qualifying Transaction”).

 

(h)           “Code” means the Internal Revenue Code of 1986, as amended from time to time. For purposes of this Plan, references to sections of the Code shall be deemed to include references to any applicable regulations thereunder and any successor or similar provision.

 

(i)            “Committee” means the committee of the Board described in Article 4.

 

(j)            “Company” means Euramax Holdings, Inc., a Delaware corporation, or any successor corporation.

 

(k)           “Continuous Status as a Participant” means the absence of any interruption or termination of service as an employee, officer, or director of the Company or any Affiliate, as applicable. Continuous Status as a Participant shall not be considered interrupted in the following cases: (i) a Participant transfers employment between the Company and an Affiliate or between Affiliates, or (ii) in the discretion of the Committee as specified at or prior to such occurrence, in the case of a spin-off, sale or disposition of the Participant’s employer from the Company or any Affiliate, or (iii) any leave of absence authorized in writing by the Company prior to its commencement. Whether military, government or other service or other leave of absence shall constitute a termination of Continuous Status as a Participant shall be determined in each case by the Committee at its discretion, and any determination by the Committee shall be final and conclusive.

 

(l)            “Disability” shall mean the Participant is unable to perform, in the written opinion of a medical doctor mutually agreed to by the Company and by the Participant or his legal representative (and if the Company and the Participant are unable to agree upon a medical doctor, a third doctor selected by the doctor selected by the Company and the doctor selected by the Participant or his legal representative), by reason of physical or mental incapacity, his duties or obligations under this Agreement, for a period of one hundred twenty (120) consecutive calendar days or a total period of two hundred ten (210) calendar days in any three hundred sixty (360) calendar day period.

 

(m)          “Effective Date” has the meaning assigned such term in Section 3.1.

 

(n)           “Eligible Participant” means an employee, officer, consultant or director of the Company or any Affiliate.

 

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(o)           “Exchange” means any national securities exchange on which the Stock may from time to time be listed or traded.

 

(p)           “Fair Market Value,” on any date, means the fair market value of a share of Stock as the Committee determines in good faith to be reasonable and in compliance with Code Section 409A.

 

(q)           “Good Reason,” with respect to any Award, shall mean the occurrence of any of the following events, without the Participant’s express written consent:

 

(1)   the assignment to the Participant of any duties or responsibilities inconsistent in any material respect with the Participant’s position(s), duties, responsibilities or status with the Company (including any material diminution of his duties, responsibilities or authority;

 

(2)   a reduction in the Participant’s rate of annual base pay (including, if applicable, annual bonus opportunity) or failure to promptly pay him any such compensation;

 

(3)   any requirement that Participant (i) be based anywhere more than twenty-five (25) miles from the facility where the Participant is located at the date of grant of such Award or (ii) travel on Company business to an extent that requires extended, overnight travel which is substantially greater than the travel obligations of the Participant immediately prior to the date of grant of such Award; or

 

(4)   the failure of the Company to continue to make available to the participant a package of benefits including employee benefit plans, welfare benefits, fringe benefits, vacation and sick pay plans which are substantially equivalent, in the aggregate, to those plans in which the Participant was participating immediately prior to the date of grant of such Award.

 

An action taken in good faith which is remedied by the Company within fifteen (15) business days after receipt of notice thereof given by the participant shall not constitute Good Reason. The Participant must provide notice of termination of employment or service, as the case may be, within ninety (90) calendar days of Participant’s knowledge of an event constituting Good Reason or such event shall not constitute Good Reason under this Plan.

 

(r)            “Grant Date” of an Award means the first date on which all necessary corporate action has been taken to approve the grant of the Award as provided in the Plan, or such later date as is determined and specified as part of that authorization process. Notice of the grant shall be a provided to the grantee within a reasonable time after the Grant Date.

 

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(s)           “Non-Employee Director” means a director of the Company who is not a common law employee of the Company or an Affiliate.

 

(t)            “Parent” means a corporation, limited liability company, partnership or other entity which owns or beneficially owns a majority of the outstanding voting stock or voting power of the Company.

 

(u)           “Participant” means a person who, as an employee, officer, director or consultant of the Company or any Affiliate, has been granted an Award under the Plan; provided that in the case of the death of a Participant, the term “Participant” refers to a beneficiary designated pursuant to Section 8.4 or the legal guardian or other legal representative acting in a fiduciary capacity on behalf of the Participant under applicable state law and court supervision.

 

(v)           “Person” means any individual, entity or group, within the meaning of Section 3(a)(9) of the 1934 Act and as used in Section 13(d)(3) or 14(d)(2) of the 1934 Act.

 

(w)          “Plan” means the Euramax Holdings, Inc. Executive Incentive Plan, as amended from time to time.

 

(x)            “Prior Grantee” means a person who is an employee of the Company or any Affiliate of the Company immediately prior to a Change in Control and who has been granted Awards under the Plan prior to such time, whether or not such Awards remain outstanding.

 

(y)           “Restricted Stock” means Stock granted to a Participant under Article 7 that is subject to certain restrictions and to risk of forfeiture.

 

(z)            “Restricted Stock Unit” means the right granted to a Participant under Article 7 to receive shares of Stock (or the equivalent value in cash or other property if the Committee so provides) in the future, which right is subject to certain restrictions and to risk of forfeiture.

 

(aa)         “Restrictive Covenant Agreement” means, with respect to a Participant, that certain Restrictive Covenant Agreement by and between the Company and the Participant.

 

(bb)         “Shares” means shares of the Company’s Stock. If there has been an adjustment or substitution pursuant to Article 10, the term “Shares” shall also include any shares of stock or other securities that are substituted for Shares or into which Shares are adjusted pursuant to Article 10.

 

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(cc)         “Stock” means the $1.00 par value Class A voting common stock of the Company and such other securities of the Company as may be substituted for Stock pursuant to Article 10.

 

(dd)         “Stockholders Agreement” means that certain Stockholders Agreement dated as of June 29, 2009, by and among the Company and certain stockholders, including Participants who receive Stock pursuant to this Plan.

 

(ee)         “Subsidiary” means any corporation, limited liability company, partnership or other entity of which a majority of the outstanding voting stock or voting power is beneficially owned directly or indirectly by the Company.

 

(ff)           “1933 Act” means the Securities Act of 1933, as amended from time to time.

 

(gg)         “1934 Act” means the Securities Exchange Act of 1934, as amended from time to time.

 

ARTICLE 3 
 EFFECTIVE TERM OF PLAN

 

3.1.          EFFECTIVE DATE. The Plan shall be effective as of the date it is approved by the Board (the “Effective Date”).

 

3.2.          TERMINATION OF PLAN. The Plan shall terminate on the tenth anniversary of the Effective Date unless earlier terminated as provided herein. The termination of the Plan on such date shall not affect the validity of any Award outstanding on the date of termination, which shall continue to be governed by the applicable terms and conditions of this Plan.

 

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ARTICLE 4 
 ADMINISTRATION

 

4.1.          COMMITTEE. The Plan shall be administered by a Committee appointed by the Board (which Committee shall consist of at least two directors) or, at the discretion of the Board from time to time, the Plan may be administered by the Board. The members of the Committee shall be appointed by, and may be changed at any time and from time to time in the discretion of, the Board. Unless and until changed by the Board, the Compensation Committee of the Board is designated as the Committee to administer the Plan. The Board may reserve to itself any or all of the authority and responsibility of the Committee under the Plan or may act as administrator of the Plan for any and all purposes. To the extent the Board has reserved any authority and responsibility or during any time that the Board is acting as administrator of the Plan, it shall have all the powers of the Committee hereunder, and any reference herein to the Committee (other than in this Section 4.1) shall include the Board. To the extent any action of the Board under the Plan conflicts with actions taken by the Committee, the actions of the Board shall control.

 

4.2.          ACTIONS AND INTERPRETATIONS BY THE COMMITTEE. For purposes of administering the Plan, the Committee may from time to time adopt rules, regulations, guidelines and procedures for carrying out the provisions and purposes of the Plan and make such other determinations, not inconsistent with the Plan, as the Committee may deem appropriate. The Committee’s interpretation of the Plan, any Awards granted under the Plan, any Award Certificate and all decisions and determinations by the Committee with respect to the Plan are final, binding, and conclusive on all parties. Each member of the Committee is entitled to, in good faith, rely or act upon any report or other information furnished to that member by any officer or other employee of the Company or any Affiliate, the Company’s or an Affiliate’s independent certified public accountants, Company counsel or any executive compensation consultant or other professional retained by the Company to assist in the administration of the Plan.

 

4.3.          AUTHORITY OF COMMITTEE. Except as provided in Section 4.1 and 4.4 hereof, the Committee has the exclusive power, authority and discretion to:

 

(a)           Grant Awards;

 

(b)           Designate Participants;

 

(c)           Determine the type or types of Awards to be granted to each Participant;

 

(d)           Determine the number of Awards to be granted and the number of Shares or dollar amount to which an Award will relate;

 

(c)           Determine the terms and conditions of any Award granted under the Plan;

 

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(f)            Prescribe the form of each Award Certificate, which need not be identical for each Participant;

 

(g)           Decide all other matters that must be determined in connection with an Award;

 

(h)           Establish, adopt or revise any rules, regulations, guidelines or procedures as it may deem necessary or advisable to administer the Plan;

 

(i)            Make all other decisions and determinations that may be required under the Plan or as the Committee deems necessary or advisable to administer the Plan;

 

(j)            Amend the Plan or any Award Certificate as provided herein; and

 

(k)           Adopt such modifications, procedures, and subplans as may be necessary or desirable to comply with provisions of the laws of the United States or any non-U.S. jurisdictions in which the Company or any Affiliate may operate, in order to assure the viability of the benefits of Awards granted to participants located in the United States or such other jurisdictions and to further the objectives of the Plan.

 

4.4.          DELEGATION. The Board may, by resolution, expressly delegate to a special committee, consisting of one or more directors who may but need not be officers of the Company, the authority, within specified parameters as to the number and terms of Awards, to (i) designate officers and/or employees of the Company or any of its Affiliates to be recipients of Awards under the Plan, and (ii) to determine the number of such Awards to be received by any such Participants. The acts of such delegates shall be treated hereunder as acts of the Board and such delegates shall report regularly to the Board and the Committee regarding the delegated duties and responsibilities and any Awards so granted.

 

4.5.          AWARD CERTIFICATES. Each Award shall be evidenced by an Award Certificate. Each Award Certificate shall include such provisions, not inconsistent with the Plan, as may be specified by the Committee.

 

4.6.          GRANT OF AVAILABLE SHARES UPON A CHANGE OF CONTROL. It is the Company’s intent that Awards under the Plan will be primarily granted to employees of the Company and that the full number of Shares reserved and available for issuance under Section 5.1 ultimately will be issued. In the event that, immediately prior to a Change in Control, any Shares remain available for issuance under the Plan (other than Shares which are subject to Awards issued and outstanding at such time) (“Available Shares”), then, all such Available Shares will be issued to Prior Grantees, on a pro rata basis, at or immediately prior to the effective time of the Change in Control. In lieu of the issuance of Available Shares, the Company may issue to a

 

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Prior Grantee a cash payment equal to the Fair Market Value of the Available Shares allocable to such Prior Grantee, determined as of the date of the Change in Control. The pro rata distribution of Available Shares to a Prior Grantee described above shall be a fraction in which (a) the numerator is the sum of (i) the aggregate number of Shares subject to outstanding Awards held by such Prior Grantee, plus (ii) the aggregate number of Shares which were subject to Awards previously granted to such Prior Grantee, excluding for this purpose any Shares subject to Awards (or portions of Awards) which were forfeited or expired prior to settlement or distribution, and (b) the denominator is 19,737, as may be adjusted pursuant to Article 9 herein.

 

ARTICLE 5 
 SHARES SUBJECT TO THE PLAN

 

5.1.          NUMBER OF SHARES. Subject to adjustment as provided in Sections 5.2 and Section 9.1, the aggregate number of Shares reserved and available for issuance pursuant to Awards granted under the Plan shall be 21,737.

 

5.2.          SHARE COUNTING. Shares covered by an Award shall be subtracted from the Plan share reserve as of the date of grant; but shall be added back to the Plan share reserve in accordance with this Section 5.2.

 

(a)           To the extent that an Award is canceled, terminates, expires, is forfeited or lapses for any reason, any unissued or forfeited Shares subject to the Award will again be available for issuance pursuant to Awards granted under the Plan.

 

(b)           Shares subject to Awards settled in cash will again be available for issuance pursuant to Awards granted under the Plan.

 

(c)           Shares withheld from an Award or delivered by a Participant to satisfy minimum tax withholding requirements will again be available for issuance pursuant to Awards granted under the Plan.

 

(f)            To the extent that the full number of Shares subject to an Award is not issued for any reason, only the number of Shares issued and delivered shall be considered for purposes of determining the number of Shares remaining available for issuance pursuant to Awards granted under the Plan.

 

5.3.          STOCK DISTRIBUTED. Any Stock distributed pursuant to an Award may consist, in whole or in part, of authorized and unissued Stock, treasury Stock or Stock purchased on the open market.

 

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ARTICLE 6 
 ELIGIBILITY

 

6.1.          GENERAL. Awards may be granted only to Eligible Participants.

 

ARTICLE 7 
 RESTRICTED STOCK AND RESTRICTED STOCK UNITS

 

7.1.          GRANT OF RESTRICTED STOCK AND RESTRICTED STOCK UNITS. The Committee is authorized to make Awards of Restricted Stock or Restricted Stock Units to Participants in such amounts and subject to such terms and conditions as may be selected by the Committee. An Award of Restricted Stock or Restricted Stock Units shall be evidenced by an Award Certificate setting forth the terms, conditions, and restrictions applicable to the Award.

 

7.2.          ISSUANCE AND RESTRICTIONS. Restricted Stock or Restricted Stock Units shall be subject to such restrictions on transferability and other restrictions as the Committee may impose (including, for example, limitations on the right to vote Restricted Stock or the right to receive dividends on the Restricted Stock). These restrictions may lapse separately or in combination at such times, under such circumstances, in such installments or otherwise, as the Committee determines at the time of the grant of the Award or thereafter. Unless otherwise provided in the applicable Award Certificate, Awards of Restricted Stock will not entitle the holder to receive dividends or distributions paid in respect of the Shares underlying such Award. Unless otherwise provided in the applicable Award Certificate, a Participant shall have none of the rights of a stockholder with respect to Restricted Stock Units until such time as Shares of Stock are paid in settlement of such Awards.

 

7.3.          FORFEITURE. Except as otherwise determined by the Committee at the time of the grant of the Award or thereafter, upon termination of Continuous Status as a Participant during the applicable restriction period, Restricted Stock or Restricted Stock Units that are at that time subject to restrictions shall be forfeited.

 

7.4.          DELIVERY OF RESTRICTED STOCK. Shares of Restricted Stock shall be delivered to the Participant at the time of grant either by book-entry registration or by delivering to the Participant, or a custodian or escrow agent (including, without limitation, the Company or one or more of its employees) designated by the Committee, a stock certificate or certificates registered in the name of the Participant. If physical certificates representing shares of Restricted Stock are registered in the name of the Participant, such certificates must bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock.

 

ARTICLE 8 
 PROVISIONS APPLICABLE TO AWARDS

 

8.1.          TERM OF AWARDS. The term of each Award shall be for the period as determined by the Committee.

 

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8.2.          FORM OF PAYMENT OF AWARDS. At the discretion of the Committee, payment of Awards may include such terms, conditions, restrictions and/or limitations, if any, as the Committee deems appropriate, including restrictions on transfer and forfeiture provisions.

 

8.3.          LIMITS ON TRANSFER. No right or interest of a Participant in any unexercised or restricted Award may be pledged, encumbered, or hypothecated to or in favor of any party other than the Company or an Affiliate, or shall be subject to any lien, obligation, or liability of such Participant to any other party other than the Company or an Affiliate. No restricted Award shall be assignable or transferable by a Participant other than by will or the laws of descent and distribution; provided, however, that the Committee may (but need not) permit other transfers (other than transfers for value) where the Committee concludes that such transferability (i) does not result in accelerated taxation, and (ii) is otherwise appropriate and desirable, taking into account any factors deemed relevant, including without limitation, state or federal tax or securities laws applicable to transferable Awards.

 

8.4.          BENEFICIARIES. Notwithstanding Section 8.3, a Participant may, in the manner determined by the Committee, designate a beneficiary to exercise the rights of the Participant and to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary, legal guardian, legal representative, or other person claiming any rights under the Plan is subject to all terms and conditions of the Plan and any Award Certificate applicable to the Participant, except to the extent the Plan and Award Certificate otherwise provide, and to any additional restrictions deemed necessary or appropriate by the Committee. If no beneficiary has been designated or survives the Participant, any payment due to the Participant shall be made to the Participant’s estate. Subject to the foregoing, a beneficiary designation may be changed or revoked by a Participant, in the manner provided by the Company, at any time provided the change or revocation is filed with the Committee.

 

8.5.          STOCK TRADING RESTRICTIONS. All Stock issuable under the Plan to a Participant is subject to the Stockholders Agreement, the Restrictive Covenant Agreement between the Company and the Participant, if applicable, any stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply with federal or state securities laws, rules and regulations and the rules of any national securities exchange or automated quotation system on which the Stock is listed, quoted, or traded. The Committee may place legends on any Stock certificate or issue instructions to the transfer agent to reference restrictions applicable to the Stock.

 

8.6.          ACCELERATION UPON DEATH OR DISABILITY. Except as otherwise provided in the Award Certificate or any special Plan document governing an Award, upon the termination of a person’s Continuous Status as a Participant by reason of his or her death or Disability, all time-based vesting restrictions on that Participant’s outstanding Awards shall lapse as of the date of termination.

 

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8.7.          ACCELERATION UPON A CHANGE IN CONTROL. Except as otherwise provided in the Award Certificate or any special Plan document governing an Award, upon the occurrence of a Change in Control, all time-based vesting restrictions on outstanding Awards shall lapse.

 

8.8.          ACCELERATION FOR ANY OTHER REASON. Regardless of whether an event has occurred as described in Section 8.6 or 8.7 above, the Committee may in its sole discretion at any time determine that all or a part of the time-based vesting restrictions on all or a portion of the outstanding Awards shall lapse, as of such date as the Committee may, in its sole discretion, declare. The Committee may discriminate among Participants and among Awards granted to a Participant in exercising its discretion pursuant to this Section 8.8.

 

8.9.          FORFEITURE EVENTS. The Committee may specify in an Award Certificate that the Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction, cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting conditions of an Award. Such events may include, but shall not be limited to, (i) termination of employment for Cause, (ii) violation of material Company or Affiliate policies, (iii) breach of noncompetition, confidentiality or other restrictive covenants that may apply to the Participant, or (iv) other conduct by the Participant that is detrimental to the business or reputation of the Company or any Affiliate.

 

ARTICLE 9 
 CHANGES IN CAPITAL STRUCTURE

 

9.1.          MANDATORY ADJUSTMENTS. In the event of a nonreciprocal transaction between the Company and its stockholders that causes the per-share value of the Stock to change (including, without limitation, any stock dividend, stock split, spin-off, rights offering, or large nonrecurring cash dividend), the authorization limits under Section 5.1 shall be adjusted proportionately, and the Committee shall make such adjustments to the Plan and Awards as it deems necessary, in its sole discretion, to prevent dilution or enlargement of rights immediately resulting from such transaction. Action by the Committee may include: (i) adjustment of the number and kind of shares that may be delivered under the Plan; (ii) adjustment of the number and kind of shares subject to outstanding Awards; and (iii) any other adjustments that the Committee determines to be equitable.

 

9.2           DISCRETIONARY ADJUSTMENTS. Upon the occurrence or in anticipation of any corporate event or transaction involving the Company (including, without limitation, any merger, reorganization, recapitalization, combination or exchange of shares, or any transaction described in Section 9.1), the Committee may, in its sole discretion, provide that Awards will be assumed by another party to a transaction or otherwise be equitably converted or substituted in connection with such transaction. The Committee’s determination need not be uniform and may be different for different Participants whether or not such Participants are similarly situated.

 

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9.3           GENERAL. Any discretionary adjustments made pursuant to this Article 10 shall be subject to the provisions of Section 10.2.

 

ARTICLE 10 
 AMENDMENT, MODIFICATION AND TERMINATION

 

10.1.        AMENDMENT, MODIFICATION AND TERMINATION. The Board or the Committee may, at any time and from time to time, amend, modify or terminate the Plan without stockholder approval, subject to Section 10.2(b); provided, however, that if an amendment to the Plan would, in the reasonable opinion of the Board or the Committee, either (i) materially increase the number of Shares available under the Plan, (ii) expand the types of awards under the Plan, (iii) materially expand the class of participants eligible to participate in the Plan, (iv) materially extend the term of the Plan, or (v) otherwise constitute a material change requiring stockholder approval under applicable laws, policies or regulations or the applicable listing or other requirements of an Exchange, then such amendment shall be subject to stockholder approval; and provided, further, that the Board or Committee may condition any other amendment or modification on the approval of stockholders of the Company for any reason, including by reason of such approval being necessary or deemed advisable (i) to comply with the listing or other requirements of an Exchange, or (ii) to satisfy any other tax, securities or other applicable laws, policies or regulations.

 

10.2.        AWARDS PREVIOUSLY GRANTED. At any time and from time to time, the Committee may amend, modify or terminate any outstanding Award without approval of the Participant; provided, however:

 

(a)          Subject to the terms of the applicable Award Certificate, such amendment, modification or termination shall not, without the Participant’s consent, reduce or diminish the value of such Award;

 

(b)         No termination, amendment, or modification of the Plan shall adversely affect any Award previously granted under the Plan, without the written consent of the Participant affected thereby.

 

10.3.        COMPLIANCE AMENDMENTS. Notwithstanding anything in the Plan or in any Award Certificate to the contrary, the Board may amend the Plan or an Award Certificate, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or Award Certificate to any present or future law relating to plans of this or similar nature (including, but not limited to, Section 409A of the Code), and to the administrative regulations and rulings promulgated thereunder. By accepting an Award under this Plan, a Participant agrees to any amendment made pursuant to this Section 10.3 to any Award granted under the Plan without further consideration or action.

 

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ARTICLE 11 
 GENERAL PROVISIONS

 

11.1.        RIGHTS OF PARTICIPANTS.

 

(a)          No Participant or any Eligible Participant shall have any claim to be granted any Award under the Plan. Neither the Company, its Affiliates nor the Committee is obligated to treat Participants or Eligible Participants uniformly, and determinations made under the Plan may be made by the Committee selectively among Eligible Participants who receive, or are eligible to receive, Awards (whether or not such Eligible Participants are similarly situated).

 

(b)         Nothing in the Plan, any Award Certificate or any other document or statement made with respect to the Plan, shall interfere with or limit in any way the right of the Company or any Affiliate to terminate any Participant’s employment or status as an officer, or any Participant’s service as a director, at any time, nor confer upon any Participant any right to continue as an employee, officer, or director of the Company or any Affiliate, whether for the duration of a Participant’s Award or otherwise.

 

(c)          Neither an Award nor any benefits arising under this Plan shall constitute an employment contract with the Company or any Affiliate and, accordingly, subject to Article 11, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the Committee without giving rise to any liability on the part of the Company or an of its Affiliates.

 

(d)         No Award gives a Participant any of the rights of a shareholder of the Company unless and until Shares are in fact issued to such person in connection with such Award.

 

11.2.        WITHHOLDING. The Company or any Affiliate shall have the authority and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the Participant’s FICA obligation) required by law to be withheld with respect to any exercise, lapse of restriction or other taxable event arising as a result of the Plan. With respect to withholding required upon any taxable event under the Plan, the Committee may, at the time the Award is granted or thereafter, require or permit that any such withholding requirement be satisfied, in whole or in part, by withholding from the Award Shares having a Fair Market Value on the date of withholding equal to the minimum amount (and not any greater amount) required to be withheld for tax purposes, all in accordance with such procedures as the Committee establishes. All such elections shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.

 

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11.3.        SPECIAL PROVISIONS RELATED TO SECTION 409A OF THE CODE. It is intended that the payments and benefits provided under the Plan and any Award shall either be exempt from the application of, or comply with, the requirements of Section 409A of the Code. The Plan and all Award Certificates shall be construed in a manner that effects such intent. Nevertheless, the tax treatment of the benefits provided under the Plan or any Award is not warranted or guaranteed. Neither the Company, its Affiliates nor their respective directors, officers, employees or advisers (other than in his or her capacity as a Participant) shall be held liable for any taxes, interest, penalties or other monetary amounts owed by any Participant or other taxpayer as a result of the Plan or any Award.

 

11.4.        RELATIONSHIP TO OTHER BENEFITS. No payment under the Plan shall be taken into account in determining any benefits under any pension, retirement, savings, profit sharing, group insurance, welfare or benefit plan of the Company or any Affiliate unless provided otherwise in such other plan.

 

11.5.        EXPENSES. The expenses of administering the Plan shall be borne by the Company and its Affiliates.

 

11.6.        TITLES AND HEADINGS. The titles and headings of the Sections in the Plan are for convenience of reference only, and in the event of any conflict, the text of the Plan, rather than such titles or headings, shall control.

 

11.7.        GENDER AND NUMBER. Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural.

 

11.8.        FRACTIONAL SHARES. No fractional Shares shall be issued and the Committee shall determine, in its discretion, whether cash shall be given in lieu of fractional Shares or whether such fractional Shares shall be eliminated by rounding up or down.

 

11.9.        GOVERNMENT AND OTHER REGULATIONS.

 

(a)          Notwithstanding any other provision of the Plan, no Participant who acquires Shares pursuant to the Plan may sell such Shares, unless such offer and sale is made (i) pursuant to an effective registration statement under the 1933 Act, which is current and includes the Shares to be sold, or (ii) pursuant to an appropriate exemption from the registration requirement of the 1933 Act.

 

(b)         Notwithstanding any other provision of the Plan, if at any time the Committee shall determine that the registration, listing or qualification of the Shares covered by an Award upon any Exchange or under any foreign, federal, state or local law or practice, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the granting of such Award or the purchase or receipt of Shares thereunder, no

 

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Shares may be purchased, delivered or received pursuant to such Award unless and until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any condition not acceptable to the Committee. Any Participant receiving or purchasing Shares pursuant to an Award shall make such representations and agreements and furnish such information as the Committee may request to assure compliance with the foregoing or any other applicable legal requirements. The Company shall not be required to issue or deliver any certificate or certificates for Shares under the Plan prior to the Committee’s determination that all related requirements have been fulfilled. The Company shall in no event be obligated to register any securities pursuant to the 1933 Act or applicable state or foreign law or to take any other action in order to cause the issuance and delivery of such certificates to comply with any such law, regulation or requirement.

 

11.10.      GOVERNING LAW. To the extent not governed by federal law, the Plan and all Award Certificates shall be construed in accordance with and governed by the laws of the State of Delaware.

 

11.11.      ADDITIONAL PROVISIONS. Each Award Certificate may contain such other terms and conditions as the Committee may determine; provided that such other terms and conditions are not inconsistent with the provisions of the Plan.

 

11.12.      NO LIMITATIONS ON RIGHTS OF COMPANY. The grant of any Award shall not in any way affect the right or power of the Company to make adjustments, reclassification or changes in its capital or business structure or to merge, consolidate, dissolve, liquidate, sell or transfer all or any part of its business or assets. The Plan shall not restrict the authority of the Company, for proper corporate purposes, to draft or assume awards, other than under the Plan, to or with respect to any person. If the Committee so directs, the Company may issue or transfer Shares to an Affiliate, for such lawful consideration as the Committee may specify, upon the condition or understanding that the Affiliate will transfer such Shares to a Participant in accordance with the terms of an Award granted to such Participant and specified by the Committee pursuant to the provisions of the Plan.

 

11.13.      INDEMNIFICATION. Each person who is or shall have been a member of the Committee, or of the Board, or an officer of the Company to whom authority was delegated in accordance with Article 4 shall be indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided he or she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf, unless such loss, cost, liability, or expense is a

 

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result of his or her own willful misconduct or except as expressly provided by statute. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such persons may be entitled under the Company’s charter or bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless.

 

The foregoing is hereby acknowledged as being the Euramax Holdings, Inc. Executive Incentive Plan as adopted by the Board on September 24, 2009.

 

	
 
    	
EURAMAX   HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	

    
	
 
    	
 
    	
 
    
	
 
    	
Its:
    	
President   & CEO
    

 

18Exhibit 10.10

 

EXECUTION COPY

 

AMENDED AND RESTATED

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS AGREEMENT is entered into this 1st day of June 2011 (the “Effective Date”) by and between Euramax Holdings, Inc., a Delaware corporation (“Holdings”), Euramax International, Inc., a Delaware corporation (the “Company”) and Mitchell Lewis (“Executive”).

 

WITNESSETH

 

WHEREAS, Executive is currently employed as the Chief Executive Officer of Holdings subject to the terms of that certain Amended and Restated Executive Employment Agreement dated June 12, 2009 between the Company and Holdings (the “Prior Employment Agreement”) and

 

WHEREAS, Holdings, the Company and Executive now desire to amend and restate the Prior Employment Agreement to reflect a change in Executive’s compensation.

 

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

 

ARTICLE I

Definitions

 

1.             Definitions:  As used in this Agreement, the following terms shall have the respective meanings set forth below:

 

(a)           “Affiliate” means, with respect to any Person, any other Person who directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such Person including, without limitation, any employee of such Person, The term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities or other ownership interests, by contract or otherwise, and the terms “controlled” and “controlling” have meanings correlative thereto.

 

(b)           “Business Day” means any day other than a Saturday or Sunday or a day on which commercial banks are required or authorized to close in New York, New York.

 

(c)           “Cause” means (i) conviction of the Executive for a felony, a crime involving moral turpitude (excluding in each case vehicular offenses) or other act or willful omission involving dishonesty or fraud with respect to any member of the Company Group, in each case, which causes material harm to the standing and reputation of any member of the Company Group and after written notice to Executive or (ii) other than by reason of death, 

 

 

Permanent Disability or termination of employment by Executive based on the occurrence of an event constituting Good Reason, Executive’s continued failure to perform his duties (consistent with those duties previously performed by Executive in his capacity as an executive officer of the Company and those of an executive officer in an organization of similar size and structure as the Company) to the Company and/or deliberate failure or deliberate refusal by Executive to comply with a reasonable written directive of the Company Board after written notice and, if susceptible to remedy or cure is not cured or remedied and continues for fifteen (15) Business Days after the Company Board has given written notice to the Executive specifying in reasonable detail the manner in which Executive has continued to fail to perform his duties or refused to comply with such reasonable directive and after the Executive has been afforded an opportunity to be heard by the Company Board in respect thereto. The Company must notify Executive of any event constituting Cause within ninety (90) calendar days following the Company’s knowledge of its existence or such event shall not constitute Cause under this Agreement.

 

(d)           “Company” means Euramax International, Inc., a Delaware corporation.

 

(e)           “Company Board” means the Board of Directors of the Company.

 

(f)            “Company Group” means, collectively, Holdings, the Company, its Subsidiaries and their respective successors and assigns.

 

(g)           “Date of Termination” means (1) the effective date on which Executive’s employment by the Company terminates as specified in a prior written notice by the Company or Executive, as the case may be, to the other, delivered pursuant to Section 5.3, or (2) if Executive’s employment by the Company terminates by reason of death, the date of death of Executive.

 

(h)           “Good Reason” means the occurrence of any of the following events after the Effective Date, without Executive’s express written consent:

 

(1)           the assignment to Executive of any duties or responsibilities inconsistent in any material respect with Executive’s position(s), duties, responsibilities or status with the Company, Holdings or any other member of the Company Group immediately prior to the Effective Date (including any material diminution of his duties, responsibilities or authority and including without limitation, the Executive ceasing to serve as the sole Chief Executive Officer of the Company or Holdings or ceasing to be the only officer or employee of the Company reporting directly to the Company Board or of Holdings reporting to the Holdings Board, or ceasing to have the other officers or employees of the Company or Holdings or any other member of the Company Group report, directly or indirectly, to him only);

 

(2)           a material reduction in Executive’s rate of annual Base Salary or annual Bonus opportunity as in effect immediately prior to the Effective Date or failure to promptly pay him any such compensation;

 

(3)           any requirement that Executive (i) be based anywhere more than twenty-five (25) miles from the facility where Executive is located as of the Effective Date or (ii) travel on business relating to any member of the Company Group to an extent 

 

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that requires extended, overnight travel which is substantially greater than the travel obligations of Executive immediately prior to the Effective Date; or

 

(4)           the failure of the Company or any other member of the Company Group to continue to make available to Executive a package of benefits including employee benefit plans, welfare benefits, fringe benefits, vacation and sick pay plans which are substantially equivalent, in the aggregate, to those plans in which Executive is participating immediately prior to the Effective Date.

 

An action taken in good faith and which is remedied by the Company within thirty (30) Business Days after receipt of notice thereof given by Executive shall not constitute Good Reason. Executive must provide notice of termination of employment providing for a Date of Termination within ninety (90) calendar days of Executive’s knowledge of an event constituting Good Reason or such event shall not constitute Good Reason under this Agreement.

 

(i)            “Holdings” means Euramax Holdings, Inc., a Delaware corporation.

 

(j)            “Holdings Board” means the Board of Directors of Holdings.

 

(k)           “Nonqualifying Termination” means a termination of Executive’s employment (1) by the Company for Cause, (2) by Executive for any reason other than Good Reason, (3) as a result of Executive’s death, or (4) by the Company due to Executive’s Permanent Disability.

 

(l)            “Permanent Disability” means Executive is unable to perform, in the written opinion of a medical doctor mutually agreed to by the Company and by the Executive or his legal representative (and if the Company and Executive are unable to agree upon a medical doctor, a third doctor selected by the doctor selected by the Company and the doctor selected by Executive or his legal representative), by reason of physical or mental incapacity, his duties or obligations under this Agreement, for a period of one hundred twenty (120) consecutive calendar days or a total period of two hundred ten (210) calendar days in any three hundred sixty (360) calendar day period.

 

(m)          “Person” means an individual, a partnership, a corporation, an association, a joint stock company, a limited liability company, a trust, a joint venture, an unincorporated organization, a governmental entity, or any department, agency or political subdivision thereof, or any other entity.

 

(n)           “Subsidiary” means, with respect to any Person, any corporation, partnership, association or other business entity of which (i) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof, or (ii) if a partnership, association or other business entity, a majority of the partnership or other similar ownership interest thereof is at the time owned or controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a combination thereof. For purposes hereof, a Person or Persons shall be deemed 

 

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to have a majority ownership interest in a partnership, association or other business entity if such Person or Persons shall be allocated a majority of partnership, association or other business entity gains or losses or shall be or control the managing director or general partner of such partnership, association or other business entity.

 

ARTICLE II

Employment

 

2.1           Employment.  The Company agrees to employ Executive, and Executive hereby accepts employment with the Company, and such other members of the Company Group as the Company Board shall determine, upon the terms and conditions set forth in this Agreement for the period beginning on the Effective Date and ending on the last day of the Employment Period (as provided in Section 2.4 hereof).

 

2.2           Position and Duties

 

(a)           Commencing on the Effective Date and continuing during the Employment Period, Executive shall serve as Chief Executive Officer of each of the Company and Holdings as well as such other members of the Company Group as the Company Board shall determine and, in each case, shall have the normal duties, responsibilities and authority of a Person serving in such capacity in an organization of similar size and structure as the Company, Holdings or such other member of the Company Group, respectively, subject in each instance to the supervision and direction of the board of Directors of the applicable member of the Company Group.

 

(b)           Executive shall devote his best efforts and his full business time and attention (except for permitted vacation periods and reasonable periods of illness or other incapacity) to the business and affairs of the Company Group.  The Executive shall perform his duties and responsibilities to the best of his abilities in a diligent, trustworthy, businesslike and efficient manner.  Executive shall not be required to change his principal residence from Atlanta, Georgia.

 

2.3                                 Base Salary, Bonus and Benefits.

 

(a)           During the Employment Period, Executive’s base salary shall be $600,000 per annum or such greater amount as the Company Board shall determine, from time to time, in its sole discretion (the “Base Salary”), which Base Salary shall be payable in regular installments in accordance with the Company Group’s general payroll practices and shall be subject to customary withholding.

 

(b)           During the Employment Period, Executive shall be eligible for an annual bonus pursuant to the Euramax Incentive Compensation Plan or such other bonus plan approved by the Company Board (the “Bonus”).  The Company and Executive acknowledge and agree that the target Bonus shall be 100% of Executive’s Base Salary.

 

(c)           During the Employment Period, consistent with past custom and practice, Executive shall be eligible to participate in such of the Company’s or its Subsidiaries’ employee benefit programs for which senior executive employees of the Company Group are 

 

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generally eligible, as the Company Board shall determine, including, without limitation, the benefits he is currently receiving (“Benefits”).

 

2.4           Term.  Unless Executive’s employment is sooner terminated pursuant to Article III, the Company shall employ Executive for a term commencing on the Effective Date and ending on the second anniversary of the Effective Date; provided, however, that on each day following the Effective Date the period of Executive’s employment pursuant to this Agreement shall be automatically extended, upon the same terms and conditions, for an additional day unless the Company gives 60 days’ prior written notice (a “Non-Extension Notice”) to Executive of its election not to extend such period of Executive’s employment hereunder, in which event the automatic day-by-day extension shall cease.  The period beginning on the Effective Date and ending on the earlier of (A) the Date of Termination and (B) the second anniversary of the 60th day following receipt by Executive of a Non-Extension Notice delivered pursuant to this Section 2.4 shall be referred to herein as the “Employment Period”.

 

ARTICLE III

Payments upon Termination of Employment

 

3.1           Certain Payments Upon Termination of Employment during Employment Period.  If during the Employment Period the employment of Executive shall terminate, other than by reason of a Nonqualifying Termination, and Executive agrees upon such termination to execute a release, in the same form as attached hereto as Exhibit A, with respect to all tort and contract claims, as well as claims brought under all applicable federal, state or local statutes, laws, regulations or ordinances, then the Company shall pay to Executive (or Executive’s beneficiary or estate) on the thirtieth (30th) calendar day after such Non-Qualifying Termination (provided that the Company has received the signed release and such release has become irrevocable by such 30th day), as compensation for services rendered to the Company, a lump-sum cash amount equal to the sum of:

 

(a)                                  Executive’s Base Salary through the Date of Termination and any unpaid bonus for the fiscal year ending prior to the Date of Termination to the extent not theretofore paid;

 

(b)                                 A pro  rata portion of Executive’s annual Bonus in an amount at least equal to: 50% (or such higher percentage as shall then be applicable to Executive pursuant to the Euramax Incentive Bonus Plan (such plan being the “Bonus Plan” and such higher percentage being the “Higher Percentage”) for the fiscal year in which the Date of Termination occurs) of Executive’s annualized Base Salary for the fiscal year in which the Date of Termination occurs, multiplied by (ii) a fraction, the numerator of which is the number of calendar days in the fiscal year in which the Date of Termination occurs through the Date of Termination and the denominator of which is three hundred sixty-five (365);

 

(c)                                  Any accrued vacation pay to the extent not theretofore paid;

 

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(d)                                 Two times Executive’s annualized rate of Base Salary in effect 30 days prior to the Date of Termination (disregarding any change therein which constitutes Good Reason hereunder);

 

(e)                                  Two times 50% of Executive’s annualized Base Salary for the fiscal year in which Executive’s Date of Termination occurs (disregarding any change therein which constitutes Good Reason hereunder); and

 

(f)                                    For a period of twenty-four (24) months following the Date of Termination, the Company will provide Executive and his qualified beneficiaries, as defined in Section 4980B(g)(1)(A) of the Code, continued coverage under all insurance plans of the Company, including, without limitation, all medical insurance and other health plans, life insurance and disability insurance plans of the Company (the “Continued Benefits”) in which Executive or his qualified beneficiaries were a participant immediately prior to the Date of Termination or successor plans thereto, subject to the timely payment (inclusive of an extra thirty (30) day grace period with notice) by Executive of all premiums, contributions and other co-payments required to be paid during such period by senior executives of the Company under the terms of such plans in effect from time to time.

 

Any amount paid pursuant to Section 3.1 shall be in lieu of any other amount of severance relating to salary or bonus continuation to be received by Executive upon termination of employment of Executive under any severance plan or policy of the Company.

 

3.2           Payments upon Nonqualifying Termination during the Employment Period.

 

(a)           If the Executive’s employment is terminated by the Company Board for Cause, the Executive shall be entitled to his Base Salary and Benefits up to the Date of Termination, but shall not be entitled to any further Base Salary or any Bonus or Benefits for that year, prior years, or any future year, or to any severance compensation of any kind, nature or amount.  A termination of Executive’s employment for Cause shall be effected, after resolution duly adopted by a majority of the directors of the Company Board, by written notice to Executive, with the basis for such Cause being specified in the notice.

 

(b)           If the Executive’s employment is terminated as a result of his death or Permanent Disability, the Company shall pay or cause to be paid to Executive or his estate, as applicable, (i) all previously earned and accrued but unpaid Base Salary and Benefits up to the Date of Termination, (ii) all previously awarded but unpaid Bonus and (iii) such Bonus (if any) for the current year as the Company Board determines, but neither Executive nor his estate shall be entitled to any further Base Salary, Benefits or any Bonus for that year or any future year or to any severance compensation of any kind, nature or amount.

 

(c)           If the Executive’s employment is terminated as a result of Executive’s voluntary resignation without Good Reason, Executive shall be entitled to receive 

 

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his Base Salary and all Benefits up to the Date of Termination, but shall not be entitled to any further Base Salary or any Bonus or Benefits for that year, prior years, or any future year or to any severance compensation of any kind, nature or amount.

 

3.3           Certain Conditions.

 

(a)           Without limiting the Company’s ability to enforce the provisions of Article IV hereof, Executive agrees that Executive shall be entitled to the payments and benefits provided for in paragraph 3.1 if and only if Executive (i) has not materially breached as of the Date of Termination the provisions of Sections 4.2 or 4.3 hereof or (ii) has remedied or cured any breach of the provisions of Sections 4.2 or 4.3 hereof within 15 Business Days after receipt of written notice from the Company of a breach of any such provisions, and (iii) does not breach or fail to remedy or cure any breach of any such sections within 15 Business Days after receipt of written notice from the Company of a breach of any such provisions at any time during the NonCompete Period (as defined below); provided, that (a) the Company’s obligation to make such payments or provide such services will terminate upon the occurrence of any such breach that is not remedied or cured as provided herein during such NonCompete Period and (b) if such payments have been made to Executive in a lump sum pursuant to paragraph 3.1 hereto, Executive shall immediately repay to the Company in cash an amount equal to the after-tax amount of such lump sum payments multiplied by a fraction, the numerator of which shall be twenty-four minus the number of completed months in the Noncompete Period preceding the breach, and the denominator of which shall be twenty-four; and provided  further that in the event the Company materially breaches its obligation to make payments and provide benefits provided for in paragraph 3.1, and the Company has not remedied or cured such breach within 15 Business Days after receiving written notice from the Executive the Executive’s obligations under the provisions of Section 4.3 shall immediately terminate.

 

(b)                                 Section 409A Specified Employee.

 

(i)            Notwithstanding anything to the contrary contained herein, if the Executive is a “specified employee” for purposes of Section 409A of the Internal Revenue Code (the “Code”) and regulations and other interpretive guidance issued thereunder (“Section 409A”), the Company shall not commence payment of the amounts specified in Section 3.1 to the Executive until one (1) day after the day which is six (6) months after the Executive’s termination date (the “Delay Period”), with the first (1st) payment equaling the total of all payment that would have been paid during the Delay Period but for the application of Section 409A to such payments.  For purposes of this Agreement, the Executive’ s employment with the Company shall be considered to have terminated when the Executive incurs a “separation from service” with the Company within the meaning of Section 409A(a)(2)(A)(i) of the Code, and applicable administrative guidance issued thereunder.

 

(ii)           To the extent that benefits to be provided to the Executive pursuant to Section 2(ii) of this Agreement are not (A) “disability pay,” “death benefit” plans or non-taxable medical benefits within the meaning of Treasury Regulation Section 1.409A-1(a)(5) or (B) other benefits not considered nonqualified deferred compensation within the meaning of that regulation, such provision of benefits shall be delayed until the end of the Delay Period, unless the Executive’s termination occurs by reason of his death.  Notwithstanding the foregoing, 

 

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to the extent that the previous sentence applies to the provision of any ongoing benefits that would not be required to be delayed if the premiums were paid by the Executive, the Executive shall pay the full cost of the premiums for such benefits during the Delay Period and the Company shall pay the Executive an amount equal to the amount of such premiums paid by the Executive during the Delay Period within ten (10) days after the end of the Delay Period.

 

(iii)          To the extent that any benefits to be provided to the Executive pursuant to this Agreement are considered nonqualified deferred compensation and are reimbursements subject to Treasury Regulation Section 1.409A-3(i)(1)(iv), then (i) the reimbursement of eligible expenses related to such benefits shall be made on or before the last day of the Executive’s taxable year following the Executive’s taxable year in which the expense was incurred and (ii) notwithstanding anything to the contrary in this Agreement or any plan providing for such benefits the amount of expenses eligible for reimbursement during any taxable year of the Executive shall not affect the expenses eligible for reimbursement in any other taxable year.

 

(c)           In the event (i) Executive’s employment is terminated by the Company for Cause and Executive disputes such finding of Cause or (ii) Executive terminates his employment for Good Reason and the Company dispute that such Good Reason exists, then the prevailing party in any such dispute shall be entitled to reimbursement by the other party for all reasonable legal fees and expenses incurred by such prevailing party in such dispute, provided that, in the event the Company is the prevailing party, the amount that Executive would be required to reimburse shall in the aggregate not exceed the amount of legal fees and expenses incurred by Executive.

 

3.4           Expedited Arbitration.

 

(a)           If there is a dispute between the Company and Executive of the nature described in Sections 3.3(c)(i) or 3.3(c)(ii), then such dispute shall, at the request of either party, be resolved solely by arbitration in Fulton County, Georgia under the Expedited Procedures provision of the Commercial Arbitration Rules of the American Arbitration Association or any successor thereto (the “AAA”); provided, however, that the provisions of this Section 3.4 shall supersede any conflicting or inconsistent provisions of said provisions; and further  provided, that with respect to any such arbitration, (i) the list of proposed arbitrators referred to in Rule E-4 shall be returned with any names stricken within five (5) days from the date of mailing by the AAA of the list of proposed arbitrators; (ii) the parties shall notify the AAA by telephone, within four (4) days of any objections to the arbitrator appointed and shall have no right to object if the arbitrator so appointed was on the list submitted by the AAA and was not objected to in accordance with Rule E-4(c); (iii) the notice of the hearing on the matter shall be four (4) days in advance of the hearing and (iv) the hearing shall be held within five (5) days after the appointment of the arbitrator.  Time shall be of the essence as to the time periods set forth in this Section 3.4.

 

(b)           It is expressly understood that the decision of any arbitrator in accordance with this Section 3.4 shall be final and binding upon the parties hereto and non-appealable.  The arbitrator conducting any arbitration shall be bound by the provisions of this Agreement and shall not have the power to add to, subtract from, or otherwise modify such 

 

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provisions.  The Company and Executive agree to sign all documents and to do all other things necessary to submit any such matter to arbitration and further agree to, and hereby do, waive any and all rights they or either of them may at any time have to revoke their agreement hereunder to submit to arbitration and to abide by the decision rendered thereunder which shall be binding and conclusive on the parties and shall constitute an “award” by the arbitrator within the meaning of the AAA rules and applicable laws.

 

ARTICLE IV

Confidentiality, Noncompete, Nonsolicitation

 

4.1           Confidential Information.  Executive acknowledges that the information, observations and data obtained by him while employed by the Company or any other member of the Company Group (whether prior to or during the Employment Period) concerning the business or affairs of any member of the Company Group (“Confidential Information”) are the property of the Company or such other member of the Company Group.  Therefore, Executive agrees that he shall not disclose to any unauthorized person or use for his own account any Confidential Information without the prior written consent of the Company Board, unless and to the extent that the aforementioned matters become generally known to and available for use by the public other than as a result of Executive’s acts or omissions to act.  Executive shall deliver to the Company at the termination of Executive’s employment, or at any other time the Company may request, all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data (and copies thereof) relating to the Confidential Information, Work Product (as defined below) and the business of the Company Group which he may then posses or have under his control.

 

4.2           Inventions and Patents.  Executive agrees that all inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports, and all similar or related information which relates to the Company Group’s actual or anticipated business, research and development or existing or future products or services and which are conceived, developed or made by Executive while employed by the Company or any other member of the Company Group (whether prior to or during the Employment Period) (the “Work Product”)  belong to the Company or such other member of the Company Group.  Executive will promptly disclose such Work Product to the Company Board and perform all actions reasonably requested by the Company Board (whether during or after Executive’s Employment Period) to establish and confirm such ownership (including, without limitation, assignments, consents, powers of attorney and other instruments).

 

4.3           Noncompete, Nonsolicitation

 

(a)           Executive acknowledges that in the course of his employment with the Company or any other member of the Company Group he has become familiar, and he will become familiar, with the Company Group’s trade secrets and with other Confidential Information and that his services have been and will be of special, unique and extraordinary value to the Company Group.  Therefore, Executive agrees that, during the time he is employed by the Company or any other member of the Company Group and for so long as Executive is entitled to receive severance payments hereunder or otherwise or for twenty-four (24) months thereafter if Executive voluntarily resigns (the “Noncompete Period”), Executive shall not 

 

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directly or indirectly own, manage, control, participate in, consult with, render services for, or in any manner engage in any business with any person (including by himself or in association with any person, firm, corporate or other business organization or through any other entity) in competition with the businesses of any member of the Company Group as such businesses exist or are in process on the Date of Termination of Executive’s employment, within any geographical area in which the Company Group engages or plans on the Date of Termination of Executive’s employment to engage in such businesses.  Nothing herein shall prohibit Executive from being a passive owner of not more than 2% of the outstanding stock of a corporation which is publicly traded, so long as Executive has no active participation in the business of such corporation.

 

(b)           During the Noncompete Period, Executive shall not directly or indirectly through another entity (i) induce or attempt to induce any employee of the Company or any other member of the Company Group to leave the employ of the Company or such other member of the Company Group, or in any way interfere with the relationship between any member of the Company Group and any employee thereof, (ii) hire any person who was an employee of the Company or any other member of the Company Group at any time within the six-month period prior to the Date of Termination of Executive’s employment with the Company or any other member of the Company Group, or (iii) induce or attempt to induce any customer, supplier, licensee, licensor, franchisee, franchisor or other business relation of the Company or any other member of the Company Group to cease doing business with the Company or such other member of the Company Group, or in any way interfere with the relationship between any such customer, supplier, licensee, licensor, franchisee, franchisor or business relation and the Company or any other member of the Company Group.

 

(c)           Executive agrees that: (i) the covenants set forth in this Section 4.3 are reasonable in geographical and temporal scope and in all other respects, (ii) the Company would not have entered into this Agreement but for the covenants of Executive contained herein, and (iii) the covenants contained herein have been made in order to induce the Company to enter into this Agreement.

 

(d)           If, at the time of enforcement of this Section 4.3, a court shall hold that the duration, scope or area restrictions stated herein are unreasonable under circumstances then existing, the parties agree that the maximum duration, scope or area reasonable under such circumstances shall be substituted for the state duration, scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum period, scope and area permitted by law.

 

ARTICLE V

Miscellaneous

 

5.1           Withholding Taxes.  The Company may withhold from all payments due to Executive (or his beneficiary or estate) hereunder all taxes which, by applicable federal, state, local or other law, the Company is required to withhold therefrom.

 

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5.2                                 Successors: Binding Agreement.

 

(a)           This Agreement shall not be terminated by any merger, consolidation, share exchange or similar form of corporate reorganization of the Company or any such type of transaction involving the Company or any other member of the Company Group (a “Business Combination”). In the event of any Business Combination, the provisions of this Agreement shall be binding upon the surviving or resulting corporation or the Person to which such assets are transferred (the “Surviving Company”) and such Surviving Company shall be treated as the Company hereunder.

 

(b)           This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If Executive shall die and, under the terms of this Agreement, any payment would be required to Executive hereunder, all such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this Agreement to such Person or Persons appointed in writing by Executive to receive such amounts or, if no Person is so appointed, to Executive’s estate.

 

5.3                                 Notice.

 

(a)           For purposes of this Agreement, all notices and other communications required or permitted hereunder shall be in writing and shall be deemed to have been duly given when delivered or five (5) Business Days after deposit in the United States mail, certified and return receipt requested, postage prepaid, addressed as follows:

 

	
If to the Executive:
    	
At   the last known address shown in the Company’s personnel records
    
	
 
    	
 
    
	
If to the Company or   Holdings:
    	
Euramax   Holdings, Inc.
    
	
 
    	
5445   Triangle Parkway
    
	
 
    	
Suite   350
    
	
 
    	
Norcross,   Georgia 30092
    
	
 
    	
ATTN:   Corporate Secretary
    

 

or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

(b)           A written notice of Executive’s Date of Termination by the Company or Executive, as the case may be, to the other, shall (1) indicate the specific termination provision in this Agreement relied upon, (2) to the extent applicable, set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated and (3) specify the Termination Date. The failure by Executive or the Company to set forth in such notice any fact or circumstance which contributes to a showing of Good Reason or Cause shall not waive any right of Executive or the Company hereunder or preclude Executive or the Company from asserting such fact or circumstances in enforcing Executive’s or the Company’s rights hereunder.

 

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5.4           Full Settlement.  From and after the Effective Date, this Agreement constitutes the entire agreement between the parties hereto, and supersede all prior representations, agreements and understandings (including any prior course of dealings), both written and oral, between the parties hereto with respect to the subject matter hereof.  In no event shall Executive be obligated to seek other employment or take other action by way of mitigation of the amounts payable or benefits provided to Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not Executive obtains other employment and shall not be reduced by offset against any amount claimed to be owed by the Executive to the Company.

 

5.5           Governing Law, Validity.  The interpretation, construction and performance of this agreement shall be governed by and construed and enforced in accordance with the internal laws of the state of Delaware without regard to the principle of conflicts of laws. The invalidity or unenforceability of any provision of this agreement shall not affect the validity or enforceability of any other provision of this agreement, which other provisions shall remain in full force and effect.  Other than those disputes that will be governed by Section 3.4 of this Agreement, in the event of any dispute, claim, or litigation arising out of or relating in any way to this Agreement, the parties hereby agree and consent to be subject to the jurisdiction of the state courts of Fulton County, Georgia.  The parties hereby irrevocably waive, to the fullest extent permitted by law, (a) any objection that it may now or hereafter have to laying venue of any suit, action or proceeding brought in such court, (b) any claim that any suit, action or proceeding brought in such court has been brought in an inconvenient forum, and (c) any defense that it may now or hereafter have based on lack of personal jurisdiction in such forum.

 

5.6           Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall constitute one and the same instrument.

 

5.7           Miscellaneous.  No provision of this Agreement may be modified or waived unless such modification or waiver is agreed to in writing and signed by Executive and by a duly authorized officer of the Company. No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. Failure by Executive or the Company to insist upon strict compliance with any provision of this Agreement or to assert any right Executive or the Company may have hereunder shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. Except as otherwise specifically provided herein, the rights of, and benefits payable to, Executive, Executive’s estate or Executive’s beneficiaries pursuant to this Agreement are in addition to any rights of, or benefits payable to, Executive, Executive’s estate or Executive’s beneficiaries under any other employee benefit plan or compensation program of the Company.

 

Signature page follows

 

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IN WITNESS WHEREOF, each of the Company and Holdings has caused this Agreement to be executed by a duly authorized officer of the Company and Executive has executed this Agreement as of the day and year first above written.

 

	
EURAMAX HOLDINGS, INC.
    	
 
    	
EXECUTIVE:
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Michael D. Lundin
    	
 
    	
/s/   Mitchell Lewis
    
	
 
    	
 
    	
 
    	
Mitchell   Lewis
    
	
 
    	
 
    	
 
    	
 
    
	
Title:   
    	
/s/   Chairman
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
EURAMAX INTERNATIONAL, INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   R. Scott Vansant
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Title:   
    	
/s/   Vice President and Chief Financial Officer
    	
 
    	
 
    

 

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