Document:

EX-10.1 Letter Agreement

 

Exhibit 10.1

November 13, 2007

Diane M. Barrett

c/o Noven Pharmaceuticals, Inc.

11960 SW 144th
 Street

Miami, Florida 33186

Dear Diane:

This letter confirms the arrangement regarding your retirement as Vice President and Chief
Financial Officer of Noven Pharmaceuticals, Inc. (”Noven”).

1.      Noven has expressed its desire that you continue your employment with Noven until December 31,
2007 in order to ensure an orderly transition of your position to your successor.

2.      It is understood and agreed that you will: (a) continue to perform your regular duties as
Noven’s Vice President and Chief Financial Officer until the earlier of December 31, 2007 or the
date your successor has been elected to the position of Vice President and Chief Financial Officer;
and (b) you will assist the Corporation in the transition of the position of Vice President and
Chief Financial Officer to your successor from the date hereof through December 31, 2007. In the
event that your successor is elected prior to December 31, 2007, then you will continue as a Vice
President of Noven, but will no longer serve as Noven’s Vice President and Chief Financial Officer.

3.      In exchange for (i) continuing your employment through December 31, 2007 (or such later date as
may be mutually agreed to the by the parties) (the “Employment End Date”) in accordance with
paragraph 2 and (ii) signing the Confidential Separation Agreement and General Release of All
Claims attached hereto as Exhibit A, Noven agrees to the following:

a.     You will be paid Three Hundred and Ninety-Five Thousand, Eight Hundred and Fifty Dollars
($395,850), which amount will be paid in 26 bi-weekly installments over the 12 month period
commencing on the Employment End Date.

b.     You will receive an annual bonus for 2007 determined in accordance with Noven’s 2007 Annual
Incentive Plan and paid at the same time and manner as such payment is made to Noven’s other
executive officers.

c.     You will be paid all of your accrued but unused vacation time which you had earned through the
Employment End Date. You will not continue to earn vacation or other paid time off after the
Employment End Date.

d.     Your equity awards (stock options and SSARs) granted under Noven’s 1999 Long-Term Incentive Plan
will continue to vest through the Employment End Date. All vesting will cease as of that date and
you will have 12 months from your Employment

 

 

End Date with which to exercise any and all vested awards under and in accordance with Noven’s
1999 Long Term Incentive Plan, provided, however, that this provision shall not extend the original
seven year term of any of your equity awards.

e.     Your participation in Noven’s medical and dental insurance programs at employee rates will
continue through the end of the month following the date that is twelve months after the Employment
End Date, at which date your participation in such programs will cease in accordance with the terms
of those programs.

f.     You will have the option to elect to continue your health care coverage for an additional 18
months under COBRA, provided you pay the full monthly premium cost of the coverage. Detailed
information on COBRA will be provided to you under separate cover.

4.     The parties acknowledge that this agreement is not an employment contract, that you will
continue to be an employee “at will”, and that we retain the right to terminate you for any reason
or no reason at any time; provided that if you are terminated for any reason other than for cause
prior to December 31, 2007, then you will be entitled to the benefits listed in paragraph 3 hereof.

5.     You have indicated your willingness to discuss an arrangement by which you will provide
consulting services to Noven after your Employment End Date pursuant to a mutually-acceptable
consulting agreement.

If you have any questions please do not hesitate to contact me. Otherwise, please indicate your
acceptance of the terms and conditions set forth herein by signing this letter where indicated
below.

	 	 	 	 	 
	 	NOVEN PHARMACEUTICALS, INC.

Sincerely,

 	 
	 	/s/ Carolyn Donaldson
 	 
	 	Vice President, Human Resources 	 
	 	 	 
	 

Agreed to and Accepted by:

/s/ Diane M. Barrett

Dated: November 13, 2007EX-10.1

 

Exhibit 10.1

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT

     This AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (this “Amendment”) is made and entered
into on this 9th day of November, 2007 by and between CINCINNATI BELL INC., an Ohio
corporation (“Employer”) and RODNEY D. DIR, an Ohio resident (“Employee”).

RECITALS

	 	A.	 	Employer and Employee entered into that certain Employment Agreement (the
“Employment Agreement”) on July 26, 2005.
	 
	 	B.	 	Employer and Employee desire to amend and clarify certain terms of the
Employment Agreement as set forth in this Amendment; more particularly, Employee’s
agreement to extend the time period during which certain restrictive covenants shall
remain effective, and Employer’s agreement to waive Employee’s obligation under
Section 13.F of the Employment Agreement to provide Employer 60 days’ prior written
notice of his resignation.

AGREEMENT

     NOW THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned hereby
agree as follows:

	1.	 	Amendments to Employment Agreement. The Employment Agreement is hereby amended as
follows:

	 	A.	 	The following sentence shall be added to the end of Section 13.F:
	 
	 	 	 	Notwithstanding anything to the contrary contained herein, any Target Bonus earned
(prorated through October 31, 2007) but not paid as of October 31, 2007 shall be
payable to Employee at the same time that Employer customarily pays annual bonuses;
provided, however, that Employer shall pay such Bonus to Employee no later than
March 31, 2008.
	 
	 	B.	 	All references in Section 11 to “one-year” and “one year” are deleted in
their entirety and replaced with “two-year” and “two years” respectively.

	2.	 	Amendment and Ratification. The parties agree that the Employment Agreement is
hereby amended in accordance with the foregoing provisions of this Amendment. Except as
specifically amended herein, all remaining provisions of the Employment Agreement shall remain
in full force and effect as written.

1

 

	3.	 	Defined Terms. Capitalized terms used in this Amendment shall have the same meanings
as in the Employment Agreement unless otherwise defined herein.

	4.	 	Counterparts. This Amendment may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute but one and the
same instrument.

     IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and year first
above written.

	 	 	 	 	 
	 	EMPLOYER:

Cincinnati Bell Inc.,

an Ohio corporation

 	 
	 	By:  	/s/ John F. Cassidy
 	 
	 	Name:  	John F. Cassidy 	 	 
	 	Title:  	Chief Executive Officer 	 	 
	 
	 	EMPLOYEE:

 	 
	 	/s/ Rodney D. Dir
 	 
	 	Rodney D. Dir, individually 	 
	 	 	 
	 

2exv10w1

 

EXHIBIT 10.1

AMERICAN PACIFIC CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

Article I

ESTABLISHMENT & PURPOSE

	1.1	 	Establishment. Effective as of January 1, 1999, American Pacific Corporation (the
“Company”), amended and restated the American Pacific Corporation Supplemental Executive
Retirement Plan (the “Plan”) for the benefit of a select group of highly compensated employees
and their Beneficiaries. Except as provided otherwise herein, this Plan is further amended
and restated effective as of January 1, 2005, to comply with the provisions of Code Section
409A, and to make other revisions.
	 
	 	 	The terms of the Plan as hereby amended and restated shall apply to all individuals who are
active Participants in the Plan on or after October 1, 2007.

	1.2	 	Purpose. The purpose of the Plan is to provide retirement income and supplemental
death and disability benefits for eligible Participants to supplement benefits payable under
the American Pacific Corporation Defined Benefit Pension Plan and to enable the Company to
attract and retain certain key executives.

Article II

DEFINITIONS

Definitions. As used herein, the following words and phrases have the meanings ascribed to
them in Article II unless a different meaning is plainly required by the context. Some of the
words and phrases used in the Plan are not defined in this Article II, but, for convenience, are
defined as they are introduced into the text. Words in the masculine gender shall be deemed to
include the feminine gender and words in the feminine gender shall be deemed to include the
masculine gender. Any headings used herein are included for ease of reference only, and are not to
be construed so as to alter any of the terms of the Plan.

	2.1	 	“Accrued Benefit” as of a specified date with respect to a Participant means a
monthly benefit equal to (a) minus (b) below (but not less than zero) where

	 	(a)	 	means an annual benefit equal to the greater of (i) or (ii) below where:

	 	(i)	 	Is sixty percent (60%) of Final Average Compensation (but only if such
individual was a Participant under this Plan prior to October 1, 2007)
	 
	 	 	 	Notwithstanding the above, for the sole Participant who was a Participant before
January 1, 1999, (i) means an annual benefit equal to three percent (3%) of Final
Average Compensation multiplied by his years of Credited Service (not to exceed
15) plus one and one-half percent (1.5%) of Final Average Compensation times his
years of Credited Service (exceeding 15, but not to exceed 35).

	 	(ii)	 	Is five percent (5%) of Final Average Compensation multiplied by his or
her years of Credited Service (not to exceed 15), effective on and after October 1,
2007 for any 2007 Participant.

The benefit described in this subsection (a) shall be expressed as a Life Annuity
commencing at the Participant’s Normal Retirement Date. However, if the Participant’s
Annuity Starting Date is later than his or her Normal Retirement Date, such benefit
shall be expressed as a Life Annuity commencing at his or her Annuity Starting Date.

 

 

	 	(b)	 	means the vested benefit payable to the Participant under the Qualified Plan,
determined as of the date the Accrued Benefit under Section 2.1(a) above is determined.
The amount described in this subsection shall be expressed as a Life Annuity commencing
on the Participant’s Normal Retirement Date. However, if the date the Accrued Benefit
under Section 2.1(a) above is determined is later than his or her Normal Retirement Date,
such benefit shall be expressed as a Life Annuity commencing at such date and shall be
increased as provided in Section 3.03 of the Qualified Plan.

	2.2	 	“Actuarial Equivalent” shall mean a benefit or benefits which are of equal value at
the date of determination to the benefits for which they are to be substituted. Actuarial
Equivalence shall be based on the interest and mortality tables used to determine actuarial
equivalence under Section 1.03 of the Qualified Plan.

	2.3	 	“Affiliated Group” shall mean the Company and all other entities aggregated with the
Company under Sections 414(b), (c), (m), or (o) of the Code but only in the period during
which such other entity is so aggregated with the Company.

	2.4	 	“Annuity Starting Date” shall mean the first day of the first period for which an
amount is payable as an annuity, or in the case of a benefit not payable in the form of an
annuity, the first day on which all events have occurred which entitle the Participant to such
a benefit.

	2.5	 	“Beneficiary” shall have the same meaning as set forth in Section 1.08 of the Qualified Plan.
	 
	2.6	 	“Board of Directors” shall mean the Board of Directors of American Pacific Corporation.
	 
	2.7	 	“Change of Control” shall mean

	 	(i)	 	a merger or consolidation of the Company with or into any other entity unless after
such event at least a majority of the voting power of the surviving or resulting entity
is beneficially owned by persons who beneficially own a majority of the voting power of
the Company immediately prior to such event, or
	 
	 	(ii)	 	the sale of fifty percent (50%) or more of the voting stock of the Company, or
	 
	 	(iii)	 	any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities
and Exchange Act of 1934, as amended (the “Exchange Act”)) is or becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that for
purposes of this clause, such person shall be deemed to have “beneficial ownership” of
all shares that any such person has the right to acquire, whether such right is
exercisable immediately or only after the passage of time) directly or indirectly, of
more than 35% of the total voting power of the voting stock of the Company, or
	 
	 	(iv)	 	the sale of all or substantially all the assets of the Company, or
	 
	 	(v)	 	the dissolution of the Company, or
	 
	 	(vi)	 	a change in the identity of a majority of the members of the Company’s board of
directors within any twelve-month period, which change or changes are not recommended by
the incumbent directors determined immediately prior to any such change or changes.

Notwithstanding the foregoing, in order to qualify as a “Change in Control under this Plan on
and after January 1, 2005, the event that qualifies as a Change in Control in the foregoing
provisions of this Section 2.7 must also qualify as a as a change in effective control of the
Company, or a change in the ownership of a substantial portion of the assets of the Company
under Code Section 409A(a)(2)(A)(v), the regulations thereunder, and any other published
interpretive authority, as issued or amended from time to time.

Page 2 of Exhibit 10.1

 

 

	2.8	 	“Code” shall mean the Internal Revenue Code of 1986, as amended. Reference to a
section of the Code shall include that section and any comparable section or sections of any
future legislation that amends, supplements, or supersedes such section.
	 
	2.9	 	“Company” shall mean American Pacific Corporation.
	 
	2.10	 	“Compensation” shall mean, except as provided otherwise below, the Participant’s
total wages and salary earned on or before such Participant’s Normal Retirement Age, and
including bonuses in the year earned (even though payment might not occur until the following
calendar year) by prorating such bonuses over the months worked during that year.
Notwithstanding the foregoing, for purposes of determining the Accrued Benefit of a 2007
Participant on or after October 1, 2007, “Compensation” shall mean “Compensation” as defined
in the Qualified Plan, except that “Compensation” for this purpose shall specifically include
(i) amounts earned after Normal Retirement Age, and (ii) bonuses.
	 
	2.11	 	“Credited Service” shall mean with respect to any Participant, the sum of all of
such Participant’s “Benefit Service” earned under the Qualified Plan determined as set forth
in Section 2.05 of the Qualified Plan, including full and partial years and service performed
after Normal Retirement Age. A partial year is calculated in terms of completed calendar
months.
	 
	2.12	 	“Early Retirement Date” shall mean the first day of the month next following the date
the Participant has both reached age fifty-five (55) and completed at least ten (10) years of
Vesting Service but is prior to the Participant’s attainment of his or her Normal Retirement
Age.
	 
	2.13	 	“Effective Date” shall mean October 1, 2007.
	 
	2.14	 	“Employer” shall mean American Pacific Corporation and any member of the Affiliated
Group which adopts this Plan.
	 
	2.15	 	“Final Average Compensation” shall mean the average annualized Compensation earned
during the Participant’s thirty-six (36) consecutive months of employment with the Company
that produces the highest average.
	 
	2.16	 	“Hour of Service” shall have the same meaning as set forth in Section 1.42(d) of the
Qualified Plan.
	 
	2.17	 	“Late Retirement Date” shall mean the first day of the month coinciding with or next
following the date a Participant terminates employment, where such date is after his or her
Normal Retirement Date.
	 
	2.18	 	“Life Annuity” shall mean a series of monthly installments which will continue for
the lifetime of the Participant and will cease upon his or her death.
	 
	2.19	 	“Normal Retirement Date” shall have the same meaning as set forth in Section 1.29 of
the Qualified Plan.
	 
	2.20	 	“Participant” shall mean any employee of an Employer who becomes eligible to
participate in the Plan pursuant to Article III and who continues to be entitled to any
benefits under the Plan. A “2007 Participant” shall mean any individual who is a Participant
on or after October 1, 2007, who had not commenced receipt of benefits under this Plan as of
October 1, 2007.
	 
	2.21	 	“Plan” shall mean the American Pacific Corporation Supplemental Executive Retirement
Plan.
	 
	2.22	 	“Plan Year” shall mean the twelve (12) consecutive month period beginning on October
1 and ending on the next following September 30.
	 
	2.23	 	“Qualified Plan” shall mean the American Pacific Corporation Defined Benefit Pension
Plan. In the event that the Qualified Plan is subsequently amended, reference to a Section of
the Qualified Plan shall be deemed to refer to the operational successor of such Section.

Page 3 of Exhibit 10.1

 

 

	2.24	 	“Rabbi Trust” shall mean a trust described in Code Section 671, which has been
established in connection with this Plan.
	 
	2.25	 	“Retirement” shall mean termination of employment with all Employers at a time when
the Participant is eligible for an Early, Normal, Late, or Disability Retirement Benefit.
	 
	2.26	 	“Retirement Date” shall mean the date of the Participant’s Retirement.
	 
	2.27	 	“Spouse” shall mean the person to whom the Participant is legally married on his or
her Annuity Starting Date, or, if earlier on his or her date of death.
	 
	2.28	 	“Vesting Service” shall mean with respect to any Participant, such Participant’s
Vesting Service as determined under the Qualified Plan.

Article III

PLAN PARTICIPATION

	3.1	 	Eligibility to Participate in the Plan. Each individual (and only such individuals)
designated in Appendix A shall be eligible to participate in the Plan.
	 
	3.2	 	Participation. A Participant shall remain a Participant so long as he is entitled to
current or contingent benefits under the Plan, but shall cease to be a Participant if he
terminates employment with all Employers prior to the date he becomes eligible for a vested
benefit under Article IV of the Plan. If a Participant ceases to be an employee after
becoming eligible for a vested benefit, he shall continue to be a Participant only with
respect to his or her vested Accrued Benefit determined at his or her termination of
employment. If he is subsequently reemployed, he shall only accrue an additional benefit or
earn additional Vesting Service if he is again designated in Appendix A. Should a Participant
cease to be an employee before earning a vested benefit, but later become re-employed by an
Employer, he shall again become a Participant only if he is again designated in Appendix A.
	 
	3.3	 	Select Group of Employees. The Plan is intended to qualify as a plan maintained by
the Employers primarily for the purpose of providing deferred compensation for a select group
of highly compensated employees, and, as such, to be exempt from certain provisions of the
Employee Retirement Income Security Act of 1974, as amended. If the Company determines based
on subsequent authority or if an agency or court of competent jurisdiction determines that the
Plan benefits any person other than a member of the select group of highly compensated
employees, the participation of each employee who is determined not to be included in such
group shall be terminated immediately and such employee shall cease to accrue any benefit
under the Plan. Provided, that in the case of a determination by an agency or court, the
employee’s participation shall terminate only after the period for appeal of such
determination has elapsed.

Article IV

BENEFITS

	4.1	 	Retirement Benefits. Except as otherwise provided herein, retirement benefits will
be computed and paid as follows:

	 	(a)	 	Normal Retirement Benefit shall be equal to the Participant’s Accrued
Benefit determined at the Participant’s Retirement on his or her Normal Retirement Date.
	 
	 	(b)	 	Early Retirement Benefit shall be equal to the Participant’s Accrued
Benefit commencing at Normal Retirement Date but determined at the Participant’s
Retirement on or after his or her Early Retirement Date, and prior to such Participant’s
Normal Retirement Date, reduced as follows:

Page 4 of Exhibit 10.1

 

 

	 	(i)	 	with respect to the sole Participant who was a Participant prior to
January 1, 1999, the Accrued Benefit shall be reduced five percent (5%) for each
year that payments begin before age sixty-two (62) (prorated for fractional years)
and
	 
	 	(ii)	 	with respect to all other Participants, the Accrued Benefit shall be
reduced by twenty-five one-hundredths percent (.25%) for each calendar month or
portion thereof that the Participant’s Early Retirement Date precedes his Normal
Retirement Date.

	 	(c)	 	Terminated Vested Benefit shall be equal to the Participant’s vested
Accrued Benefit commencing on the first of the month following the Participant’s
termination of employment. The Participant’s vested Accrued Benefit shall be determined
at the Participant’s termination of employment prior to his or her Early Retirement Date
and Normal Retirement Date, reduced to the Actuarial Equivalent of the vested Accrued
Benefit payable at Normal Retirement Date.
	 
	 	(d)	 	Late Retirement Benefit shall be equal to the Participant’s Accrued Benefit
(after any applicable increase under Section 2.1 of the Plan) determined at the
Participant’s Late Retirement Date and commencing on such date.

	4.2	 	Termination of Service. A Participant shall be entitled to his or her monthly
retirement benefit if he terminates before he is eligible to receive a Normal or Early or
Retirement Benefit, provided that the Participant meets the vesting requirements of Article V.
The Participant’s benefit on his or her termination of employment shall be the Participant’s
vested Accrued Benefit determined at the date of termination of employment, commencing as
provided in Section 4.1(c).
	 
	4.3	 	Form of Retirement Benefit. Except as provided below, the Accrued Benefit under
Section 4.1 or 4.2 of this Plan shall be paid in an annuity form of payment listed below, as
elected by the Participant on or before the date that is thirty (30) days prior to his Annuity
Starting Date. Benefits payable under this section other than as a Life Annuity shall be the
Actuarial Equivalent of the benefit payable in the form of a Life Annuity. However, for the
sole Participant who was a Participant prior to January 1, 1999, the Accrued Benefit under
Section 4.1 of this Plan shall be paid only in the form of an annuity for the life of the
Participant.

The optional annuity forms of payment available under this Section are:

	 	(a)	 	Life Annuity;
	 
	 	(b)	 	Joint and 50% Survivor annuity;
	 
	 	(c)	 	Joint and 75% Survivor annuity;
	 
	 	(d)	 	Joint and 100% Survivor annuity;
	 
	 	(e)	 	Five (5) year Certain and Life Annuity;
	 
	 	(f)	 	Ten (10) year Certain and Life Annuity; or
	 
	 	(g)	 	Fifteen (15) year Certain and Life Annuity;

Notwithstanding the above, a Participant who separates from service or retires with a vested
Accrued Benefit shall be paid the Actuarial Equivalent of such benefit in a single sum if such
Actuarial Equivalent does not exceed an amount equal to the maximum deferral limit under Code
section 402(g)(1), as adjusted under Code section 402(g)(5). If the Participant subsequently
resumes participation in the Plan, such Participant’s benefit at his or her later date of
termination shall be reduced by his or her prior Accrued Benefit determined as of the date of
his or her previous retirement or termination.

Page 5 of Exhibit 10.1

 

 

	4.4	 	Death Benefit. If death occurs before the Participant’s Annuity Starting Date but
after having satisfied the requirements for vested benefit under Section 5.1 of this Plan, and
the Participant has a surviving spouse, a monthly benefit for life equal to 50% of the vested
benefit the Participant would have received had he retired immediately before his or her
death, without any reduction for early payment, shall be paid to the surviving spouse. If the
surviving spouse is more than five (5) years younger than the Participant, benefits will be
reduced two percent (2%) for each full year that the age difference exceeds five (5) years.
	 
	4.5	 	Time of Payment. Payment of a Participant’s vested benefit under this Plan shall
commence within thirty (30) days following the earlier of (i) a Participant’s termination of
employment with all Employers or (ii) a Change in Control. Notwithstanding the foregoing, a
Participant’s receipt of benefits under this Plan shall be delayed to the extent necessary to
comply with Section 409A(a)(2)(B)(i) of the Code (relating to payments made to certain
“specified employees” of certain publicly-traded companies) and in such event, any such amount
to which a Participant would otherwise be entitled during the six (6) month period immediately
following his or her separation from service will be paid on the first business day following
the expiration of such six (6) month period. The status of a Participant as a “specified
employee” shall be determined by the Board in accordance with regulations and other Internal
Revenue Service guidance under Code Section 409A
	 
	4.6	 	Reemployment Following Retirement or Termination of Employment. If a Participant
begins to receive a benefit following termination of employment or retirement and is
subsequently reemployed on a full-time basis by the Employer, benefit payments shall continue
during the period of reemployment. Upon a resumption of employment with the Employer,
benefits shall continue to accrue in accordance with the terms of the Plan but only if the
Participant is again designated in Appendix A. Future benefits paid to such Participant shall
be adjusted on an Actuarial Equivalent basis to reflect the value of any benefits previously
paid.

Article V

VESTING

	5.1	 	Vesting. A Participant shall be fully vested in his or her Accrued Benefit upon
attainment of age fifty-five (55) and five (5) years of Vesting Service.

In addition, following a Change of Control, each Participant shall be fully vested.

Article VI

PLAN ADMINISTRATION

	6.1	 	Administration of the Plan. The Plan shall be administered by a Plan Administrator,
which shall be appointed by the Board of Directors, subject, however, to any action taken by
the Board of Directors in respect to the Plan. The Plan Administrator shall be responsible
for the administration of the Plan and shall have all of the powers and duties allocated to
the Plan Administrator set forth in Article VII of the Qualified Plan including, without
limitation, the discretionary power to determine eligibility for participation in the Plan and
to construe the terms of the Plan. The Plan Administrator shall file with the Department of
Labor and distribute to the Participants any reports and other information required by
applicable law and shall be entitled to rely conclusively upon all tables, valuations,
certificates, opinions and reports furnished by any actuary, accountant, controller, counsel
or other person employed or engaged by it with respect to the Plan.

Article VII

AMENDMENT AND TERMINATION

	7.1	 	Amendment and Termination of the Plan. The Board of Directors may amend or terminate
the Plan at any time. However, no such amendment or termination shall deprive any Participant
or Beneficiary of any portion of any Retirement or Death Benefit which has become vested prior
to the effective date of such amendment or termination or which would be payable if the
Participant terminated for any reason, including death, on such effective date

Page 6 of Exhibit 10.1

 

 

	 	 	Except as permitted under Treas. Reg. Section 1.409A-3(y)(4)(ix) an amendment terminating the
Plan shall not accelerate the date on which benefits are payable to the Participant.
	 
	7.2	 	Compliance with Code Section 409A This Plan is intended to comply with the
provisions of Code Section 409A, and the Company reserves the right to amend the Plan in its
discretion in order to make the Plan comply with Code Section 409A; provided, however, that
the Company makes no representation that the benefits provided under the Plan will comply with
Code Section 409A and makes no undertaking to prevent Code Section 409A from applying to the
benefits provided under the Plan or to mitigate its effects on any deferrals or payments made
under the Plan.

Article VIII

GENERAL PROVISIONS

	8.1	 	Nature of Company’s Obligation. Benefits under this Plan shall be paid solely from
the general assets of the Company. The Company’s obligation under this Plan shall be limited
to an unfunded and unsecured promise to pay. The rights of a Participant and his or her
spouse or Beneficiary with respect to benefits under this Plan are the same of those of an
unsecured creditor of the Company, and neither the Participant nor his or her spouse or
Beneficiary shall have a secured interest in any assets that may be designated by the Company
to pay such benefits.
	 
	8.2	 	Rabbi Trust. The Company shall establish a trust described in Code Section 671 with
respect to which the Company is the grantor (the “Rabbi Trust”) to hold assets in connection
with this Plan. However, the Company shall not be obligated (except as otherwise provided
below) to make contributions to the Rabbi Trust or otherwise fund its financial obligations
under the Plan.
	 
	 	 	Upon a Change of Control, the Company shall, as soon as possible, but in no event longer than
30 days following the Change of Control, as defined herein, make an irrevocable contribution
to the Trust in an amount that is sufficient to pay each Plan Participant or Beneficiary the
benefits to which Plan Participants or Beneficiaries would be entitled pursuant to the terms
of the Plan as of the date on which the Change of Control occurred.
	 
	8.3	 	Nonalienation of Benefits under this Plan. Except for claims of indebtedness owing
to an Employer, the interests of Participants and their Beneficiaries are not subject to
claims, indebtedness, attachment, execution, garnishment, or other legal or equitable process
and such interests may not be voluntarily or involuntarily sold, transferred or assigned. Any
attempt by a Participant or his or her Beneficiary or any other person to sell, transfer,
alienate, assign, pledge, anticipate, encumber, charge, or otherwise dispose of any right to
benefits payable hereunder shall be void. The restrictions set out in the preceding
subsection shall not apply to an order determined to be qualified domestic relations order as
defined in Section 414(p) of the Code.
	 
	8.4	 	Plan not a Contract of Employment. This Plan shall not be deemed to constitute a
contract between any Employer and any Participant or to be a consideration or an inducement
for the employment of any Participant or Employee. Nothing contained in this Plan shall be
deemed to give any Participant or Employee the right to be retained in the service of any
Employer or to interfere with the right of any Employer to discharge any Participant or
employee at any time regardless of the effect which such discharge shall have upon such
individual as a Participant in the Plan.
	 
	8.5	 	Required Notification to Plan Administrator. Each Participant entitled to benefits
hereunder shall file with the Plan Administrator from time to time in writing his or her post
office address and each change of post office address, and any check representing payment
hereunder and any communication addressed to a Participant or a former Participant hereunder
at his or her last address filed with the Plan Administrator, or if no such address has been
filed, then at his or her last address as indicated on the records of the Company shall be
binding on such person for all purposes of the Plan, and neither the Plan Administrator nor
the Company or other payor shall be obliged to search for or ascertain the location of any
such person. If the Plan Administrator for any reason is in doubt as to the address of any
Participant or former Participant entitled to benefits hereunder or as to whether benefit
payments are being received by the person entitled

Page 7 of Exhibit 10.1

 

 

	 	 	thereto, it shall, by registered mail addressed to the person concerned at his or her address last known to the
Plan Administrator, notify such person that:

	 	(a)	 	All unmailed and future retirement income payments shall be henceforth
withheld until he provides the Plan Administrator with evidence of his or her
continued life and his or her proper mailing address; and
	 
	 	(b)	 	His or her right to any retirement income whatsoever shall, at the option
of the Plan Administrator, be canceled forever, if, at the expiration of two (2)
years from the date of such mailing, he shall not have provided the Plan
Administrator with evidence of his or her continued life and his or her proper
mailing address.

	8.6	 	Successors. The provisions of this Plan shall be binding upon each Employer, and
their successors and assigns and upon each Participant and his or her heirs, spouses, estates,
and legal representatives.
	 
	8.7	 	Facility of Payment. Whenever and as often as any person entitled to payments
hereunder shall be under a legal disability, or in the sole judgment of the Plan Administrator
shall otherwise be unable to apply such payments to his or her own best interest and
advantage, the Plan Administrator, in the exercise of its discretion, may direct all or any
portion of such payments to be made to any person receiving benefits on behalf of the
Participant or other Beneficiary under Section 12.02 of the Qualified Plan.
	 
	8.8	 	Required Information to Plan Administrator. Each Participant will furnish to the
Plan Administrator such information as the Plan Administrator considers necessary or desirable
for purposes of administering the Plan, and the provisions of the Plan respecting any payments
thereunder are conditional upon the Participant’s furnishing promptly such true, full and
complete information as the Plan Administrator may request. Each Participant will submit
proof of his or her age to the Plan Administrator at such time as required by the Plan
Administrator. The Plan Administrator will, if such proof of age is not submitted as
required, use as conclusive evidence thereof such information as is deemed by it to be
reliable, regardless of the lack of proof, or the misstatement of the age of persons entitled
to benefits hereunder, by the Participant or otherwise, will be in such manner as the Plan
Administrator deems equitable. Any notice or information which, according to the terms of the
Plan or the rules of the Plan Administrator, must be filed with the Plan Administrator, shall
be deemed so filed if addressed and either delivered in person or mailed to and received by
the Plan Administrator, in care of the Company at:

American Pacific Corporation

Suite 300

3770 Howard Hughes Parkway

Las Vegas, NV 89169

	8.9	 	Claims Procedure. In the event that any claim for benefits, which must initially be
submitted in writing to the Plan Administrator, is denied (in whole or in part) hereunder, the
claimant shall receive from the Company notice in writing, written in a manner calculated to
be understood by the claimant, setting forth the specific reasons for denial, with specific
reference to pertinent provisions of this Agreement. Such notice shall be provided within 90
days of the Participant’s claim for benefits. Any disagreements about such interpretations
and construction may be appealed within 90 days to the Board of Directors. The Board shall
respond to such appeal within 60 days with a notice in writing fully disclosing its decision
and the reasons therefore. No member of the Board of Directors shall be liable to any person
for any action taken hereunder except those actions undertaken with lack of good faith.
	 
	8.10	 	Controlling State Law. To the extent not superseded by the laws of the United
States, the Plan will be construed and enforced according to the laws of the State of
Delaware.
	 
	8.11	 	Severability. In case any provision of this Plan shall be held illegal or invalid
for any reason, such illegality or invalidity shall not affect the remaining provisions of the
Plan, and the Plan shall be construed and enforced as if such illegal and invalid provisions
had never been set forth.

Page 8 of Exhibit 10.1

 

 

	8.12	 	Adoption of Plan. Any Employer may adopt this Plan for all or a portion of its
employees, provided that the Board of Directors of the Company approves such participation.
The administrative powers and control of the Company as provided in the Plan shall not be
deemed diminished under the Plan by reason of the participation of other companies in the
Plan.

IN WITNESS WHEREOF, American Pacific Corporation has adopted this plan on this 13th day of
November, 2007.

	 	 	 	 	 
	ATTEST (SEAL):

	 	AMERICAN PACIFIC CORPORATION
	 
	 
	 	 	 	 
	 

	 	By 	/s/ Linda G. Ferguson	 
	 

	 	 	 	 
	 

	 	 	Linda G. Ferguson,	 
	 

	 	 	VP-Administration & Secretary	 

Page 9 of Exhibit 10.1

 

 

APPENDIX A

PLAN PARTICIPANTS

	 	 	 	 	 
	Participant	 	Effective Date of Participation	 	Active as of October 1, 2007
	 
	 	 	 	 
	Fred D. Gibson, Jr.

	 	Prior to January 1, 1999
	 	No
	 
	 	 	 	 
	John R. Gibson

	 	January 1, 1999
	 	Yes
	 
	 	 	 	 
	Joseph Carleone

	 	October 1, 2007
	 	Yes
	 
	 	 	 	 
	Linda Ferguson

	 	October 1, 2007
	 	Yes
	 
	 	 	 	 
	Dana Kelley

	 	October 1, 2007
	 	Yes

Page 10 of Exhibit 10.1

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