Document:

EX-10.24

 

Exhibit 10.24

THE LUBRIZOL CORPORATION

FINANCIAL PLANNING PROGRAM

(Amended and Restated January 1, 2008)

Introduction

     The Board of Directors (“the Board”) of The Lubrizol Corporation (“the Company”) wishes to
assist certain key employees by alleviating the burden associated with personal financial, tax, and
estate planning matters, as they focus on Lubrizol business. The Company will assist such
employees by encouraging them to seek professional assistance for such matters. To further such
purpose, The Lubrizol Corporation Financial Planning Program (“the Program”) has been designed to
pay for such financial planning. Accordingly, the Program is hereby adopted by the Company as
hereinafter set forth.

Applicability of the Program

Eligibility

     The Organization and Compensation Committee of the Board (“the Committee”) may approve
monetary sums as payments by the Company to firms selected to provide Covered Professional Services
(“Preferred Providers”) to Key Employees (“Award”). “Key Employees” shall mean those employees of
the Company, or its subsidiaries, so designated by the Committee. A Key Employee will be notified
by letter from the Company of the approval of an Award.

Frequency and Amount of Awards

     The Committee may approve Awards on an annual basis and at such levels as it deems
appropriate.

Covered Professional Services

Covered Professional Services may include some or all of the following services:

	 	•	 	Professional services for financial planning, including retirement, estate
and insurance planning (Services provided for the preparation of any will or
trust are not included in any Award).
	 
	 	•	 	Professional services for the management of assets, or for record keeping
with respect to assets.
	 
	 	•	 	Professional services for tax planning, including services for income, gift
and estate planning, and audits. (Services provided in connection with the
handling of tax controversies are not included in any Award.)
	 
	 	•	 	Professional services for tax return preparation for the Key Employee, the
Key Employee’s spouse, and for those dependent children of the Key Employee.

Termination of Employee

     (a) An Award will lapse upon the Key Employee’s voluntary or involuntary separation from
service prior to retirement.

 

 

     (b) Upon the separation from service of a retirement-eligible Key Employee the Award will
continue through the end of the year in which the separation from service occurred.

     (c) Upon the Key Employee’s disability, the Key Employee shall receive an Award for the first year
following the year in which the disability occurred. For purposes of this paragraph (c), the term
“disability” means (A) the Key Employee is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment that can be expected to result
in death or can be expected to last for a continuous period of not less than 12 months; or (B) the
Key Employee is, by reason of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than three months under an
accident and health plan covering employees of the Company.

     (d) Upon the death of a Key Employee, the Key Employee’s spouse or personal representative may
use an Award for the first year following the year in which the death occurred.

Miscellaneous

     The Company will gross up any Award used under the Program. The Company may withhold from the
Key Employee’s salary all federal, state, city or other taxes as shall be required pursuant to any
law or government regulation or ruling. The tax gross up will be made by the end of the Key
Employee’s taxable year next following the Key Employee’s taxable year in which the taxes are
remitted on behalf of the Key Employee.

     Any Award under this Program during the Key Employee’s taxable year will not affect Awards
that may be provided in any other taxable year. The right to an Award is not subject to
liquidation or exchange for another benefit.

     The Company has the sole power to interpret the terms of this program.

     The amount of in-kind benefits provided during the Key Employee’s taxable year does not
affect the in-kind benefits provided in any other taxable year. The right to in-kind benefits is
not subject to liquidation or exchange for another benefit.

Amendment and Termination

     The Program may be terminated or amended in any respect by the Company.EX-10.26

 

Exhibit 10.26

EMPLOYMENT AGREEMENT

(Amended and Restated January 1, 2008)

     This EMPLOYMENT AGREEMENT (this “Agreement”), dated as of the date of the closing of
acquisition by The Lubrizol Corporation, an Ohio Corporation of Noveon International, Inc.
(“Effective Date”), by and between Lubrizol Advanced Materials, Inc., a Delaware corporation (the
“Company”), and Julian Steinberg (the “Employee”), and amended and restated as of January 1, 2008;

WITNESSETH:

     WHEREAS, the Employee is a senior executive of the Company and has made and is expected to
continue to make major contributions to the profitability, growth and financial strength of the
Company;

     WHEREAS, the Company desires to encourage Employee to remain with the Company for a number of
years.

     WHEREAS, this Agreement is not intended to alter materially the compensation and benefits
which the Employee could reasonably expect to receive from the Company that are not addressed
within this Agreement; and

     WHEREAS, the Employee is willing to render services to the Company on the terms and subject
to the conditions set forth in this Agreement;

     NOW, THEREFORE, the Company and the Employee agree as follows:

1. Subject to Section 7, if the Executive remains in the employ of the Company until the
4th anniversary of the Effective Date, he will receive the value, less applicable taxes,
of 10,000 retention units determined as of the 4th anniversary of the Effective Date,
payable in a lump sum within 60 days following the 4th Anniversary of the Effective
Date.

2. Subject to Section 7, if Employee separates from service with the Company before the
4th anniversary of the Effective Date, Employee will receive the value less applicable
taxes, of the corresponding number of retention units, determined on the date of separation from
service pursuant to the following schedule:

	 	 	 	 	 	 	 	 
	 
	 	Termination Date	 	 	Number of Retention Units	 	 
	 	Less than 1 year after Effective Date
	 	 	 	0	 	 
	 	1 year after Effective Date but less than 2 years after Effective Date
	 	 	 	3,000	 	 
	 	2 years after Effective Date but less than 3 years after Effective Date
	 	 	 	5,000	 	 
	 	3 years after Effective Date but less than 4 years after Effective Date
	 	 	 	7,000	 	 
	 

3. The value of one retention unit equals the value of one share of Lubrizol common stock
based on the closing price of a share of Lubrizol common stock on the applicable date as reported
on the NYSE composite tape.

4. Any amount payable to Employee under Section 2 of this Agreement will be made in a lump sum
within 60 days following the six-month anniversary of Employee’s separation from service.

 

 

5. Employee further agrees as follows:

(a) Employee agrees and acknowledges that the term “Confidential and Proprietary
Information” means any and all information not in the public domain, in any form, emanating
from or relating to Company or its subsidiaries, branches and affiliates, including, but
not limited to, trade secrets, technical information, methods of operation and procedures,
know-how, improvements, price lists, financial data, invoices and financial statements,
computer programs, discs and printouts, sketches, and plans (engineering or otherwise),
customer lists, telephone numbers, names, addresses, or any other compilation of
information written or unwritten which is used in the business of Company or any of its
subsidiaries, branches or affiliates. For the purpose of this paragraph (a), the term
“affiliate” means a person that directly or indirectly controls, or is controlled by, or is
under common control with, Company. Employee agrees and acknowledges that all Confidential
and Proprietary Information, in any form, and copies and extracts thereof, is and are and
will remain the sole and exclusive property of Company and upon termination of Employee’s
employment with Company, Employee agrees to return to Company the originals and all copies
of any Confidential and Proprietary Information provided to or acquired by Employee during
the period of his employment. Employee expressly agrees not to use the Confidential and
Proprietary Information himself or for others in any manner which is detrimental to the
interests of Company and never to disclose to any person (except to other of Company’s
directors, employees, and official representatives, and then only on a “need-to-know”
basis) or entity any Confidential and Proprietary Information of Company either during the
term of his employment or at any time after termination of such employment, except upon the
express written authorization and consent of Company. Nothing contained herein shall be
construed as restricting or creating any liability for the disclosure, communication, or
use of Confidential and Proprietary Information that is disclosed as required by law or
legal process. In the event that Employee is requested or required by law or legal process
to disclose any of the Confidential and Proprietary Information, Employee shall provide the
Company with prompt oral and confirming written notice, unless notice is prohibited by law
(in which case such notice shall be provided as early as may be legally permissible), of
any such request or requirement so the Company may seek a protective order or other
appropriate remedy. Employee agrees to cooperate with Company, at the Company’s expense,
in any efforts to obtain such remedies, but this provision shall not be construed to
require Employee to undertake litigation or other legal proceedings on Employee’s own
behalf. In the event that such protective order or other remedy is not promptly obtained,
Employee may disclose such Confidential and Proprietary Information.

(b) Employee understands and acknowledges that each customer of Company will disclose
information concerning the customer’s business, which information will be within Company’s
control in connection with Company’s furnishing of products and/or services to its
customer. Employee covenants and agrees to hold such information in the strictest
confidence and shall treat such information in the same manner and be obligated by the
provisions of this Agreement as if such information were Confidential and Proprietary
Information, as defined in Section 5(a) above.

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6. Employee further agrees as follows:

(a) Employee hereby assigns to Company the entire right, title and interest of Employee in all inventions, discoveries, improvements,
developments and ideas, including, but not limited to, utility, design or plant patents, invention certificates, statutory invention registrations, copyrights,
computer programs, trademarks, trade secrets, whether or not patentable (collectively “Inventions”), hereafter made or conceived by him, solely or jointly
with others, during his employment, or which are conceived or reduced to practice within one year following the termination of employment hereunder.

(b) This Section 6 does not apply to any Invention for which no equipment, supplies,
facilities, or trade secrets of Company are used and which is developed entirely on
Employee’s own time, unless

(i) the Invention relates to the business of Company, or relates to Employer’s
actual or demonstrably anticipated research and development, or

(ii) the Invention results from any work performed by Employee for Company.
Employee further understands that he has the burden of establishing any exception
described in this paragraph (b).

(c) Employee agrees that in connection with each Invention covered by paragraph (a) above:

(i) he will communicate the fact of the Invention promptly and fully to Company or
its designee and, if requested, make a specific assignment of title thereto to
Company or its designee;

(ii) he will keep and maintain adequate and current written records thereof at all
stages, in the form of notes, sketches, drawings, and reports relating thereto,
which records shall be and remain the property of and be available to Company at
all times; and

(iii) he will, during and after his employment by Company, without charge to
Company for his time but at its request and expense, assist Company and its
designees in every proper way to obtain and to cause to be vested in it or them
title to each Invention in all countries selected by Company, by executing all
necessary or desirable documents, including applications for patents and
assignments thereof, and otherwise assist Company at no expense to himself in the
prosecution for any Invention or in any litigation or other matter.

(d) Employee represents that there are no Inventions conceived by him prior to his
employment by Company which are excluded from the provisions of this Section 6, except the
following:

(i) Inventions, if any, already published or disclosed in patents, applications,
statutory invention registrations or invention certificates already filed in the
United States or a foreign country;

(ii) Others: None

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(e) Except with the prior written permission of Company, Employee will not disclose to anyone other than the employees or official
representatives, of Company, or use in other than Company’s business, any of Company’s Inventions during or after his employment by Company,
unless and until and only to the extent that any such Inventions become public knowledge and available for public use otherwise than by his act or omission.

(f) Employee will not disclose to Company or induce Company to use, any inventions or
confidential information or data belonging to others.

7. Company may terminate this Agreement at any time for cause. If Employee is separated from
service for cause, Company will have no further obligation to Employee under this Agreement. For
cause separation from service means the following:

(a) Employee’s breach of the patent covenants set forth in Section 6 hereof;

(b) Employee’s material breach of the confidentiality covenants set forth in Section 5
hereof;

(c) dishonest or obvious and willful misconduct by Employee; or

(d) the conviction of a felony.

     For the purposes of this Section 7, cause does not include Employee’s refusal to relocate to
another city.

8. If Employee is separated from service by the Company for reasons other than those specified in
Section 7, Employee will receive the following (less any applicable taxes):

(a) lump sum cash payment equal to one year’s base salary, paid within 60 days after the
six-month anniversary of the separation from service;

(b) pro-rated bonus paid in a lump sum the later of (i) between January 1 and March
15th following the year of separation from service or (ii) within 60 days
following the six-month anniversary of the separation from service, based on actual results
for the year of termination; and

(c) COBRA coverage paid by the Company under Company’s medical and dental program for the
period ending 12 months after the date of termination, or Employee’s ineligibility for
further coverage under the COBRA rules, whichever is earlier.

In addition, if Employee is separated from service by the Company for reasons other than those
specified in Section 7 prior to the 4th anniversary of this Agreement the Employee will
receive, in lieu of the retention units specified in accordance with the schedule in Section 2, the
value of 10,000 retention units determined as of the date of the Employee’s separation from service
and paid within 60 days after the sixth-month anniversary of the separation from service.

9. Termination of this Agreement does not terminate Employee’s obligations of the confidentiality
and patents covenants of Sections 5 and 6.

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10. If any section, sub-section, paragraph or portion of this Agreement is, for any reason,
adjudged by a court of competent jurisdiction to be invalid or unenforceable, such judgment will
not affect, impair, or invalidate the remainder of this Agreement, but will be confined in its
operation to the provisions of this Agreement directly involved in the controversy in which such
judgment is rendered.

11. This Agreement will in all respects be governed, construed, and enforced in accordance with the
laws of the State of Ohio, excluding its principles of conflicts of law, and the parties hereto
irrevocably commit to the jurisdiction of the courts of the State of Ohio, to resolve any disputes
arising hereunder or related hereto.

12. This Agreement may be executed in one or more counterparts, each of which will be deemed to be
an original but all of which together will constitute one and the same agreement.

     IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered
as of the date first above written.

	 	 	 	 	 	 	 
	EMPLOYEE

	 	 	 	LUBRIZOL ADVANCED MATERIALS, INC.

	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	President

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