Document:

ex10_1.htm

    
      

    

    Exhibit
10.1

    

    

    MODINE
MANUFACTURING COMPANY

    RETIREMENT
AGREEMENT

    

    

    THIS
AGREEMENT is made and entered into by and between Modine Manufacturing Company,
a Wisconsin corporation, having its principal place of business in Racine,
Wisconsin (the "Company"), and David B. Rayburn of Racine, Wisconsin (the
"Executive").

    

    WHEREAS,
the Company and Executive have entered into an employment agreement dated as of
June 15, 2007 (the "Employment Agreement"); and

     

    WHEREAS,
the Executive served as President and Chief Executive Officer of the Company;
and

     

    WHEREAS,
the Company and the Executive have discussed Executive's retirement from the
Company and the terms and conditions that would be applicable thereto;
and

     

    WHEREAS,
the parties wish to enter into this Agreement to finalize all such terms and
conditions;

     

    NOW,
THEREFORE, in consideration of the Executive’s past service and of the mutual
promises herein made and other good and valuable consideration, the parties
agree as follows:

     

    1.           Retirement.  The
Executive has agreed to retire from all officer and director positions with the
Company and its subsidiaries, and to retire as an employee of the Company,
effective as of March 31, 2008 (the “Retirement Date”).  The Company
has accepted Executive's retirement.  The Executive shall continue to
receive his current base salary and all qualified and nonqualified pension and
welfare benefits to which he is entitled as a full-time executive employee of
the Company until the Retirement Date.

     

    2.           Special Retirement
Benefit.  In lieu of any other amounts payable under the
Employment Agreement or under any other severance plan or program of the Company
or its affiliates, the Company shall provide Executive with special retirement
payments and benefits as set forth in the attached schedule (the “Special
Retirement Benefit Schedule”) based upon a March 31, 2008 termination date (the
“Special Retirement Benefit”).  The benefits and payments set forth in
the Special Retirement Benefit Schedule are further described in Sections 3
through 8 below.  The Executive specifically waives and releases any
claims under the Employment Agreement or any other severance plan or program of
the Company or any of its affiliates. The Special Retirement Benefit shall not
be taken into account under any other pension, savings or welfare benefit plan
that bases benefits on compensation.  The Special Retirement Benefit
will be paid or provided to Executive at the times as specified in the Special
Retirement Benefit Schedule, provided the Executive has not revoked this
Agreement as provided in Section 11(d).  If the Executive dies prior
to receiving all of the Special Retirement Benefits, any unpaid payments will be
made to the Executive’s estate.

     

    3.             Base
Pay.  For the period from April 1, 2008 until October 1, 2010
(thirty (30) months), the Company shall pay Executive bi-weekly an amount
equivalent to Executive’s current bi-weekly salary.  All legally
required taxes will be deducted from the above sums.  It is expressly
agreed that all payments as described above are being allocated for purposes of
unemployment compensation to each of the applicable pay periods.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.           Equity
Awards.  With respect to previous grants to Executive under the
Company’s equity incentive plans as approved by the Board of Directors and
shareholders of the Company, the Officer Nomination and Compensation Committee
has consented to Executive’s early retirement, so that Executive’s previously
granted restricted stock awards shall vest to Executive and be free of any
restrictions as of the date the revocation period set forth in Section 11(d) has
expired.  In accordance with their terms, Executive's previously
granted stock options may be exercised up to the earlier of ten (10) years from
the date of grant or three (3) years following Executive's Retirement Date. Any incentive stock options must be
exercised within 90 days of the Executive's Retirement Date in order to be
considered incentive stock options; thereafter, the stock options will be
treated as non-qualified stock options.

     

    5.           Financial and Tax Planning;
Executive Physical.  The Company will continue to pay for
reasonable financial planning and tax preparation services for Executive through
and until March 31, 2009.  Executive is eligible and covered for one
additional medical exam at Mayo Clinic in Rochester, MN or Jacksonville, FL or
Froedtert/Medical College of Wisconsin, at his election, under the Company’s
executive medical program between the date hereof and December 31, 2008 which
Executive shall schedule through the Company’s normal process for such
exams.  Executive will be responsible for his own transportation to
the medical exam.

     

    6.           401(k), Deferred
Compensation, Pension Plan and Other Benefits. The
Executive’s rights and benefits under the Modine 401(k) Retirement Savings Plan
for Salaried Employees, the Modine Deferred Compensation Plan and the Modine
Non-Union Hourly and Salaried Employee Pension Plan (the “Pension Plan”) are
governed by the provisions of those plans.

     

    7.           Salary Continuation; Life
Insurance; Long-Term Disability Benefits.  Given Executive’s
retirement from the Company, effective as of the Retirement Date, Executive
shall cease to be eligible for salary continuation, life insurance and Long-Term
Disability Benefits generally provided by the Company to active
employees.

     

    8.           Health and Dental
Insurance.  The Executive’s participation in the Company’s
health and dental insurance plans shall cease on March 31,
2008.  Under current federal COBRA legislation, the Executive may
elect to continue medical and dental insurance at specified group rates for up
to 18 months’ duration.  The Company will pay the Executive’s COBRA
premiums for medical and dental coverage until October 1, 2009 (eighteen (18)
months).  Upon completion of the eighteen (18) months of medical and
dental insurance under COBRA, Executive will be eligible to receive retiree medical
benefits from the Company and the Executive’s COBRA benefit will
conclude.

     

    9.           Executive's Obligations
Under Employment Agreement; Nondisparagement.  Executive's
obligations under the Employment Agreement, including those contained in Section
12 of the Employment Agreement relating to confidential information,
non-solicitation and restrictions on competition, shall remain in
effect.  Executive also agrees that from the date hereof he shall not,
directly or indirectly, make or cause to be made any disparaging, derogatory,
misleading or false statement, whether orally or in writing, to any person or
entity, including members of the investment community, press, customers,
competitors and advisors to the Company, about the Company and its directors,
officers or employees, or the business strategy, plans, policies, practices or
operations of the Company.  The Company shall instruct the directors
and board elected officers of the Company not to, directly or indirectly, make
or cause to be made any disparaging, derogatory, misleading or false statement,
orally or in writing, to any person or entity about
Executive.  Notwithstanding the foregoing, the Company and Executive
may each confer in confidence with its own respective legal counsel and nothing
herein shall prevent either party from responding truthfully to any information
requests or questions posed in any formal or informal legal, regulatory,
administrative or investigative proceedings involving any court, tribunal or
governmental body or agency or otherwise as required by law.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    10.           Release.  In
consideration of the Company’s promise to pay the Special Retirement Benefit to
the Executive, and subject only to the performance by the Company of its
promises contained in this Agreement, the Executive hereby releases the Company,
its subsidiaries and affiliates, and their officers, directors, employees,
agents, predecessors and successors from any and all claims that the Executive
might have arising out of his employment and the termination thereof arising
prior to the time the Executive signs this Agreement, with the exception of
(a) Executive’s rights to receive vested benefits to which the Executive is
entitled after the Retirement Date under any qualified or nonqualified employee
benefits plans and arrangements of the Company, (b) claims for
indemnification as provided under applicable law, any applicable insurance
policies (e.g., directors and officers insurance), the Articles of Incorporation
or Bylaws of the Company, or any applicable policy statements or indemnification
agreements with the Company, and (c) obligations owed to the Executive under
this Agreement.  The claims that are being released include, but are
not limited to, claims under the Employment Agreement or any other severance pay
plan or program, claims for wrongful discharge, breach of contract, harassment,
unlawful terms and conditions of employment, retaliation, defamation, invasion
of privacy, discrimination (including, but not limited to, discrimination on the
basis of age under the Age Discrimination in Employment Act and state and local
law), the Sarbanes-Oxley Act of 2002 and any other claims that might be brought
under any federal, state or local law or regulation that regulates the
employment relationship or employee benefits, whether such claims are known or
unknown to the Executive at the time the Executive signs this
Agreement.

     

    11.           Acknowledgments.  Each
party acknowledges entering into this Agreement knowingly, freely and
voluntarily.  The Executive acknowledges that:

     

    
      	
               
      

            	
              (a)

            	
              he
      has been and is hereby advised by the Company to consult with legal
      counsel before signing this
Agreement;

            

    

     

    
      	
               
      

            	
              (b)

            	
              he
      has 21 days from the date of his receipt of this Agreement within which to
      consider it;

            

    

     

    
      	
               
      

            	
              (c)

            	
              he
      understands that this Agreement includes a final general release of the
      Company, its subsidiaries and affiliates, and their officers, directors,
      employees, agents, predecessors and successors, for any and all matters up
      to the date that this Agreement is signed;
and

            

    

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (d)

            	
              he
      may, within 7 calendar days following the date of his execution of this
      Agreement, revoke this Agreement by giving written notice of his intent to
      revoke to the Chairman of the Officer Nomination and Compensation
      Committee of the Company’s Board of Directors, c/o Modine Manufacturing
      Company.  This Agreement shall not become effective or
      enforceable until this 7-day revocation period has
      expired.  TIME
      IS OF THE ESSENCE WITH REGARD TO THIS
  PARAGRAPH.

            

    

     

    12.           Representation.  Each
party represents and acknowledges that in executing this Agreement, such party
has not relied upon any representation or statement not set forth herein made by
the other party or any of the other party’s agents, representatives or employees
with regard to the subject matter, basis or effect of this
Agreement.  The Company represents and warrants that it has obtained
all consents, approvals and authorizations required to execute, deliver and
perform this Agreement, that they are in full force and effect as of the date
hereof, and that this Agreement is a valid, binding and enforceable obligation
of the Company in accordance with its terms.

     

    13.           Severability.  The
invalidity or unenforceability of any provision of this Agreement shall not
affect or impair the validity or enforceability of any other provision and this
Agreement shall be construed as if such invalid or unenforceable provision were
not contained herein.

     

    14.           Governing
Law.  This Agreement shall be governed by and construed in
accordance with the laws of the State of Wisconsin, without regard to its
conflict of laws provisions.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties have signed this Agreement as of the dates set
forth below opposite their names.

     

     

    
      	
              /s/ David B. Rayburn

            	 
      	
              April 6, 2008

            
	
              David
      B. Rayburn

            	 
      	
              Date

            
	 
      	 
      	 
      
	
              MODINE
      MANUFACTURING COMPANY

               

            	 
      	 
      
	
              By: /s/ Gregory T. Troy

            	 
      	
              April 4, 2008

            
	
              Gregory
      T. Troy, Vice President and Chief Human Resources Officer

            	 
      	
              Date

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              /s/ Gary L. Neale

            	 
      	
              April 4, 2008

            
	
              Gary
      L. Neale, Non-executive Chairman of the Company’s Board of Directors, and
      through March 31, 2008, Chairman of the Officer Nomination and
      Compensation Committee of the Company’s Board of Directors

            	 
      	
              Date

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Dave
Rayburn

    Retirement
Agreement

    
      	
              Special
      Retirement Benefit Schedule

            	 	
              Retirement

            	 	 
      	
              Retirement
      Agreement

            
	 
      	 	
              Agreement

            	 	 
      	
              When Payable

            
	 
      	 	 	 	 
      	 
      
	 
      	 	 	 	 
      	 
      
	
              Base
      Pay

            	 	$	1,807,500	 	
              30
      mos

            	
              bi-weekly

            
	 
      	 	 	 	 	 
      	 
      
	
              Benefits
      Earned:

            	 	 	 	 	 
      	 
      
	
              Pension

            	 	
              Monthly
      Annuity

            	 	 
      	
              at
      retiree's election

            
	
              SERP*

            	 	$	2,353,547	 	
              (approx)

            	
              Payable
      in non-409A amounts/409A amounts

            
	
              401(k)
      (current balance)

            	 	$	297,000	 	 
      	
              at
      retiree's election

            
	
              Def.
      Comp (current balance)

            	 	$	539,000	 	 
      	
              non-409A
      amounts -after  60 days

            
	 
      	 	 	 	 	 
      	
              409A
      amounts - after six months

            
	
              Vacation
      earned for 08/09

            	 	$	55,615	 	 
      	
              4/1/2008

            
	 
      	 	 	 	 	 
      	 
      
	
              Equity

            	 	 	 	 	 
      	 
      
	
              Restricted
      Stk (at market, est.$14.12 as of 3/26/08)

            	 	$	948,779	 	 
      	
              At
      time agreement becomes effective

            
	
              67194
      shares restricted

            	 	 	 	 	 
      	 
      
	
              Performance
      Shares

            	 	
              Pro-rated
      if paid

            	 	 
      	
              At
      end of performance period

            
	 
      	 	 	 	 	 
      	 
      
	
              Benefits:

            	 	 	 	 	 
      	 
      
	 
      	 	 	 	 	 
      	 
      
	
              401(k)/DefComp
      Match**

            	 	$	45,188	 	
              30
      mos

            	
              paid
      for calendar yr at the end of the yr

            
	
              DCRP***

            	 	$	72,300	 	
              30
      mos

            	
              paid
      for calendar yr at the end of the yr

            
	 
      	 	 	 	 	 
      	 
      
	
              Employee
      Health, Dental and Vision****

            	 	$	10,571	 	
              18
      mos

            	
              Pay
      COBRA for 18 months after COBRA he elects and pays retiree
      medical

            
	 
      	 	 	 	 	 
      	 
      
	
              Financial
      Planning

            	 	$	4,000	 	
              1
      yr

            	
              pay
      expenses incurred 4/08-3/09

            
	 
      	 	 	 	 	 
      	 
      
	
              Tax
      Preparation

            	 	$	4,000	 	
              1
      yr

            	
              pay
      expenses incurred 4/08-3/09

            
	 
      	 	 	 	 	 
      	 
      
	
              Mayo
      Clinic

            	 	$	3,000	 	
              1
      yr

            	
              Pay
      2008 May physical

            
	 
      	 	 	 	 	 
      	 
      
	
              Total

            	 	$	6,140,500	 	 
      	 
      

    

    

    *based on
3-27-08 Hewitt estimate payable 1/1/09

    **assumes
50% on 5% of current base pay

    ***assume
4% of base (no bonus paid in 07/08)

    ****Using
current COBRA ratesex10_56.htm

    
      
        

      

    

    EXHIBIT 10.56

    Hallwood
Energy, L.P.

    3710
Rawlins

    Suite
1500

    Dallas,
Texas 75219

    
 

    
      Eagle
Domestic Drilling Operations, LLC

      
        	
                14550
      Torrey Chase Blvd.

              	
                Confidential/Settlement
      Discussions

              

      

      Suite
330

      
        	
                Houston,
      Texas 77014-1022

              	
                April
      3, 2008

              

      

       

    

    
      	
              Re:

            	
              In
      re Eagle Domestic Drilling Operations, LLC vs. Hallwood Energy, LP and
      Hallwood Petroleum, LLC (the
“Proceeding”)

            

    

     

    Gentlemen:

    This is
to evidence the terms of our mutual agreement regarding the settlement of the
Proceeding.  Subject to the terms and conditions of this letter
agreement, the parties agree as follows:

    

    
      	
              1.  

            	
              Hallwood
      Energy, LP (“Hallwood Energy”) and Hallwood Petroleum, LLC (“HPL” and
      collectively with Hallwood Energy, “Hallwood”) will immediately and
      unconditionally release Eagle Domestic Drilling Operations, LLC (“EDDO”)
      from any claims or liability relating to Hallwood’s claim in the
      Proceeding for the forgiveness of a $1.67 million deposit owed by EDDO to
      Hallwood.

            

    

     

    
      	
              2.  

            	
              Hallwood
      Energy will (a) pay to EDDO $2.0 million in cash and (b) issue to EDDO
      $2.75 million in equity of Hallwood Energy or the successor
      entity.  Hallwood may defer the payment of the cash and issuance
      of the equity until the later of (x) the completion of a major financing,
      or (y) June 30, 2008. If the major financing is in the form of an IPO,
      Hallwood will deliver to EDDO shares of stock.  Hallwood will
      make best efforts to deliver registered shares.  If the shares
      can not be registered, Hallwood will deliver shares that will be freely
      tradeable in their principal market within 90 days of the delivery. If the
      major financing is in the form of a private partnership or joint venture,
      Hallwood will deliver partnership units to
EDDO.

            

    

     

    
      	
              3.  

            	
              If
      prior to June 30, 2008, Hallwood Energy or a successor entity has not
      completed a major financing, but has received bridge financing in the
      aggregate at least $20 million, then Hallwood Energy will pay to EDDO
      $500,000 in cash.  The payment of $500,000 in cash will extend
      the date referred to in paragraph 2(y) above to September 30, 2008 and
      will be credited against any future cash payment pursuant to paragraph
      2(a) above if the $2.0 million cash payment and 2.75 million in equity is
      received no later than September 30, 2008.  If the $2.0 million
      cash payment and 2.75 million in equity is not received by September 30,
      2008, then the $500,000 cash will not be credited against any future
      judgment or settlement of the
Proceeding.

            

    

     

    
      	
              4.  

            	
              The
      trial setting will be continued until not earlier than September 30,
      2008.

            

    

     

    
      	
              5.  

            	
              Upon
      receipt of the amounts contemplated by paragraph 2, the parties and their
      affiliates will be fully and finally mutually released from any and all
      claims the other parties and their affiliates may have, on such terms and
      conditions as are reasonable and
customary.

            

    

     

    
      	
              6.  

            	
              The
      forensic computer examination contemplated by the court order dated April
      1, 2008 will be deferred.  Hallwood will provide the computers,
      servers and back-up tapes contemplated by that order to David Greetham of
      HSSK at 5:00 pm on April 3, 2008 and Mr. Greetham will take mirrored
      images of those computers’ hard drives, servers and
      tapes.  Hallwood may designate a representative to observe Mr.
      Greetham’s activities in making the mirrored images.  The
      original mirror images and any media containing any of the information
      contained in the mirrored images will be deposited in escrow by Mr.
      Greetham and Hallwood’s representative with an escrow agent in Dallas,
      Texas on April 4, 2008.  Mr. Greetham will not keep any copies
      of the same and will not share the contents of the same with anyone prior
      to depositing the mirror images in escrow.  If the settlement
      contemplated by this agreement fails to be consummated by September 30,
      2008, subject to any rights of Hallwood to request reconsideration of or
      to appeal the Order, Mr. Greetham shall have access to the mirror images
      to complete the tasks contemplated by the Court’s April 1, 2008
      Order.  If the settlement is completed by that date the contents
      shall be released to Hallwood.

            

    

     

    
      	
              7.  

            	
              On
      or before April 4, 2008, Hallwood shall supply the following information
      for EDDO to rely upon in entering into this agreement (a) a copy of the
      reserve reports for Hallwood’s interests in Texas and Arkansas, (b) a copy
      of the Hallwood internal statements of cash position as of March 31, 2008,
      (c) a copy of Hallwood's bank statements as of April 3, 2008, (d) a copy
      of Hallwood’s most recent internal Financial
  Statement.

            

    

     

    
      	
              8.  

            	
              If
      necessary, attorneys for the parties will jointly draft a Motion for
      Compromise between the parties, which will be subject to approval from
      Judge Bohm in the US Bankruptcy Court in Houston, Texas. The attorneys
      shall also seek a continuance of the Proceeding from Judge
      Bohm.

            

    

     

    
      	
              9.  

            	
              This
      agreement is subject to the approval of the Boards of Directors of each of
      the parties. Each party will provide the other with a confirmation of the
      written unanimous consent of its’ Board of
  Directors.

            

    

     

    
      	
              10.  

            	
              The
      confidentiality agreement entered into by both parties will remain in
      effect. Hallwood agrees that after the date of this letter it will not
      disclose any information concerning EDDO’s drilling rigs, provide any
      evidence or expert testimony to Quicksilver or provide any assistance or
      cooperation to Quicksilver in the ongoing dispute between EDDO and
      Quicksilver, except as may be required by court order.  EDDO
      agrees that after the date of this letter it will not disclose any
      information concerning Hallwood, provide any evidence or expert testimony
      to Eagle Drilling, LLC or provide any assistance or cooperation to Eagle
      Drilling, LLC in the ongoing dispute between Hallwood and Eagle Drilling,
      LLC, except as may be required by court
order.

            

    

     

    If this
letter properly sets forth your understanding of our agreement, please so
indicate by signing below.

    

    
      	 
      	
              Sincerely,

            
	 
      	
              Hallwood
      Energy, LP

            
	 
      	
              By:
      Hallwood Energy Management, LLC

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	
              /s/William
      L. Guzzetti

            
	 
      	
              Name:

            	
              William
      L. Guzzetti

            
	 
      	
              Title:

            	
              President

            

    

    

    

    
      	 
      	
              Hallwood
      Petroleum, LLC

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	
              /s/William
      L. Guzzetti

            
	 
      	
              Name:

            	
              William
      L. Guzzetti

            
	 
      	
              Title:

            	
              President

            

    

    

    
      	
              ACCEPTED
      AND AGREED TO:

            	 
      
	
              Eagle
      Domestic Drilling Operations, LLC

            	 
      
	 
      	 
      
	 
      	 
      
	
              By:

            	
              /s/John
      O’Keefe

            	 
      
	
              Name:

            	
              John
      O’Keefe

            	 
      
	
              Title:

            	
              CEO

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