Document:

EX-10.46

 

Exhibit
10.46

November 14, 2005

 

Partners in Success

17897 Lake Road

Lakewood, OH 44107

Attn: Kenneth Haber

Dear Ken:

I am pleased to offer you the engagement with our Company as defined below. As you well know, we
have tremendous challenges ahead as we grow the business and set clear expectations and standards
for our organization. I am excited about the contribution I know you will make to our performance.

The following confirms the terms of this engagement:

	 	1.	 	Your services will be provided to OMG as a consultant through the organization known
as Partners in Success, of which you are a principal. You will be engaged as the Interim
Chief Financial Officer of the Company reporting to me. As the Interim Chief Financial
Officer you will also be a member of our Executive Committee and will have as your key
areas of responsibility the essential functions as set forth on the position description
attached hereto.
	 
	 	2.	 	The term of this engagement is November 14, 2005 to June 30, 2006, subject to any
mutually agreed extension.
	 
	 	3.	 	OMG will pay a weekly consulting fee to Partners in Success of $6,730 (“Weekly Fee”)
for your full time services. We agree that you may meet your obligations to provide
consulting services as you committed to organizations other than OMG prior to the term of
this engagement. It is our understanding that these commitments would not exceed on
average one day per week through December 31, 2005, and that there are no commitments
thereafter. In the event that this engagement is terminated without cause prior to June
30, 2006, the Company shall pay to Partners in Success the Weekly Fee through September
30, 2006. For the purposes hereof, “cause” shall mean (i) the willful and continued
failure by you to perform your duties under this engagement, or (ii) illegal conduct or
gross

 

 

Partners in Success

November 14, 2005

Page 2

	 	 	 	misconduct by you that is injurious to the Company, its operations or its reputation.
	 
	 	4.	 	All services performed by you in this engagement shall be performed in a professional
manner and in keeping with the highest ethical standards. In addition, you shall be
subject to and shall adhere to all of the operational policies, rules and regulations
established by the Company for its employees’ conduct.
	 
	 	5.	 	All information about the Company furnished by or on behalf of the Company to you or
developed by you in connection with this engagement is “Proprietary Information”.
Proprietary Information does not include, however, information which (a) is or becomes
generally available to the public other than as a result of a disclosure by you of
Proprietary Information, (b) was available to you on a non-confidential basis prior to its
disclosure to you by the Company, or (c) becomes available to you on a non-confidential
basis after its disclosure to you by the Company from a person who is not bound by an
obligation of confidentiality with the Company regarding such Proprietary Information.
You agree not to use Proprietary Information for any purpose other than in connection with
this engagement and to only disclose the Proprietary Information to others within the
Company with a need to know such information in connection with their duties. At the end
of the engagement you shall return or destroy (as requested by the Company) all
Proprietary Information in your possession or under your control and in whatever form.
	 
	 	6.	 	You will be acting at all times as an independent contractor. You are not an
employee of the Company or any of its affiliated entities. You shall not make any claim
of right, privilege or benefit that would accrue to an employee under law. You have no
authority to bind the Company unless specifically authorized to do so by either the Board
of Directors (or any Committee thereof) or the Chief Executive Officer.
	 
	 	7.	 	You will be reimbursed for your reasonable and necessary out of pocket expenses
incurred by you in the furtherance of this engagement and in keeping with your position as
Interim Chief Financial Officer and the expense reimbursement policy of the Company.
	 
	 	8.	 	The Company intends to commence an executive search for a permanent Chief Financial
Officer. You will cooperate with the Company in that search. The Company shall provide
you with the opportunity to be considered for the
permanent position of Chief Financial Officer. In the event you are offered the permanent
position of Chief Financial Officer, this Agreement shall be null and void and of no
further force and effect.

 

 

Partners in Success

November 14, 2005

Page 3

Please confirm your agreement to accept this engagement by returning one copy of this letter; you
may retain one copy for your records. We look forward to working with you.

Sincerely,

 

Joseph Scaminace

Chief Executive Officer

 

 

Agreed to as of this 14th day of November, 2005

 

                                                                                                    

Kenneth Haber

Partners in Success<PAGE>
                                                                Exhibit 10.47

                            [LETTERHEAD OF OMG GROUP]

January 27, 2006

Mr. Daniel K. Lewis
356 Cheshire Road
Hudson, OH 44236

Dear Dan:

I am pleased to offer you the position of Vice President, Human Resources,
reporting to me. You will be a member of our Executive Committee and responsible
for the oversight and management of all human resources operations and
activities of the Company. We have tremendous challenges ahead as we grow the
business and set clear expectations and standards for our organization. I am
excited about the contribution I know you will make to our performance.

The following confirms the terms of our offer:

     1.   First year base salary of $265,000, with an annual salary and
          performance review in February each year thereafter starting in 2007.

     2.   Your start date will be February 20, 2006, or as soon thereafter as
          reasonably possible.

     3.   You will participate in our key management short term incentive plan
          under which you will be eligible to receive an annual cash bonus for
          each fiscal year of the company ending during your employment. Under
          the program, the Compensation Committee in consultation with me awards
          bonuses based on individual performance and Company results. The
          target amount of your bonus is 50% of your base salary and is based on
          the level of achievement of established performance goals. Your bonus
          will be paid in accordance with the company's practices for senior
          executives and is typically payable in February of each year. It is
          our understanding that you are expecting to receive a $100,000 bonus
          from Goodyear Tire and Rubber Company, your current employer, for your
          performance in 2005 (the "Expected Bonus"). In the event and to the
          extent that Goodyear does not pay any or all of the Expected Bonus to
          you, OM Group, Inc. will pay you an amount equal to the difference.

     4.   In addition to your salary and bonus, you will be compensated for the
          loss of your pension which is scheduled to vest in May of 2006. In
          consideration for joining OM Group, Inc. prior to that pension vesting
          date, the Company will pay you $62,500 on your start date (as set
          forth above) and $62,500 on February 20, 2007, so long as you are
          still employed by the Company on that date. The Company shall award
          you stock options to purchase 20,000 shares of the Company's common
          stock. Options are priced on the date of grant and will vest 33 1/3%
          per year for each full year of your continuous employment commencing
          on the first anniversary of the date of grant. The date of grant will
          be your start date. Thereafter stock options are typically granted in
          February of each year and you will be eligible to receive additional
          grants (starting in February 2007) in accordance with the Company's
          practices for senior executives.

<PAGE>

     5.   You will be eligible to participate in all of the Company's executive
          compensation plans, including any management incentive plans, life
          insurance plans, deferred compensation plans, supplemental retirement
          plans and equity plans, in which senior executives of the Company
          participates.

     6.   We will provide you with a car allowance in the amount of $1,500 per
          month. This allowance is intended to cover all costs, which include
          but are not limited to the purchase or lease price of a vehicle,
          insurance, registration, maintenance, taxes, etc. The allowance will
          be included in your paycheck on the first pay period of each month.

     7.   You are eligible for four (4) weeks of paid vacation and five (5)
          personal days of paid time off immediately.

     8.   You are eligible for participation in the Company's employee benefit
          and welfare plans, including the Company's Profit Sharing and
          Retirement Savings Plan (and any other plans providing for retirement
          benefits), medical, dental, vision, hospitalization, life or
          disability insurance and flexible spending. Enclosed are the
          highlights of our benefit plans.

     9.   You will be reimbursed, in the event and to the extent not otherwise
          paid by your current employer, for your personal travel from Brussels,
          Belgium to Cleveland, Ohio and the move of any incidentals in
          connection therewith up to $10,000.

     10.  We will pay for indoor parking for you at the Company's headquarters.

     11.  We will enter into an agreement relative to change of control with you
          within seven (7) days of your start date. The agreement will be in the
          form approved for all other similarly situated senior executives.

     12.  Within thirty (30) days of your start date, we will enter into an
          agreement relative to severance (one year base and bonus at target) in
          the event of (i) your termination without cause, or (ii) your
          departure from the company as a result of a material change in your
          reporting structure. This severance agreement will be for a term of
          three (3) years and may be renewed at the discretion of the
          Compensation Committee.

Please confirm your agreement to accept this position by returning one copy of
this letter; you may retain one copy for your records. We look forward to your
start date and to working with you.

Sincerely,

Joseph Scaminace
Chief Executive Officer

Agreed to this 30th day of January, 2006

/s/ Daniel K. Lewis
----------------------------
Daniel K. Lewis

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