Document:

exv10w4

 

Exhibit 10.4

COMMERCIAL VEHICLE GROUP, INC

CHANGE IN CONTROL & NON-COMPETITION AGREEMENT

     This Agreement is made as of this 5th day of April, 2006, by and between James
F. Williams (“Executive”) and Commercial Vehicle Group, Inc., a Delaware corporation with its
principal office at 6530 W. Campus Oval, New Albany, Ohio 43054, its subsidiaries, successors and
assigns (the “Company”).

Recitals

     A. The Company is engaged in the business of developing, manufacturing, and marketing of
interior systems, vision safety solutions and other cab-related products for the global commercial
vehicle market, including the heavy-duty (Class 8) truck market, the construction market and other
specialized transportation markets and in connection therewith develops and uses valuable technical
and nontechnical trade secrets and other confidential information which it desires to protect.

     B. You will continue to be employed as an executive officer of the Company.

     C. The Company considers your continued services to be in the best interest of the Company and
desires, through this Agreement, to assure your continued services on behalf of the Company on an
objective and impartial basis and without distraction or conflict of interest in the event of an
attempt to obtain control of the Company.

     D. You are willing to remain in the employ of the Company on the terms set forth in this
agreement.

Agreement

     NOW, THEREFORE, the parties agree as follows:

     1. Consideration. As consideration for your entering into this Agreement and your
willingness to remain bound by its terms, the Company shall continue to employ you and provide you
with access to certain Confidential Information as defined in this Agreement and other valuable
consideration as provided for throughout this Agreement, including in Sections 3 and 4 of this
Agreement.

     2. Employment.

          (a) Position. You will continue to be employed as Vice President of Human Resources,
reporting to the President and Chief Executive Officer [or board of directors] of the Company. You
shall continue to perform the duties, undertake the responsibilities and exercise the authority
customarily performed, undertaken and exercised by persons employed in similar executive
capacities.

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     (b) Restricted Employment. While employed by the Company, you shall devote your
best efforts to the business of the Company and shall not engage in any outside employment or
consulting work without first securing the approval of the Company’s Board of Directors.
Furthermore, so long as you are employed under this Agreement, you agree to devote your full time
and efforts exclusively on behalf of the Company and to competently, diligently, and effectively
discharge your duties hereunder. You shall not be prohibited from engaging in such personal,
charitable, or other nonemployment activities that do not interfere with your full time employment
hereunder and which do not violate the other provisions of this Agreement. You further agree to
comply fully with all policies and practices of the Company as are from time to time in effect.

     3. Compensation.

          (a) Your compensation will be continued at your current annual base rate (“Basic Salary”),
payable in accordance with the normal payroll practices of the Company. Your base salary may be
increased from time to time by action of the Board of Directors of the Company. You will also be
eligible for a cash bonus under a performance bonus plan which is determined annually by the Board
of Directors of the Company.

          (b) You will be entitled to receive stock options and to purchase shares of the common stock
of the Company pursuant to the terms of the Company’s Equity Incentive Plan or other plan adopted
by the Board of Directors of the Company from time to time. If a “Change in Control,” as defined
in Section 9(e)(v), shall occur (i) in which the Company does not survive as a result of such
Change in Control or substantially all of the assets of the Company are sold as a result of such
Change in Control, and (ii) in which the surviving entity does not assume the obligations of your
outstanding stock options upon the Change in Control, then all outstanding stock options issued to
you prior to the Change in Control will be immediately vested upon such Change of Control and such
options will be exercisable for a period of at least 12 months from the date of the Change in
Control.

          (c) Subject to applicable Company policies, you will be reimbursed for necessary and
reasonable business expenses incurred in connection with the performance of your duties hereunder
or for promoting, pursuing or otherwise furthering the business or interests of the Company.

     4. Fringe Benefits. You will be entitled to receive employee benefits and participate
in any employee benefit plans, in accordance with their terms as from time to time amended, that
the Company maintains during your employment and which are made generally available to all other
executive management employees in like positions. This includes medical and dental insurance, life
insurance, disability insurance, supplemental medical insurance and 401(k) plan including all
executive benefits as approved by the Board of Directors’ Compensation Committee. It is agreed
that the Company will pay any necessary COBRA payments on your behalf due to any break in medical
coverage for any reason, including pre-existing conditions.

     5. Reserved.

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     6. Confidential Information.

          (a) As used throughout this Agreement, the term “Confidential Information” means any
information you acquire during employment by the Company (including information you conceive,
discover or develop) which is not readily available to the general public and which relates to the
business, including research and development projects, of the Company, its subsidiaries or its
affiliated companies.

          (b) Confidential Information includes, without limitation, information of a technical
nature (such as trade secrets, inventions, discoveries, product requirements, designs, software
codes and manufacturing methods), matters of a business nature (such as customer lists, the
identities of customer contacts, information about customer requirements and preferences, the terms
of the Company’s contracts with its customers and suppliers, and the Company’s costs and prices),
personnel information (such as the identities, duties, customer contacts, and skills of the
Company’s employees) and other financial information relating to the Company and its customers
(including credit terms, methods of conducting business, computer systems, computer software,
personnel data, and strategic marketing, sales or other business plans). Confidential Information
may or may not be patentable.

          (c) Confidential Information does not include information which you learned prior to
employment with the Company from sources other than the Company, information you develop after
employment from sources other than the Company’s Confidential Information or information which is
readily available to persons with equivalent skills, training and experience in the same fields or
fields of endeavor as you. You must presume that all information that is disclosed or made
accessible to you during employment by the Company is Confidential Information if you have a
reasonable basis to believe the information is Confidential Information or if you have notice that
the Company treats the information as Confidential Information.

          (d) Except in conducting the Company’s business, you shall not at any time, either during or
following your employment with the Company, make use of, or disclose to any other person or entity,
any Confidential Information unless (i) the specific information becomes public from a source other
than you or another person or entity that owes a duty of confidentiality to the Company and
(ii) twelve months have passed since the specific information became public. However, you may
discuss Confidential Information with employees of the Company when necessary to perform your
duties to the Company. Notwithstanding the foregoing, if you are ordered by a court of competent
jurisdiction to disclose Confidential Information, you will officially advise the Court that you
are under a duty of confidentiality to the Company hereunder, take reasonable steps to delay
disclosure until the Company may be heard by the Court, give the Company prompt notice of such
Court order, and if ordered to disclose such Confidential Information you shall seek to do so under
seal or in camera or in such other manner as reasonably designed to restrict the public disclosure
and maintain the maximum confidentiality of such Confidential Information.

          (e) Upon Employment Separation, you shall deliver to the Company all originals, copies, notes,
documents, computer data bases, disks, and CDs, or records of any kind that reflect or relate to
any Confidential Information. As used herein, the term “notes” means

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written or printed words,
symbols, pictures, numbers or formulae. As used throughout this
Agreement, the term “Employment Separation” means the separation from and/or termination of
your employment with the Company, regardless of the time, manner or cause of such separation or
termination.

     7. Inventions.

          (a) As used throughout this Agreement, the term “Inventions” means any inventions,
improvements, designs, plans, discoveries or innovations of a technical or business nature, whether
patentable or not, relating in any way to the Company’s business or contemplated business if the
Invention is conceived or reduced to practice by you during your employment by the Company.
Inventions includes all data, records, physical embodiments and intellectual property pertaining
thereto. Inventions reduced to practice within one year following Employment Separation shall be
presumed to have been conceived during employment.

          (b) Inventions are the Company’s exclusive property and shall be promptly disclosed and
assigned to the Company without additional compensation of any kind. If requested by the Company,
you, your heirs, your executors, your administrators or legal representative will provide any
information, documents, testimony or other assistance needed for the Company to acquire, maintain,
perfect or exercise any form of legal protection that the Company desires in connection with an
Invention.

          (c) Upon Employment Separation, you shall deliver to the Company all copies of and all notes
with respect to all documents or records of any kind that relate to any Inventions.

     8. Noncompetition and Nonsolicitation.

          (a) By entering into this Agreement, you acknowledge that the Confidential Information has
been and will be developed and acquired by the Company by means of substantial expense and effort,
that the Confidential Information is a valuable asset of the Company’s business, that the
disclosure of the Confidential Information to any of the Company’s competitors would cause
substantial and irreparable injury to the Company’s business, and that any customers of the Company
developed by you or others during your employment are developed on behalf of the Company. You
further acknowledge that you have been provided with access to Confidential Information, including
Confidential Information concerning the Company’s major customers, and its technical, marketing and
business plans, disclosure or misuse of which would irreparably injure the Company.

          (b) In exchange for the consideration specified in Section 1 of this Agreement — the adequacy
of which you expressly acknowledge — you agree that during your employment by the Company and for
a period of twelve (12) months following Employment Separation, you shall not, directly or
indirectly, as an owner, shareholder, officer, employee, manager, consultant, independent
contractor, or otherwise:

          (i) Attempt to recruit or hire, interfere with or harm, or attempt to interfere with or
harm, the relationship of the Company, its subsidiaries or affiliates, with

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any person who
is an employee, customer or supplier of the Company, it subsidiaries or affiliates;

               (ii) Contact any employee of the Company for the purpose of discussing or suggesting
that such employee resign from employment with the Company for the purpose of becoming
employed elsewhere or provide information about individual employees of the Company or
personnel policies or procedures of the Company to any person or entity, including any
individual, agency or company engaged in the business of recruiting employees, executives or
officers; or

               (iii) Own, manage, operate, join, control, be employed by, consult with or participate
in the ownership, management, operation or control of, or be connected with (as a
stockholder, partner, or otherwise), any business, individual, partner, firm, corporation,
or other entity that competes or plans to compete, directly or indirectly, with the Company,
its products, or any division, subsidiary or affiliate of the Company; provided, however,
that your “beneficial ownership,” either individually or as a member of a “group” as such
terms are used in Rule 13d of the General Rules and Regulations under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), of not more than two percent (2%) of
the voting stock of any publicly held corporation, shall not be a violation of this
Agreement.

     9. Termination of Employment.

          (a) Termination Upon Death or Disability. Your employment will terminate automatically upon
your death. The Company will be entitled to terminate your employment because of your disability
upon 30 days written notice. “Disability” will mean “total disability” as defined in the Company’s
long term disability plan or any successor thereto. In the event of a termination under this
Section 9(a), the Company will pay you only the earned but unpaid portion of your Basic Salary
through the termination date.

          (b) Termination by Company for Cause. An Employment Separation for Cause will occur upon a
determination by the Company that “Cause” exists for your termination and the Company serves you
written notice of such termination. As used in this Agreement, the term “Cause” shall refer only
to any one or more of the following grounds:

               (i) Commission of an act of dishonesty involving the Company, its
business or property,
including, but not limited to, misappropriation of funds or any property of the Company;

          (ii) Engagement in activities or conduct clearly injurious to the best interests or
reputation of the Company;

               (iii) Willful and continued failure substantially to perform your duties under this
Agreement (other than as a result of physical or mental illness or injury), after the Board
of Directors of the Company delivers to you a written demand for substantial performance
that specifically identifies the manner in which the Board believes that you have not
substantially performed your duties;

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               (iv) Illegal conduct or gross misconduct that is willful and results in material and
demonstrable damage to the business or reputation of the Company;

               (v) The clear violation of any of the material terms and conditions of this Agreement
or any other written agreement or agreements you may from time to time have with the
Company;

               (vi) The clear violation of the Company’s code of business conduct or the clear
violation of any other rules of behavior as may be provided in any employee handbook which
would be grounds for dismissal of any employee of the Company; or

               (vii) Commission of a crime which is a felony, a misdemeanor involving
an act of moral
turpitude, or a misdemeanor committed in connection with your employment by the Company
which causes the Company a substantial detriment.

          No act or failure to act shall be considered “willful” unless it is done, or omitted to be
done, by you in bad faith or without reasonable belief that your action or omission was in the best
interests of the Company. Any act or failure to act that is based upon authority given pursuant to
a resolution duly adopted by the Board of Directors, or the advice of counsel for the Company,
shall be conclusively presumed to be done, or omitted to be done, by you in good faith and in the
best interests of the Company.

          In the event of a termination under this Section 9(b), the Company will pay you only the
earned but unpaid portion of your Basic Salary through the termination date.

          Following a termination for Cause by the Company, if you desire to contest such determination,
your sole remedy will be to submit the Company’s determination of Cause to arbitration in Columbus,
Ohio before a single arbitrator under the commercial arbitration rules of the American Arbitration
Association. If the arbitrator determines that the termination was other than for Cause, the
Company’s sole liability to you will be the amount that would be payable to you under Section 9(d)
of this Agreement for a termination of your employment by the Company without Cause. Each party
will bear his or its own expenses of the arbitration.

          (c) Termination by You. In the event of an Employment Separation as a result of a termination
by you for any reason, you must provide the Company with at least 14 days advance written notice
(“Notice of Termination”) and continue working for the Company during the 14-day notice period, but
only if the Company so desires to continue your employment and to compensate you during such
period.

          In the event of such termination under this Section, the Company will pay you the earned but
unpaid portion of your Basic Salary through the termination date.

          (d) Termination by Company Without Cause. In the event of an Employment Separation as a
result of termination by the Company without Cause, the Company will pay you the earned but unpaid
portion of your Basic Salary through the termination date and will continue to

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pay you your Basic
Salary for an additional twelve (12) months (the “Severance Period”); provided, however, any such
payments will immediately end if (i) you are in violation of any of your obligations under this
Agreement, including Sections 6, 7 and/or 8; or (ii) the Company, after your
termination, learns of any facts about your job performance or conduct that would have given
the Company Cause, as defined in Section 9(b), to terminate your employment.

          (e) Termination Following Change of Control. If a “Change in Control”, as defined in Section
9(e)(v), shall have occurred and within 13 months following such Change in Control the Company
terminates your employment other than for Cause, as defined in Section 9(b), or you terminate your
employment for Good Reason, as that term is defined in Section 9(e)(vii), then you shall be
entitled to the benefits described below:

               (i) You shall be entitled to the unpaid portion of your Basic Salary
plus
credit for any vacation accrued but not taken and the amount of any earned but unpaid
portion of any bonus, incentive compensation, or any other Fringe Benefit to which
you are entitled under this Agreement through the date of the termination as a result
of a Change in Control (the “Unpaid Earned Compensation”), plus 1.0 times your
“Current Annual Compensation” as defined in this Section 9(e)(i) (the “Salary
Termination Benefit”). “Current Annual Compensation” shall mean the total of your
Basic Salary in effect at the Termination Date, plus the average annual performance
bonus actually received by you over the last three years fiscal years (or if you have
been employed for a shorter period of time over such period during which you
performed services for the Company) plus any medical, financial and insurance
coverage provided presently under your current annual compensation plan, and shall
not include the value of any stock options granted or exercised, restricted stock
awards granted or vested, contributions to 401(k) or other qualified plans.”

               (ii) Immediate vesting of all outstanding stock options and restricted
stock
awards issued to you, and thereafter shall be exercisable for a period of at least 12
months after the Termination Date.

               (iii) The Company shall maintain for your benefit (or at your election
make
COBRA payments for your benefit), until the earlier of (A) 12 months after
termination of employment following a Change in Control, or (B) your commencement of
full-time employment with a new employer with comparable benefits, all life
insurance, medical, health and accident, and disability plans or programs, such plans
or programs to be maintained at the then current standards of the Company, in which
you shall have been entitled to participate prior to termination of employment
following a Change in Control, provided your continued participation is permitted
under the general terms of such plans and programs after the Change in Control
(“Fringe Termination Benefit”); (collectively the Salary Termination Benefit and the
Fringe Termination Benefit are referred to as the “Termination Benefits”).

               (iv) The Unpaid Earned Compensation shall be paid to you within
15 days after
termination of employment, one-half of the Salary Termination Benefit shall be

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payable to you as severance pay in a lump sum payment within 30 days after
termination of employment, and one-half of the Salary Termination Benefit shall be
payable to you as severance pay in equal monthly payments commencing 30 days after
termination of employment and ending on the date that is the earlier of two and
one-half months after the end of the Company’s fiscal year in which termination
occurred or your death; provided, however, the Company may immediately discontinue
the payment of the Termination Benefits if (i) you are in violation of any of your
obligations under this Agreement, including in Sections 6, 7 and/or 8; and/or (ii)
the Company, after your termination, learns of any facts about your job performance
or conduct that would have given the Company Cause as defined in Section 9(b) to
terminate your employment. You shall have no duty to mitigate your damages by
seeking other employment, and the Company shall not be entitled to set off against
amounts payable hereunder any compensation which you may receive from future
employment. To the extent necessary, the parties hereto agree to negotiate in good
faith should any amendment to this Agreement required in order to comply with Section
409A of the Code, provided, however, no amendment shall be effected after the
occurrence of a Change in Control.

               (v) A “Change in Control” shall be deemed to have occurred if
and when, after
the date hereof, (i) any “person” (as that term is used in Section 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”) on the date
hereof), including any “group” as such term is used in Section 13(d)(3) of the
Exchange Act on the date hereof, shall acquire (or disclose the previous acquisition
of) beneficial ownership (as that term is defined in Section 13(d) of the Exchange
Act and the rules thereunder on the date hereof) of shares of the outstanding stock
of any class or classes of the Company which results in such person or group
possessing more than 50% of the total voting power of the Company’s outstanding
voting securities ordinarily having the right to vote for the election of directors
of the Company; or (ii) as the result of, or in connection with, any tender or
exchange offer, merger or other business combination, or contested election, or any
combination of the foregoing transactions (a “Transaction”), the owners of the voting shares of the Company outstanding immediately prior to such Transaction own less than
a majority of the voting shares of the Company after the Transaction; or (iii) during
any period of two consecutive years during the term of this Agreement, individuals
who at the beginning of such period constitute the Board of Directors of the Company
(or who take office following the approval of a majority of the directors then in
office who were directors at the beginning of the period) cease for any reason to
constitute at least one-half thereof, unless the election of each director who was
not a director at the beginning of such period has been approved in advance by
directors of the Company representing at least one-half of the directors then in
office who were directors at the beginning of the period; or (iv) the sale, exchange,
transfer, or other disposition of all or substantially all of the assets of the
Company (a “Sale Transaction”) shall have occurred.

               (vi) Anything in this Agreement to the contrary notwithstanding, in the
event it
shall be determined that any payment or distribution involving a “Change in

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Control” of the Company, by the Company or any other person or entity, to or for the benefit
of the Executive (whether paid or payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise, but determined without regard to any
additional payments required under this Section 3) (a “Payment”) would be subject to
the excise tax imposed by Section 4999 of the Code (or any successor
provision) or any interest or penalties are incurred by the Executive with
respect to such excise tax (such excise tax, together with any such interest and
penalties, are hereinafter collectively referred to as the “Excise Tax”), then the
Executive shall be entitled to receive an additional payment (a “Gross-Up Payment”)
from the Company in an amount such that, after payment by the Executive of all taxes
(including any interest or penalties imposed with respect to such taxes), including,
without limitation, any income and/or payroll taxes (and any interest and penalties
imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed
upon the Payments.

               (vii) As used in this Agreement, the term “Good Reason”
means, without your
written consent:

                    (A) a material change in your status, position or responsibilities
which, in your reasonable judgment, does not represent a promotion from your
existing status, position or responsibilities as in effect immediately prior
to the Change in Control; the assignment of any duties or responsibilities or
the removal or termination of duties or responsibilities (except in
connection with the termination of employment for total and permanent
disability, death, or Cause, or by you other than for Good Reason), which, in
your reasonable judgment, are materially inconsistent with such status,
position or responsibilities;

                    (B) a reduction by the Company in your Basic Salary as in effect on the
date hereof or as the same may be increased from time to time during the term
of this Agreement or the Company’s failure to increase (within twelve months
of your last increase in Basic Salary) your Basic Salary after a Change in
Control in an amount which at least equals, on a percentage basis, the
average percentage increase in Basic Salary for all executive and senior
officers of the Company, in like positions, which were effected in the
preceding twelve months;

                    (C) the relocation of the Company’s principal executive offices to
a
location outside the greater Columbus metropolitan area or the relocation of
you by the Company to any place other than the location at which you
performed duties prior to a Change in Control, except for required travel on
the Company’s business to an extent consistent with business travel
obligations at the time of a Change in Control;

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                    (D) the failure of the Company to continue in effect, or continue or
materially reduce your participation in, any incentive, bonus or other
compensation plan in which you participate, including but not limited to the
Company’s stock option plans, unless an equitable arrangement (embodied in an
ongoing substitute or alternative plan), has been made or offered with
respect to such plan in connection with the Change in Control;

                    (E) the failure by the Company to continue to provide you with benefits
substantially similar to those enjoyed or to which you are entitled under any
of the Company’s deferred compensation, pension, profit sharing, life
insurance, medical, dental, health and accident, or disability plans at the
time of a Change in Control, the taking of any action by the Company which
would directly or indirectly materially reduce any of such benefits or
deprive you of any material fringe benefit enjoyed or to which you are
entitled at the time of the Change in Control, or the failure by the Company
to provide the number of paid vacation and sick leave days to which you are
entitled on the basis of years of service with the Company in accordance with
the Company’s normal vacation policy in effect on the date hereof;

                    (F) the failure of the Company to obtain a satisfactory agreement from
any successor or assign of the Company to assume and agree to perform this
Agreement;

                    (G) any request by the Company that you participate in an unlawful act
or take any action constituting a breach of your professional standard of
conduct; or

                    (H) any breach of this Agreement on the part of the Company.

Notwithstanding anything in this Section to the contrary, your right to
terminate your employment pursuant to this Section shall not be affected by
incapacity due to physical or mental illness.

               (viii) Upon any termination or expiration of this Agreement or any
cessation of
your employment hereunder, the Company shall have no further obligations under this
Agreement and no further payments shall be payable by the Company to you, except as
provided in Section 9 above and except as required under any benefit plans or
arrangements maintained by the Company and applicable to you at the time of such
termination, expiration or cessation of your employment.

               (ix) Enforcement of Agreement. The Company is aware that upon
the occurrence
of a Change in Control, the Board of Directors or a shareholder of the Company may
then cause or attempt to cause the Company to refuse to comply with its obligations
under this Agreement, or may cause or attempt to cause the Company to institute, or
may institute litigation seeking to have this Agreement declared unenforceable, or
may take or attempt to take other action to deny you the benefits

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intended under this
Agreement. In these circumstances, the purpose of this Agreement could be
frustrated. Accordingly, if following a Change in Control it should appear to you
that the Company has failed to comply with any of its obligations under Section 9 of
this Agreement or in the event that the Company or any other person takes any action
to declare Section 9 of this Agreement void or enforceable, or institutes any
litigation or other legal action designed to deny, diminish or to recover from you
the benefits entitled to be provided to you under Section 9, and that you have
complied with all your obligations under this
Agreement, the Company authorizes you to retain counsel of your choice, at the
expense of the Company as provided in this Section 9(e)(ix), to represent you in
connection with the initiation or defense of any pre-suit settlement negotiations,
litigation or other legal action, whether such action is by or against the Company or
any Director, officer, shareholder, or other person affiliated with the Company, in
any jurisdiction. Notwithstanding any existing or prior attorney-client relationship
between the Company and such counsel, the Company consents to you entering into an
attorney-client relationship with such counsel, and in that connection the Company
and you agree that a confidential relationship shall exist between you and such
counsel, except with respect to any fee and expense invoices generated by such
counsel. The reasonable fees and expenses of counsel selected by you as hereinabove
provided shall be paid or reimbursed to you by the Company on a regular, periodic
basis upon presentation by you of a statement or statements prepared by such counsel
in accordance with its customary practices, up to a maximum aggregate amount of
$50,000. Any legal expenses incurred by the Company by reason of any dispute between
the parties as to enforceability of Section 9 or the terms contained in Section 9(f),
notwithstanding the outcome of any such dispute, shall be the sole responsibility of
the Company, and the Company shall not take any action to seek reimbursement from you
for such expenses.

          (f) The noncompetition periods described in Section 8 of this Agreement shall be suspended
while you engage in any activities in breach of this Agreement. In the event that a court grants
injunctive relief to the Company for your failure to comply with Section 8, the noncompetition
period shall begin again on the date such injunctive relief is granted.

          (g) Nothing contained in this Section 9 shall be construed as limiting your obligations under
Sections 6, 7, or 8 of this Agreement concerning Confidential Information, Inventions, or
Noncompetition and Nonsolicitation.

     10. Remedies; Venue; Process.

          (a) You hereby acknowledge and agree that the Confidential Information disclosed to you prior
to and during the term of this Agreement is of a special, unique and extraordinary character, and
that any breach of this Agreement will cause the Company irreparable injury and damage, and
consequently the Company shall be entitled, in addition to all other legal and equitable remedies
available to it, to injunctive and any other equitable relief to prevent or cease a breach of
Sections 6, 7, or 8 of this Agreement without further proof of harm and entitlement; that the terms
of this Agreement, if enforced by the Company, will not unduly impair your ability to earn a living

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or pursue your vocation; and further, that the Company may cease paying any compensation and
benefits under Section 9 if you fail to comply with this Agreement, without restricting the Company
from other legal and equitable remedies. The parties agree that the prevailing party in litigation
concerning a breach of this Agreement shall be entitled to all costs and expenses (including
reasonable legal fees and expenses) which it incurs in successfully enforcing this Agreement and in
prosecuting or defending any litigation (including appellate proceedings) concerning a breach of
this Agreement.

          (b) Except for actions brought under Section 9(b) of this Agreement, the parties agree that
jurisdiction and venue in any action brought pursuant to this Agreement to enforce its terms or
otherwise with respect to the relationships between the parties shall properly lie in either the
United States District Court for the Southern District of Ohio, Eastern Division, Columbus, Ohio,
or the Court of Common Pleas of Franklin County, Ohio. Such jurisdiction and venue is exclusive,
except that the Company may bring suit in any jurisdiction and venue where jurisdiction and venue
would otherwise be proper if you may have breached Sections 6, 7, or 8 of this Agreement. The
parties further agree that the mailing by certified or registered mail, return receipt requested,
of any process required by any such court shall constitute valid and lawful service of process
against them, without the necessity for service by any other means provided by statute or rule of
court.

     11. Exit Interview. Prior to Employment Separation, you shall attend an exit
interview if desired by the Company and shall, in any event, inform the Company at the earliest
possible time of the identity of your future employer and of the nature of your future employment.

     12. No Waiver. Any failure by the Company to enforce any provision of this Agreement
shall not in any way affect the Company’s right to enforce such provision or any other provision at
a later time.

     13. Saving. If any provision of this Agreement is later found to be completely or
partially unenforceable, the remaining part of that provision of any other provision of this
Agreement shall still be valid and shall not in any way be affected by the finding. Moreover, if
any provision is for any reason held to be unreasonably broad as to time, duration, geographical
scope, activity or subject, such provision shall be interpreted and enforced by limiting and
reducing it to preserve enforceability to the maximum extent permitted by law.

     14. No Limitation. You acknowledge that your employment by the Company may be
terminated at any time by the Company or by you with or without cause in accordance with the terms
of this Agreement. This Agreement is in addition to and not in place of other obligations of
trust, confidence and ethical duty imposed on you by law.

     15. Governing Law. This Agreement shall be interpreted and enforced in accordance
with the laws of the State of Ohio without reference to its choice of law rules.

     16. Final Agreement. This Agreement replaces any existing agreement between you and
the Company relating to the same subject matter and may be modified only by an agreement in writing
signed by both you and a duly authorized representative of the Company.

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     17. Further Acknowledgments. YOU ACKNOWLEDGE THAT YOU HAVE RECEIVED A COPY OF THIS
AGREEMENT, THAT YOU HAVE READ AND UNDERSTOOD THIS AGREEMENT, THAT YOU UNDERSTAND THIS AGREEMENT
AFFECTS YOUR RIGHTS, AND THAT YOU HAVE ENTERED INTO THIS AGREEMENT VOLUNTARILY.

	 	 	 	 	 
	 	 	Commercial Vehicle Group, Inc.
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ Chad M. Utrup
	 

	 	 	 	 
	 	 	Name: Chad Utrup
	 	 	Title:   VP of Finance & CFO
	 
	 	 	 	 
	 	 	EXECUTIVE:
	 
	 	 	 	 
	 	 	          /s/ Jim Williams
	 	 	 
	 	 	          Jim Williams
	 	 	          Vice President of Human Resources

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EXHIBIT 10.1

COMMERCIAL METALS COMPANY

EXECUTIVE EMPLOYMENT CONTINUITY AGREEMENT

     THIS
AGREEMENT, dated as of
               (the “Agreement Date”), is made by and
between COMMERCIAL METALS COMPANY (the “Company”), a Delaware corporation, and
                                                            (the “Executive”).

ARTICLE I

PURPOSE

     The Board of Directors of the Company (the “Board”) has determined that it is in the best
interests of the Company and its shareholders to assure that the Company will have the continued
services of the Executive, despite the possibility or occurrence of a Change in Control of the
Company. The Board believes that this objective may be achieved by giving key management employees
assurances of financial security in case of a pending or threatened Change in Control, so that they
will not be distracted by personal risks and will continue to devote their full time and best
efforts to the performance of their duties. The Company and the Executive enter into this Agreement
to induce the Executive to remain an employee of the Company and to continue to devote Executive’s
full energy to the Company’s affairs. This Agreement is not intended to provide the Executive with
any right to continued employment with the Company, except in the event of a Change in Control of
the Company and subject to the provisions of this Agreement. The effect of this Agreement on other
agreements and other rights of the Executive is explained in Article IX below.

ARTICLE II

CERTAIN DEFINITIONS

     When used in this Agreement, the terms specified below shall have the following meanings:

     2.1 “Affiliate” means any corporation or other entity that is directly or indirectly through
one or more intermediaries, controlled by the Company.

     2.2 “Annual Base Salary” has the meaning set forth in Section 3.2(a).

     2.3 “Annual Cash Incentive Plan” means the cash bonus plan as administered by the compensation
committee of the Company’s board of directors which establishes the criteria for and amount of
annual cash bonus payments for key executives.

     2.4 “Auditor” has the meaning set forth in Section 6.1.

     2.5 “Benefit Continuation Period” means the period beginning on the Termination Date and
ending on the second anniversary of the Termination Date.

 

 

     2.6 “Benefit Restoration Plan” means the Commercial Metals Companies Benefit Restoration Plan
effective September 1, 1995, as amended.

     2.7 “Capped Amount” has the meaning set forth in Section 6.1.

     2.8 “Cash Bonus Opportunity” has the meaning set forth in Section 3.2(b).

     2.9 “Cause” has the meaning set forth in Section 4.3.

     2.10 “Change in Control” means any of the following events:

     (a) any Person becomes the “beneficial owner” (as defined in Rule 13d-3 or Rule 13d-5
under the Exchange Act), directly or indirectly, of 25% or more of the combined voting power
of the Company’s then outstanding voting securities;

     (b) the Incumbent Board ceases for any reason to constitute at least the majority of the
Board; provided, however, that any person becoming a director subsequent to the Agreement Date
whose election, or nomination for election by the Company’s shareholders was approved by a
vote of at least 75% of the directors comprising the Incumbent Board (either by a specific
vote or by approval of the proxy statement of the Company in which such person is named as a
nominee for director, without objection to such nomination) shall be, for purposes of this
subsection (b), considered as though such person were a member of the Incumbent Board;

     (c) all or substantially all of the assets of the Company are sold, transferred or
conveyed and the transferee of such assets is not controlled by the Company (control meaning
the ownership of more than 50% of the combined voting power of such entity’s then outstanding
voting securities); or

     (d) the Company is reorganized, merged or consolidated, and the shareholders of the
Company immediately prior to such reorganization, merger or consolidation own in the aggregate
50% or less of the outstanding voting securities of the surviving or resulting corporation or
entity from such reorganization, merger or consolidation.

Notwithstanding anything in the foregoing to the contrary, no Change in Control shall be deemed to
have occurred for purposes of this Agreement by virtue of any transaction (i) which results in the
Executive or a group of Persons, which includes the Executive, acquiring, directly or indirectly,
25% or more of the combined voting power of the Company’s then outstanding voting securities; or
(ii) which results in the Company, any Affiliate or any profit-sharing plan, employee stock
ownership plan or employee benefit plan of the Company or any Affiliates (or any trustee of or
fiduciary with respect to any such plan acting in such capacity) acquiring, directly or indirectly,
15% or more of the combined voting power of the Company’s then outstanding voting securities. For
purposes of this section, the term “Incumbent Board” means the individuals who as of the

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Agreement Date constitute the Board, and the term “Person” means any natural person, firm,
corporation, government, governmental agency, association, trust or partnership.

     2.11 “Change in Control Arrangements” has the meaning set forth in Section 6.1.

     2.12 “Change in Control Payment” has the meaning set forth in Section 6.1.

     2.13 “Change in Control Date” means the date on which a Change in Control occurs.

     2.14 “Code” means the Internal Revenue Code of 1986, as amended.

     2.15 “Constructive Termination” has the meaning set forth in Section 4.4.

     2.16 “Disabled” or “Disability” means that the Executive:

     (a) is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which 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) is, by reason of any medically determinable physical or mental impairment which 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 3 months
under an accident and health plan covering employees of the Company or an Affiliate.

     2.17 “Disability Effective Date” has the meaning set forth in Section 4.1.

     2.18 “Employment Period” means the period commencing on the Change in Control Date and ending
on the second anniversary of the Change in Control Date.

     2.19 “Equity Incentive Plans” means the Company’s 1996 Long-Term Stock Incentive Plan, the
General Employee Stock Purchase Plan and any other equity incentive plan approved by the Company
following the date of this Agreement which is intended to provide a financial incentive to
employees of the Company based on the value of or utilizing the Company’s stock whether by means of
grants or awards of incentive stock options, non-qualified stock options, stock appreciation
rights, restricted stock, performance share awards or any other equity based incentives.

     2.20 “Excess Change in Control Payment” means the dollar amount of excise tax which the
Executive would become obligated to pay pursuant to Code Section 4999 as a result of receipt of any
payment from the Company in excess of the Capped Amount.

     2.21 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

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     2.22 “Highest Annual Base Salary” means highest annual base salary paid by the Company or an
Affiliate to the Executive for any calendar year during the sixty (60) consecutive month period
immediately preceding the Termination Date. For purposes of this determination, annual base salary
shall be annualized for any period of less that one complete calendar year.

     2.23 “Long-Term Performance Plan” means a cash incentive plan administered by the
compensation committee of the Company’s board of directors which provides for cash payments to key
employees contingent upon the attainment of multi-year performance goals.

     2.24 “Make-Whole Payment” has the meaning set forth in Section 6.4.

     2.25 “Payment Date” means the 30th day following the Executive’s Termination Date.

     2.26 “Performance Period” has the meaning set forth in Section 3.2(b).

     2.27 “Plans” has the meaning set forth in Section 3.2(c).

     2.28 “Profit Sharing Plan” means the Commercial Metals Company Profit Sharing and 401(k) Plan
or any successor plan thereto.

     2.29 “Short Fall Amount” has the meaning set forth in Section 6.4.

     2.30 “Qualifying Termination” means a Constructive Termination of the Executive’s employment
pursuant to Section 4.4.

     2.31 “Termination Date” means the date of termination of the Executive’s employment; provided,
however, that if the Executive’s employment is terminated by reason of Disability, then the
Termination Date shall be the Disability Effective Date (as defined in Section 4.1).

     2.32 “Welfare Continuance Benefit” has the meaning set forth in Section 5.1(d).

     2.33 “Welfare Plans” has the meaning set forth in Section 3.2(d).

ARTICLE III

EMPLOYMENT AFTER A CHANGE IN CONTROL

     3.1 Employment. The Company hereby agrees to continue the Executive in its employ
during the Employment Period and, unless the Executive provides an express written consent
otherwise, the Executive will have duties and such other powers that are substantially equivalent
to the duties and powers which the Executive had prior to the Change in Control. Subject to Article
IV of this Agreement, the Executive agrees to remain in the employ of the Company subject to the
terms and conditions hereof and (i)

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will devote his knowledge, skill and best efforts on a full-time basis to performing his
duties and obligations to the Company (with the exception of absences on account of illness or
vacation in accordance with the Company’s policies, and civic and charitable commitments not
involving a conflict with the Company’s business), (ii) will comply with the directions and orders
of the Board with respect to the performance of his duties, and (iii) will comply with the
provisions of Article X.

     3.2 Compensation and Benefits.

     (a) Base Salary. During the Employment Period, the Executive shall receive an
annual base salary (“Annual Base Salary”), which shall be paid at a monthly rate at least
equal to the highest monthly base salary paid or payable to the Executive by the Company
(including any base salary which has been earned but deferred by the Executive) in respect of
the twelve-month period immediately preceding the month in which the Change in Control Date
occurs. During the Employment Period, the Annual Base Salary shall be increased from time to
time as substantially consistent with increases in base salary awarded to other peer
executives of the Company. Annual Base Salary shall not be reduced after any such increase,
and the term Annual Base Salary as used in this Agreement shall refer to Annual Base Salary as
so adjusted.

     (b) Cash Bonus Opportunity. In addition to the Annual Base Salary, during the
Employment Period the Company shall grant or cause to be granted to the Executive cash bonus
opportunities (each a “Cash Bonus Opportunity”) for each Performance Period which ends or
begins during the Employment Period. “Performance Period” means each period of time designated
in accordance with any cash incentive arrangement which is based upon performance, including
the Annual Cash Incentive Plan and the Long-Term Performance Plan. The Executive’s target and
maximum Cash Bonus Opportunity with respect to any Performance Period shall not be less than
the largest target and maximum established for the Executive under any Company cash incentive
arrangement, including the Annual Cash Incentive Plan and the Long-Term Performance Plan, as
in effect for a Performance Period immediately preceding the Change in Control Date.

     (c) Incentive, Savings and Retirement Plans. During the Employment Period, the
Executive shall be entitled to participate in all incentive, savings, deferred compensation
and retirement plans, practices, policies and programs (“Plans”) applicable generally to other
peer executives of the Company, but in no event shall such Plans provide the Executive with
incentives or savings and retirement benefits which, in each case, are less favorable in the
aggregate than the greater of (i) those provided by the Company for the Executive under such
Plans as in effect at any time during the 90-day period immediately preceding the Change in
Control Date, or (ii) those provided generally at any time after the Change in Control Date to
other peer executives of the Company. The Plans shall include both tax-qualified retirement
plans and nonqualified retirement plans, and any equity or cash-based incentive plans.

- 5 -

 

     (d) Welfare Benefit Plans. During the Employment Period, the Executive and/or the
Executive’s family, as the case may be, shall be eligible for participation in and shall
receive all benefits under welfare benefit plans, practices, policies and programs that
provide benefits including, but not limited to, medical, prescription, dental, disability,
group life, accidental death and travel accident insurance benefits (“Welfare Plans”), but in
no event shall such Welfare Plans provide the Executive with benefits which are less
favorable, in the aggregate than the greater of (i) those provided by the Company for the
Executive under such Welfare Plans as in effect at any time during the 90-day period
immediately preceding the Change in Control Date, or (ii) those provided generally at any time
after the Change in Control Date to other peer executives of the Company.

     (e) Other Employee Benefits. During the Employment Period, the Executive shall be
entitled to other employee benefits and perquisites in accordance with the most favorable
plans, practices, programs and policies of the Company, as in effect with respect to the
Executive at any time during the 90-day period immediately preceding the Change in Control
Date, or if more favorable, as in effect generally with respect to other peer executives of
the Company. These other employee benefits and perquisites include, but are not limited to,
vacation and use of a Company car.

     3.3 Affiliates. If immediately prior to the Change in Control Date, the Executive was
on the payroll of and participated in the Plans of an Affiliate of the Company, the references to
the Company contained in Sections 3.1, 3.2 and the other sections of this Agreement shall be read
to refer to the Company and to such Affiliate, as applicable.

     3.4 Termination Prior to a Change in Control. Notwithstanding anything in this
Agreement to the contrary, if a Change in Control occurs and the Executive’s employment with the
Company or an Affiliate was terminated by the Company or an Affiliate prior to the Change in
Control Date other than for Cause or Disability, and if it is reasonably demonstrated by the
Executive that such termination of employment (i) was at the request of a third party who has taken
steps reasonably calculated to effect a Change in Control, or (ii) otherwise arose in connection
with or in anticipation of a Change in Control, then for all purposes of this Agreement the
Executive’s termination of employment shall be treated as an involuntary termination of the
Executive’s employment occurring immediately after the Change in Control Date, and the Executive
shall be entitled to receive the amounts described in Section 5.1 of this Agreement. In addition,
if the Executive’s employment is terminated by the Company other than for Cause or Disability
within 90 days prior to a Change in Control, such termination shall conclusively be deemed to have
occurred following a Change in Control.

ARTICLE IV

TERMINATION OF EMPLOYMENT

- 6 -

 

     4.1 Disability. During the Employment Term, the Company may terminate the Executive’s
employment if the Executive becomes Disabled. The Executive’s employment shall terminate effective
on the 30th day after the Executive’s receipt of written notice of termination from the Company
(the “Disability Effective Date”).

     4.2 Death. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Term.

     4.3 Cause. The Company may terminate the Executive’s employment during the Employment
Period for Cause. For purposes of this Agreement, “Cause” means (a) material misappropriation with
respect to the business or assets of the Company, (b) persistent refusal or willful failure
constituting gross dereliction by the Executive to substantially perform the Executive’s duties and
responsibilities to the Company, which continues after the Executive receives written notice from
the Company of such refusal or failure and which is not remedied by the Executive within thirty
(30) days following receipt of the Company’s written notice, (c) conviction of a felony or crime
involving fraud, dishonesty or moral turpitude, or (d) the use of drugs or alcohol that interferes
materially with the Executive’s performance of his duties.

     4.4 Constructive Termination. The Executive may terminate the Executive’s employment
for Constructive Termination at any time during the Employment Period. “Constructive Termination”
means any material breach of this Agreement by the Company during the Employment Period, including:

     (a) the failure to maintain the Executive in the office or position, or in a
substantially equivalent office or position, held by the Executive immediately prior to the
Change in Control Date;

     (b) a material adverse change in the nature or scope of the Executive’s position, duties,
powers, functions or responsibilities as compared to the nature or scope of such office,
position, duties, powers, functions or responsibilities immediately prior to the Change in
Control Date; provided, however, that a diminution of the Executive’s duties, functions or
responsibilities attributable solely to the Company ceasing to be a public company on or after
the Change in Control Date shall not alone constitute a material adverse change;

     (c) any failure by the Company to provide the Executive with the compensation and
benefits described in Section 3.2, including any reduction of the Executive’s Annual Base
Salary in violation of Section 3.2(a);

     (d) the failure of any successor to the Company to assume this Agreement; or

     (e) any requirement by the Company that the Executive relocate more than 50 miles from
(i) the Executive’s workplace, or (ii) the principal offices of the Company (if such offices
are the Executive’s workplace), in each case without the

- 7 -

 

consent of the Executive. Constructive Termination shall be deemed to have occurred on
the date the Company communicates such requirement, either in writing or otherwise.

Notwithstanding the foregoing, an act or omission shall not constitute Constructive Termination
unless (1) the Executive gives written notice to the Company indicating that the Executive intends
to terminate employment under this Section 4.4; (2) the Executive’s voluntary termination occurs
within sixty (60) days after the Executive knows or reasonably should know of an event described
above, or within sixty (60) days after the last in a series of such events, and (3) the Company has
failed to remedy the event described above, as the case may be, within thirty (30) days after
receiving the Executive’s written notice. If the Company remedies the event described above, as the
case may be, within thirty (30) days after receiving the Executive’s written notice, the Executive
may not terminate employment under this Section 4.4 on account of the event specified in the
Executive’s notice.

ARTICLE V

OBLIGATIONS OF THE COMPANY UPON TERMINATION

     5.1 If by the Executive for a Qualifying Termination or by the Company Other Than for
Cause or Disability. If, during the Employment Period, the Company shall terminate the
Executive’s employment other than for Cause or Disability, or if the Executive shall terminate
employment for a Qualifying Termination, the Company’s obligations to the Executive shall be as
follows:

     (a) The Company shall pay to the Executive by no later than the Payment Date a lump sum
cash payment equal to the sum of the following amounts:

     (i) the Annual Base Salary and all earned but not used paid vacation time through
the Termination Date;

     (ii) all amounts previously deferred by the Executive under any nonqualified
deferred compensation plan sponsored by the Company or its Affiliates (together with any
accrued earnings thereon) which have not yet been paid and which otherwise would be
payable under the terms of such nonqualified deferred compensation plan on account of
the Executive’s termination of employment, unless payment of such amounts would
constitute an invalid acceleration of the time or schedule of a payment under Code
Section 409A; and

     (iii) all amounts payable to the Executive under the terms of the Annual Cash
Incentive Plan and Long-Term Performance Plan to the extent that such amounts have not
yet been paid, unless payment of such amounts would constitute an invalid acceleration
of the time or schedule of a payment under Code Section 409A.

- 8 -

 

     (b) The Company shall pay to the Executive by no later than the Payment Date a lump sum
cash payment equal to [insert either three or four] times the Executive’s Highest Annual Base
Salary.

     (c) On the Termination Date, the Executive shall become fully vested in any and all stock
incentive awards granted to the Executive pursuant to any Plan or otherwise which have not
become exercisable as of the Termination Date. On the Termination Date, all stock options
(including options vested as of the Change in Control Date) shall remain exercisable until the
last date on which the option was scheduled to expire, without regard to whether termination
of the Executive’s employment would have provided for a shorter exercise period following such
termination of employment; provided, however, that the exercise period of an option shall be
extended only to the latest date on which it may be exercised without subjecting such option
to the provisions of Code Section 409A or resulting in treatment of the option as a new grant
on the date of extension. All forfeiture conditions that as of the Termination Date are
applicable to any restricted stock, restricted stock units, stock appreciation rights,
performance grants or other incentive awards granted to the Executive by the Company pursuant
to any Plan or otherwise shall lapse immediately.

     (d) During the Benefit Continuation Period, the Executive and his dependents will
continue to be covered by all Welfare Plans in which he or his dependents were participating
immediately prior to the Termination Date (the “Welfare Continuance Benefit”). The Company
shall pay all the COBRA premium cost otherwise due from Executive for continued participation
of the Executive and dependents in the Company’s medical welfare benefit plan. The Company
shall pay all or that portion of the premium costs of the Welfare Continuance Benefit for the
Executive and dependents under Welfare Plans other than the Company’s medical welfare benefit
plan on the same basis as applicable under such Welfare Plans immediately preceding the
Termination Date, and the Executive will pay additional premium costs (if any) as applicable
immediately preceding the Termination Date. In determining the level of benefits to which the
Executive is entitled under any of the Welfare Plans, the Executive shall be deemed to be paid
during the Benefit Continuation Period annual compensation no less than the Annual Base Salary
in effect prior to the Termination Date. If participation or continued participation under any
one or more of the Welfare Plans included in the Welfare Continuance Benefit is not possible
under the terms of the Welfare Plan or any provision of law or if such participation or
continued participation would create an adverse tax consequence for the Executive or the
Company due to such participation, the Company will provide substantially identical benefits
directly or through one or more insurance arrangements. The Welfare Continuance Benefit as to
a Welfare Plan will cease if and when the Executive has obtained coverage under one or more
welfare benefit plans of a subsequent employer and such plan provides coverage to the
Executive and his dependents of the same type as provided under such Welfare Plan.

- 9 -

 

     (e) To the extent that the Executive would not otherwise be entitled to receive an
allocation of Employer Contribution under the Profit Sharing Plan or Benefit Restoration Plan
for the Plan Year in which the Termination Date occurs and for the Plan Years including all or
a portion of the Benefit Continuation Period, the Company shall pay to the Executive on the
Payment Date a lump sum cash payment equal to the equivalent of the Employer Contribution that
the Company would have allocated to the Executive’s account in each of the Profit Sharing Plan
and Benefit Restoration Plan as if the Executive had satisfied all requirements under the
Profit Sharing Plan and Benefit Restoration Plan to be eligible to receive an allocation of
the Employer Contribution for the Plan Year in which the Termination Date occurs, and each
Plan Year or pro-rata portion thereof during the Benefit Continuation Period. For purposes of
calculating this payment:

     (i) the eligible compensation of the Executive shall be deemed to be an amount
equal to the greatest of (i) twice the Executive’s Highest Annual Base Salary, (ii) the
eligible compensation used to calculate the Employer Contribution to the Executive’s
account for the last Plan Year prior to the Plan Year in which the Termination Date
occurs or (iii) the eligible compensation earned by the Executive during the Plan Year
to the Termination Date including the amounts described in Section 5.1 (a) (b) and (c);
and

     (ii) the Executive shall be deemed to have deferred the maximum amount of
compensation permitted by law or terms of the plan which would result in a credit to the
Executive’s account of the maximum amount of Employer Contribution in both the Profit
Sharing Plan and Benefit Restoration Plan of the maximum Employer Contribution; and

     (iii) the Employer Contribution calculated as a percentage of the eligible
compensation shall be deemed to be the greater of the Employer Contribution for the
last Plan Year prior to the Plan Year in which the Termination Date occurs or the
average of the Employer Contribution for the last five Plan Years.

Capitalized terms contained in this subsection which are not otherwise defined in this
Agreement shall have the meaning assigned to such terms under the Profit Sharing Plan or
Benefit Restoration Plan.

     5.2 If by the Company for Cause, Disability or Death or if by the Executive for Other than
for a Qualifying Termination. If, during the Employment Period, the Company terminates the
Executive’s employment for Cause, Disability or the death of the Executive or, in the event the
Executive terminates employment for any reason other than for a Qualifying Termination, this
Agreement shall terminate without further obligation by the Company to the Executive, other than:

     (a) the obligation to immediately pay the Executive the amounts described in Section
5.1(a), and

- 10 -

 

     (b) the obligation, to the extent required by law or regulation or pursuant to the terms
of the Plans, to provide benefits under the terms of any of the Plans, Welfare Plans and other
employee benefit programs in which the Executive was participating immediately prior to the
Termination Date, pursuant to Sections 3.2(c) through (e).

ARTICLE VI

TAX MATTERS

     6.1 Excise Tax Determination. If any benefit, payment or distribution by the Company
or an Affiliate to or for the benefit of the Executive or his legal representatives and dependents,
whether payable or distributable pursuant to the terms of this Agreement or pursuant to any other
plan, agreement, program or arrangement including, but not limited to, the Annual Cash Incentive
Plan, Long –Term Performance Plan, Benefit Restoration Plan, or Equity Incentive Plans
(collectively “Change in Control Arrangements”) would be subject to the excise tax imposed on the
Executive under Code Section 4999 on “excess parachute payments” (all of such benefits, payments or
distributions, whether or not subject to the excise tax, in aggregate, the “Change in Control
Payment”), the Company shall, within twenty (20) days of the Termination Date, provide the
Executive with a written notice and explanation of such determination. The notice shall include
(i) a calculation computing the amount of the excise tax to be owed by the Executive upon receipt
of the Change in Control Payment, detailing (a) the total amount of cash to be paid and the amount
of such cash subject to the excise tax, (b) the amount of and assumptions used to determine the
value of all non-cash benefits to be provided and such non-cash benefits subject to the excise tax, (c) the Executive’s base amount of total taxable compensation used in the calculation, and (d)
the total amount subject to the excise tax, (ii) a calculation of the maximum amount of the Change
in Control Payment that could be paid by the Company to the Executive without the imposition of the
excise tax (the “Capped Amount”), and (iii) calculations showing whether the Executive would
receive a larger amount, on an after-tax basis (assuming, for United States taxpayers, payment by
the Executive of the Code Section 4999 excise tax and on the portion in excess of the Capped Amount
payment of taxes based on the following: (A) the highest marginal federal personal income tax rate,
(B) the highest marginal state and local income tax rates for the state in which the Executive is
domiciled, and (C) the hospital insurance tax rate under Code Section 311 (b)), if the Company were
to pay the Executive (a) the Capped Amount or (b) the Change in Control Payment. The Company
shall pay to the Executive on the Payment Date the Capped Amount or the Change in Control Payment,
whichever is determined to result in the larger amount as calculated pursuant to clause (iii) of
the preceding sentence.

     The computations and explanation required under this subsection will be made by the accounting
firm which was serving as the Company’s independent auditor as of the Termination Date, or if that
firm is not available to perform the computation, the computation shall be performed by a tax
counsel or nationally recognized accounting firm selected by mutual consent of the Company and the
Executive (the “Auditor”). The fees and expenses of the Auditor will be paid solely by the Company.
The computations

- 11 -

 

and valuations required under this section will be performed in a manner consistent with the
requirements of Code Sections 280G and 4999, as in effect at the time the computations and
valuations are performed.

     6.2 Funding for Certain Payments. Without affecting its obligations to or the rights
of the Executive under this Agreement, the Company shall, as soon as possible following the Change
in Control but in no event later than thirty (30) days following the Change in Control Date,
establish an irrevocable grantor trust within the meaning of Code Sections 671 through 679 for
amounts payable under this Agreement (if such a trust has not previously been established), and
shall irrevocably deposit funds with the trustee of such trust of an amount equal to the total cash
payments to which the Executive would be entitled under Article V of the Agreement if the Executive
had a Qualifying Termination on the Change in Control Date, without regard to whether the Executive
actually had a Qualifying Termination on that date. The funds deposited with the trustee of such
trust and the earnings thereon will be dedicated to the payment of the cash amounts payable under
the Agreement, but shall remain subject to the claims of the general creditors of the Company. The
expenses of establishing and maintaining such trust shall be paid solely by the Company. When the
Executive or the Executive’s survivors become eligible for payments under this Agreement, such
payments will be paid out of the trust fund. If the amounts credited to the trust fund for the
benefit of the Executive are not sufficient to satisfy the total amounts payable to the Executive
or the Executive’s survivors under this Agreement, the additional amounts necessary to satisfy such
payments shall be paid directly by the Company from its general assets. In lieu of establishing an
irrevocable grantor trust as described above, the Company may establish an alternative funding
arrangement mutually acceptable to the Company and the Executive to fund the amounts payable under
this Agreement. Once the total cash payments to which the Executive would be entitled under Article
V of this Agreement have been paid from the trust, any remaining funds shall be returned to the
Company.

     6.3 Compliance with Tax Rules for Nonqualified Deferred Compensation Plans.
Notwithstanding any provision of this Agreement to the contrary, and to the extent required by Code
Section 409A, payments or provision of benefits to the Executive under this Agreement shall be
delayed for six (6) months following the Termination Date. To the extent permitted under Code
Section 409A, if the Executive shall be entitled to a payment pursuant to this Agreement prior to
the date at which a payment is permitted under Code Section 409A to be made to the Executive solely
because of the Code Section 409A six (6) month delay in payment rule for key employees, the
Executive shall be entitled to payment by the Company of the applicable employee portion of the
applicable withholding taxes due on such payment, if any. Such a payment by the Company of
withholding taxes shall reduce the amount otherwise payable to the Executive under this Agreement.
To the extent permitted under Code section 409A, if benefits otherwise to be provided to the
Executive, such as for example, certain of the benefits provided for in Section 5.1(d), are delayed
because of the Code Section 409A six (6) month delay in payment rule for key employees, in order
for the Company to provide those benefits during such six-month period, the Executive shall pay the
full cost of those benefits for such six-month period. On the first day of the seventh month
following the Termination

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Date, in addition to the Company commencing the provision of those benefits in accordance with
the terms of this Agreement, the Company shall pay to the Executive, in a lump sum, the total
amount the Executive paid for those benefits during such first six-month period.

     6.4 Company Obligation to Executive With Regard to Tax Information. If the
computations and valuations required to be provided by the Company to the Executive pursuant to
Section 6.01 are on audit challenged by the Internal Revenue Service as having been performed in a
manner inconsistent with the requirements of Code Sections 280G and 4999 or if Code Section 409A is
determined to apply to all or any part of the payments to which the Executive or his survivors may
be entitled under this Agreement and as a result of such audit or determination, (i) the amount of
cash and the benefits provided for in Section 6.1 remaining to the Executive after completion of
such audit or determination is less than (ii) the amount of cash and the benefits which were paid
or provided to the Executive on the basis of the calculations provided for in Section 6.1 (the
difference between (i) and (ii) plus any legal or accounting fees or expenses incurred by the
Executive arising from the audit being referred to as the “Short Fall Amount”), then the Executive
shall be entitled to receive an additional payment (a “Make-Whole Payment”) in an amount such that
after payment by the Executive of all taxes (including additional excise taxes under said Code
Section 4999 and any interest, and penalties imposed with respect to any taxes) imposed upon the
Make-Whole Payment, the Executive retains an amount of the Make-Whole Payment equal to the Short
Fall Amount. The Company shall pay the Make-Whole Payment to the Executive in a lump sum cash
payment within ten (10) days of the completion of such audit or determination.

ARTICLE VII

EXPENSES AND INTEREST

     7.1 Legal Fees and Other Expenses. The Company agrees to pay promptly as incurred, to
the full extent permitted by law, all legal fees and expenses which the Executive may reasonably
incur as a result of any action or proceeding by the Company, the Executive or others concerning
the validity or enforceability of, or liability under, any provision of this Agreement or any
guarantee of performance thereof (including as a result of any action or proceeding by the
Executive concerning the amount of any payment pursuant to this Agreement). The Company shall be
obligated to pay such legal fees and expenses regardless of the outcome of the action or
proceeding, unless a court of competent jurisdiction determines that the Executive acted in bad
faith in initiating the action or proceeding.

     7.2 Interest. If the Company does not pay any amount due to the Executive under this
Agreement within three days after such amount became due and owing, including but not limited to
any legal fees or expenses, interest shall accrue on such amount from the date it became due and
owing until the date of payment at an annual rate equal to 200 basis points above the prime
commercial lending rate published in The Wall Street Journal in effect from time to time during the
period of such nonpayment.

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ARTICLE VIII

NO SET-OFF OR MITIGATION

     8.1 No Set-off by Company. The Executive’s right to receive when due the payments and
other benefits provided for under this Agreement is absolute, unconditional and subject to no
set-off, counterclaim or legal or equitable defense. Any claim which the Company may have against
the Executive, whether for a breach of this Agreement or otherwise, shall be brought in a separate
action or proceeding and not as part of any action or proceeding brought by the Executive to
enforce any rights against the Company under this Agreement.

     8.2 No Mitigation. The Executive shall not have any duty to mitigate the amounts
payable by the Company under this Agreement by seeking new employment following termination. Except
as specifically provided in this Agreement, all amounts payable pursuant to this Agreement shall be
paid without reduction regardless of any amounts of salary, compensation or other amounts which may
be paid or payable to the Executive as the result of the Executive’s employment with another
employer.

ARTICLE IX

NON-EXCLUSIVITY OF RIGHTS

     9.1 Waiver of Other Severance Rights. To the extent that payments are made to the
Executive pursuant to Section 5.1 of this Agreement, the Executive hereby waives the right to
receive severance benefits under any plan or agreement (including an offer of employment or
employment contract) of the Company or its Affiliates which provides for severance benefits.
However, no waiver of severance benefits under another plan or agreement shall take effect pursuant
to this Agreement until the Change in Control Date.

     9.2 Other Rights. This Agreement shall not prevent or limit the Executive’s continuing
or future participation in any Plans, Welfare Plans, or other benefit, bonus, incentive or other
plans provided by the Company or any of its Affiliates and for which the Executive may qualify, nor
shall this Agreement limit or otherwise affect such rights as the Executive may have under any
other agreements with the Company or any of its Affiliates. Amounts which are vested benefits or
which the Executive is otherwise entitled to receive under the terms of any plan or program of the
Company or any of its Affiliates and any other payment or benefit required by law at or after the
Termination Date shall be payable in accordance with such plan, program or applicable law except as
expressly modified by this Agreement.

ARTICLE X

OBLIGATIONS OF THE EXECUTIVE

     10.1 Confidentiality. The Company has provided and will provide the Executive with
secret or confidential information, knowledge or data relating to the Company or any of its
Affiliates and their respective businesses. The Executive will hold in a

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fiduciary capacity for the benefit of the Company all secret or confidential information,
knowledge or data relating to the Company or any of its Affiliates and their respective businesses,
which will have been obtained by the Executive during the Executive’s employment by the Company or
any Affiliate and which will not be or become public knowledge (other than by acts by the Executive
or representatives of the Executive in violation of this Agreement). After termination of the
Executive’s employment with the Company, the Executive will not, without the prior written consent
of the Company or except as may otherwise be required by law or legal process, communicate or
divulge any such information, knowledge or data to anyone other than the Company and those
designated by it.

     10.2 Non-Competition and Non-Solicitation. The Executive agrees that for a period of
one (1) year after the Termination Date, the Executive (i) will not directly or indirectly compete
with the business as conducted by the Company or any of its Affiliates on the Termination Date
within one hundred (100) miles of any office or facility of the Company or any of its Affiliates,
(ii) will not hire or otherwise employ or retain, or knowingly permit (to the extent reasonably
within the Executive’s control) any other entity or business which employs the Executive or in
which the Executive has any ownership interest or is otherwise involved to hire or otherwise employ
or retain, any person who was employed by the Company or any of its Affiliates as of the
Termination Date, and (iii) will not solicit or in any manner attempt to influence or induce any
customer of the Company or any of its Affiliates to transact any business with any Person that
competes with the business as conducted by the Company or any of its Affiliates as of the
Termination Date.

     10.3 Enforcement. In the event of a breach or threatened breach of this Article X, the
Executive agrees that the Company will be entitled to injunctive relief in a court of appropriate
jurisdiction to remedy any such breach or threatened breach, and the Executive acknowledges that
damages would be inadequate and insufficient. If the Company obtains a judicial determination that
the Executive has breached the terms of this Article X, all rights of the Executive under this
Agreement will terminate.

     10.4 Reformation. If any court holds that any of the covenants contained in this
Article X shall be effective in any particular area or jurisdiction only if such covenant
is modified to limit its duration or scope or in any other manner, the court shall have such
authority to so reform the covenant, and the parties hereto shall consider such covenant to be
modified with respect to that particular area or jurisdiction so as to comply with the order of
such court and, as to all other jurisdictions, the covenants contained herein shall remain in full
force and effect as originally written. If any court holds that any of the covenants contained in
this Article X is void or otherwise unenforceable in any particular area or jurisdiction, the
Company may consider such covenant to be amended and modified so as to eliminate therefrom the
particular area or jurisdiction as to which such covenant is so held void or otherwise
unenforceable, and, as to all other areas and jurisdictions covered hereunder, the covenants
contained herein shall remain in full force and effect as originally written.

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ARTICLE XI

MISCELLANEOUS

     11.1 No Assignment of Benefit. No interest of the Executive or any beneficiary under
this Agreement, or any right to receive any payment or distribution hereunder, will be subject in
any manner to sale, transfer, assignment, pledge, attachment, garnishment, or other alienation or
encumbrance of any kind, nor may such interest or right to receive a payment or distribution be
taken, voluntarily or involuntarily, for the satisfaction of the obligations or debts of, or other
claims against, the Executive or Beneficiary, including claims for alimony, support, separate
maintenance, and claims in bankruptcy proceedings.

     11.2 Rights Under the Agreement. The right to receive benefits under the Agreement
will not give the Executive any proprietary interest in the Company, its Affiliates or any of the
assets of the Company or its Affiliates. Except to the extent otherwise provided in Section 6.2 of
this Agreement or under the terms of the Plans or Welfare Plans, amounts payable under the
Agreement will be paid from the general assets of the Company. The Executive will for purposes of
this Agreement be a general creditor of the Company.

     11.3 Applicable Law. This Agreement will be construed and interpreted pursuant to the
laws of the State of Texas, without reference to its conflict of laws rules.

     11.4 No Employment Contract. Nothing contained in this Agreement will be construed to
be an employment contract between the Executive and the Company prior to a Change in Control Date.

     11.5 Severability. In the event any provision of this Agreement is held illegal or
invalid, the remaining provisions of this Agreement will not be affected thereby.

     11.6 Successors. The Agreement will be binding upon and inure to the benefit of the
Company, the Executive and their respective heirs, representatives and successors. The Company will
require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to assume expressly and
agree to perform this Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. As used in this Agreement, the term
“Company” means the Company as hereinbefore defined and any successor to its business and/or assets
which assumes and agrees to perform this Agreement by operation of law, or otherwise.

     11.7 Amendment; Waiver. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing and the writing is
signed by the Executive and the Company. A waiver of any breach of or compliance with any provision
or condition of this Agreement is not a waiver of similar or dissimilar provisions or conditions.
This Agreement may be executed

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in one or more counterparts, all of which will be considered one and the same agreement.
Notwithstanding any other provisions of this Agreement to the contrary, the parties agree that they
will in good faith amend this Agreement in any manner reasonably necessary to comply with Code
Section 409A, and the parties further agree that any provisions of this Agreement that shall
violate the requirements of Code Section 409A shall be of no force and effect after such amendment.

     11.8 Notices. All notices and other communications hereunder will be in writing and
will be given by hand delivery acknowledged in writing by the recipient personally, or given by
first-class mail, registered or certified, with return receipt requested, postage prepaid, and
shall be deemed to have been duly given three days after mailing or immediately upon duly
acknowledged hand delivery, as applicable, to the respective persons named below:

	 	 	 	 	 
	 

	 	If to the Company:
	 	Commercial Metals Company
	 

	 	 	 	P.O. Box 1046
	 

	 	 	 	Dallas, Texas 75221
	 

	 	 	 	Attn: General Counsel
	 
	 	 	 	 
	 

	 	If to the Executive:	 	 

or to such other address as either party will have furnished to the other in writing in accordance
herewith.

     11.9 Tax Withholding. The Company shall withhold from any amounts payable under this
Agreement any federal, state or local taxes that are required to be withheld pursuant to any
applicable law or regulation.

IN WITNESS WHEREOF, the Executive and the Company have executed this Agreement as of the date first
above written.

	 	 	 	 	 	 	 
	 	 	COMMERCIAL METALS COMPANY	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

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