Document:

exhibit-20110511_sepagr.htm

SEPARATION AGREEMENT AND GENERAL RELEASE

 

Century Aluminum Company, a Delaware corporation (the “Company”), and Wayne R. Hale (“Employee”) have entered into this Separation Agreement and General Release (this “Separation Agreement”) as of this 11th day of May, 2011, which is the date of the last signature hereto.  Attached to this Separation Agreement is the Annex A Consulting Agreement between the parties which is incorporated herein as a separate agreement (the “Consulting Agreement”). In consideration of the mutual promises contained in this Separation Agreement, the parties agree as follows:

 

1.           Termination of Employment.

 

(a)           Employee and the Company agree that as of May 11, 2011 (the “Termination Date”), Employee’s employment with the Company has terminated.  As of the Termination Date, Employee resigned all positions Employee held as an officer, director or employee of the Company and its subsidiaries and affiliates, and will promptly execute such documents and take such actions as may be necessary or reasonably requested by the Company to effectuate or memorialize the resignation of such positions.

 

(b)           Employee’s termination on the Termination Date pursuant to Section 1(a) will be a “separation from service,” as defined in Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and official guidance issued thereunder (“Section 409A”), and after the Termination Date, Employee will not perform, and the Company will not require Employee to perform, services for the Company and its subsidiaries and affiliates, including pursuant to the Consulting Agreement, that exceed 20% of the average level of services Employee performed for the Company and its subsidiaries and affiliates during the 36 months preceding the Termination Date.

 

(c)           Within ten (10) days after the Termination Date, the Company will pay Employee a cash lump sum equal to all earned but unpaid salary and all accrued but unused paid time off (including vacation time) earned by Employee through the Termination Date.  In addition, the Company will reimburse Employee for all business expenses incurred on behalf of the Company through the Termination Date, in accordance with the Company’s policies with respect to the reimbursement of expenses.

 

2.           Payments and Other Consideration.  If Employee (i) executes and does not revoke this Separation Agreement during the revocation period described in Section 20 hereof and (ii) continues to comply with the terms and conditions of this Separation Agreement, including without limitation, the terms and conditions set forth in Section 6 hereof, then:

 

(a)           Continued Cash Severance Payments.  The Company will make cash payments to Employee in the aggregate amount of $2,255,192 (the “Continued Severance Payments”).  The Continued Severance Payments will be paid to Employee in substantially equal installments on the Company’s regularly scheduled payroll dates during the period commencing on the Termination Date and ending on December 31, 2013; provided, however, that the first such payment will be made on the Company’s first regularly scheduled payroll date on or after December 1, 2011 (the “Payment Date”) and will consist of all payments that would have been

 

  

  

  

made to Employee between the period commencing on the Termination Date and ending on the Payment Date.

 

(b)           Pro-Rata Bonus Payment.  In addition to the Continued Severance Payments, the Company will, on the Payment Date, make a lump sum pro-rata bonus payment to Employee, in cash, in the amount of $122,164.

 

(c)           Treatment of Outstanding Incentive Awards.

 

(i)           Stock Options.  Effective as of the Termination Date, the options to purchase 41,187 shares of the Company’s common stock (“Common Stock”) that are (A) held by Employee under the Century Aluminum Company Amended and Restated 1996 Stock Incentive Plan (the “Stock Plan”), and the related award agreements issued to Employee thereunder, and (B) unvested as of immediately prior to the Termination Date, will become fully vested and exercisable.  Each option to purchase shares of Common Stock held by Employee as of the Date of Termination, whether vested or unvested as of immediately prior to the Termination Date (each, an “Option”), will remain outstanding and exercisable until the tenth anniversary of the date of grant of such Option, unless earlier exercised or settled pursuant to the terms of the Stock Plan and the award agreements issued with respect to the Option.

 

(ii)           Time-vesting Performance Share Units.  Effective as of the Termination Date, the 24,639 Time-vesting Performance Share Units held by Employee pursuant to the Century Aluminum Company Long-Term Incentive Plan (the “LTIP”), and the related award agreements issued to Employee thereunder (“TVPSUs”), will become fully vested, and the Company will deliver 24,639 shares of Common Stock in full satisfaction of the TVPSUs to Employee on the Payment Date.

 

(iii)           Performance Units.  Effective as of the Termination Date, a pro-rata portion of the 364,300 Performance Units held by Employee pursuant to the LTIP and the related award agreements issued thereunder (“Performance Units”) will become fully vested, and the Company will make a lump sum cash payment to Employee in the amount of $129,751, in full satisfaction of the Performance Units, which payment will be made on the earlier to occur of (A) a Change in Control, as defined in the LTIP and which qualifies as a change in ownership or effective control under Section 409A (a “409A Change in Control”) and (B) the date on which the Company makes cash payments in respect of such Performance Units to employees generally.

 

(iv)           Long-Term Transformational Incentive Plan.  Effective as of the Termination Date, a pro-rata portion of Employee’s outstanding awards held by Employee pursuant to the Century Aluminum Long-Term Transformational Incentive Plan (the “LTTIP”) and the related award agreements issued thereunder (“LTTIP Awards”)  will become fully vested, and the Company will make a lump sum cash payment to Employee in the amount of $80,055 in full satisfaction of the LTTIP Awards, payable between January 1, 2012 and March 31, 2012, or upon the earlier occurrence of a 409A Change in Control.

 

(d)           Reimbursement of Legal Expenses.  The Company will pay or reimburse Employee for up to $10,000 of legal fees and expenses reasonably incurred by Employee in

 

  

  

  

connection with the drafting, negotiation and execution of this Separation Agreement and the Consulting Agreement, subject to Employee’s appropriate documentation of such legal expenses.

 

3.           General Release of Claims.

 

(a)           In exchange for the payments and benefits set forth in Paragraph 2 above, Employee and his heirs, personal representatives, successors and assigns, hereby forever release, remise and discharge the Company and its subsidiaries and affiliates, and each of their past, present, and future officers, directors, shareholders, members, employees, trustees, agents, representatives, affiliates, successors and assigns (collectively referenced herein as “Releasees”) from any and all claims, claims for relief, demands, actions and causes of action of any kind or description whatsoever, known or unknown, whether arising out of contract, tort, statute, treaty or otherwise, in law or in equity, which Employee now has, has had, or may hereafter have against any of the Releasees (i) from the beginning of time through the date upon which Employee signs this Separation Agreement, and/or (ii) arising from, connected with, or in any way growing out of, or related to, directly or indirectly, (A) Employee’s employment by the Company and its subsidiaries and affiliates, (B) Employee’s service as an officer or key employee, as the case may be, of the Company and its subsidiaries and affiliates, (C) any transaction prior to the date upon which Employee signs this Separation Agreement and all effects, consequences, losses and damages relating thereto, (D) the services provided by Employee to the Company and its subsidiaries and affiliates, (E) Employee’s Employment Agreement with the Company, dated March 1, 2007, as amended on August 30, 2007 and December 1, 2008, and the letters issued to employee with respect thereto, dated February 17, 2010, (F) Employee’s Severance Protection Agreement with the Company, dated March 1, 2007, as amended on December 1, 2008, (G) the Stock Plan, the LTIP and the LTTIP, and any award agreements issued to Employee under the Stock Plan, the LTIP or the LTTIP, including but not limited to award agreements issued with respect to the TVPSUs, the Performance Units and the LTTIP Awards, (H) the Century Aluminum Company Annual Incentive Plan, and any other cash incentive award, stock option, restricted stock, performance award, performance award unit or other equity or equity-based award granted, or promised to be granted, by the Company to Employee or (I) Employee’s termination of employment with the Company under the common law or any federal or state statute, including, but not limited to, all claims arising under Title VII of the Civil Rights Act of 1964, as amended; The Civil Rights Act of 1991, as amended; the False Claims Act, 31 U.S.C.A. § 3730, as amended, including, but not limited to, any right to personal gain with respect to any claim asserted under its “qui tam” provisions; Sections 1981 through 1988 of Title 42 of the United States Code, as amended; The Employee Retirement Income Security Act of 1974, as amended; The Immigration Reform and Control Act, as amended; The Americans with Disabilities Act of 1990, as amended; The Age Discrimination in Employment Act of 1967, as amended; The Older Workers’ Benefit Protection Act of 1990, as amended; The Workers Adjustment and Retraining Notification Act, as amended; The Occupational Safety and Health Act, as amended; The California Fair Employment and Housing Act; the California Labor Code; California Industrial Welfare Commission Wage Orders; any other federal, state or local civil or human rights law or any other local, state or federal law, regulation or ordinance; any public policy, contract, tort, or common law; or any allegation for costs, fees, or other expenses including attorneys’ fees incurred in these matters.

  

  

  

(b)           Notwithstanding the foregoing, nothing in this Separation Agreement shall release or waive any rights or claims Employee may have: (i) under this Separation Agreement; (ii) for indemnification under any written indemnification agreement by and between Employee and the Company and/or under applicable law or the Company’s charter or bylaws; (iii) under any applicable insurance coverage(s); (iv) with respect to any accrued and vested benefits under any tax-qualified retirement plans or the Century Aluminum Company Supplemental Retirement Income Benefit Plan; (v) relating to Employee’s rights with respect to Options as set forth in Section 2(c)(i) or (vi) under the Consulting Agreement.

 

(c)           In addition, Employee expressly waives all rights under Section 1542 of the Civil Code of the State of California, which reads as follows:

 

“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

 

Notwithstanding the provisions of Section 1542 of the Civil Code of the State of California, and for the purpose of implementing a full and complete release and discharge of each and all of the Releasees, Employee expressly acknowledges that this Separation Agreement is intended to include and does include in its effect, without limitation, all claims which Employee does not know or suspect to exist in Employee’s favor at the time Employee signed this Separation Agreement and this Separation Agreement contemplates the extinguishment of all such claims.

 

(d)           In consideration of the covenants contained herein, the Company (for itself and on behalf of its affiliates, subsidiaries, parents, divisions, and, to the extent permitted by law, the current, future and former employees, officers, directors, stockholders, partners, joint venturers, consultants, insurers, trustees and agents thereof, and their respective successors and assigns (in each case, solely in connection with their affiliation with the Company)), knowingly and voluntarily releases and forever discharges Employee and his spouse, heirs, administrators, children, representatives, executors, successors and assigns (collectively, the “Released Group”) from any and all claims, causes of action, demands, fees and liabilities of any kind whatsoever, whether known or unknown, suspected or unsuspected, arising out of or relating in any way to Employee’s service or separation from service (including, but not limited to, Employee’s service as an employee, officer, director and/or manager), or otherwise based upon acts or events that occurred on or before the date on which the Company executes this Separation Agreement, that the Company has, has ever had or may have up to and including the date of the Company's execution of this Separation Agreement; provided that nothing herein will be deemed to release or discharge any member of the Released Group from any claims, causes of action, demands, fees or liabilities of any kind whatsoever, arising out of or relating to: (i) the Consulting Agreement, (ii) the enforcement of the Company’s rights hereunder; (iii) any rights or claims which arise after the date on which the Company executes this Separation Agreement; (iv) Employee’s illegal conduct, fraud (including, without limitation, undiscovered financial fraud), embezzlement or other willful gross misconduct; or (v) any claims, causes of action, demands, fees or liabilities of any kind whatsoever which cannot be waived by law.

  

  

  

(e)           In addition, Company expressly waives all rights under Section 1542 of the Civil Code of the State of California, which reads as follows:

 

“A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

Notwithstanding the provisions of Section 1542 of the Civil Code of the State of California, and for the purpose of implementing a full and complete release and discharge of each and all of the Released Group, the Company expressly acknowledges that this Separation Agreement is intended to include and does include in its effect, without limitation, all claims which Company does not know or suspect to exist in the Company’s favor at the time the Company signed this Separation Agreement and this Separation Agreement contemplates the extinguishment of all such claims.

 

4.           Affirmations.  Employee affirms that he has not filed or caused to be filed, and is not presently a party to any claim, complaint, or action against the Company or any of its subsidiaries or affiliates in any forum or form.  Employee furthermore affirms that Employee has no known workplace injuries or occupational diseases, and has been provided and has not been denied any leave requested under the Family and Medical Leave Act.  Employee disclaims and waives any right of reinstatement with the Company.

 

5.           Benefits and COBRA.  Except as otherwise provided in this Section 5, effective as of the Termination Date, Employee has ceased all Company health benefit coverage and other benefit coverage.  Employee acknowledges that the Company has advised Employee that pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), Employee has a right to elect continued coverage under the Company’s group health plan for a period of eighteen (18) months, or such longer period as permitted under applicable law, from the Termination Date.

 

6.           Restrictive Covenants.

 

(a)           Confidentiality.  Employee will not, at any time, communicate or divulge to or use for the benefit of himself or any other person, firm, association or corporation, without the prior written consent of the Company, any Confidential Information (as defined below) owned or used by the Company or any of its subsidiaries or affiliates that may be communicated to, acquired by or learned of by Employee in the course of, or as a result of, Employee’s employment with the Company or any of its subsidiaries or affiliates.  All Confidential Information relating to the business of the Company or any of its subsidiaries or affiliates which Employee shall use or prepare or come into contact with shall become and remain the sole property of the Company or its subsidiaries or affiliates.  “Confidential Information” means information not generally known about the Company and its subsidiaries, affiliates, services and products, whether written or not, including information relating to research, development, purchasing, marketing plans, computer software or programs, any copyrightable material, trade secrets and proprietary information, including, but not limited to, customer lists. Employee may disclose Confidential Information to the extent it (i) becomes part of the public domain other than as a result of Employee’s breach hereof or (ii) is required to be disclosed by applicable law

 

or by order of any court of competent jurisdiction.  If Employee is required by applicable law or regulation to or by legal process to disclose any Confidential Information, Employee will provide the Company with prompt notice thereof so as to enable the Company to seek an appropriate protective order.

 

(b)           Non-Disparagement.  Neither party will, at any time, take any action or make any public statement, including, without limitation, statements to individuals, subsequent employers, vendors, clients, customers, suppliers or licensors or the news media, that would disparage, defame or place in a negative light, the other party, any of its subsidiaries or affiliates, or any of their respective officers, directors, employees, successors, business services or products; provided that nothing herein shall restrict either party from making statements in good faith that are required by applicable law or by order of any court of competent jurisdiction.  The parties agree that the public announcement of the circumstances surrounding this Separation Agreement shall be limited to the Form 8-K Securities and Exchange Commission filing for the Company that the parties have jointly prepared.

 

(c)           Cooperation.  Commencing on the Termination Date, Employee will cooperate, without further compensation except as provided in this Section 6(c) and in the Consulting Agreement, in all reasonable respects with the Company and its subsidiaries and affiliates in connection with any and all existing or future litigation, actions or proceedings (whether civil, criminal, administrative, regulatory or otherwise) brought by or against the Company or any of its subsidiaries or affiliates, to the extent the Company reasonably deems Employee’s cooperation necessary.  Employee shall be reimbursed for all reasonable out-of-pocket expenses incurred by Employee as a result of such cooperation.

 

7.           Return of Personal Property.  Employee promises to return to the Company all items of Company property in Employee’s possession, including any items containing Confidential Information, no later than the Termination Date.

 

8.           Notices.  All notices, demands, consents or communications required or permitted hereunder shall be in writing.  Any notice, demand or other communication given under this Separation Agreement shall be deemed to be given if given in writing (including facsimile or similar transmission) addressed as provided below (or at such other address as the addressee shall have specified by notice actually received by the sender) and if either (a) actually delivered in fully legible form to such address or (b) in the case of a letter, five (5) days shall have elapsed after the same shall have been deposited in the United States mail, with first-class postage prepaid and registered or certified:

 

To the Company:

 

Century Aluminum Company

2511 Garden Road - Building A, Suite 200

Monterey, CA 93940

Attention:  General Counsel

Facsimile:  831-642-9328

 

To Employee:

 

  

  

  

At the address contained in the Company’s personnel records provided that Employee may change his address at any time by giving the Company notice of such change in accordance with the notice provision of this Separation Agreement.

 

9.           Governing Law.  This Separation Agreement shall be governed by and construed and enforced according to the laws of the State of California, without regard to conflicts of laws principles thereof.  The parties agree that the state and federal courts located in the State of California shall have exclusive jurisdiction in any action, suit or proceeding based on or arising out of this Separation Agreement and the parties hereby: (a) submit to the personal jurisdiction of such courts; (b) consent to service of process in connection with any action, suit or proceeding; (c) agree that venue is proper and convenient in such forum; and (d) waive any other requirement (whether imposed by statute, rule of court or otherwise) with respect to personal jurisdiction, subject matter jurisdiction, venue, or service of process.

 

10.           Nonadmission of Wrongdoing.  The parties agree that neither this Separation Agreement nor the furnishing of the consideration set forth herein shall be deemed or construed at any time for any purpose as an admission by any party of any liability, wrongdoing or unlawful conduct of any kind, or any obligation by the Company to make any payments referenced herein.

 

11.           Amendment; Waiver. This Separation Agreement may not be modified, altered or changed except upon express written consent of both of the parties.  The failure of any party to insist upon the performance of any of the terms and conditions in this Separation Agreement, or the failure to prosecute any breach of any of the terms and conditions of this Separation Agreement, shall not be construed thereafter as a waiver of any such terms or conditions.  This entire Separation Agreement shall remain in full force and effect as if no such forbearance or failure of performance had occurred.

 

12.           Entire Agreement. This Separation Agreement sets forth the entire agreement between the parties hereto and fully supersedes any prior agreements or understandings between the parties concerning the specific subject matter of this Agreement, other than the Consulting Agreement.  Each party acknowledges that such party has not relied on any representations, promises, or agreements of any kind made to such party in connection with the other party’s decision to enter into this Separation Agreement, except for those set forth in this Separation Agreement and the Consulting Agreement.

 

13.           Severability.  The parties agree that if any provision of this Separation Agreement is declared or determined by any court of competent jurisdiction to be illegal, invalid, or unenforceable, the legality, validity, and enforceability of the remaining parts, terms, or provisions shall not be affected thereby, and said illegal, unenforceable or invalid part, term, or provision shall be deemed not to be part of this Separation Agreement.

 

14.           Withholding for Taxes.  The Company may withhold from any amounts payable hereunder all federal, state, city or other taxes as shall be required to be withheld pursuant to any applicable law or government regulation or ruling

 

15.           Binding Effect; Assignment.  This Separation Agreement will inure to the benefit of and be binding upon the heirs, executors, administrators, successors, and assigns of the parties,

 

  

  

  

including, without limitation, any successor to the Company.  The parties represent and warrant that they have not transferred or assigned to any person or entity any rights or obligations herein.  This Separation Agreement is not assignable by either party without the prior written consent of the other, except that the Company may assign this Separation Agreement to any assignee of or successor to substantially all of the business or assets of the Company or any direct or indirect subsidiary thereof without prior written consent of Employee.

 

16.           Counterparts.  This Separation Agreement may be executed in counterparts, and each counterpart shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.

 

17.           Section 409A.  To the extent applicable, it is intended that this Separation Agreement comply with the provisions of Section 409A.  This Separation Agreement shall be administered and interpreted in a manner consistent with this intent.  Employee is a “specified employee,” determined pursuant to procedures adopted by the Company in compliance with Section 409A, on the date of his separation from service and therefore to the extent necessary to comply with Section 409A, amounts payable to Employee hereunder are to be paid or made available on the earlier of (a) the first business day of the seventh month after the date of Employee’s termination of employment and (b) Employee’s death.  For purposes of Section 409A, any payments or benefits provided under this Separation Agreement shall be separate payments and not one of a series of payments.  Additionally, the following rules shall apply to any obligation to reimburse an expense or provide an in-kind benefit that is nonqualified deferred compensation within the meaning of Section 409A:  (i) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year; (ii) the reimbursement of an eligible expense must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred; and (iii) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit.

 

18.           Captions; Drafter Protection.  This Separation Agreement’s headings and captions are provided for reference and convenience only, and will not be employed in the construction of this Separation Agreement.  It is agreed and understood that the general rule pertaining to construction of contracts, that ambiguities are to be construed against the drafter, shall not apply to this Separation Agreement.

 

19.           Consultation with Attorney; Voluntary Agreement.  Employee acknowledges that (a) the Company has advised Employee of Employee’s right to consult with an attorney of Employee’s own choosing prior to executing this Separation Agreement, and Employee has so consulted an attorney, (b) Employee has carefully read and fully understands all of the provisions of this Separation Agreement, (c) Employee is entering into this Separation Agreement, including the releases set forth in Section 3, knowingly, freely and voluntarily in exchange for good and valuable consideration and (d) Employee would be entitled to some but not all the benefits described in Section 2 in the absence of this Separation Agreement.

 

20.           Revocation.  Employee acknowledges that Employee has been given twenty-one (21) calendar days to consider the terms of this Separation Agreement, although Employee may sign it sooner.  Employee agrees that any modifications, material or otherwise, made to this agreement do not restart or affect in any manner the original twenty-one (21) calendar day consideration period. Employee will have seven (7) calendar days from the date on which Employee signs this Separation Agreement to revoke Employee’s consent to the terms of this Separation Agreement.  Such revocation must be in writing and sent via by hand delivery or facsimile to Century Aluminum Company, 2511 Garden Road - Building A, Suite 200, Monterey, CA 93940, Attention:  General Counsel,  Fax: 831-642-9328.    Notice of such revocation must be received within the seven (7) calendar days referenced above.  In the event of such revocation by Employee, this Separation Agreement will not become effective and Employee will not have any rights under Section 2 of this Separation Agreement.  Provided that Employee does not revoke this Separation Agreement with such seven-day period, this Separation Agreement will become effective on the eighth calendar day after the date on which Employee signs this Separation Agreement (the date of such effectiveness, the “Effective Date”).

 

IN WITNESS WHEREOF, the parties have executed this Separation Agreement in Monterey County, California, on the respective dates set forth below.

 

	  	
COMPANY:

	  	  
	  	
CENTURY ALUMINUM COMPANY

	  	  
	  	  
	
Dated:      May 11, 2011                                                          

	
By:   /s/ Logan W. Kruger 

	 	
Name:     Logan W. Kruger                                                            

	  	
Title:      President and Chief Executive Officer                                                           

	  	  
	  	
EMPLOYEE:

	  	  
	  	
/s/ Wayne R. Hale

Wayne R. Hale, an individual

	  	  
	  	  
	
Dated:      May 11, 2011exhibit-20110511_consultagr.htm

CONSULTING AGREEMENT

 

Century Aluminum Company, a Delaware corporation (the “Company”), and Wayne R. Hale (“Consultant”) have entered into this Consulting Agreement (this “Agreement”) as of this 11th day of May, 2011, effective as of the Effective Date.  “Effective Date” and any capitalized term that is used but not defined herein shall have the meaning set forth in the Separation Agreement and General Release between the parties to which this Agreement is an annex (the “Separation Agreement”).

 

RECITALS

 

WHEREAS, Consultant’s employment with the Company terminated on May 11, 2011, pursuant to the terms and conditions of the Separation Agreement;

 

WHEREAS, the Separation Agreement contemplates that Consultant will enter into this Agreement, pursuant to which the Company will retain Consultant to perform consulting services for the Company, as set forth in this Agreement;

 

WHEREAS, while this Agreement may reference the Separation Agreement, this Agreement is a separate and independent agreement of the parties; and

 

WHEREAS, Consultant desires to be so retained to provide consulting services to the Company, as set forth in this Agreement.

 

NOW, THEREFORE, for and in consideration of the mutual promises and covenants set forth herein, the parties hereby agree as follows:

 

1.           Agreement Conditioned On Effective Date.  This Agreement and all of the terms and conditions set forth herein are conditioned upon the occurrence of the Effective Date.  If the Effective Date does not occur, this Agreement shall be of no force or effect and all of the terms and conditions set forth herein shall be cancelled.

 

2.           Consulting Services.

 

(a)           Capacity.  During the Term (as defined below), Consultant shall render such consulting services related to his specialized areas of knowledge, experience and expertise as may be requested by the Company from time to time.  Consultant’s contact for coordination of the provision of such services hereunder shall be Logan W. Kruger, or such other individual as designated by the Company (the “Contact”).  Consultant shall have no authority to bind the Company or any of its subsidiaries or affiliates, nor to act on their behalf, nor to make decisions for the Company or any of its subsidiaries or affiliates.  The Company, being ultimately interested only in the results of Consultant’s performance of the services set forth in this Agreement, will give only broad direction to Consultant; provided that such direction is clear and adequate relative to the services to be performed.  Consultant shall determine the method, details, and means of performing the services contemplated by this Agreement.  Consultant shall make himself available to provide consulting services as reasonably requested by the Company, but in no event shall such services exceed 20% of the average level of services Consultant performed for the Company and its subsidiaries and affiliates during the 36 months preceding the

 

  

  

  

Termination Date.  The Company may request consulting services from Consultant during the term of this Agreement consistent with Consultant’s time commitment set forth in the preceding sentence.

 

(b)           Term and Operation.  This Agreement will commence on the Effective Date and shall continue until the earliest of (i) December 31, 2011, (ii) termination by the Company for Cause (as defined below), (iii) Consultant’s voluntary termination for any reason or (iv) Consultant’s death.  The period during which Consultant provides services pursuant to this Agreement is referred to as the “Term.”  For purposes of this Agreement, “Cause” shall mean Consultant has (A) willfully and materially breached this Agreement, which breach has not been cured within 15 days after notice is provided to Consultant by the Company, (B) willfully and materially violated the provisions of Section 6 of the Separation Agreement, which violation has not been cured within 15 days after notice is provided to Consultant by the Company or (C) been convicted of a felony or any crime involving moral turpitude.

 

(c)           Location of Services.  Unless otherwise agreed by the Company and Consultant, the consulting services to be performed by Consultant will be performed by Consultant in the State of Montana which is Consultant’s actual and intended State of residency and domicile.

 

(d)           Compensation.  In consideration of Consultant’s performance of the consulting services during the Term, the Company will pay Consultant a monthly consulting fee equal to $101,410 (the “Consulting Fee”), which shall be payable to Consultant on or about the last business day of each calendar month during the Term.

 

(e)           Reimbursement of Expenses.  Upon reasonable documentation of expenses from Consultant, the Company shall reimburse Consultant in accordance with the Company’s expense reimbursement policies for all reasonable business expenses incurred by Consultant in the performance of Consultant’s duties under this Agreement.  Notwithstanding the foregoing, all significant expenses (i.e., any expense in excess of $5,000) to be incurred by Consultant in connection with this Agreement shall require the prior written approval of the Contact.

 

(f)           Ownership of Work Product.  Consultant hereby assigns exclusively to the Company the ownership of all work product prepared or provided by Consultant to the Company or otherwise generated as a result of Consultant’s provision of consulting services hereunder, along with all intellectual property rights (including, without limitation, all copyrights) related thereto.

 

(g)           Nonexclusivity.  The Company acknowledges that Consultant’s services hereunder will be provided by Consultant on a nonexclusive basis, and that Consultant may engage in any other business activities as long as such activities do not interfere with Consultant’s obligations to the Company under this Agreement or any other agreement with the Company (including, but not limited to, the Separation Agreement).

 

3.           Restrictive Covenants.  Consultant warrants and represents that he has complied, and by this Agreement agrees that he will continue to comply, with all the terms of the

 

  

  

  

Separation Agreement.  The parties agree and acknowledge that this Agreement supplements the Separation Agreement to the extent set forth herein and that in all other respects the Separation Agreement remains in full force and effect.

 

4.           Independent Contractor.  Consultant warrants that, during the Term, Consultant will at all times be and remain an independent contractor, and Consultant shall not be considered the agent, partner, principal, employee or servant of the Company or any of its subsidiaries or affiliates.  Consultant shall be free to exercise Consultant’s own judgment as to the manner and method of providing the consulting services to the Company, subject to applicable laws and requirements reasonably imposed by the Company.  Consultant acknowledges and agrees that, during the Term, Consultant will not be treated as an employee of the Company or any of its subsidiaries or affiliates for purposes of federal, state, local or foreign income or other tax withholding, nor unless otherwise specifically provided by law, for purposes of the Federal Insurance Contributions Act, the Social Security Act, the Federal Unemployment Tax Act or any Workers’ Compensation law of any state or country (or subdivision thereof), or for purposes of benefits provided to employees of the Company or any of its subsidiaries or affiliates under any employee benefit plan, program, policy, or arrangement (including, without limitation, vacation, holiday and sick leave benefits, insurance coverage and retirement benefits).  Consultant acknowledges and agrees that as an independent contractor, Consultant will be required, during the Term, to pay any applicable taxes on the Consulting Fee, and to provide his workers’ compensation insurance and any other coverage required by law, and the Consulting Fee will be reported for all purposes on IRS Form 1099-MISC.  Consultant further acknowledges that this Agreement is not intended to have any impact on any retirement, insurance, healthcare or other benefits provided to Consultant in connection with his prior employment with the Company.

 

5.           Survival.  Subject to any limits on applicability contained therein, Section 3 hereof and the applicable portions of Section 4 hereof (relating to Consultant’s liability for tax and other liabilities) shall survive and continue in full force in accordance with its terms notwithstanding any termination of this Agreement.

 

6.           Severability.  The parties agree that if any provision of this Agreement is declared or determined by any court of competent jurisdiction to be illegal, invalid, or unenforceable, the legality, validity, and enforceability of the remaining parts, terms, or provisions shall not be affected thereby, and said illegal, unenforceable or invalid part, term, or provision shall be deemed not to be part of this Agreement.

 

7.           Entire Agreement; Amendment.  Except as otherwise set forth herein, this Agreement represents the entire agreement and understanding between Consultant and the Company concerning the specific subject matter of this Agreement and supersedes and replaces any and all prior agreements and understandings between Consultant and the Company concerning the specific subject matter of this Agreement.  Any modification or amendment of this Agreement, or additional obligation assumed in connection with this Agreement, shall be effective only if placed in writing and signed by both parties or by authorized representatives of each of the parties.

 

8.           Captions; Drafter Protection.  This Agreement’s headings and captions are provided for reference and convenience only, and will not be employed in the construction of

 

  

  

  

this Agreement.  It is agreed and understood that the general rule pertaining to construction of contracts, that ambiguities are to be construed against the drafter, shall not apply to this Agreement.

 

9.           Counterparts.  This Agreement may be executed in counterparts, and each counterpart shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned.

 

10.           Binding Effect; Assignment.  Neither this Agreement, nor any rights or benefits hereunder, may be assigned, delegated, transferred, pledged or hypothecated without the prior written consent of the parties, except that the Company may assign this Agreement to any assignee of or successor to substantially all of the business or assets of the Company or any direct or indirect subsidiary thereof without prior written consent of Consultant.

 

11.           No Reliance.  Consultant acknowledges and agrees that he has not relied upon any advice whatsoever from the Company as to any provision of this Agreement including, but not limited to, the taxability, whether pursuant to federal, state, local or foreign income tax statutes or regulations, or otherwise, of the payments made, action taken, or consideration transferred hereunder and that Consultant will be solely liable for all tax obligations arising therefrom.

 

12.           Governing Law.  This Agreement shall be governed by and construed and enforced according to the laws of the State of Montana, without regard to conflicts of laws principles thereof.  The parties agree that the state and federal courts located in the State of Montana shall have exclusive jurisdiction in any action, suit or proceeding based on or arising out of this Agreement and the parties hereby: (a) submit to the personal jurisdiction of such courts; (b) consent to service of process in connection with any action, suit or proceeding; (c) agree that venue is proper and convenient in such forum; and (d) waive any other requirement (whether imposed by statute, rule of court or otherwise) with respect to personal jurisdiction, subject matter jurisdiction, venue, or service of process.

 

13.           No Waiver.  The failure of either party to insist upon the performance of any of the terms and conditions in this Agreement, or the failure to prosecute any breach of any of the terms and conditions of this Agreement, shall not be construed thereafter as a waiver of any such terms or conditions.  This entire Agreement shall remain in full force and effect as if no such forbearance or failure of performance had occurred.

 

14.           Warranties.  Consultant warrants that he will not deliver or disclose to the Company information which infringes any property right of any third party relating to proprietary or trade secret information or copyrights.  Consultant warrants that he is not a party to any other existing agreement which would prevent him from entering into this Agreement or which would adversely affect this Agreement, and agrees that he will not, during the Term, enter into any such agreement.

 

15.           Confidentiality.  Consultant agrees to maintain absolute confidentiality of the existence and terms of this Agreement, the services performed by Consultant hereunder, and the information, reports and other work product produced by Consultant in connection herewith

 

  

  

  

except to the extent the Company discloses such information in public securities filings or otherwise.

 

16.           Voluntary Execution.  Consultant acknowledges that he is executing this Agreement voluntarily and of his own free will.  Consultant further acknowledges that he has read, fully understands and intends to be bound by the terms of this Agreement, and has had an opportunity to carefully review it with his attorney prior to executing it, and his attorney has so reviewed it.

 

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

 

	
CENTURY ALUMINUM COMPANY

	
By:

	  /s/ Logan W. Kruger
	  	
Name: Logan W. Kruger

	
 

	  	
Title: President and Chief Executive Officer

	
 

	  	
Date:  May 11, 2011

	
 

 

	
CONSULTANT

	
By:

	  
	  	
/s/ Wayne R. Hale

Name:  Wayne R. Hale

	
 

	  	
Date:  May 11, 2011

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