Document:

EX-10.21

 

Exhibit 10.21

EMPLOYMENT AGREEMENT

(Amended and Restated January 1, 2008)

This EMPLOYMENT AGREEMENT (this “Agreement”), entered into as of January 1, 2003, by and
between The Lubrizol Corporation, an Ohio corporation (the “Company”), and Donald W. Bogus (the
“Executive”) and amended and restated as of January 1, 2008;

WITNESSETH:

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

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

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

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

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

1. If the Executive remains in the employ of the Company until January 1, 2008, he will receive the
following:

	 	A.	 	15,000 Lubrizol Common Shares issued in the lump sum between January 2, 2008
and March 15, 2008.
	 	B.	 	Coverage under The Lubrizol Corporation Executive Death Benefit Plan at the
later of January 1, 2008 or age 60, provided he is still employed with the Company at
such time.
	 	C.	 	Coverage under The Lubrizol Corporation Officers’ Supplemental Retirement
Plan (SORP) at the later of January 1, 2008 or age 60, provided he is still employed
with the Company at such time. At age 61, the amount provided will be at least
$50,000; at age 62, at least $100,000; at age 63, at least $150,000; at age 64, at
least $200,000; and at age 65, at least $250,000, with such amounts comprised of the
amount calculated under the SORP, and if lesser than the amounts previously cited,
through additional payments made by the Company to the Executive. Any additional
payments made by the Company shall be made in the same form and time as payments made
under the SORP

The Company shall withhold from any payment hereunder the amount required to pay applicable
withholding taxes.

2. Executive will not have voting or dividend rights in number of shares listed in 1.A above,
unless and until the Shares are issued.

3. Successors and Assigns to the Company

	 	A.	 	The Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation, reorganization or otherwise) to all or

 

 

	 	 	 	substantially all of the business and/or assets of the Company, by agreement in
form and substance satisfactory to the Executive, expressly to assume and agree to
perform this Agreement in the same manner and to the same extent the Company would
be required to perform if no such succession had taken place. This Agreement will
be binding upon and inure to the benefit of the Company and any successor to the
Company, including without limitation any persons acquiring directly or indirectly
all or substantially all of the business and/or assets of the Company whether by
purchase, merger, consolidation, reorganization or otherwise (and such successor
will thereafter be deemed the “Company” for the purposes of this Agreement), but
will not otherwise be assignable, transferable or delegable by the Company.
	 	B.	 	This Agreement inures to the benefit of and is enforceable by the
Executive’s personal or legal representatives, executors, administrators, successors,
heirs, distributees and/or legatees.
	 	C.	 	This Agreement is personal in nature and neither of the parties hereto will,
without the consent of the other, assign, transfer or delegate this Agreement or any
rights or obligations hereunder except as expressly provided in Sections 3(A) and (B)
above. Without limiting the generality of the foregoing, the Executive’s right to
receive the benefits hereunder is not assignable, transferable or delegable, whether
by pledge, creation of a security interest or otherwise, other than by a transfer by
his will or by the laws of descent and distribution and, in the event of any
attempted assignment or transfer contrary to this Section 3(C), the Company has no
liability to pay any amount so attempted to be assigned, transferred or delegated.
	 	D.	 	The Company and the Executive recognize that each party will have no
adequate remedy at law for breach by the other of any of the agreements contained
herein and, in the event of any such breach, the Company and the Executive hereby
agree and consent that the other shall be entitled to a decree of specific
performance, mandamus or other appropriate remedy to enforce performance of this
Agreement.

4. For all purposes of this Agreement, all communications including without limitation notices,
consents, requests or approvals, provided for herein must be in writing and will be deemed to have
been duly given when delivered or five business days after having been mailed by United States
registered or certified mail, return receipt requested, postage prepaid, addressed to the Company
(to the attention of the Secretary of the Company) at its principal executive office and to the
Executive at his principal residence, or to such other address as any party may have furnished to
the other in writing and in accordance herewith, except that notices of change of address shall be
effective only upon receipt.

5. The validity, interpretation, construction and performance of this Agreement is governed by the
laws of the State of Ohio, without giving effect to the principles of conflict of laws of such
State.

6. If any provision of this Agreement or the application of any provision hereof to any person or
circumstances is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement
and the application of such provision to any other person or circumstances shall not be affected,
and the provision so held to be invalid, unenforceable or otherwise illegal shall be reformed to
the extent (and only to the extent) necessary to make it enforceable, valid and legal.

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7. No provision of this Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing signed by the Executive and the Company. No
waiver by either party hereto at any time of any breach by the other party hereto or compliance
with any condition or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreements or representations, oral or otherwise, expressed or implied with
respect to the subject matter hereof have been made by either party which are not set forth
expressly in this Agreement, other than the Employment Agreement between Executive and the Company
dated July 24, 2000, as may be amended from time to time, which remains in full force and effect.

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

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

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	EXECUTIVE	 	 	 	THE LUBRIZOL CORPORATION
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Chief Executive Officer

3EX-10.22

 

Exhibit 10.22

THE LUBRIZOL CORPORATION

ANNUAL INCENTIVE PAY PLAN

(Amended and Restated Effective January 1, 2008)

INTRODUCTION

     The Lubrizol Corporation (hereinafter referred to as the “Corporation”) hereby establishes,
effective as of January 1, 2008, The Lubrizol Corporation Annual Incentive Pay Plan (hereinafter
referred to as the “Plan”) in order to provide an award for employees which reflects the pursuit of
superior performance, increased customer satisfaction and enhancement of shareholder value. Awards
for participating employees under the Plan shall depend upon corporate performance measures as
determined by the Committee for the Plan Year.

     Except as otherwise provided, the Plan shall be administered by the Organization and
Compensation Committee (hereinafter referred to as the “Committee”) of the Board of Directors of
the Corporation. The Committee shall have conclusive authority to construe and interpret the Plan
and any agreements entered into under the Plan and to establish, amend, and rescind rules and
regulations for its administration. The Committee shall also have any additional authority as the
Board may from time to time determine to be necessary or desirable.

ARTICLE I

DEFINITIONS

     1.01 Definitions. The following terms shall have the indicated meanings for purposes
of the Plan:

	 	(a)	 	“Board” shall mean the Board of Directors of the Corporation.
	 
	 	(b)	 	“Chief Executive Officer” shall mean the chief executive officer of the
Corporation.
	 
	 	(c)	 	“Committee” shall mean the Organization and Compensation Committee of the
Board, or other designated committee of the Board, consisting of persons who are not
Employees or International Employees.
	 
	 	(d)	 	“Corporation” shall mean The Lubrizol Corporation, a corporation organized
under the laws of the State of Ohio.
	 
	 	(e)	 	“Director” shall mean a member of the Board.
	 
	 	(f)	 	‘“Employee” shall mean any person other than an Officer, who is employed for a
wage or salary by the Corporation or a domestic Subsidiary.
	 
	 	(g)	 	“International Employee” shall mean any person who is employed for a wage or salary by an
international Subsidiary of the Corporation.
	 
	 	(h)	 	“International Participant” shall mean any International Employee who has been
selected by the Committee pursuant to Article VI of the Plan, and who has not for any
reason becomes ineligible to participate in the Plan.

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	 	(i)	 	“Individual Award” shall mean the amount paid (or to be paid) to a Participant
or International Participant, as the case may be, by the Corporation pursuant to the
Plan.
	 
	 	(j)	 	“Individual Target Award” shall have the definition, and shall be determined,
as set forth in Section 3.02 herein.
	 
	 	(k)	 	“Officer” shall mean an employee of the Corporation or a Subsidiary who is a
member of the Executive Council of the Corporation.
	 
	 	(l)	 	“Participant” shall mean all Officers, and any Employee who has been selected
by the Committee pursuant to Article II herein to participate in the Plan, and have not
for any reason become ineligible to participate in the Plan.
	 
	 	(m)	 	“Pay” shall be determined at the time of calculating the Individual Performance
Shares and shall be the Participant’s base pay.
	 
	 	(n)	 	“Plan” shall mean The Lubrizol Corporation Annual Incentive Pay Plan, effective
January 1, 2008.
	 
	 	(o)	 	“Plan Year” shall mean each twelve-month period commencing January 1 and ending
December 31.
	 
	 	(p)	 	“Subsidiary” shall mean any corporation, international or domestic, that is
wholly or partially (but not less than 50%) owned directly or indirectly by the
Corporation.

     1.02 Construction. Where necessary or appropriate to the meaning of a word, the
singular shall be deemed to include the plural, the plural to include the singular, the masculine
to include the feminine, and the feminine to include the masculine.

ARTICLE II

ELIGIBILITY AND PARTICIPATION

     2.01 Eligibility. All Employees and Officers shall be eligible to participate in the
Plan.

     2.02 Participation. All Officers shall participate in the Plan. In addition, the
Committee shall determine which Employees shall participate in the Plan for each Plan Year. The
Committee may also determine which Employees hired during the Plan Year shall participate in the
Plan for such Plan Year. The Committee’s selection of Participants shall be after considering
recommendations presented to it by the Chief Executive Officer.

ARTICLE III

INDIVIDUAL AWARDS

     3.01 In General. At the time the Committee selects Participants for any Plan Year,
the Committee shall, after consideration of the recommendations of the Chief Executive Officer,
establish, for each Plan Year, an Individual Target Award for each Participant. After the end of
the Plan Year Individual Awards are paid.

     3.02 Calculation of Individual Award. The Individual Award shall be calculated in
the following manner:

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	 	(a)	 	The Participant’s Individual Target Award is determined by multiplying the
Participant’s Pay by a designated target percentage, which shall take into account the
Participant’s position in the Corporation. Such designated target, percentage, as well
as maximum and threshold percentages, shall be determined by the Committee.
	 
	 	(b)	 	At the beginning of each Plan Year, the Committee approves annual performance
scorecards at the corporate and segment level and specifies the scorecard(s) that apply
to a Participant. The Chief Executive Office approves annual performance scorecards
below the segment level.
	 
	 	(c)	 	After the end of the Plan Year, the Board approves the Individual Awards based
on actual performance for the Plan Year under the annual performance scorecard(s) that
apply to the Participant.

     Individual Target Awards may be either increased or decreased, at any time, or from time to
time, during a Plan Year, for any Participant at the sole discretion of the Committee in order to
reflect any change in the individual contribution under the formula set forth in this Section 3.02.

     3.03 Time and Method of Payment of Individual Awards. In the event the Committee
determines that a Participant is entitled to an Individual Award, the Corporation shall pay such
Individual Award to that Participant between January 1 and March 15 following the close of the Plan
Year. A Participant who separates from service or dies after the Plan Year but prior to the
payment of an Individual Award shall be eligible to receive any payment under this Plan.

     3.04 Conditions. Anything contained herein to the contrary notwithstanding, the
payment of Individual Awards to Participants with respect to any Plan Year is conditioned upon the
availability of adequate corporate profits for the Corporation’s fiscal year coinciding with any
Plan Year. The determination of whether adequate corporate profits exist shall be made by the
Board in its sole and unrestricted judgment and discretion and such determination shall be
conclusive and binding.

ARTICLE IV

AWARDS FOR INTERNATIONAL EMPLOYEES

     4.01 Participation. The Committee shall determine which International Employees shall
participate in the Plan for each Plan Year. The Committee’s selection of International
Participants shall be made after considering recommendations presented to it by the Chief Executive
Officer.

     4.02 Individual Awards. At the time the Individual Awards are determined for
Participants, the Committee shall, in its discretion, after consideration of the recommendations of
the Chief Executive Officer, establish for each Plan Year Individual Awards for each International
Participant.

     4.03 Payment of Awards. Individual Awards to each International Participant shall be
paid by the international Subsidiary that is the employer of such International Participant at the
same time and under the same conditions as payment is made to Participants under Sections 3.03 and
3.04. All payments shall be converted from the U.S. dollar measurement under the Plan to the
currency of the country of such Subsidiary at the currency exchange rate in effect at the time the
Individual Award is determined. All applicable withholding taxes shall be withheld
from the distribution and remitted by the international subsidiary to the appropriate taxing
authority.

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ARTICLE V

CHANGE OF CONTROL

     5.01 Effect of Change in Control. In the event a Change in Control of the
Corporation (as defined in Section 5.02) occurs prior to final determination by the Committee of
the amounts of Individual Awards to be paid under the Plan with respect to any Plan Year, the
Committee shall calculate such Individual Awards as soon as practicable after such Change in
Control. Individual Awards shall be based upon accruals by the Corporation up to the time of such
Change in Control and Individual Awards shall be calculated in accordance with Sections 3.02 and
4.02 herein. Payment of such Individual Awards shall be made within sixty (60) days after the
Change in Control.

     5.02 For all purposes of the Plan, a “Change in Control of the Corporation” shall have
occurred if any of the following events shall occur:

	 	(a)	 	The date that any one person, or more than one person acting as a group,
acquires ownership of stock of the corporation that, together with the stock held by
such person or group, constitutes more than 50 percent of the total fair market value
or total voting power of the stock of the Corporation.
	 
	 	(b)	 	The date any person, or more than one person acting as a group, acquires (or
has acquired during the 12-month period ending on the date of the most recent
acquisition by such person or persons) ownership of stock of the Corporation
possessing 30% or more of the total voting power of the stock of the Corporation.
	 
	 	(c)	 	The date a majority of members of the Corporation’s Board of Directors is
replaced during any 12-month period by Directors whose appointment or election is not
endorsed by a majority of the members of the Corporation’s Board of Directors before
the date of the appointment or election.
	 
	 	(d)	 	The date that any one person, or more than one person acting as a group,
acquires (or has acquired during the 12-month period ending on the date of the most
recent acquisition by such person or persons) assets from the Corporation that have a
total gross fair market value equal to or more than 40% of the total gross fair market
value of all of the assets of the Corporation immediately before the acquisition or
acquisitions.

     Notwithstanding the foregoing, a Change of Control shall have only occurred in accordance with
the regulations promulgated under Section 409A of the Internal Revenue Code of 1986, as amended.

ARTICLE VI

ADMINISTRATION

     6.01 Plan Administrator. The Committee shall be the Plan administrator.

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     6.02 Duties of Plan Administrator.

	 	(a)	 	The Committee shall administer the Plan in accordance with its terms and shall
have all powers necessary to carry out the provisions of the Plan including, but not
limited to, the following:

	 	(1)	 	Determination of Employees and International Employees who are
eligible for Plan participation; and

	 	(2)	 	Determination of the Individual Awards to be paid to
Participants for each Plan Year.

	 	(b)	 	The Committee shall interpret the Plan and shall resolve all questions arising
in the administration, interpretation, and application of the Plan. Any such
determination of the Committee shall be conclusive and binding on all persons.
	 
	 	(c)	 	The Committee shall establish such procedures and keep such records or other
data as the Committee in its discretion determines necessary or proper for the
administration of the Plan.
	 
	 	(d)	 	The Committee may delegate administrative responsibilities to such person or
persons as the Committee deems necessary or desirable in connection with the
administration of the Plan.

ARTICLE VII

MISCELLANEOUS

     7.01 Unfunded Plan. The Corporation shall be under no obligation to segregate or
reserve any funds or other assets for purposes relating to this Plan and no Participant or
International Participant shall have any rights whatsoever in or with respect to any funds or
assets of the Corporation.

     7.02 Non-Alienation. No anticipated payment of any Individual Award shall be subject
in any manner to alienation, sale, transfer, assignment, pledge, attachment, garnishment or
encumbrance of any kind.

     7.03 No Employment Rights. Nothing herein contained shall be construed as a
commitment or agreement upon the part of any Participant, International Participant, Employee or
International Employee hereunder to continue his employment with the Corporation or a Subsidiary,
and nothing herein contained shall be construed as a commitment on the part of the Corporation or
any Subsidiary to continue the employment or rate of compensation of any Participant or
International Participant hereunder or any Employee or International Employee for any period.

     7.04 Amendment of the Plan. The Corporation reserves the right, to be exercised by
instruction from the Committee, to modify or amend this Plan at any time.

     7.05 Duration and Termination of the Plan. The Corporation also reserves the right,
to be exercised by action of the Board, to discontinue or terminate the Plan; provided that, and
subject to all the provisions of this plan, any termination shall be effective only for all Plan
Years following December 31 of the Plan Year in which the decision to terminate occurs.

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