Document:

Exhibit 10.13

 

Exhibit 10.13

EXECUTIVE SEVERANCE AGREEMENT, made this day of December 1, 2004,
between MILACRON INC., a Delaware Corporation (the “Company”) and __________ (the “Executive”)

          WHEREAS, the Board of Directors of the Company (the “Board”) considers it essential to the
best interests of the Company’s stockholders to have the continuous employment of key management
personnel. The Board recognizes that the possibility of a change in control of the Company exists
and the uncertainty it may raise among management may result in the departure or distraction of
management personnel to the detriment of the Company and its stockholders.

          WHEREAS, the Board has determined that the Company should reinforce and encourage the
continued attention and dedication of key members of the Company’s management to their assigned
duties without distraction by circumstances arising from the possibility of a change in control of
the Company.

          NOW, THEREFORE, to induce the Executive to remain employed by the Company and in consideration
for the Executive’s agreement to remain so employed in certain circumstances, the Company agrees
that the Executive shall receive the benefits set forth in this Agreement under the circumstances
described below.

          1. Term of Agreement. This Agreement shall commence on the date hereof and shall
continue in effect through December 31, 2005; provided, however, that commencing on
January 1, 2006, and each January 1 thereafter, the term of this Agreement shall automatically be
extended for one additional year unless the Company gives notice not later than September 30 of the
preceding year that it does not wish to extend this Agreement; and provided,
further, that regardless of any such notice by the Company, this Agreement shall continue
in effect for a period of 24 months beyond the term provided herein if a Change in Control of the
Company occurs during such term. Notwithstanding anything to the contrary stated herein, this
Agreement shall terminate prior to the dates set forth

 

 

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above without further acts by either party upon (a) termination of the Executive’s employment
before a Change in Control, (b) termination of the Executive’s employment by the Company after a
Change in Control for Cause or for Disability (each as respectively defined in Section 4 hereof),
(c) termination of the Executive’s employment after a Change in Control due to the Executive’s
death or by the Executive for other than Good Reason (as defined in Section 4 hereof), or (d)
completion by the Company of all of its obligations in the event benefits shall become payable
hereunder.

          2. Change in Control. No benefits shall be payable hereunder unless there shall have
been a Change in Control of the Company during the term of this Agreement. For purposes of this
Agreement, a “Change in Control” occurs if:

          (a) a Person or Group other than a trustee or other fiduciary of securities held under an
employee benefit plan of the Company or any of its subsidiaries, is or becomes a Beneficial Owner,
directly or indirectly, of stock of the Company representing 20% or more of the total voting power
of the Company’s then outstanding stock and securities; provided, however, that for
purposes of this subsection (a), the following acquisitions shall not constitute a Change of
Control: (i) any acquisition directly from the Company, (ii) any acquisition by the Company, (iii)
any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company or (iv) any acquisition by any corporation
pursuant to a transaction which complies with clause (i) of section (c) of this Section 2;

          (b) individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”),
cease for any reason to constitute a majority thereof; provided, however, that any
individual becoming a director whose election, or nomination for election by the Company’s
stockholders, was approved by a vote of at least 60% of the directors then comprising the Incumbent
Board shall be considered as though such individual was a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of office occurs as a
result of an

 

 

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actual or threatened election contest with respect to the election or removal of directors or
other actual or threatened solicitation of proxies or consents by or on behalf of a Person or Group
other than the Board;

          (c) there is consummated a merger, consolidation or other corporate transaction, other than
(i) a merger, consolidation or transaction that would result in the voting securities of the
Company outstanding immediately prior to such merger, consolidation or transaction continuing to
represent (either by remaining outstanding or by being converted into voting securities of the
surviving entity or any parent thereof) at least 66 2/3% of the combined voting power of the stock and
securities of the Company or such surviving entity or any parent thereof outstanding immediately
after such merger, consolidation or transaction, or (ii) a merger, consolidation or transaction
effected to implement a recapitalization of the Company (or similar transaction) in which no Person
or Group is or becomes the Beneficial Owner, directly or indirectly, of stock and securities of the
Company representing more than 20% of the combined voting power of the Company’s then outstanding
stock and securities;

          (d) the sale or disposition by the Company of all or substantially all of the Company’s assets
other than a sale or disposition by the Company of all or substantially all of the assets to an
entity at least 66 2/3% of the combined voting power of the stock and securities of which is owned by
Persons in substantially the same proportions as their ownership of the Company’s voting stock
immediately prior to such sale; or

          (e) the stockholders of the Company approve a plan of complete liquidation or dissolution of
the Company.

          “Person” shall mean any person (as defined in Section 3(a)(9) of the Securities Exchange Act
(the “Exchange Act”), as such term is modified in Section 13(d) and 14(d) of the Exchange Act)
other than (i) any employee plan established by the Company, (ii) any affiliate (as defined in Rule
12b-2 promulgated under the Exchange Act) of the Company, (iii) an underwriter temporarily holding
securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or
indirectly, by

 

 

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stockholders of the Company in substantially the same proportions as their ownership of the
Company. “Group” shall mean any group as defined in Section 14(d)(2) of the Exchange Act.
“Beneficial Owner” shall mean beneficial owner as defined in Rule 13d-3 under the Exchange Act.

          3. Benefits Upon a Change in Control. The Executive shall be entitled to the
following benefits upon a Change in Control during the term of this Agreement:

          (a) the immediate vesting of all equity-based awards (including options, restricted stock,
phantom stock and performance shares) granted to the Executive;

          (b) a lump sum cash payout of the Executive’s annual bonus under the Company’s applicable
annual bonus program (the “Annual Bonus Program”) for the year in which such Change in Control
occurs, the amount of which shall be equal to the Executive’s target or base incentive bonus
possible under the Annual Bonus Program for that year;

          (c) a lump sum cash payment of all earned but unpaid amounts under the Annual Bonus Program
unless the Executive elects prior to such Change in Control to defer such distribution under and in
accordance with the Company’s Compensation Deferral Plan.

          The payments under this Section 3 shall be made on the effective date of the Change in
Control.

          4. Termination Following Change in Control. The Executive shall be entitled to the
benefits provided under Section 5 upon the Executive’s “Qualifying Termination” (as defined herein)
during the 24-month period beginning on the date of a Change in Control (the “Protection Period”).
For purposes hereof, a “Qualifying Termination” shall mean (i) a termination of the Executive’s
employment by the Company for any reason other than for Cause or Disability or due to the
Executive’s death, or (ii) the Executive’s termination of employment for “Good Reason” (as defined
in this Section 4).

          (a) Disability. If the Executive is absent from duties with the Company on a
full-time basis for twelve (12) consecutive months due to a physical or mental

 

 

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incapacity, and the Executive has not returned to the full-time performance of the Executive’s
duties within thirty (30) days after written Notice of Termination is given to the Executive by the
Company, such termination shall be considered to be termination by the Company for “Disability” for
purposes of this Agreement.

          (b) Cause. The Company may terminate the Executive’s employment for Cause. For
purposes of this Agreement only, the Company shall have “Cause” to terminate the Executive’s
employment hereunder only on the basis of (x) the Executive’s fraud on, or misappropriation or
embezzlement of assets of, the Company that causes material harm to the Company or (y) the
Executive’s willful and continued failure to substantially perform the Executive’s duties hereunder
(other than any such failure resulting from the Executive’s mental or physical incapacity or mental
illness or any such actual or anticipated failure after the issuance of a Notice of Termination, as
defined in Section 4(d), by the Executive for Good Reason, as defined in Section 4(c));
provided, however, that “Cause” shall occur with respect to clause (y) of this
sentence only if such action constituting Cause has not been corrected or cured by the Executive
within 30 days after the Executive has received written notice from the Company of the Company’s
intent to terminate the Executive’s employment for Cause and specifying in detail the basis for
such termination. For purposes of this paragraph, no act, or failure to act, on the Executive’s
part shall be considered “willful” unless done, or omitted to be done, by the Executive in bad
faith and without reasonable belief that the Executive’s action or omission was in the best
interests of the Company.

          (c) Good Reason. The Executive shall be entitled to terminate the Executive’s
employment for Good Reason at any time during the term of this Agreement following a Change in
Control. For purposes of this Agreement, “Good Reason” shall exist in the event of the occurrence
of any of the following without the Executive’s express prior written consent:

          (i) any diminution of, or the assignment to the Executive of duties inconsistent with, the
Executive’s position, duties, responsibilities and status with the

 

 

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Company immediately prior to a Change in Control, an adverse change in the Executive’s titles
or offices as in effect immediately prior to a Change in Control, or any removal of the Executive
from, or any failure to reelect the Executive to, any of such positions, except in connection with
the Executive’s termination of employment for Disability or Cause or as a result of the Executive’s
death or by the Executive other than for Good Reason;

          (ii) a reduction by the Company in the Executive’s base salary as in effect on the date of a
Change in Control or as the same may be increased from time to time during the term of this
Agreement;

          (iii) the Company’s failure to continue any benefit plan or arrangement (including, without
limitation, the Company’s life insurance, post-retirement benefits, and comprehensive medical plan
coverage) in which the Executive participated at the time of a Change in Control without
implementing at such time plans or arrangements providing the Executive with substantially similar
benefits (hereinafter referred to as “Benefit Plans”), or any action by the Company that would
adversely affect the Executive’s participation in or materially reduce the Executive’s benefits
under any such Benefit Plan or deprive the Executive of any material fringe benefit enjoyed by the
Executive at the time of a Change in Control;

          (iv) the Company’s failure to continue in effect, or continue payments under, any incentive
plan or arrangement (including, without limitation, any equity-based plan or arrangement) in which
the Executive participated at the time of a Change in Control (hereinafter referred to as
“Incentive Plans”) or any action by the Company that would adversely affect the Executive’s
participation in any such Incentive Plans or reduce the Executive’s benefits under any such
Incentive Plans;

          (v) a relocation of the Company’s principal executive offices to a location outside the
Cincinnati, Ohio metropolitan area or relocation of the Executive’s primary workplace to any place
other than the location at which the Executive performed the Executive’s duties immediately prior
to a Change in Control;

 

 

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          (vi) the Company’s failure to provide the Executive with the number of paid vacation days to
which the Executive was entitled at the time of a Change in Control;

          (vii) the Company’s material breach of any provision of this Agreement;

          (viii) the Company’s failure to comply with Section 7 hereof; or

          (ix) the Company’s purported termination of the Executive which is not effected pursuant to a
Notice of Termination satisfying the requirements of Section 4(d).

          (d) Notice of Termination. Any purported termination of the Executive by the Company
or by the Executive shall be communicated by written Notice of Termination to the other party in
accordance with Section 8 hereof. For purposes of this Agreement, a “Notice of Termination” shall
mean a notice that indicates the specific termination provision in this Agreement relied upon and
the facts, if any, supporting application of such provision.

          (e) Date of Termination; Dispute Concerning Termination. “Date of Termination” shall
mean (i) if the Executive’s employment is terminated for Disability, thirty (30) days after Notice
of Termination is given (provided that the Executive has not returned to the performance of the
Executive’s duties on a full-time basis during such thirty (30) day period) or (ii) if the
Executive’s employment is terminated by the Company for any reason other than Disability or by the
Executive for any reason, the date specified in the Notice of Termination (which, in the case of a
termination by the Company shall not be less than thirty (30) days, and in the case of a
termination by the Executive shall not be more than sixty (60) days, respectively, from the date
such Notice of Termination is given); provided, however, that if the party
receiving the Notice of Termination notifies the other party within thirty days after the date such
Notice of Termination is given that a dispute exists concerning the termination, the Date of
Termination shall be the date on which the dispute is finally resolved, either by mutual written
agreement of

 

 

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the parties or by a binding arbitration award referred to in Section 13; and provided
further that the Date of Termination shall be extended by a notice of dispute only if such
notice is given in good faith and the party giving such notice shall pursue the resolution of such
dispute with reasonable diligence. The Company shall continue the Executive as a participant in
all benefit and insurance plans in which the Executive participated when the Notice of Termination
was given (ignoring any reductions that gave rise to Good Reason) until the dispute is finally
resolved in accordance with this Section. Compensation shall be withheld and the Executive’s full
compensation in effect when the notice of dispute was given applicable during the period between
the notice of the dispute and the resolution of the dispute shall be paid to the Executive in a
lump sum if the Executive receives an arbitration award in favor of the Executive and related to
the Executive’s full claim. Amounts paid under this Section are in addition to all other amounts
due under this Agreement and shall not be offset against or reduce any other amounts due under this
Agreement. In addition, for purposes of determining whether any Qualifying Termination has
occurred during the Protection Period, the date a Notice of Termination is given pursuant to this
Section shall be deemed the date of the Executive’s Qualifying Termination.

          5. Compensation Upon Termination.

          (a) Salary and Other Compensation or Benefits. If the Executive’s employment is
terminated during the Protection Period, the Company shall pay the Executive’s base salary through
the Date of Termination at the rate in effect at the time the Notice of Termination is given,
together with all compensation and benefits to which the Executive is entitled through the Date of
Termination under the terms of any compensation or benefit plan, program or arrangement maintained
by the Company or its affiliates during such period.

          (b) Disability. During any period that the Executive fails to perform the Executive’s
duties hereunder as a result of mental or physical incapacity, the Executive shall continue to
receive the Executive’s base salary at the rate then in effect and continue to participate in all
Benefit Plans and Incentive Plans until the Executive’s

 

 

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employment is terminated pursuant to Section 4(a) hereof. Thereafter, the Executive’s
benefits shall be determined in accordance with the insurance and other benefit programs then
applicable to the Executive.

          (c) Cause; Voluntary Termination of Employment Without Good Reason. If the
Executive’s employment is terminated for Cause or the Executive voluntarily terminates employment
without Good Reason, the Company shall pay the Executive only the Executive’s base salary through
the Date of Termination at the rate in effect at the time Notice of Termination is given, together
with other compensation and benefits to which the Executive is entitled under the terms of any
benefit plan, program or arrangement maintained by the Company and applicable to the Executive, and
the Company shall have no further obligations to the Executive under this Agreement.

          (d) Qualifying Termination. If the Executive’s employment is terminated in a
Qualifying Termination during the Protection Period, then the Executive shall be entitled to the
following benefits:

          (i) if the Executive’s Qualifying Termination occurs in a calendar year subsequent to the year
in which the Change in Control occurred, a pro rata portion (based on the number of calendar days
that have elapsed before the Executive’s Date of Termination) of the Executive’s target or base
incentive bonus possible under the Annual Bonus Program for the year in which termination occurs;

          (ii) a lump sum cash payment equal to all outstanding long term incentive awards made to the
Executive under the long term incentive programs of the Company (the “LTIP”), assuming attainment
of the applicable maximum performance targets;

          (iii) in lieu of any further salary payments to the Executive for periods subsequent to the
Date of Termination and other severance benefits, the Company shall pay to the Executive a lump sum
severance payment in an amount equal to two times the sum of (A) the higher of the Executive’s
annual base salary in effect immediately before the event or circumstance upon which the Notice of
Termination is based or such salary in effect immediately

 

 

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before the Change in Control and (B) the higher of (x) the highest award made to the Executive
pursuant to the Company’s annual incentive plan for each of the three measuring periods completed
immediately before the event or circumstance upon which the Notice of Termination is based or (y)
such highest award in respect of the three measuring periods completed immediately before the
Change in Control;

          (iv) a lump sum amount (utilizing actuarial assumptions for lump sum payments in effect under
the Company’s qualified defined benefit retirement plan (the “Retirement Plan”) immediately prior
to the Date of Termination) equal to the excess of (a) the actuarial equivalent lump sum value of
the benefit under the Retirement Plan (determined without taking into account any early retirement
subsidies) and the actuarial equivalent lump sum value of the benefit under any excess or
supplemental retirement plan in which the Executive participates (together, the “SERP”), that the
Executive would receive if the Executive’s employment continued for two years after the Date of
Termination, assuming for this purpose that all accrued benefits are fully vested, the Executive is
two years older, such two years of additional service is counted as credited service as an officer
under the SERP and assuming that the Executive’s compensation in each of the calendar years fully
or partially included because of the additional two years is the greatest of (i) the compensation
in the year of termination annualized pursuant to the assumptions used for the Retirement Plan, or
(ii) his compensation for the last completed calendar year before the Date of Termination or (iii)
his compensation for the last completed calendar year before the Change of Control, over (b) the
actuarial equivalent lump sum value of the Executive’s actual benefit (paid or payable in the
future), if any, under the Retirement Plan (determined without taking into account any early
retirement subsidies) and the SERP as of the Date of Termination;

          (v) the Company shall also provide to the Executive for one year after the Executive’s Date of
Termination out placement services that are suitable for senior executive officers and reasonably
acceptable to the Executive;

 

 

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          (vi) the Company shall also pay to the Executive all legal fees and expenses incurred by the
Executive as a result of such Qualifying Termination (including all such fees and expenses, if any,
incurred in contesting or disputing any such termination or in seeking to obtain or enforce any
right or benefit provided by this Agreement). Such payments shall be made within five (5) business
days after delivery of the Executive’s written request for payment accompanied with such evidence
of fees and expenses incurred as the Company may reasonably require and

          (vii) the payments provided for in this Section 5(d) (other than Section 5(d)(iv), and
5(d)(v)) shall be made not later than the fifth day following the Date of Termination;
provided, however, that, if the amounts of such payments cannot be finally
determined on or before such day, the Company shall pay to the Executive on such day an estimate,
as determined in good faith by the Company, of the minimum amount of such payments to which the
Executive is clearly entitled and shall pay the remainder of such payments (together with interest
at the rate provided in Section 1274(b)(2)(B) of the Internal Revenue Code of 1986, as amended (the
“Code”)) as soon as the amount thereof can be determined but in no event later than the thirtieth
(30th) day after the Date of Termination. If the estimated payments exceed the amount subsequently
determined to be due, such excess shall constitute a loan by the Company to the Executive, payable
on the fifth (5th) business day after demand by the Company (together with interest at the rate
provided in Section 1274(b)(2)(B) of the Code). When payments are made under this Section, the
Company shall provide the Executive with a written statement setting forth the manner in which such
payments were calculated and the basis for such calculations including, without limitation, any
opinions or other advice the Company has received from outside counsel, auditors or consultants
(and any such written opinions or advice shall be attached to the statement).

          (e) Insurance Benefits. If the Executive’s employment is terminated in a Qualifying
Termination during the Protection Period, the Company shall maintain in full force and effect for
the 24 months following such termination all life insurance, accidental insurance, dental coverage,
and medical coverage (including the

 

 

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Executive Medical Expense Reimbursement Plan), in which the Executive and the Executive’s
dependents participated immediately before the Date of Termination, on the same cost-sharing basis
that applied to the Executive immediately prior to the Executive’s Date of Termination. In the
event such participation (or a particular type of coverage) under any such plan or arrangement
shall be barred, the Company shall provide the Executive with benefits, at the same after-tax cost
to the Executive, that are substantially similar to those the Executive and the Executive’s
dependents would have otherwise received under this Section. Benefits otherwise receivable by the
Executive pursuant to this Section 5(e) shall be reduced to the extent comparable benefits are
actually received by the Executive during the twenty-four (24) month period following the
Executive’s termination of employment (and any such benefits actually received by the Executive
shall be reported to the Company by the Executive). If the Executive, as the result of the
Qualifying Termination during the Protection Period, elects to convert his Long Term Disability
Insurance, if any, to a personal policy maintained by the carrier used by the Company (not greater
than the coverage in effect immediately prior to the Qualifying Termination), the Company shall
reimburse the Executive for any premiums paid during the 36 month period following the Qualifying
Termination.

          (f) Death. In the event of the Executive’s death, the Company shall have no further
obligations to the Executive under this Agreement, but the Executive shall be entitled to receive
death benefits under the Company’s benefit plans and arrangements as may be applicable to the
Executive.

          (g) Mitigation. The Executive shall not be required to mitigate the amount of any
payment provided for in Sections 5(c), (d) and (e) by seeking other employment or otherwise, nor
shall the amount of any payment or benefit provided for in this Section 5 be reduced by any
compensation earned by the Executive as the result of employment by another employer after the Date
of Termination, or otherwise. Benefits otherwise receivable by the Executive pursuant to Section
5(e) shall be reduced to the extent comparable benefits are actually received by the Executive
during the period Section 5(e) shall be

 

 

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applicable, and any such benefits actually received by the Executive shall be reported to the
Company.

          6. Excise Taxes. The following provisions shall apply to any excise tax imposed under
Section 4999 of the Code (or its successor) (the “Excise Tax”):

          (a) If any of the payments or benefits received or to be received by the Executive in
connection with a change in control of the Company or the Executive’s termination of employment
(whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement with
the Company, any person whose actions result in a change in control of the Company or any person
affiliated with the Company or such person (the “Total Payments”)) will be subject to the Excise
Tax, the Company shall pay to the Executive an additional amount (the “Gross-Up Payment”) such that
the net amount retained by the Executive, after deduction of any Excise Tax on the Total Payments
and any federal, state and local income and employment tax and Excise Tax upon the payment provided
for by this Section 6, shall be equal to the Total Payments. Such payment shall be made in the
manner described in Section 5(d)(vi) hereof.

          (b) In determining whether any of the Total Payments will be subject to the Excise Tax and the
amount of such Excise Tax, (i) any Total Payments shall be treated as “parachute payments” (within
the meaning of Section 280G(b)(2) of the Code) unless, in the opinion of tax counsel selected by
the Company’s independent auditors and reasonably acceptable to the Executive, such payments or
benefits (in whole or in part) do not constitute parachute payments, and all “excess parachute
payments” (within the meaning of Section 280G(b)(1) of the Code) shall be treated as subject to the
Excise Tax unless, in the opinion of such tax counsel, such excess parachute payments (in whole or
in part) represent reasonable compensation for services actually rendered (within the meaning of
Section 280G(b)(4)(B) of the Code), or are otherwise not subject to the Excise Tax, and (ii) the
value of any noncash benefits or any deferred payment or benefit shall be determined by the
Company’s independent auditors in accordance with the principles of Section 280G(d)(3) and (4) of
the Code. For purposes of determining the amount of the Gross-Up Payment, the Executive shall be
deemed to pay

 

 

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federal income and employment taxes at the highest marginal rate of federal income and
employment taxation in the calendar year in which the Gross-Up Payment is to be made and state and
local income and employment taxes at the highest marginal rate of taxation in the state and
locality of the Executive’s residence on the Date of Termination (or such other time as is
hereinafter described), net of the maximum reduction in federal income or employment taxes which
could be obtained from deduction of such state and local taxes.

          (c) If the Excise Tax is subsequently determined to be less than the amount taken into account
hereunder at the time of termination of the Executive’s employment (or such other time as is
hereinafter described), the Executive shall repay to the Company, at the time that the amount of
such reduction in Excise Tax is finally determined, the portion of the Gross-Up Payment
attributable to such reduction (plus that portion of the Gross-Up Payment attributable to the
Excise Tax and federal, state and local income tax imposed on the Gross-Up Payment being repaid by
the Executive to the extent that such repayment results in a reduction in Excise Tax or a federal,
state or local income or employment tax deduction) plus interest on the amount of such repayment at
the rate provided in Section 1274(b)(2)(B) of the Code. If the Excise Tax exceeds the amount taken
into account hereunder (including by reason of any payment the existence or amount of which cannot
be determined at the time of the Gross-Up Payment), the Company shall make an additional Gross-Up
Payment in respect of such excess (plus any interest, penalties or additions payable by the
Executive with respect to such excess) at the time that the amount of such excess is finally
determined. The Executive and the Company shall each reasonably cooperate with the other in
connection with any administrative or judicial proceedings concerning the existence or amount of
liability for Excise Tax with respect to the Total Payments.

          7. Successors; Binding Agreement.

          (a) The Company shall 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, by agreement in

 

 

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form and substance satisfactory to the Executive, to expressly assume 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. Failure of the Company to obtain such assumption
and agreement prior to the effectiveness of any such succession shall be a breach of this Agreement
and shall entitle the Executive to compensation from the Company in the same amount and on the same
terms as the Executive would be entitled hereunder if the Executive had terminated the Executive’s
employment for Good Reason, except that for purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Date of Termination. As used in
this Agreement, “Company” shall mean the Company as defined herein and any successor to its
business and/or assets which executes and delivers the agreement provided for in this Section 7 or
which otherwise becomes bound by all the terms and provisions of this Agreement by operation of
law.

          (b) This Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If the Executive dies while any amount is still payable, all such amounts
shall be paid in accordance with the terms of this Agreement to the Executive’s devisee, legatee or
other designee, or if there shall be no such designee, to the Executive’s estate.

          8. Notice. For the purposes of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have been duly given when
delivered or mailed by United States registered mail, return receipt requested, postage prepaid, as
follows:

	 	 	 	 	 
	If, to the Executive, to:

	 	 	 	 
	

	 	 	 	 
	 
	 	 	 	 
	If, to the Company, to:

	 	Milacron Inc.	 	 
	

	 	2090 Florence Ave.	 	 
	

	 	Cincinnati, OH 45206	 	 

 

 

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or to such other address as either party may have furnished to the other in writing in accordance
herewith, except that notice of change of address shall be effective only upon receipt.

Miscellaneous. The provisions of this Agreement shall supersede any inconsistent provisions
of any other applicable plan, policy or arrangement; provided, however, in no event
shall the Executive be entitled to duplicative payments or benefits under this Agreement and any
other plan, policy or arrangement. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing and signed by the
Executive and such officer as may be specifically designated by the Board; provided,
however, that in the event that all or any part of this Agreement is considered a
“nonqualified deferred compensation plan” within the meaning of Code Section 409A(d), the Company
shall have the right to amend this Agreement without the Executive’s consent, but only the extent
necessary to conform this Agreement to the requirements of Code Section 409A(a) and the regulations
issued pursuant thereto. No waiver by either party hereto at any time of any breach by the other
party hereto of, 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,
express or implied, with respect to the subject matter hereof have been made by either party which
are not expressly set forth in this Agreement. The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of Ohio (regardless of the
law which may be applicable under principles of conflicts of law).

          9. Confidentiality. The Executive shall retain in confidence any and all confidential
information known to the Executive concerning the Company and its business so long as such
information shall not otherwise be publicly disclosed.

          10. Validity. The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other

 

 

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provision of this Agreement which shall remain in full force and effect.

          11. Counterparts. This Agreement may be executed in several counterparts, each of
which shall be deemed to be an original but all of which together will constitute one and the same
instrument.

          12. Arbitration. Any dispute or controversy arising under or in connection with this
Agreement shall be settled exclusively by arbitration in Cincinnati, Ohio in accordance with the
rules of (but not necessarily appointed by) the American Arbitration Association then in effect
except as provided herein. Judgment may be entered on the arbitrator’s award in any court having
jurisdiction, provided, however, that the Executive shall be entitled to seek specific performance
of the Executive’s right to be paid until the Date of Termination during the pendency of any
dispute or controversy arising under or in connection with this Agreement. No such arbitration
proceedings shall be commenced or conducted until at least 60 days after the parties, in good
faith, shall have attempted to resolve such dispute by mutual agreement; and the parties hereby
agree to endeavor in good faith to resolve any dispute by mutual agreement. If mutual agreement
cannot be attained, any disputing party, by written notice to the other (“Arbitration Notice”) may
commence arbitration proceedings. Such arbitration shall be conducted before a panel of three
arbitrators, one appointed by each party within 30 days after the date of the Arbitration Notice,
and one chosen within 60 days after the date of the Arbitration Notice by the two arbitrators
appointed by the disputing parties. Any Cincinnati, Ohio court of competent jurisdiction shall
appoint any arbitrator that has not been appointed within such time periods. Judgment may include
costs and attorneys fees and may be entered in any court of competent jurisdiction.

          13. No Guaranty of Employment. Neither this contract nor any action taken hereunder
shall be construed as giving the Executive a right to be retained as an employee of the Company.
The Company shall be entitled to terminate the Executive’s employment at any time, subject to
providing the severance benefits herein specified in accordance with the terms hereof.

 

 

18

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

	 	 	 	 	 
	

	 	Milacron Inc.	 	 
	 
	 	 	 	 
	

	 	 	 	 
	

	 	by:Exhibit 10.19

 

Exhibit 10.19

Milacron Inc.

Temporary Enhanced Severance Plan

Award Letter

     You have been selected as a participant in the Milacron Inc. Temporary Enhanced Severance
Plan (the “Plan”). Your participation in the Plan is subject to the terms and conditions of the
Plan, which are incorporated in and made a part of this Award Letter. Capitalized terms used but
not defined in this Award Letter have the meanings as used or defined in the Plan.

     1. Severance Multiple. Subject to all the terms and conditions of the Plan and this
Award Letter, you shall participate in the Plan with a Severance Multiple of twelve (12) months.
Your participation in the Plan shall not become effective unless you have signed and returned this
Award Letter to Brad Baker at 2090 Florence Avenue, Cincinnati, Ohio 45206 on or before
November 17, 2003.

     2. Release. You acknowledge and agree that you shall not be entitled to any benefits
under the Plan unless you execute a Release, at the time benefits are requested (as provided in
Section 2(b) of the Plan), in favor of the Company and others as set forth in the Release, relating
to all claims or liabilities of any kind relating to your employment with the Company or its
subsidiaries and the termination of such employment.

     3. Restrictive Covenants. You acknowledge and agree that, as a condition to your
participation in the Plan and your receipt of any benefits under the Plan, you will be subject to
certain restrictive covenants (including but not limited to covenants not to compete with the
Company, not to solicit or hire employees or clients of the Company, and not to disclose
information relating to the Company’s relationships with its customers or other confidential
information), for a period equal to your Severance Multiple as stated above.

     4. Confidentiality. You agree to keep confidential the terms of the Plan and your
selection to participate in the Plan, provided that you may disclose such information to your
spouse, personal attorney and personal financial and tax advisors, whom you will advise of the
confidentiality obligation.

     5. Plan Language. You acknowledge that you have received a copy of the Plan, that you
have read the Plan and understand your rights and obligations under the Plan, and that you agree to
be bound by the terms and conditions of the Plan.

     6. Governing Law. Except to the extent preempted by ERISA, this Award Letter shall be
governed by and construed in accordance with the laws of the State of Ohio without reference to
principles of conflict of laws.

{remainder of page intentionally left blank; signature page follows}

 

 

2

	 	 	 	 	 
	 	 	MILACRON INC.,
	 
	 	 	 	 
	

	 	     by	 	 
	

	 	 	 	 

	 	 	 
	AGREED AND ACCEPTED
	 	 
	 
	 	 
	

	 	 
	[Name of Participant]

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