Document:

<PAGE>   1
                                                                   Exhibit 10.02

Revised to show additions agreed on May 14, 1999
------------------------------------------------

VIA EXPRESS
-----------
                                                                   April 9, 1999

                            Personal and Confidential
                            -------------------------

Mr. Stephen J. Perkins
14735 Pine Tree Road
Orland Park, IL 60462

Dear Steve:

On behalf of Commercial Intertech Corp., I am pleased to extend an offer of
employment, the terms of which are detailed as follows:

-   TITLE

         President & Chief Operating Officer, effective May 1, 1999, or as soon
         as practicable.

-   RESPONSIBILITIES

         Reporting to the Chief Executive Officer, you will have overall
         responsibility for "top line" and "bottom line" results via guidance
         and direction of management in the development, production, promotion
         and sale of the Company's products.

<PAGE>   2

Mr. Stephen J. Perkins                  -2-                        April 9, 1999

-   BOARD OF DIRECTORS

         As corporate officers must be elected by the Board of Directors, this
         action will be recommended to our Board after your acceptance.

         You will also be named a Director by the Board as soon as practicable
         after your acceptance and thereafter submitted for election by the
         shareholders at the March 2000 annual meeting of shareholders.

-   EMPLOYMENT AGREEMENT

         While it is our desire that you will complete your business career at
         Commercial Intertech, an initial employment agreement is for a three
         year period. If you should involuntarily without cause leave the
         Company, we will provide a severance amount equal to your annual base
         salary paid in monthly installments for a period of two years plus
         customary benefits.

-   SUCCESSION

         Effective March 1, 2000, you will be named Chief Executive Officer of
         Commercial Intertech Corp. In addition, if not appointed Chief
         Executive Officer by March, 2000, you have the option to leave the
         Company and receive 36 months of salary, customary benefits, and a
         relocation allowance to return to Chicago.

<PAGE>   3

Mr. Stephen J. Perkins                     -3-                     April 9, 1999

-   COMPENSATION

         Base Salary -                      $375,000 per year
         1999 Guaranteed Bonus -            $120,000 payable in December 1999.

         With your promotion to Chief Executive Officer on March 1, 2000, the
         Management Evaluation & Compensation Committee will increase your
         salary appropriate with your additional responsibilities (range of
         $430K-$570K) and establish your annual incentive target at 70% of base
         salary (maximum of 140% upon achievement of performance goals).

-   LONG-TERM INCENTIVES

         The following long-term incentives, which represent median levels for
         the Chief Executive Officer position for comparable sized durable goods
         manufacturers, will be granted to you effective May 1, 1999, or the
         date you join the Company:

<PAGE>   4

Mr. Stephen J. Perkins                   -4-                       April 9, 1999

         Restricted Shares -

                  15,000 shares granted conditioned only upon your continued
                  employment by the Company for five years. During the five year
                  restricted period you will receive dividends and vote the
                  shares, although the share certificates will be legended and
                  held in escrow by our Corporate Secretary.

                  If you should involuntarily without cause leave the Company at
                  any time during the five year period, the shares will vest 20%
                  per year of accrued employment with the Company.

         Non-qualified Stock Options -

                  A grant of NQSO of 35,000 shares for ten years, exercisable
                  one-half in two years and one-half in three years. The
                  exercise price will be the fair market value on the date of
                  the grant.

         Performance Shares -

                  30,000 shares to be granted for the three-year period
                  commencing November 1998, with maximum 45,000 shares that can
                  be earned based on achievement of performance targets (senior
                  officers are measured on corporate ROE) during the three-year
                  performance cycle. At the end of the three-year period
                  dividends will be paid on all earned shares.

-   SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

         In addition to participation in the Salaried Pension Plan, the Company
         agrees to provide a Supplemental Executive Retirement Plan (SERP)
         utilizing base salary and annual incentive to be valued at age 65 to be
         equivalent to 25 years of service with Commercial Intertech with an
         offset for any qualified plans from prior employers. It is understood
         that an accommodation will be developed that will provide some SERP
         coverage in the event of a change of control prior to vesting in five
         years.

<PAGE>   5

Mr. Stephen J. Perkins                   -5-                       April 9, 1999

-    BENEFIT PROGRAMS

         You will be entitled to participate in various Company benefit programs
         as soon as eligibility requirements are fulfilled. Such programs
         include salaried pension plan, 401(k), non-qualified savings and stock
         purchase plan, medical, hospitalization, GRIP (life), disability, and
         accidental death and dismemberment insurance. Some modest contributions
         on your part may be required depending upon selected coverage levels.

-    AUTOMOBILE ALLOWANCE

         Commercial Intertech will provide a $1100 per month allowance plus
         insurance and gasoline credit card.

-    VACATION

         You will be eligible for four weeks vacation annually.

-    RELOCATION

         The Company will provide customary key executive reimbursement for
         moving expenses and normal costs associated with the purchase of a
         residence in the Youngstown area and the sale of your primary residence
         in Illinois.

         Additionally, Commercial Intertech agrees to provide reasonable
         temporary living expenses for a mutually agreed upon period, and a
         payment of one-half month base salary for incidental relocation
         expenses.

-    CHANGE OF CONTROL

         In the event of termination after a change of control of the Company,
         you will receive compensation and benefits commensurate with your
         position.

<PAGE>   6

Mr. Stephen J. Perkins                     -6-                     April 9, 1999

-    MEMBERSHIPS

         The Company will pay initiation fees and dues for memberships to The
         Youngstown Country Club and The Youngstown Club. Any assessments will
         be your responsibility.

-    TAX SERVICE

         The Company will pay for the annual preparation of your Federal and
         State tax returns by an outside firm.

Steve, over the last several weeks we have spent many hours discussing
Commercial Intertech and your role in its continuing growth. From the outset of
our discussions, I have been operating from the premise that we are really
searching for our next Chief Executive Officer - the fifth in the history of the
Company - with the Chief Operating Officer the interim step to this final
position. Please understand that we feel your initial responsibilities as COO
critical at this point in our history - there are many challenges and much to
accomplish. But the COO position and its accompanying responsibilities is not a
"make-or-break" assignment. That is to say, you are not on trial, i.e., "I must
prove my worth as COO before I receive the CEO promotion." The Board of
Directors joins me in expressing our collective confidence in your ability to
lead the Company as the next CEO.

I personally look forward to working with you and I am excited about the future
of Commercial Intertech under your leadership.

In summary, this offer of employment is conditioned upon the completion of a
full physical examination to the satisfaction of the Company physician.

<PAGE>   7

Mr. Stephen J. Perkins                  -7-                        April 9, 1999

Steve, I hope you find this offer acceptable. If you agree with the terms,
please sign the acceptance on a copy of the letter and return it to me.

We look forward to welcoming Carolyn and you into the Commercial Intertech
family!

                                                Sincerely,

                                   Acceptance
                                   ----------

The above terms and conditions are accepted this ____ day of _______________,
1999.

                                            ------------------------------
                                            Stephen J. Perkins<PAGE>   1
                                                                  EXHIBIT 10.04

                           COMMERCIAL INTERTECH CORP.
--------------------------------------------------------------------------------

       TERMINATION AND CHANGE OF CONTROL AGREEMENT FOR CORPORATE OFFICERS

--------------------------------------------------------------------------------

<PAGE>   2

                           COMMERCIAL INTERTECH CORP.
--------------------------------------------------------------------------------

                   TERMINATION AND CHANGE OF CONTROL AGREEMENT

--------------------------------------------------------------------------------

1.  Term and Application.....................................................-1-

2.  Office and Duties........................................................-2-

3.  Salary and Annual Incentive Compensation.................................-2-

4.  Long-Term Compensation, Including Stock Options, and Benefits, Deferred
    Compensation, and Expense Reimbursement..................................-3-

5.  Termination of Employment................................................-3-

6.  Termination Due to Normal Retirement, Death, or Disability...............-4-

7.  Termination of Employment For Reasons Other Than Normal Retirement, Death
    or Disability............................................................-5-

8.  Termination by the Company Without Cause and Termination by Executive for
    Good Reason During the Extended Employment Period........................-7-

9.  Definitions Relating to Termination Events..............................-10-

10. Excise Tax Gross-Up.....................................................-13-

11. Non-Competition and Non-Disclosure; Executive Cooperation...............-16-

12. Governing Law; Disputes; Arbitration....................................-17-

13. Miscellaneous...........................................................-18-

14. Indemnification.........................................................-20-

<PAGE>   3

                   TERMINATION AND CHANGE OF CONTROL AGREEMENT
                   -------------------------------------------

         THIS TERMINATION AND CHANGE OF CONTROL AGREEMENT ("Termination
Agreement") by and between COMMERCIAL INTERTECH CORP., an Ohio corporation (the
"Company"), and Stephen J. Perkins ("Executive") is and shall become effective
as of May 1, 1999 (the "Effective Date").

                               W I T N E S S E T H
                               - - - - - - - - - -

         The Board of Directors of the Company (the "Board") has determined that
it is in the best interests of the Company and its shareholders to assure that
the Company will have the continued dedication of the Executive, notwithstanding
the possibility, threat or occurrence of a Change of Control (as defined below)
of the Company. The Board believes it is imperative to diminish the inevitable
distraction of the Executive by virtue of the personal uncertainties and risks
created by a pending or threatened Change of Control and to encourage the
Executive's full attention and dedication to the Company currently and in the
event of any threatened or pending Change of Control, and to provide the
Executive with compensation and benefits arrangements upon a Change of Control
which ensure that the compensation and benefits expectations of the Executive
will be satisfied and which are competitive with those of other corporations.
Therefore, in order to accomplish these objectives, the Board has caused the
Company to enter into this Termination Agreement.

         NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

         1. TERM AND APPLICATION. The Term of this Termination Agreement shall
commence on the date hereof and shall terminate, except to the extent that any
obligation of the Company under this Termination Agreement remains unpaid as of
such time, on the date five (5) years from the date hereof (subject to earlier
termination in accordance with Section 5 below); PROVIDED, HOWEVER, that on or
after the Extension Date (as defined below), the Term of this Termination
Agreement shall be the Extended Employment Period (as defined below). As long as
the Extension Date has not occurred, commencing on the date five (5) years after
the date of this Termination Agreement and each anniversary date of this
Termination Agreement thereafter, the Term of this Termination Agreement shall
automatically be extended for one (1) additional year unless not later than on
(1) year prior to the date five (5) years after the date of this Termination
Agreement or subsequent anniversary date, the Company or Executive shall have
given written notice to the other of its intention not to extend this
Termination Agreement. If there is a conflict between the Employment Agreement
dated April 9, 1999, between the Company and Executive ("Employment Agreement")
and this Termination Agreement, this Termination Agreement shall supersede the
Employment Agreement; provided the Executive shall receive the more valuable
payment, right or benefit under the Employment Agreement (including without
limitation, the continuation of medical benefits under the Employment Agreement)
and this Termination Agreement. In no event shall any payment, right or benefit
under the Employment Agreement be reduced, eliminated or otherwise adversely
affected by this Termination Agreement. In no event shall Executive receive any
payment, right or benefit under both this Termination Agreement and the
Employment Agreement with respect to the same Date of Termination (as defined
below).

<PAGE>   4

         2.       OFFICE AND DUTIES.

                  (a) GENERALLY. During the Extended Employment Period, the
Executive's position (including status, offices, titles and reporting
requirements), authority, duties and responsibilities shall be at least
commensurate in all material respects with the most significant of those held,
exercised and assigned at any time during the 120-day period immediately
preceding the Extension Date.

                  During the Extended Employment Period it shall not be a
violation of the Employment Agreement or this Termination Agreement for the
Executive to (i) serve on corporate, civic or charitable boards or committees,
(ii) deliver lectures, fulfill speaking engagements or teach at educational
institutions, and (iii) manage personal investments, so long as the activities
listed in (i), (ii) and (iii) do not significantly interfere with the
performance of the Executive's responsibilities as an employee of the Company in
accordance with this Termination Agreement. It is expressly understood and
agreed that, to the extent that any activities have been conducted by the
Executive prior to the Extension Date, the continued conduct of such activities
(or the conduct of activities similar in nature and scope thereto) subsequent
to the Extension Date shall not thereafter be deemed to interfere with the
performance of the Executive's responsibilities to the Company.

                  (b) PLACE OF EMPLOYMENT. During the Extended Employment
Period, the Executive's services shall be performed at the location where the
Executive was employed immediately preceding the Extension Date or any office or
location less than thirty-five (35) miles from such location.

         3.       SALARY AND ANNUAL INCENTIVE COMPENSATION.

                  (a) BASE SALARY. During the Extended Employment Period, the
Executive shall receive an annual base salary, which shall be paid at a monthly
rate, at least equal to twelve (12) times the highest monthly base salary paid
or payable, including any base salary which has been earned but deferred, to the
Executive by the Company and its affiliated companies in respect of the 12-month
period immediately preceding the month in which the Extension Date occurs
("Annual Base Salary"). During the Extended Employment Period, the Annual Base
Salary shall be reviewed no more than twelve (12) months after the last salary
increase awarded to the Executive prior to the Extension Date and thereafter at
least annually. Any increase in Annual Base Salary shall not serve to limit or
reduce any other obligation to the Executive under this Termination Agreement.
Annual Base Salary shall not be reduced after any such increase and the term
Annual Base Salary as utilized in this Termination Agreement shall refer to
Annual Base Salary as so increased. As used in this Termination Agreement, the
term "affiliated companies" shall include any company controlled by, controlling
or under common control with the Company.

                  (b) ANNUAL INCENTIVE COMPENSATION. During the Extended
Employment Period, any annual incentive compensation payable to Executive shall
be paid in accordance with the Company's usual practices with respect to payment
of incentive compensation of senior executives, including, without limitation,
the Company's Senior Management Target Incentive Plan and Salaried Employee
Incentive Plan (except to the extent deferred). In addition to Annual Base
Salary, the Executive shall be awarded, for each fiscal year ending during the
Extended Employment Period, an annual bonus (the "Annual Bonus") in cash at
least equal to the highest average of the Executive's annual incentive
compensation for any two (2) full fiscal years in the most recent five (5) full
fiscal years (annualized in the event that the Executive was not employed by the
Company for the whole of any such fiscal year or the fiscal year consisted of
less than twelve (12) months)

                                       -2-

<PAGE>   5

(the "Recent Annual Bonus"). Each such Annual Bonus shall be paid no later than
the end of the third month of the fiscal year next following the fiscal year for
which the Annual Bonus is awarded, unless the Executive shall elect to defer the
receipt of such Annual Bonus.

         4.       LONG-TERM COMPENSATION, INCLUDING STOCK OPTIONS, AND BENEFITS,
                  DEFERRED COMPENSATION, AND EXPENSE REIMBURSEMENT.

                  (a) EXECUTIVE COMPENSATION PLANS. During the Extended
Employment Period, the compensation plans, practices, policies and programs, in
the aggregate, including without limitation the long-term incentive features of
the Company's stock option and award plans, shall provide Executive with
benefits, options to acquire Company stock and compensation and incentive award
opportunities substantially no less favorable than those provided by the Company
under such plans and programs to senior executives in similar capacities. During
the Extended Employment Period, in no event shall such plans, practices,
policies and programs provide the Executive with incentive opportunities
(measured with respect to both regular and special incentive opportunities, to
the extent, if any, that such distinction is applicable), in each case, be less
favorable, in the aggregate, than the most favorable of those provided by the
Company and its affiliated companies for the Executive under such plans,
practices, policies and programs as in effect at any time during the 120-day
period immediately preceding the Extension Date or if more favorable to the
Executive, those provided generally at any time after the Extension Date to
other peer executives of the Company and its affiliated companies. For purposes
of this Termination Agreement, all references to "performance share plans" and
"performance shares" refer to such arrangements under the Company's stock option
and award plans and to any performance shares, performance units, stock grants,
or other long-term incentive arrangements adopted as a successor or replacement
to performance shares under such plans or other plans of the Company.

                  (b) EMPLOYEE AND EXECUTIVE BENEFIT PLANS. During the Extended
Employment Period, benefit plans, practices, policies and programs, in the
aggregate, shall provide Executive with benefits substantially no less favorable
than those provided by the Company to senior executives in similar capacities.
During the Extended Employment Period, in no event shall such plans, practices,
policies and programs provide the Executive with benefits which are less
favorable, in the aggregate, than the most favorable of such plans, practices,
policies and programs in effect for the Executive at any time during the 120-day
period immediately preceding the Extension Date or, if more favorable to the
Executive, those provided generally at any time after the Extension Date to
other peer executives of the Company and its affiliated companies.

         5.       TERMINATION OF EMPLOYMENT.

                  (a) DEATH OR DISABILITY. The Executive's employment shall
terminate automatically upon the Executive's death during the Term of this
Termination Agreement. If the Company determines in good faith that the
Disability of the Executive has occurred during the Term of this Termination
Agreement, it may give to the Executive written notice in accordance with
Section 13(d) of this Termination Agreement of its intention to terminate the
Executive's employment. In such event, the Executive's Date of Termination is
effective on the 30th day after receipt of such notice by the Executive (the
"Disability Effective Date"), provided that, within the thirty (30) days after
such receipt, the Executive shall not have returned to full-time performance of
the Executive's duties.

                                       -3-

<PAGE>   6

                  (b) NOTICE OF TERMINATION. Any termination by the Company for
Cause, or by the Executive for Good Reason, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 13(d) of
this Termination Agreement. For purposes of this Termination Agreement, a
"Notice of Termination" means a written notice which (i) indicates the specific
termination provision in this Termination Agreement relied upon, (ii) to the
extent applicable, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
the provision so indicated and (iii) if the Date of Termination (as defined
below) is other than the date of receipt of such notice, specifies the Date of
Termination (which date shall be not more than thirty (30) days after the giving
of such notice). The failure by the Executive or the Company to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing of
Good Reason or Cause shall not waive any right of the Executive or the Company,
respectively, hereunder or preclude the Executive or the Company, respectively,
from asserting such fact or circumstance in enforcing the Executive's or the
Company's rights hereunder.

                  (c) DATE OF TERMINATION. "Date of Termination" means (i) if
the Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified therein, as the case may be, (ii) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
Date of Termination shall be the date on which the Company notifies the
Executive of such Date of Termination, and (iii) if the Executive's employment
is terminated by reason of death or Disability, or due to his voluntary decision
to retire on or after his Normal Retirement Date other than for Good Reason, the
Date of Termination shall be the date of death of the Executive, the Disability
Effective Date, or the date the Executive notifies the Company that the
Executive's employment will terminate, as the case may be. Notwithstanding the
foregoing, solely the transfer of an Executive to employment with an affiliated
companies shall not constitute a termination of employment with the Company.

         6.       TERMINATION DUE TO NORMAL RETIREMENT, DEATH, OR DISABILITY.

                  Upon an Executive's Date of Termination due to his voluntary
decision to retire on or after his Normal Retirement Date (other than for Good
Reason during the Extended Employment Period), death or Disability, the Term of
this Termination Agreement will immediately terminate and all obligations of the
Company and Executive under this Termination Agreement will immediately cease;
PROVIDED, HOWEVER, that subject to the provisions of Section 13(c), the Company
will pay Executive (or his beneficiaries or estate), and Executive (or his
beneficiaries or estate) will be entitled to receive, the following:

                  (a) The unpaid portion of Annual Base Salary at the rate
payable, in accordance with Section 3(a) hereof, at the Date of Termination, pro
rated through such Date of Termination, will be paid;

                  (b) All vested, nonforfeitable amounts owing and accrued at
the Date of Termination under any compensation and benefit plans, programs, and
arrangements in which Executive theretofore participated will be paid under the
terms and conditions of the plans, programs, and arrangements (and agreements
and documents thereunder) pursuant to which such compensation and benefits were
granted, including any supplemental retirement plan in which the Executive may
have participated;

                                       -4-

<PAGE>   7

                  (c) In lieu of any annual incentive compensation under Section
3(b) for the year in which Executive's employment terminated (unless otherwise
payable under (b) above), Executive will be paid an amount equal to the average
annual incentive compensation paid to Executive in the three years immediately
preceding the year of termination (or, if Executive was not eligible to receive
or did not receive such incentive compensation for any year in such three year
period, the Executive's target annual incentive compensation for such year(s)
shall be used to calculate average annual incentive compensation) multiplied by
a fraction the numerator of which is the number of days Executive was employed
in the year of termination and the denominator of which is the total number of
days in the year of termination;

                  (d) Stock options then held by Executive will be exercisable
to the extent and for such periods, and otherwise governed, by the plans and
programs and the agreements and other documents thereunder pursuant to which
such stock options were granted; and

                  (e) If Executive's Date of Termination is due to Disability,
for the period extending from such Date of Termination until Executive reaches
age 65, Executive shall continue to participate in all employee benefit plans,
programs, and arrangements providing health, medical, and life insurance in
which Executive was participating immediately prior to the Date of Termination,
the terms of which allow Executive's continued participation, as if Executive
had continued in employment with the Company during such period or, if such
plans, programs, or arrangements do not allow Executive's continued
participation, a cash payment equivalent on an after-tax basis to the value of
the additional benefits Executive would have received under such employee
benefit plans, programs, and arrangements in which Executive was participating
immediately prior to the Date of Termination, as if Executive had received
credit under such plans, programs, and arrangements for service and age with the
Company during such period following Executive's Date of Termination, with such
benefits payable by the Company at the same times and in the same manner as such
benefits would have been received by Executive under such plans (it being
understood that the value of any insurance-provided benefits will be based on
the premium cost to Executive, which shall not exceed the highest risk premium
charged by a carrier having an investment grade or better credit rating).

Amounts which are immediately payable above will be paid as promptly as
practicable after Executive's Date of Termination; PROVIDED, HOWEVER, to the
extent that the Company would not be entitled to deduct any such payments under
Internal Revenue Code Section 162(m), such payments shall be made at the
earliest time that the payments would be deductible by the Company without
limitation under Section 162(m) (unless this provision is waived by the
Company). Any deferred payments shall be credited with the interest at a rate
applied to prevent the imputation of taxable income under the Code.

         7.       TERMINATION OF EMPLOYMENT FOR REASONS OTHER THAN NORMAL
                  RETIREMENT, DEATH OR DISABILITY.

                  (a) TERMINATION BY THE COMPANY FOR CAUSE AND TERMINATION BY
EXECUTIVE. Upon an Executive's Date of Termination by the Company for Cause, or
voluntarily by Executive for reasons other than Good Reason or other than the
attainment of the Normal Retirement Date, death or Disability, the Term will
immediately terminate, and all obligations of the Company under Sections 1
through 4 of this Termination Agreement will immediately cease; PROVIDED,
HOWEVER, that subject to the provisions of Section 13(c), the Company shall pay
Executive (or his or her beneficiaries), and Executive (or his or her
beneficiaries) shall be entitled to receive, the following:

                                       -5-

<PAGE>   8

                           (i)      The unpaid portion of Annual Base Salary at
                                    the rate payable, in accordance with Section
                                    4(a) hereof, at the Date of Termination, pro
                                    rated through such Date of Termination, will
                                    be paid; and

                           (ii)     All vested, nonforfeitable amounts owing and
                                    accrued at the Date of Termination under any
                                    compensation and benefit plans, programs,
                                    and arrangements in which Executive
                                    theretofore participated will be paid under
                                    the terms and conditions of the plans,
                                    programs, and arrangements (and agreements
                                    and documents thereunder) pursuant to which
                                    such compensation and benefits were granted,
                                    including any supplemental retirement plan
                                    in which the Executive may have
                                    participated.

Amounts which are immediately payable above will be paid as promptly as
practicable after the Executive's Date of Termination; PROVIDED, HOWEVER, to the
extent that the Company would not be entitled to deduct any such payments under
Internal Revenue Code Section 162(m), such payments shall be made at the
earliest time that the payments would be deductible by the Company without
limitation under Section 162(m) (unless this provision is waived by the
Company). Any deferred payment shall be credited with the interest at a rate
applied to prevent the imputation of taxable income under the Code.

                  (b) TERMINATION BY THE COMPANY WITHOUT CAUSE. Upon an
Executive's Date of Termination by the Company prior to the Extension Date
without Cause, the Term will terminate and all obligations of the Company and
Executive under Sections 1 through 4 of this Termination Agreement will
immediately cease; PROVIDED, HOWEVER, that subject to the provisions of Section
13(c) the Company shall pay to the Executive (or his or her beneficiaries) and
Executive (or his or her beneficiaries) shall be entitled to receive within, or
commencing within, thirty (30) days after the Date of Termination, the following
amounts:

                           (i)      the Executive's Annual Base Salary through
                                    the Date of Termination to the extent not
                                    theretofore paid;

                           (ii)     twenty-four (24) semi-monthly payments
                                    during a twelve (12) consecutive month
                                    period equal to the Executive's Annual Base
                                    Salary divided by twenty-four (24);
                                    provided, however, notwithstanding anything
                                    to the contrary in the Termination Agreement
                                    or in the Employment Agreement, none of such
                                    amounts shall qualify Executive for any
                                    incremental benefit under any plan or
                                    program in which he has participated or
                                    continues to participate;

                           (iii)    stock options then held by Executive will be
                                    exercisable to the extent and for such
                                    periods, and otherwise governed, by the
                                    plans and programs and the agreements and
                                    other documents thereunder pursuant to which
                                    such stock options were granted; and

                           (iv)     all vested, nonforfeitable amounts owing and
                                    accrued at the Date of Termination under any
                                    compensation and benefit plans, programs,
                                    and arrangements in which Executive
                                    theretofore participated will be paid under
                                    the terms and conditions of the plans,
                                    programs, and arrangements (and agreements
                                    and documents thereunder) pursuant to which
                                    such compensation and benefits were granted,

                                       -6-

<PAGE>   9

                                    including any supplemental retirement plan
                                    in which the Executive may have
                                    participated.

Amounts which are immediately payable above will be paid as promptly as
practicable after Executive's Date of Termination; PROVIDED, HOWEVER, to the
extent that the Company would not be entitled to deduct any such payments under
Internal Revenue Code Section 162(m), such payments shall be made at the
earliest time that the payments would be deductible by the Company without
limitation under Section 162(m) (unless this provision is waived by the
Company). Any deferred payment shall be credited with the interest at a rate
applied to prevent the imputation of taxable income under the Code.

         8.       TERMINATION BY THE COMPANY WITHOUT CAUSE AND TERMINATION BY
                  EXECUTIVE FOR GOOD REASON DURING THE EXTENDED EMPLOYMENT
                  PERIOD.

                  Upon an Executive's Date of Termination during the Extended
Employment Period by the Company without Cause or voluntarily by the Executive
for Good Reason, the Term of this Termination Agreement will immediately
terminate and all obligations of the Company and Executive under Sections 1
through 4 of this Termination Agreement will immediately cease; PROVIDED,
HOWEVER, that subject to the provisions of Section 13(c) the Company shall pay
Executive (or his or her beneficiaries), and Executive (or his or her
beneficiaries) shall be entitled to receive, the following:

                  (a) the Company shall pay to the Executive in a lump sum in
cash on the Date of Termination the aggregate of the following amounts:

                           (i)      the sum of (1) the Executive's Annual Base
                                    Salary through the Date of Termination to
                                    the extent not theretofore paid, and (2) the
                                    product of (x) the higher of (A) the Recent
                                    Annual Bonus and (B) the Executive's Annual
                                    Bonus paid or payable for the Company's
                                    fiscal year in which occurs the Date of
                                    Termination, assuming Executive and Company
                                    satisfy all conditions to Executive's
                                    receiving the full Annual Bonus at target
                                    (and annualized for any fiscal year
                                    consisting of less than twelve (12) full
                                    months or during which the Executive was
                                    employed for less than twelve (12) full
                                    months) (such higher amount being referred
                                    to as the "Highest Annual Bonus") and (y) a
                                    fraction, the numerator of which is the
                                    number of days in the current fiscal year
                                    through the Date of Termination, and the
                                    denominator of which is 365;

                           (ii)     the amount equal to three (3) times the sum
                                    of (1) the Executive's Annual Base Salary
                                    and (2) the Executive's Highest Annual
                                    Bonus. (Payment of any amount under Section
                                    8(a)(i) shall not constitute a payment or
                                    discharge of the Company's obligation under
                                    Section 8(a)(ii) and VICE VERSA);

                           (iii)    in lieu of any payment in respect of
                                    performance shares, or other long term
                                    incentive awards granted prior to the
                                    Extension Date or in accordance with Section
                                    4(a) hereof, for any performance period not
                                    completed at the Executive's Date of
                                    Termination, an amount equal to the cash
                                    amount payable plus the value of any shares,
                                    dividends or other property (valued at the
                                    Date of Termination) payable upon

                                       -7-

<PAGE>   10

                                    the achievement of the then existing
                                    performance in respect of each tranche of
                                    such performance shares or awards as if the
                                    Date of Termination were the end of the
                                    performance period, but in no event less
                                    than one hundred percent (100%) of target,
                                    multiplied by (A) with respect to any
                                    tranche as of the Date of Termination for
                                    which at least fifty percent (50%) of the
                                    performance period has elapsed, one hundred
                                    percent (100%), and (B) with respect to any
                                    tranche as of the Date of Termination for
                                    which less than fifty percent (50%) of the
                                    performance period has elapsed, a fraction,
                                    the numerator of which is the number of days
                                    that have elapsed in the relevant
                                    performance period and the denominator of
                                    which is the total number of days in the
                                    relevant performance period; and

                           (iv)     to the extent not covered in (i), (ii),
                                    (iii) or (iv), all vested, nonforfeitable
                                    amounts owing or accrued at the Date of
                                    Termination under any other compensation and
                                    benefit plans, programs, and arrangements in
                                    which Executive theretofore participated,
                                    including any supplemental retirement plan
                                    in which the Executive may have
                                    participated, including any additional
                                    accruals provided under such plan due to the
                                    Change of Control, will be paid under the
                                    terms and conditions of the plans, programs,
                                    and arrangements (and agreements and
                                    documents thereunder) pursuant to which such
                                    compensation and benefits were granted.

                  (b) Stock options then held by Executive will be exercisable
and restricted stock held by the Executive will be vested to the extent and for
such periods, and otherwise governed, by the plans and programs (and the
agreements and other documents thereunder) pursuant to which such stock options
or restricted stock were granted;

                  (c) For three (3) years after the Executive's Date of
Termination, or such longer period as may be provided by the terms of the
appropriate plan, program, practice or policy, the Company shall continue
welfare plan benefits to the Executive and/or the Executive's family at least
equal to those which would have been provided to them in accordance with the
plans, programs, practices and policies described in Section 4(b) of this
Termination Agreement if the Executive's employment had not been terminated or,
if more favorable to the Executive, as in effect generally at any time
thereafter with respect to other peer executives of the Company and its
affiliated companies and their families, provided, however, that if the
Executive is employed with another employer and is eligible to receive medical
or other welfare benefits under another employer- provided plan, the medical and
other welfare benefits described herein shall be secondary to those provided
under such other plan during such applicable period of eligibility. For three
(3) years after the Executive's Date of Termination, or such longer period as
may be provided by the terms of the plan, the Company shall continue
tax-qualified defined contribution plan accruals for the Executive, including
participation and crediting of service, contributions and compensation at least
equal to what the Executive would have accrued in accordance with such plans of
the Company or affiliated companies if the Executive's employment had not been
terminated or, if more favorable to the Executive, as in effect generally at any
time thereafter with respect to other peer executives of the Company and its
affiliated companies. If such welfare benefit or tax-qualified defined
contribution plans, programs, or arrangements do not allow Executive's continued
participation, a cash payment equivalent on an after-tax basis to the value of
the additional benefits Executive would have received under such employee
benefit plans, programs, and arrangements in which Executive was participating
immediately prior to the Date of Termination, as if Executive had received
credit under

                                       -8-

<PAGE>   11

such plans, programs, and arrangements for service, compensation and age with
the Company during such period following Executive's Date of Termination, with
such benefits payable by the Company at the same times and in the same manner as
such benefits would have been received by Executive under such plans (it being
understood that the value of any insurance-provided benefits will be based on
the premium cost to Executive, which shall not exceed the highest risk premium
charged by a carrier having an investment grade or better credit rating);

                  (d) outplacement services the scope and provider of which
shall be selected by the Executive in his sole discretion, provided by the
Company at its sole expense as incurred;

                  (e) for three (3) years after Executive's Date of Termination,
a continued application of the Company's auto leasing policy in effect on the
Extension Date, including, without limitation, fuel, insurance, maintenance and
car phone;

                  (f) for one (1) year after Executive's Date of Termination,
the provision of reasonable personal tax accounting and financial planning by a
firm chosen by Executive and reasonably acceptable to the Company;

                  (g) the Company shall reimburse the Executive the actual
brokerage commissions paid by Executive in connection with the sale of
Executive's principal residence, if the Executive lists (and continues to list)
the Executive's principal residence for sale commencing not later than the
second anniversary of the Date of Termination, and the Executive shall have the
right to cause the Company to purchase Executive's principal residence at any
time prior to the second anniversary of the Date of Termination for its
appraised value; provided, the appraised value shall be the average of the
values of the Executive's principal residence (net of any indebtedness assumed
by the Company) determined within ten (10) days of the date the residence is
listed for sale by three real estate appraisers, one chosen by each of the
Executive and the Company and the third appraiser chosen by the other two
appraisers;

                  (h) for three (3) years after the Executive's Date of
Termination, the payment of all regular lunch and country club membership dues
or fees in respect of any lunch or country club of which Executive is a member
on Executive's Date of Termination; and

                  (i) for three (3) years after Executive's Date of Termination,
the payment of all normal insurance premiums with respect to the insurance
policies on the life of Executive under the Company's Group Replacement
Insurance Program, or any successor thereto.

         Notwithstanding anything to the contrary, if the Executive's Date of
Termination under this section 8 occurs at or within thirty-six (36) months
prior to the Executive's 65th birthday, the benefits otherwise provided under
paragraph 8(d) shall be eliminated, and the lump sum amount payable under
paragraph 8(a)(ii) shall be reduced by multiplying such amount by a fraction,
the numerator of which is the number of months remaining until the Executive
reaches age 65 and the denominator of which is 36, so that such lump sum
gradually diminishes to elimination upon the Executive's 65th birthday. In
addition, any payments or benefits available to Executive under paragraphs 8(c),
8(e), 8(f), 8(h) and 8(i) shall terminate upon the Executive's 65th birthday.

                                       -9-

<PAGE>   12

         9.       DEFINITIONS RELATING TO TERMINATION EVENTS.

                  (a) "CAUSE." For purposes of this Termination Agreement,
"Cause" shall mean Executive's gross misconduct (as defined herein). For
purposes of this definition, "gross misconduct" shall mean (A) a felony
conviction in a court of law under applicable federal or state laws which
results in material damage to the Company or any of its subsidiaries or
materially impairs the value of Executive's services to the Company, or (B)
willfully engaging in one or more acts, or willfully omitting to act in
accordance with duties hereunder, which is demonstrably and materially damaging
to the Company or any of its subsidiaries, including acts and omissions that
constitute gross negligence in the performance of Executive's duties under this
Termination Agreement. Notwithstanding the foregoing, Executive may not be
terminated for Cause unless and until there shall have been delivered to him a
copy of a resolution duly adopted by a majority affirmative vote of the
membership of the Board of Directors of the Company (the "Board") (excluding
Executive, if he is then a member) at a meeting of the Board called and held for
such purpose (after giving Executive reasonable notice specifying the nature of
the grounds for such termination and not less than 30 days to correct the acts
or omissions complained of, if correctable, and affording Executive the
opportunity, together with his counsel, to be heard before the Board) finding
that, in the good faith opinion of the Board, Executive was guilty of conduct
which constitutes Cause as set forth in this Section 9(a).

                  (b) "CHANGE OF CONTROL." For the purpose of this Termination
Agreement, a "Change of Control" shall mean:

                           (i)      The acquisition by any individual, entity or
                                    group (within the meaning of Section
                                    13(d)(3) or 14(d)(2) of the Securities
                                    Exchange Act of 1934, as amended (the
                                    "Exchange Act")) (a "Person") of beneficial
                                    ownership (within the meaning of Rule 13d-3
                                    promulgated under the Exchange Act) of
                                    twenty percent (20%) or more of either (A)
                                    the then-outstanding shares of common stock
                                    of the Company (the "Outstanding Company
                                    Common Stock") or (B) the combined voting
                                    power of the then-outstanding voting
                                    securities of the Company entitled to vote
                                    generally in the election of directors (the
                                    "Outstanding Company Voting Securities");
                                    provided, however, that for purposes of this
                                    subsection (i), the following acquisitions
                                    shall not constitute a Change of Control:
                                    (A) any acquisition directly from the
                                    Company, (B) any acquisition by the Company,
                                    (C) any acquisition by any employee benefit
                                    plan (or related trust) sponsored or
                                    maintained by the Company or any corporation
                                    controlled by the Company, (D) any
                                    acquisition by a lender to the Company
                                    pursuant to a debt restructuring of the
                                    Company, or (E) any acquisition by any
                                    corporation pursuant to a transaction which
                                    complies with clauses (A), (B) and (C) of
                                    subsection (iii) of this Section 9;

                           (ii)     Individuals who, as of the date hereof,
                                    constitute the Board (the "Incumbent Board")
                                    cease for any reason to constitute at least
                                    a majority of the Board; provided, however,
                                    that any individual becoming a director
                                    subsequent to the date hereof whose
                                    election, or nomination for election by the
                                    Company's shareholders, was approved by a
                                    vote of at least a majority of the directors
                                    then comprising the Incumbent Board shall be
                                    considered as though such individual were a
                                    member of the Incumbent Board, but
                                    excluding, for

                                      -10-

<PAGE>   13

                                    this purpose, any such individual whose
                                    initial assumption of office occurs as a
                                    result of an 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 other
                                    than the Board;

                           (iii)    Consummation of a reorganization, merger or
                                    consolidation or sale or other disposition
                                    of all or substantially all of the assets of
                                    the Company (a "Business Combination"), in
                                    each case, unless, following such Business
                                    Combination, (A) all or substantially all of
                                    the individuals and entities who were the
                                    beneficial owners, respectively, of the
                                    Outstanding Company Common Stock and
                                    Outstanding Company Voting Securities
                                    immediately prior to such Business
                                    Combination beneficially own, directly or
                                    indirectly, more than fifty percent (50%)
                                    of, respectively, the then-outstanding
                                    shares of common stock and the combined
                                    voting power of the then-outstanding voting
                                    securities entitled to vote generally in the
                                    election of directors, as the case may be,
                                    of the corporation resulting from such
                                    Business Combination (including, without
                                    limitation, a corporation which as a result
                                    of such transaction owns the Company or all
                                    or substantially all of the Company's assets
                                    either directly or through one or more
                                    subsidiaries) in substantially the same
                                    proportions as their ownership, immediately
                                    prior to such Business Combination of the
                                    Outstanding Company Common Stock and
                                    Outstanding Company Voting Securities, as
                                    the case may be, (B) no Person (excluding
                                    any corporation resulting from such Business
                                    Combination or any employee benefit plan (or
                                    related trust) of the Company or such
                                    corporation resulting from such Business
                                    Combination) beneficially owns, directly or
                                    indirectly, twenty percent (20%) or more of,
                                    respectively, the then outstanding shares of
                                    common stock of the corporation resulting
                                    from such Business Combination, or the
                                    combined voting power of the then
                                    outstanding voting securities of such
                                    corporation except to the extent that such
                                    ownership existed prior to the Business
                                    Combination and (C) at least a majority of
                                    the members of the board of directors of the
                                    corporation resulting from such Business
                                    Combination were members of the Incumbent
                                    Board at the time of the execution of the
                                    initial agreement, or of the action of the
                                    Board, providing for such Business
                                    Combination; or

                           (iv)     Approval by the shareholders of the Company
                                    of a complete liquidation or dissolution of
                                    the Company.

                  (c) "DISABILITY" means the failure of Executive to render and
perform the services required of him under this Termination Agreement, for a
total of 180 days or more during any consecutive 12 month period, because of any
physical or mental incapacity or disability as determined by a physician or
physicians selected by the Company and reasonably acceptable to Executive,
unless, within 30 days after Executive has received written notice from the
Company of a proposed Date of Termination due to such absence, Executive shall
have returned to the full performance of his duties hereunder and shall have
presented to the Company a written certificate

                                      -11-

<PAGE>   14

of Executive's good health prepared by a physician selected by Company and
reasonably acceptable to Executive.

                  (d) "EXTENDED EMPLOYMENT PERIOD" shall mean the period
commencing on the Extension Date and ending on the third anniversary of such
date.

                  (e) "EXTENSION DATE" shall mean the first date during the Term
of this Termination Agreement on which a Change of Control occurs. Anything in
this Termination Agreement or the Employment Agreement to the contrary
notwithstanding, if a Change of Control occurs and if the Executive's employment
with the Company is terminated prior to the date on which the Change of Control
occurs, and if it is reasonably demonstrated by the Executive that such
termination of employment (i) was at the request of a third party who has taken
steps reasonably calculated to effect a Change of Control or (ii) otherwise
arose in connection with or anticipation of a Change of Control, then for all
purposes of the Employment Agreement the "Extension Date" shall mean the date
immediately prior to the date of such termination of employment.

                  (f) "GOOD REASON." For purposes of this Termination Agreement,
"Good Reason" shall mean the occurrence of a Change of Control and following
which but not later than the third anniversary of the date of the Change of
Control there occurs, without Executive's prior written consent:

                           (i)      the assignment to the Executive of any
                                    duties inconsistent in any respect with the
                                    Executive's position (including status,
                                    offices, titles and reporting requirements),
                                    authority, duties or responsibilities as
                                    contemplated by Section 2(a) of this
                                    Termination Agreement, or any other action
                                    by the Company which results in a diminution
                                    in such position, authority, duties or
                                    responsibilities, excluding for this purpose
                                    an isolated, insubstantial and inadvertent
                                    action not taken in bad faith and which is
                                    remedied by the Company promptly after
                                    receipt of notice thereof given by the
                                    Executive;

                           (ii)     any failure by the Company to comply with
                                    any of the provisions of Section 4 of this
                                    Termination Agreement or the Employment
                                    Agreement, other than an isolated,
                                    insubstantial and inadvertent failure not
                                    occurring in bad faith and which is remedied
                                    by the Company promptly after receipt of
                                    notice thereof given by the Executive;

                           (iii)    the Company's requiring the Executive to be
                                    based at any office or location other than
                                    as provided in Section 2(b) hereof or the
                                    Company's requiring the Executive to travel
                                    on Company business to a substantially
                                    greater extent than required immediately
                                    prior to the Effective Date;

                           (iv)     any failure by the Company to perform any
                                    material obligation under, or breach by the
                                    Company of any material provision of, this
                                    Termination Agreement;

                                      -12-

<PAGE>   15

                           (v)      any purported termination by the Company of
                                    the Executive's employment otherwise than as
                                    expressly permitted by this Termination
                                    Agreement; or

                           (vi)     any failure by the Company to comply with
                                    and satisfy Section 12(b) of this
                                    Termination Agreement.

For purposes of this Section, any good faith determination of "Good Reason" made
by the Executive shall be conclusive.

                  (g) "NORMAL RETIREMENT DATE." For purposes of this Termination
Agreement, an Executive's Normal Retirement Date is his or her attainment of age
sixty-five (65).

         10.      EXCISE TAX GROSS-UP.

                  If Executive becomes entitled to one or more payments (with a
"payment" including, without limitation, the vesting of an option or other
non-cash benefit or property), whether pursuant to the terms of this Termination
Agreement or any other plan, arrangement, or agreement with the Company or any
affiliated company (the "Total Payments"), which are or become subject to the
tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended
(the "Code") (or any similar tax that may hereafter be imposed) (the "Excise
Tax"), the Company shall pay to Executive at the time specified below an
additional amount (the "Gross-up Payment") (which shall include, without
limitation, reimbursement for any penalties and interest that may accrue in
respect of such Excise Tax) such that the net amount retained by Executive,
after reduction for any Excise Tax (including any penalties or interest thereon)
on the Total Payments and any federal, state and local income or employment tax
and Excise Tax on the Gross-up Payment provided for by this Section 10, but
before reduction for any federal, state, or local income or employment tax on
the Total Payments, shall be equal to the sum of (a) the Total Payments, and (b)
an amount equal to the product of any deductions disallowed for federal, state,
or local income tax purposes because of the inclusion of the Gross-up Payment in
Executive's adjusted gross income multiplied by the highest applicable marginal
rate of federal, state, or local income taxation, respectively, for the calendar
year in which the Gross-up Payment is to be made.

                  For purposes of determining whether any of the Total Payments
will be subject to the Excise Tax and the amount of such Excise Tax:

                  (a) The Total Payments shall be treated as "parachute
payments" within the meaning of Section 280G(b)(2) of the Code, 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, and except to the extent that,
in the written opinion of independent legal counsel, compensation consultants or
auditors of nationally recognized standing ("Independent Advisors") selected by
the Company and reasonably acceptable to Executive, the Total Payments (in whole
or in part) do not constitute parachute payments, or such excess parachute
payments (in whole or in part) represent reasonable compensation for services
actually rendered within the meaning of Section 280G(b)(4) of the Code in excess
of the base amount within the meaning of Section 280G(b)(3) of the Code or are
otherwise not subject to the Excise Tax;

                  (b) The amount of the Total Payments which shall be treated as
subject to the Excise Tax shall be equal to the lesser of (i) the total amount
of the Total Payments or (ii) the total amount of excess parachute payments
within the meaning of Section 280G(b)(1) of the Code (after applying clause (a)
above); and

                                      -13-

<PAGE>   16

                  (c) The value of any non-cash benefits or any deferred payment
or benefit shall be determined by the Independent Advisors in accordance with
the principles of Sections 280G(d)(3) and (4) of the Code.

                  For purposes of determining the amount of the Gross-up
Payment, Executive shall be deemed (A) to pay federal income taxes at the
highest marginal rate of federal income taxation for the calendar year in which
the Gross-up Payment is to be made; (B) to pay any applicable state and local
income taxes at the highest marginal rate of taxation for the calendar year in
which the Gross-up Payment is to be made, net of the maximum reduction in
federal income taxes which could be obtained from deduction of such state and
local taxes if paid in such year (determined without regard to limitations on
deductions based upon the amount of Executive's adjusted gross income); and (C)
to have otherwise allowable deductions for federal, state, and local income tax
purposes at least equal to those disallowed because of the inclusion of the
Gross-up Payment in Executive's adjusted gross income. In the event that the
Excise Tax is subsequently determined to be less than the amount taken into
account hereunder at the time the Gross-up Payment is made, Executive shall
repay to the Company at the time that the amount of such reduction in Excise Tax
is finally determined (but, if previously paid to the taxing authorities, not
prior to the time the amount of such reduction is refunded to Executive or
otherwise realized as a benefit by Executive) the portion of the Gross-up
Payment that would not have been paid if such Excise Tax had been applied in
initially calculating the Gross-up Payment, plus interest on the amount of such
repayment at the rate provided in Section 1274(b)(2)(B) of the Code. In the
event that the Excise Tax is determined to exceed the amount taken into account
hereunder at the time the Gross-up Payment is made (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 and
shall indemnify and hold Executive harmless in respect of such excess (plus any
interest and penalties payable with respect to such excess) at the time that the
amount of such excess is finally determined.

                  The Gross-up Payment provided for above shall be paid on the
30th day (or such earlier date as the Excise Tax becomes due and payable to the
taxing authorities) after it has been determined that the Total Payments (or any
portion thereof) are subject to the Excise Tax; PROVIDED, HOWEVER, that if the
amount of such Gross-up Payment or portion thereof cannot be finally determined
on or before such day, the Company shall pay to Executive on such day an
estimate, as determined by the Independent Advisors, of the minimum amount of
such payments and shall pay the remainder of such payments (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code), as soon as
the amount thereof can be determined. In the event that the amount of the
estimated payments exceeds the amount subsequently determined to have been due,
such excess shall constitute a loan by the Company to Executive, payable on the
fifth day after demand by the Company (together with interest at the rate
provided in Section 1274(b)(2)(B) of the Code). If more than one Gross-up
Payment is made, the amount of each Gross-up Payment shall be computed so as not
to duplicate any prior Gross-up Payment.

                  The Executive shall notify the Company in writing of any claim
by the Internal Revenue Service that, if successful, would require the payment
by the Company of the Gross-Up Payment. Such notification shall be given as soon
as practicable but no later than ten (10) business days after the Executive is
informed in writing of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be paid. The
Executive shall not pay such claim prior to the expiration of the 30-day period
following the date on which it gives such notice to the Company (or such shorter
period ending on the date that any payment of taxes with respect to such claim
is due). If the Company notifies the Executive in

                                      -14-

<PAGE>   17

writing prior to the expiration of such period that it desires to contest such
claim, the Executive shall:

                           (i)      give the Company any information reasonably
                                    requested by the Company relating to such
                                    claim,

                           (ii)     take such action in connection with
                                    contesting such claim as the Company shall
                                    reasonably request in writing from time to
                                    time, including, without limitation,
                                    accepting legal representation with respect
                                    to such claim by an attorney reasonably
                                    selected by the Company,

                           (iii)    cooperate with the Company in good faith in
                                    order effectively to contest such claim, and

                           (iv)     permit the Company to participate in any
                                    proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income or employment tax (including
interest and penalties with respect thereto) imposed as a result of such
representation and payment of costs and expenses. Without limitation on the
foregoing provisions of this Section 10, the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or to contest the claim in any permissible manner, and the Executive
agrees to prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Company shall determine; provided, however, that if the Company
directs the Executive to pay such claim and sue for a refund, the Company shall
advance the amount of such payment to the Executive, on an interest-free basis
and shall indemnify and hold the Executive harmless, on an after-tax basis, from
any Excise Tax or income or employment tax (including income or employment or
interest or penalties with respect thereto) imposed with respect to such advance
or with respect to any imputed income with respect to such advance; and further
provided that any extension of the statute of limitations relating to payment of
taxes for the taxable year of the Executive with respect to which such contested
amount is claimed to be due is limited solely to such contested amount.
Furthermore, the Company's control of the contest shall be limited to issues
with respect to which a Gross-Up Payment would be payable hereunder and the
Executive shall be entitled to settle or contest, as the case may be, any other
issue raised by the Internal Revenue Service or any other taxing authority. If,
after the receipt by the Executive of an amount advanced by the Company pursuant
to this Section 10, the Executive becomes entitled to receive any refund with
respect to such claim, the Executive shall (subject to the Company's complying
with the requirements of this Section 10) promptly pay to the Company the amount
of such refund (together with any interest paid or credited thereon after taxes
applicable thereto). If, after the receipt by the Executive of an amount
advanced by the Company pursuant to this Section 10, a determination is made
that the Executive shall not be entitled to any refund with respect to such
claim and the Company does not notify the Executive in writing of its intent to
contest such denial of refund prior to the expiration of thirty (30) days after
such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the extent
thereof, the amount of Gross-Up Payment required to be paid.

                                      -15-

<PAGE>   18

         11.      NON-COMPETITION AND NON-DISCLOSURE; EXECUTIVE COOPERATION.

                  (a) NON-COMPETITION. Without the consent in writing of the
Board, upon the Executive's Date of Termination for any reason, Executive will
not, for a period of two years thereafter, acting alone or in conjunction with
others, directly or indirectly (i) engage (either as owner, investor, partner,
stockholder, employer, employee, consultant, advisor or director (other than as
below)) in any business in the continental United States which is a material
business conducted by the Company or any of its subsidiaries on the date of the
consummation of a Change of Control in which he has been directly engaged, or
has supervised as an executive, on the date of the consummation of the Change of
Control and which is directly in competition with a material business conducted
by the Company or any of its subsidiaries on the date of the consummation of the
Change of Control; (ii) induce any customers of the Company or any of its
subsidiaries with whom Executive has had contacts or relationships, directly or
indirectly, during and within the scope of his employment with the Company or
any of its subsidiaries, to curtail or cancel their business with such companies
or any of them; or (iii) induce, or attempt to influence, any employee of the
Company or any of its subsidiaries to terminate employment. The provisions of
subparagraphs (i), (ii), and (iii) above are separate and distinct commitments
independent of each of the other subparagraphs. It is agreed that the ownership
of not more than one percent of the equity securities of any company having
securities listed on an exchange or regularly traded in the over-the-counter
market shall not, of itself, be deemed inconsistent with clause (i) of this
paragraph (a), nor shall service as a member of a board of directors on which
Executive is serving on the Date of Termination (including any successor board
thereto) be deemed, of itself, to be inconsistent with clause (i) of this
paragraph (a). The Executive and the Company agree that the value to be assigned
to the obligations of the Executive under this paragraph (a) is an amount equal
to one hundred percent (100%) of the Executive's Annual Base Salary and Recent
Annual Bonus. Violation of Section 11(a) or (b) shall not require Executive to
return any payment or benefit previously distributed to Executive.

                  (b) NON-DISCLOSURE. Executive shall not at any time (including
following Executive's Date of Termination for any reason), disclose, use,
transfer, or sell, except in the course of employment with or other service to
the Company, any confidential or proprietary information of the Company or any
of its subsidiaries so long as such information has not otherwise been disclosed
or is not otherwise in the public domain, except as required by law or pursuant
to legal process.

                  (c) COOPERATION WITH REGARD TO LITIGATION. Executive agrees to
cooperate with the Company (including following Executive's Date of Termination
for any reason), on a reasonable basis when cooperation would not unreasonably
interfere with Executive's employment by making himself available to testify on
behalf of the Company or any subsidiary or affiliate of the Company, in any
action, suit, or proceeding, whether civil, criminal, administrative, or
investigative, and to assist the Company, or any subsidiary or affiliate of the
Company, in any such action, suit, or proceeding, by providing information and
meeting and consulting with the Board and its representatives or counsel, or
representatives or counsel of or to the Company, or any subsidiary or affiliate
of the Company, as requested; PROVIDED, HOWEVER, this subsection (c) shall not
apply to any action between the Executive and the Company to enforce this
Termination Agreement. The Company agrees to reimburse Executive, on an
after-tax basis, for all expenses actually incurred in connection with his
provision of testimony or assistance.

                  (d) RELEASE OF EMPLOYMENT CLAIMS. Executive agrees, as a
condition to receipt of the termination payments and benefits provided
hereunder, that he will execute a release agreement, in a form satisfactory to
the Company, releasing any and all claims arising out of

                                      -16-

<PAGE>   19

Executive's employment (other than claims made pursuant to any indemnities
provided under the articles or by-laws of the Company, under any directors or
officers liability insurance policies maintained by the Company or enforcement
of this Termination Agreement).

                  (e) SURVIVAL. Notwithstanding any provision of this
Termination Agreement to the contrary, the provisions of this Section 11 shall
survive the termination or expiration of this Termination Agreement, shall be
valid and enforceable, and shall be a condition precedent to the Executive (or
his or her beneficiaries) receiving any amounts payable hereunder. The
obligations of Executive under this Section II and any comparable type of
obligation under the Employment Agreement are expressly conditioned upon
Company's satisfaction of its obligations to Executive under this Termination
Agreement and the Employment Agreement.

         12.      GOVERNING LAW; DISPUTES; ARBITRATION.

                  (a) GOVERNING LAW. This Termination Agreement is governed by
and is to be construed, administered, and enforced in accordance with the laws
of the State of Ohio, without regard to Ohio conflicts of law principles, except
insofar as federal laws and regulations may be applicable. If under the
governing law, any portion of this Termination Agreement is at any time deemed
to be in conflict with any applicable statute, rule, regulation, ordinance, or
other principle of law, such portion shall be deemed to be modified or altered
to the extent necessary to conform thereto or, if that is not possible, to be
omitted from this Termination Agreement. The invalidity of any such portion
shall not affect the force, effect, and validity of the remaining portion
hereof. If any court determines that any provision of Section 11 is
unenforceable because of the duration or geographic scope of such provision, it
is the parties' intent that such court shall have the power to modify the
duration or geographic scope of such provision, as the case may be, to the
extent necessary to render the provision enforceable and, in its modified form,
such provision shall be enforced.

                  (b) REIMBURSEMENT OF EXPENSES IN ENFORCING RIGHTS AND FUNDING
OF OBLIGATIONS. On and after the Extension Date, all reasonable costs and
expenses (including fees and disbursements of counsel) incurred by Executive in
seeking to enforce rights pursuant to this Termination Agreement shall be paid
on behalf of or reimbursed to Executive promptly by the Company, whether or not
Executive is successful in asserting such rights; PROVIDED, HOWEVER, that no
reimbursement shall be made of such expenses relating to any unsuccessful
assertion of rights if and to the extent that Executive's assertion of such
rights was in bad faith or frivolous, as determined by independent counsel
mutually acceptable to Executive and the Company and made without reference to
or not related to a Change of Control. Immediately prior to the Extension Date
but not less than five (5) days prior thereto, the Company agrees to maintain a
minimum amount in a rabbi trust (or to provide to the trustee of such rabbi
trust) an irrevocable letter of credit in an amount equal to such minimum amount
(and callable at will by such trustee) sufficient to fund any such litigation
and the aggregate present value of all liabilities potentially owed to the
Executive under this Agreement as if he or she had incurred a termination of
employment by the Company other than for Cause.

                                      -17-

<PAGE>   20

         13.      MISCELLANEOUS.

                  (a) INTEGRATION. This Termination Agreement modifies and
supersedes any and all prior agreements and understandings between the parties
hereto with respect to the employment of Executive by the Company and its
subsidiaries, except for the Employment Agreement and contracts relating to
compensation under executive compensation and employee benefit plans of the
Company and only to the extent enforceable. Subject to the rights, benefits and
obligations provided for in such executive compensation contracts and employee
benefit plans of the Company, this Termination Agreement and the Employment
Agreement together constitute the entire agreement among the parties with
respect to the matters herein provided, and no modification or waiver of any
provision hereof shall be effective unless in writing and signed by the parties
hereto. Executive shall not be entitled to any payment, right or benefit under
this Termination Agreement which duplicates a payment, right or benefit received
or receivable by Executive under such prior agreements and understandings with
the Company or under any benefit or compensation plan of the Company.

                  (b) NON-TRANSFERABILITY. Neither this Termination Agreement
nor the rights or obligations hereunder of the parties hereto shall be
transferable or assignable by Executive, except in accordance with the laws of
descent and distribution or as specified in Section 13(c). The Company may
assign this Termination Agreement and the Company's rights and obligations
hereunder, and shall assign this Termination Agreement, to any Successor (as
hereinafter defined) which, by operation of law or otherwise, continues to carry
on substantially the business of the Company prior to the event of succession,
and the Company shall, as a condition of the succession, require such Successor
to agree to assume the Company's obligations and be bound by this Termination
Agreement. For purposes of this Termination Agreement, "Successor" shall mean
any person that succeeds to, or has the practical ability to control (either
immediately or with the passage of time), the Company's business directly, by
merger or consolidation, or indirectly, by purchase of the Company's voting
securities or all or substantially all of its assets, or otherwise.

                  (c) BENEFICIARIES. Executive shall be entitled to designate
(and change, to the extent permitted under applicable law) a beneficiary or
beneficiaries to receive any compensation or benefits payable hereunder
following Executive's death.

                  (d) NOTICES. Whenever under this Termination Agreement it
becomes necessary to give notice, such notice shall be in writing, signed by the
party or parties giving or making the same, and shall be served on the person or
persons for whom it is intended or who should be advised or notified, by Federal
Express or other similar overnight service or by certified or registered mail,
return receipt requested, postage prepaid and addressed to such party at the
address set forth below or at such other address as may be designated by such
party by like notice:

         If to the Company:      Commercial Intertech Corp.
                                 1775 Logan Avenue
                                 Youngstown, Ohio 44501

                                 Attention:  Secretary

                                      -18-

<PAGE>   21

         With copies to:         Commercial Intertech Corp.
                                 1775 Logan Avenue
                                 Youngstown, Ohio 44501

                                 Attention: General Counsel

         If to Executive:        -----------------------------------------------
                                 -----------------------------------------------

                                 -----------------------------------------------

If the parties by mutual agreement supply each other with telecopier numbers for
the purposes of providing notice by facsimile, such notice shall also be proper
notice under this Termination Agreement. In the case of Federal Express or other
similar overnight service, such notice or advice shall be effective when sent,
and, in the cases of certified or registered mail, shall be effective 2 days
after deposit into the mails by delivery to the U.S. Post Office.

                  (e) REFORMATION. The invalidity of any portion of this
Termination Agreement shall not be deemed to render the remainder of this
Termination Agreement invalid.

                  (f) HEADINGS. The headings of this Termination Agreement are
for convenience of reference only and do not constitute a part hereof.

                  (g) NO GENERAL WAIVERS. The failure of any party at any time
to require performance by any other party of any provision hereof or to resort
to any remedy provided herein or at law or in equity shall in no way affect the
right of such party to require such performance or to resort to such remedy at
any time thereafter, nor shall the waiver by any party of a breach of any of the
provisions hereof be deemed to be a waiver of any subsequent breach of such
provisions. No such waiver shall be effective unless in writing and signed by
the party against whom such waiver is sought to be enforced.

                  (h) NO OBLIGATION TO MITIGATE. Executive shall not be required
to seek other employment or otherwise to mitigate Executive's damages on or
after Executive's Date of Termination, nor shall the amount of any payment
hereunder be reduced by any compensation earned by the Executive as a result of
employment by another employer; PROVIDED, HOWEVER, that, to the extent Executive
receives from a subsequent employer health or other insurance benefits that are
substantially similar to the benefits referred to in this Termination Agreement,
any such benefits to be provided by the Company to Executive following the Term
shall be correspondingly reduced.

                  (i) OFFSETS; WITHHOLDING. The amounts required to be paid by
the Company to Executive pursuant to this Termination Agreement shall not be
subject to offset, counterclaim, recoupment, defense or other claim, right or
action which the Company may have against Executive or others, other than with
respect to any amounts that are owed to the Company by Executive due to his
receipt of Company funds as a result of his fraudulent activity. The foregoing
and other provisions of this Termination Agreement notwithstanding, all payments
to be made to Executive under this Termination Agreement will be subject to
required withholding taxes and other required deductions.

                  (j) SUCCESSORS AND ASSIGNS. This Termination Agreement shall
be binding upon and shall inure to the benefit of Executive, his heirs,
executors, administrators and beneficiaries, and shall be binding upon and inure
to the benefit of the Company and its successors and assigns.

                                      -19-

<PAGE>   22

         14.      INDEMNIFICATION.

                  All rights to indemnification by the Company now existing in
favor of Executive as provided in the Company's Articles of Incorporation or
Code of Regulations or pursuant to other agreements in effect on or immediately
prior to the Extension Date shall continue in full force and effect from the
Extension Date (including all periods after the expiration of the Term), and the
Company shall also advance expenses for which indemnification may be ultimately
claimed as such expenses are incurred to the fullest extent permitted under
applicable law, subject to any requirement that Executive provide an undertaking
to repay such advances if it is ultimately determined that Executive is not
entitled to indemnification; PROVIDED, HOWEVER, that any determination required
to be made with respect to whether Executive's conduct complies with the
standards required to be met as a condition of indemnification or advancement of
expenses under applicable law and the Company's Articles of Incorporation, Code
of Regulations, or other agreement shall be made by independent counsel mutually
acceptable to Executive and the Company (except to the extent otherwise required
by law). After the date hereof, the Company shall not amend its Articles of
Incorporation or Code of Regulations or any agreement in any manner which
adversely affects the rights of Executive to indemnification thereunder. Any
provision contained herein notwithstanding, this Termination Agreement shall not
limit or reduce any rights of Executive to indemnification pursuant to
applicable law. In addition, the Company will maintain directors' and officers'
liability insurance in effect and covering acts and omissions of Executive,
during the Term and for a period of six years thereafter, on terms substantially
no less favorable as those in effect on the Extension Date.

                  IN WITNESS WHEREOF, Executive has hereunto set his hand and
the Company has caused this instrument to be duly executed as of the day and
year first above written.

                           COMMERCIAL INTERTECH CORP.

                                 By:
                                    --------------------------------------------
                                 Name:
                                      ------------------------------------------
                                 Title:
                                       -----------------------------------------

                                 STEPHEN J. PERKINS

                                 -----------------------------------------------

                                      -20-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00000-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00000-of-00352.parquet"}]]