Document:

ccni_ex101.htm

Exhibit 10.1

 

	 	 	 
	 	

 

 

 

 

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

DATED AS OF OCTOBER 13, 2015

 

BETWEEN

 

COMMAND CENTER, INC.

 

AND

 

FREDERICK J. SANDFORD

 

 

 

 

 

 

 

	 
	 	 	 

 

 

 

  

  

  

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This EXECUTIVE EMPLOYMENT AGREEMENT (the “Agreement”) made this 13th  day of October, 2015, by and between COMMAND CENTER, INC., a Washington corporation (hereinafter called “Company”) and FREDERICK J. SANDFORD, an individual (hereinafter called “Executive”).

 

RECITALS

 

Company desires to continue the employment of Executive and Executive desires to accept such continued employment, all on the terms and conditions hereinafter set forth.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants set forth in this Agreement, the parties hereto agree as follows:

 

1. Employment.

 

Subject to the terms and conditions of this Agreement, Company hereby employs Executive, and Executive hereby accepts such employment, as the President and Chief Executive Officer of Company and in such other capacities and for such other duties and services as will from time to time be mutually agreed upon by Company and Executive, consistent with the position of the President and Chief Executive Officer and reporting directly to the Company’s Board of Directors.

 

2. Full Time Occupation.

 

Executive will devote Executive's entire business time, attention, and efforts as reasonably necessary to the performance of Executive's duties under this Agreement, and will serve Company faithfully and diligently and will not engage in any other employment while employed by Company.

 

3. Compensation.

 

(a) Salary. During the Employment Period (as defined herein), Company will pay to Executive, as full compensation for the services rendered by Executive, a base salary at a rate of $275,000 per annum (“Base Salary”).  Company will pay the Base Salary in accordance with Company's established payroll procedures.  Payments will be made in bi-weekly installments, or in such other periodic installments upon which Company and Executive will mutually agree.

 

(b) Bonus. In addition to the Base Salary, Executive will be eligible to receive annual incentive bonus compensation (the “Annual Bonus”) pursuant to the Executive Bonus Plan approved by the Company's Board of Directors and/or the Compensation Committee of the Board of Directors.  The bonus plan will be based on performance metrics determined by the Company’s Board of Directors and/or the Compensation Committee of the Board of Directors at the beginning of each year and will target an Annual Bonus of 100% of the Base Salary.

 

(c) Withholding.  The Company may withhold from any payments or benefits under this Agreement, all federal, state and local taxes as the Company is required to withhold pursuant to any law or governmental rule or regulation.  Executive shall bear all expense of, and be solely responsible for, all federal, state and local taxes due with respect to any payment received hereunder.

 

4. Stock Options.

 

 In the sole and absolute discretion of the Compensation Committee, Executive may become eligible for future option awards on such terms and conditions as the Committee directs, and on the same basis as other executive officers of the Company.

 

5. [Omitted]

 

  

1

  

6. Other Benefits.

 

(a) Reimbursement.  During the Employment Period, Company will reimburse Executive for all travel and entertainment expenses and other ordinary and necessary business expenses incurred by Executive in connection with the business of Company and Executive's duties under this Agreement.  The term “business expenses” will not include any item not deductible by Company for federal income tax purposes.  To obtain reimbursement, Executive will submit to Company receipts, bills, or sales slips for the expenses incurred.

 

(b) Professional Memberships and Continuing Professional Education.  Company will pay for dues and fees required for any professional licenses maintained by Executive, membership in professional or industry associations, continuing education requirements associated with any professional license and conferences and seminars commonly attended by executives in similar companies.

 

(c) Vacation.  Executive will be entitled to four weeks paid vacation each year.

 

(d) Other Benefits.  During the Employment Period, Executive will be entitled to participate in any group insurance, pension, retirement, vacation, expense reimbursement, stock option, and other plans, programs, and benefits approved by the Compensation Committee and made available from time to time to executive employees of Company generally during the term of Executive's employment hereunder.  The foregoing will not obligate Company to adopt or maintain any particular plan, program, or benefit.

 

7. Term of Employment.

 

(a) Employment Term. The term of Executive's employment hereunder will commence on July 1, 2015 (the “Effective Date”) and will continue for a period of three years following the Effective Date, unless terminated by either party pursuant to the terms of this Agreement (such period and any extensions thereof, the “Employment Period”).  The term of the Employment Period hereunder will automatically renew for  successive three-year terms, unless terminated by either party giving written notice to the other not less than 30 days prior to the end of the then-current term or as otherwise set forth in this Agreement.

 

(b) Termination Under Certain Circumstances.  Notwithstanding anything to the contrary herein contained:

 

(i) Death.  Executive's employment will be automatically terminated, without notice, effective upon the date of Executive's death.

 

(ii) Disability.  If Executive will fail to perform any of Executive’s job duties under this Agreement as the result of illness or other incapacity, with or without reasonable accommodation, for a period of more than eight consecutive weeks, or for more than eight weeks within any six-month period, as determined by Company, Company may, at its option, and upon notice to Executive, terminate Executive's employment effective on the date of that notice.

 

(iii) Cause.  Company may terminate Executive’s employment during the Employment Period for Cause.  For purposes of this Agreement, “Cause” will mean any of the following:

 

(1) the failure of Executive to perform Executive’s duties pursuant to this Agreement to the objectively reasonable satisfaction of the Board of Directors, which remains uncured for 15 days after a written demand for performance is delivered to Executive by the Board of Directors or an executive officer of Company that specifically identifies the manner in which the Board of Directors or such executive officer believes that Executive has not performed Executive’s duties;

 

(2) Executive’s indictment for, or conviction of, a crime involving moral turpitude whether or not relating to Company;

 

(3) gross negligence or willful misconduct by Executive in the performance of his duties as an employee of Company;

 

(4) the association, directly or indirectly, of Executive, for his profit or financial benefit, with any person, firm, partnership, association, entity, or corporation that competes with Company;

 

(5) the disclosing or using of any material Confidential Information (as hereinafter defined) of Company at any time by Executive, except as required in connection with his duties to Company;

 

(6) the breach by Executive of his fiduciary duty or duty of trust to Company, including, but not limited to, the commission by Executive of an act of fraud or embezzlement against Company;

 

(7) chronic absenteeism;

 

(8) substance abuse;

 

  

2

  

(9) misconduct or dishonesty toward or involving Company, which misconduct or dishonesty is injurious to the Company, monetarily or otherwise; or

 

(10) any other material breach by Executive of any of the terms or provisions of this Agreement, which other material breach is not cured within ten business days of notice by the Company.

 

(iv) Change of Control.  In the event of a Change of Control (as defined below), Company or Executive may, each at their respective options, upon written notice to the other, terminate Executive’s employment by providing the other party with 30 days' written notice after the effective date of the Change of Control.  For the purposes of this Agreement, a “Change in Control” will be deemed to have occurred if and when:

 

(1) Tender Offer.  A tender offer or exchange offer is made whereby the effect of such offer is to take over and control Company, and such offer is consummated for the equity securities of Company representing 50% or more of the combined voting power of Company’s then outstanding voting securities;

 

(2) Merger or Consolidation.  The shareholders of Company approve a merger, consolidation, recapitalization, or reorganization of Company, or consummation of any such transaction if shareholder approval is not obtained, other than any such transaction that would result in at least 75% of the total voting power represented by the voting securities of the surviving entity outstanding immediately after such transaction being beneficially owned by the holders of outstanding voting securities of Company immediately prior to the transaction, with the voting power of each such continuing holder relative to other such continuing holders not substantially altered in the transaction; or

 

(3) Sale of Assets.  The shareholders of Company approve  an agreement for the sale or disposition by Company of all or substantially all of Company's assets to another person or entity, which is not a wholly owned subsidiary of Company

 

 (v) Without Cause

 

(1) Executive may terminate the Employment Period at any time upon giving to Company written notice sixty days in advance of the proposed termination date.

 

(2) Company may terminate the Employment Period at any time before the expiration of this Agreement without cause by giving to Executive written notice sixty days in advance of the proposed termination date.

 

(vi) Result of Termination of Employment Period.

 

(1) In the event of the termination of  the Employment Period pursuant to Section 7(b)(iii) [Cause] or Section 7(b)(v)(1) [by Executive] above, Executive will receive no further compensation under this Agreement following the date of termination.

 

(2) In the event of the termination of the Employment Period pursuant to Section 7(b)(i) [Death] or 7(b)(ii) [Disability] above, Executive or Executive’s personal representative or estate will continue to receive Executive’s Base Salary during the six-month period following the date of termination and Executive’s stock options granted under Section 4(a) shall become fully vested at the date of termination.  

 

(3) In the event of the termination of the Employment Period pursuant to Section 7(b)(iv) [Change in Control] above, Executive will continue to receive his Base Salary and his Annual Bonus computed at 100% of Base Salary for the 24-month period following the date of termination   and all stock options granted to Executive shall become fully vested at the date of termination.

 

(4)In the event of termination  during the initial three year term of the Employment Period pursuant to Section 7(b)(v)(2) [Without Cause] above, Executive will continue to receive his Base Salary for the 18 month period following the date of termination or through the end of the then-current Employment Period, whichever is longer. In the event of termination  during any subsequent three year term of the Employment Period pursuant to Section 7(b)(v)(2) [Without Cause] above, Executive will continue to receive his Base Salary for the 18 month period following the date of termination.

 

(5) Executive will continue to be bound by Sections 8 and 9 of this Agreement following termination of Executive’s employment on any basis set forth in this Section 7(b).

 

  

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8. Competition and Confidential Information.

 

(a) Non-Competition. During the term of the Employment Period and for  six months after the termination of  the Employment Period , regardless of the reason therefor, or six months after the final payment of compensation by Company to Executive, whichever is later, Executive will not (whether directly or indirectly, as owner, principal, agent, stockholder, director, officer, manager, executive, partner, participant, or in any other capacity) engage or become financially interested in any competitive business conducted within the Restricted Territory or solicit, canvas, or accept, or authorize any other person, firm, or entity to solicit, canvas, or accept, from any customers of Company or its subsidiaries, any business within the Restricted Territory for Executive or for any other person, firm, or entity.  As used herein, “customers of Company” will mean any persons, firms, or entities that purchased goods or services from Company during the Employment Period; “competitive business” will mean any business which sells or provides or attempts to sell or provide products or services the same as or substantially similar to the products or services sold or provided by Company or any of its subsidiaries; and the “Restricted Territory” will mean the United States or, in the alternative, in the event any reviewing court finds the United States to be overbroad or unenforceable, within 25 miles of any existing or proposed office location of Company.

 

(b) Confidential Information. Executive will maintain in strict secrecy all confidential or trade secret information relating to the business of Company or any of its subsidiaries (the “Confidential Information”) obtained by Executive in the course of Executive’s employment, and Executive will not, unless first authorized in writing by Company, disclose to, or use for Executive's benefit or for the benefit of any person, firm, or entity at any time either during or subsequent to the term of Executive's employment with Company, any Confidential Information, except as required in the performance of Executive's duties on behalf of Company.  For purposes hereof, “Confidential Information” will include, without limitation, any trade secrets, knowledge, or information with respect to processes, procedures, plans, inventions, techniques, or know-how; any business methods or forms; any names or addresses of customers or data on customers or suppliers; and any business policies or other information relating to or dealing with the purchasing, sales, or distribution policies or practices of Company.

 

(c) Return of Books and Papers. Upon the termination of Executive's employment with Company for any reason, Executive will deliver promptly to Company all catalogues, manuals, memoranda, drawings, and specifications; all cost, pricing, and other financial data; all customer information; all other materials, whether written, printed or stored in any electronic media, which are the property of Company or any of its subsidiaries (and any copies of them); desktop or laptop computers, software, access cards, “passwords”, cellular phones, personal digital assistants and pagers; and all other materials which may contain Confidential Information relating to the business of Company or any of its subsidiaries  (whether maintained in tangible, documentary form, computer memory or other electronic or digital  format),  which Executive may then have in Executive's possession whether prepared by Executive or not.

 

(d) Disclosure of Information. Executive will disclose promptly to Company, or its nominee, any and all ideas, designs, processes, and improvements of any kind relating to the business of Company or any of its subsidiaries, whether patentable or not, conceived or made by Executive, either alone or jointly with others, during working hours or otherwise, during the entire period of Executive's employment with Company, or within six months thereafter.

 

(e) Assignment. Executive hereby assigns to Company or its nominee, the entire right, title, and interest in and to all discoveries and improvements, whether patentable or not, which Executive may conceive or make during Executive's employment with Company, or within six months thereafter, and which relate to the business of Company or any of its subsidiaries.  All copyrights, patents, trade secrets, or other intellectual property rights associated with any ideas, concepts, techniques, inventions, processes, or works of authorship developed or created by Executive during the Employment Period (collectively, the "Work Product") shall belong exclusively to Company and shall be considered a work made by Executive for hire within the meaning of Title 17 of the United States Code. To the extent the Work Product may not be considered work made for hire, Executive agrees to assign at the time of creation of the Work Product, without any requirement of further consideration, any right, title, or interest that Executive may have in such Work Product.  Upon Company’s request, Executive will take such further actions, including execution and delivery of instruments of conveyance, as may be appropriate to give full and proper effect to such assignment.

 

(f) Equitable Relief. In the event a violation of any of the restrictions contained in this Section 8 is established, Company will be entitled to preliminary and permanent injunctive relief as well as damages and an equitable accounting of all earnings, profits, and other benefits arising from such violation, which right will be cumulative and in addition to any other rights or remedies to which Company may be entitled.  In the event of a violation of any provision of this Section 8, the period for which those provisions would remain in effect will be extended for a period of time equal to that period beginning when such violation commenced and ending when the activities constituting such violation will have been finally terminated in good faith.

 

(g) Restrictions Separable. Each and every restriction set forth in this Section 8 is independent and severable from the others, and no such restriction will be rendered unenforceable by virtue of the fact that, for any reason, any other or others of them may be unenforceable in whole or in part.

 

(h) No Violation. The execution and delivery of this Agreement and the performance of Executive’s services contemplated hereby will not violate or result in a breach by Executive of, or constitute a default under, or conflict with: (i) any provision or restriction of any employment, consulting, or other similar agreement; (ii) any agreement by Executive with any third party not to compete with, solicit from, or otherwise disparage such third party; (iii) any provision or restriction of any agreement, contract, or instrument to which Executive is a party or by which Executive is bound; or (iv) any order, judgment, award, decree, law, rule, ordinance, or regulation or any other restriction of any kind or character to which Executive is subject or by which Executive is bound.

 

(i)           Non-Disparagement.  Executive agrees that he will make no statement, oral or written, and which, by itself, may significantly or substantially damage the reputation of the Company or any director, officer or employee of the Company.

 

  

4

  

9. Miscellaneous.

 

(a) 2)Notices.

 

All notices, requests, demands, and other communications required or permitted under this Agreement will be in writing and will be deemed to have been duly given and received: i) if mailed by registered or certified mail, three business days after deposit in the United States mail, postage prepaid, return receipt requested; ii) if hand delivered, upon delivery against receipt or upon refusal to accept the notice; or iii) if delivered by a standard overnight courier, one business day after deposit with such courier, postage prepaid, in each case, addressed to such party at the address set forth below:

 

(i) If to Company:

 

Command Center, Inc.

Attn:  Brendan Simaytis

3609 S. Wadsworth Blvd., Suite 250

Lakewood, Colorado  80235

 

(ii) If to Executive:

 

Frederick J. Sandford

 

Either party may change the address to which communications or copies are to be sent by giving notice of such change of address in conformity with the provisions of this Section 9(a) for the giving of notice.

 

(b) Waivers. Neither any failure nor any delay on the part of either party to exercise any right, remedy, power, or privilege under this Agreement will operate as a waiver thereof, nor will any single or partial exercise of any right, remedy, power, or privilege preclude any other or further exercise of the same or of any other right, remedy, power, or privilege, nor will any waiver of any right, remedy, power, or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power, or privilege with respect to any other occurrence.

 

(c) Controlling Law, Jurisdiction and Venue. This Agreement and all questions relating to its validity, interpretation, performance, and enforcement will be governed by and construed in accordance with the laws of the State of Washington, notwithstanding any Washington or other conflict-of-interest provisions to the contrary.    Executive agrees that any and all claims arising between the parties out of this agreement shall be controlled by the laws of the State of Washington, as follows: any dispute, controversy arising out of, connected to, or relating to any matters herein of the transactions between Company and Executive, or this Agreement, which cannot be resolved by negotiation (including, without limitation, any dispute over the arbitrability of an issue), will be settled by binding arbitration in accordance with the J.A.M.S/ENDISPUTE Arbitration Rules and Procedures, as amended by this Agreement. Arbitration proceedings will be held in Spokane, Washington. Company and Executive agree the prevailing party on any action to enforce rights hereunder shall be entitled, in addition to any awarded damages, their costs and reasonable attorney's fees, whether at  arbitration, or on appeal. The parties agree that this provision and the Arbitrator's authority to grant relief are subject to the United States Arbitration Act, 9 U.S.C. 1- 16 et seq. ("USAA") and the provisions of this Agreement. The parties agree that the arbitrator have no power or authority to make awards or issue orders of any kind except as expressly permitted by this Agreement, and in no event does the arbitrator have the authority to make any award that provides for punitive or exemplary damages. The award may be confirmed and enforced in any court of competent jurisdiction. All post-award proceedings will be governed by the USAA. Company and Executive irrevocably consent to the jurisdiction and venue of such arbitration and such courts.

 

(d) Binding Nature of Agreement. This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and assigns except that no party may assign or transfer such party's rights or obligations under this Agreement without the prior written consent of the other party.

 

(e) Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original as against any party whose signature appears thereon, and all of which will together constitute one and the same instrument.  This Agreement will become binding when one or more counterparts hereof, individually or taken together, will bear the signatures of the parties reflected hereon as the signatories.

 

(f) Provisions Separable. The provisions of this Agreement are independent of and separable from each other, and no provision will be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid or unenforceable in whole or in part.

 

  

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(g) Entire Agreement. This Agreement contains the entire understanding between the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements and understandings, inducements, and conditions, express or implied, oral or written, except as herein contained.  The express terms hereof control and supersede: (a) any course of performance and/or usage of the trade inconsistent with any of the terms hereof; and (b) any provision of any other plan or agreement maintained by Company for the benefit of its employees generally inconsistent with any of the terms hereof.  This Agreement may not be modified or amended other than by an agreement in writing signed by the parties hereto.

 

(h) Paragraph Headings. The paragraph headings in this Agreement are for convenience only; they form no part of this Agreement and will not affect its interpretation.

 

(i) Gender. Words used herein, regardless of the number and gender specifically used, will be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine, or neuter, as the context requires.

 

(j) Number of Days. In computing the number of days for purposes of this Agreement, all days will be counted, including Saturdays, Sundays, and holidays; provided, however, that if the final day of any time period falls on a Saturday, Sunday, or holiday, then the final day will be deemed to be the next day which is not a Saturday, Sunday, or holiday.

 

(k) Third Party Beneficiaries.    This Agreement shall not inure to the benefit of anyone other than Executive and Company and their successors and assigns.  No third party may bring an action to enforce any term hereof and no third party beneficiary rights are created by this Agreemen

 

(l) Non-Transferability. This is a personal agreement.  None of the Executive’s rights, benefits, or interests hereunder may be subject to sale, anticipation, alienation, assignment, encumbrance, charge, pledge hypothecation, transfer, or set off in respect of any claim, debt, or obligation, or to execution, attachment, levy or similar process, or assignment by operation of law.  Any attempt, voluntary or involuntary, to effect any such action shall be null, void, and of no effect.

 

  

6

  

 

IN WITNESS WHEREOF, the parties hereto have executed this Executive Employment Agreement as of the Effective Date.

 

	 	COMMAND CENTER, INC., a Washington corporation	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Ronald L. Junck	 
	 	Title:	Executive vice President	 
	 	 	 	 
	 	Date:	

10/13/15

	 
	 	 	 	 
	 	 	 	 
	 	

EXECUTIVE

	 
	 	 	 	 
	 	 	/s/ 	 
	 	 	Frederick J. Sandford	 
	 	 	 	 
	 	Date:	10/13/15	 

 

7Exhibit

	
					
	 
	 
	 
	October 9, 2015
	 

John Garrison
1917 Westover Square
Fort Worth, Texas 76107

We are pleased to confirm our offer to you for the position of Chief Executive Officer of Terex Corporation based in Westport, CT.  The CEO is a very visible position in our Company with duties customarily associated with that position and such other duties consistent therewith as may be determined by the Board, including overall responsibility for the Company's corporate policy making, organization and operation, and accomplishment of its plans and objectives.  The CEO position is the senior-most executive position at our Company, reporting directly to the Board of Directors.  In addition, consistent with applicable law, fiduciary duties and its obligations to stockholders, it is intended that you will become a member of Terex Corporation Board of Directors.
The following represents the additional terms of our offer of employment to you:
		
	1.
	Your employment with Terex Corporation will start on a date to be arranged but it is expected to start on or before November 2, 2015.  During the term of your employment, you may engage in outside activities provided (i) those activities do not conflict with his duties and responsibilities hereunder, (ii) that you give written notice to the Board of Directors of any significant outside business activity in which you plan to become involved, whether or not such activity is pursued for profit, and (iii) you receive the prior consent of the Board prior to joining the board of another for profit entity.

		
	2.
	You will be compensated at the rate of $900,000 per annum payable bi-weekly (“Base Salary”).  Your Base Salary will be reviewed annually and adjusted as determined by the Board; provided, however, that your Base Salary will not decreased during the term of your employment except to the extent that the base salary of other senior executives are decreased as well.

		
	3.
	You will be eligible to participate in the Terex Management Incentive Bonus Plan effective January 1, 2016, with a target set at 120% of your base salary (the “2016 Bonus”). The eligibility for and elements of the Plan are adjusted each year by the Company and typically include formulas based on both Terex financial performance as well as individual performance. You can earn more or less than your target amount based on Terex’s financial performance and your individual performance and achievements of goals. Each year, you will be issued a copy of the Plan for that year setting forth the details, including conditions for payout, for that year. The details will be presented to you shortly after you begin employment.

		
	4.
	In consideration of the 2015 bonus that you will likely forfeit, you will receive a sign-on cash bonus of $ 500,000, less applicable taxes, payable after sixty (60) days of employment.

		
	5.
	Subject to compliance with all applicable laws, and conditioned on the formal ratification by the Compensation Committee of the Board of Directors, you will be a participant in the Terex Corporation 2009 Omnibus Incentive Plan, or any successor plan. Under this Plan, you will receive an initial grant of shares of Restricted Stock. In determining the number of shares the company will use a one-time valuation number of $2,500,000 whereby $2,500,000 will be 

Terex Corporation 200 Nyala Farm Road Westport, CT 06880 USA TEL +1 203 222 7170 FAX +1 203 222 7976 www.terex.com 

John Garrison
October 9, 2015

divided by the closing price of Terex stock on the last business day of the month in which your employment begins to determine the appropriate number of shares. The Restricted Stock provided for you in this letter will then be issued to you on the last business day of the month during which your employment begins with the Company (the “Grant Date”). All shares vest ratably annually over a three (3) year period based on the Grant Date. Additional details will be presented to you shortly after you begin employment. Future eligibility, frequency, type, or amount of awards will be linked to company financial performance and individual performance and vary over time.
		
	6.
	In addition, subject to compliance of all applicable laws, and conditioned on the formal ratification of the Compensation Committee of the Board of Directors, you will be eligible for a 2016 long term incentive award in the amount of $5,000,000, 65% which will be performance-based and 35% which will be time-based. The timing of this award will be consistent with the timing of similar 2016 long term incentive awards granted to other Terex executives.

		
	7.
	Notwithstanding the foregoing two Sections, the merger of Terex with Konecranes Plc (or any affiliate) will not be considered a Change-in-Control for any vesting purposes in the Terex long term incentive program.

		
	8.
	You will be eligible to participate in either the Terex Deferred Compensation Plan (“DCP”) or the ERISA Excess Plan (“EEP”) offered to senior level executives. Both the DCP and EEP Plan provide alternatives for use in deferring income taxes. You can defer up to 20% of your salary as well as 100% of your bonus to the DCP. We currently have two investment options - Terex stock (with a 25% company match) or a Moody’s Bond Index Fund. You can also defer Restricted Stock into the DCP as the shares vest (without a company match). There is also a matching contribution of up to 5% for eligible deferrals to the EEP.  Additional details of these plans will be provided to you separately.

		
	9.
	You will be eligible to participate in the Terex Corporation Defined Contribution Supplemental Executive Retirement Plan which provides for an annual contribution of 10% of your annual salary and bonus earned to be deposited to the Moody’s Bond Index Fund of the DCP. Additional details of this plan will be provided to you separately.

		
	10.
	You will receive relocation reimbursement as outlined on the attachment “Relocation Expense Reimbursement for Executives.” Should you resign or be released for cause, as determined by the Company in its sole discretion, within one (1) year of relocation, you would be required to repay the Company a prorated amount of the relocation expenses based on the number of full months of employment.

		
	11.
	You will be eligible for 20 working days of paid vacation annually, exclusive of Company holidays. This will be pro-rated for your first year, based on your date of hire.

		
	12.
	Terex Corporation currently offers a comprehensive benefits program including medical, dental, vision, life insurance, and disability benefits, a 401 (k) plan with a Company match, and an employee stock purchase plan with a Company match. Benefits for eligible team members become effective 1st of the month coinciding with or following 30 days of employment unless otherwise noted. Additional details will be mailed to you under separate cover.  During the term of your employment, you will be indemnified to the extent provided for in the Terex Corporation 

Terex Corporation 200 Nyala Farm Road Westport, CT 06880 USA TEL +1 203 222 7170 FAX +1 203 222 7976 www.terex.com 

John Garrison
October 9, 2015

Articles of Incorporation and By-laws, as in effect from time to time. You will also be covered by directors and officers liability insurance during the term of  your employment, with appropriate tail coverage thereafter consistent with that provided to any other director or officer of the Company. 
		
	13.
	The Company will provide change in control and severance protection upon commencement of your employment, which will be for twenty-four (24) months of salary, bonus and benefits, in accordance with the provisions of the Change in Control and Severance Agreement provided to you simultaneously herewith (the “Severance Agreement” and such severance as defined therein, “Severance”). The completion of the recently announced merger with Konecranes Plc will not be considered a change in control for the purposes of your Severance Agreement.

In addition, in the event that your employment is terminated for any reason other than for Cause (as defined in your Severance Agreement) or you terminate your employment with the Company for Good Reason (as defined in your Severance Agreement), the Company will pay you Severance in accordance with the provisions of the Severance Agreement.
If you accept this job offer, you will be required to successfully complete a background check and a drug test. Please contact Kevin Barr at 203-222-5905 regarding the procedure, location, and information required.
Confidentiality 
		
	(a)
	You agree that you will not at any time, either during your employment with Terex or thereafter, divulge to any person, firm or corporation outside of Terex Corporation, any confidential or privileged information or trade secrets received by you during the course of your employment, with regard to the financial, business operations, manufacturing methods, processes, know-how, or procedures of Terex Corporation, or any of its affiliated companies, parent or subsidiaries, all as provided in the Severance Agreement. All such information shall be kept confidential and shall not, in any manner, be revealed to anyone, provided, however, that the foregoing provision shall not apply to any information which is or generally becomes available to the public through no breach by yourself of this paragraph, as provided in the Severance Agreement.

		
	(b)
	You agree that you will not at any time during the period of your employment hereunder engage in any business or own or control any interest in, or act as a director, officer, team member, agent or consultant of, any firm, corporation, partnership or other entity, directly or indirectly engaged in the business being conducted by Terex Corporation, or its affiliated companies, parent or subsidiaries, or which manufactures or sells products which are in direct competition with the products sold by Terex Corporation, or its affiliated companies, parent or subsidiaries, as provided in the Severance Agreement.

		
	(c)
	You agree that you have not disclosed any trade secrets or confidential information of your prior employer(s) to the Company during the course of these negotiations and that you have not been asked to do so by the Company. You further agree that you will not disclose any trade secrets or confidential information of your prior employer(s) to the Company at any time during your employment with the Company. By way of illustration but not limitation, “confidential information” means non-public proprietary company information including: information and materials related to proprietary products, services, experimental work, research, pricing 

Terex Corporation 200 Nyala Farm Road Westport, CT 06880 USA TEL +1 203 222 7170 FAX +1 203 222 7976 www.terex.com 

John Garrison
October 9, 2015

information, business procedures, strategies, and methodologies, customer lists and business histories, analyses of customer information, and technical data and/or specifications related to your prior employer’s(s’) products , as provided in the Severance Agreement.
		
	(d)
	You agree that you will comply with the non-competition and related covenants contained in your Severance Agreement.

Terex Code of Ethics and Conduct
We have enclosed for your review the Terex Code of Ethics and Conduct (the “Code”). Terex is committed to an ethical business culture based on our Terex Way values, as described in the Code. You agree that you will comply with all aspects of the Code during your employment with the Company.
Employment at Will 
Nothing in this offer of employment should be construed, understood, or interpreted to mean, promise, guarantee, contract, or imply employment by Terex Corporation for any definite or specific length of time. Employment is strictly at will and you or the Company can end your employment at any time, for any reason not prohibited by law.
I want to thank you again, for your interest in Terex Corporation. We believe Terex has a very bright future and feel that it can provide you with challenging and rewarding experiences.
Please indicate your acceptance of this offer by signing the enclosed copy and returning it to Kevin Barr at your earliest convenience.
Sincerely,
/s/ David A. Sachs

David A. Sachs, Lead Director

Accepted:    /s/ John Garrison
John Garrison

Date Signed:    October 15, 2015

Terex Corporation 200 Nyala Farm Road Westport, CT 06880 USA TEL +1 203 222 7170 FAX +1 203 222 7976 www.terex.com 

John Garrison
October 9, 2015

Relocation Expense Reimbursements for Executives
Team Member/Candidate: John Garrison
Date: October 9, 2015
Relocation From/To: Texas/Connecticut Area

	
		
	Relocation Allowance
	Lump sum payment of one month salary to be paid within 30 days of employment.

	Closing Costs – Sale of Primary Residence
	Normal and customary closing costs, including licensed broker’s sale commission up to a maximum of 6% of the contract sale price. In addition, Terex will reimburse the sale commission up to a maximum of 6% for the sale of a second residence, subject to a total combined primary and secondary residence maximum of $2 million in contract value.

	 
	 

	House Hunting Trips
	Two trips, not to exceed ten days total.

	Closing Costs – Purchase of 
Primary Residence
	Normal and customary closing costs.

	Temporary Living Expense
	Up to 90 days

	Movement of Household Goods
	Full service includes packing and partial unpacking, to be arranged by Terex. Some limitations apply.

	Storage
	Up to 30 days.

	Family Travel to new Location
	Reimbursement for reasonable travel expenses, including meals and lodging, for the employee and immediate family while en route to the new location.

	Tax Gross-up of Applicable Items
	Relocation expenses will be grossed-up at the employee’s tax rate. Gross-up is not applicable to relocation allowance, if applicable.

This relocation package is offered for a time period up to twelve (12) months after the hire/transfer date.
Should I resign or be released for cause, as determined by the Company in its sole discretion, within one (1) year of relocation, I will repay the Company a prorated amount of the relocation expenses based on the number of full months of my employment. I agree that repayment is due immediately upon my termination of employment and I further agree that any portion or amount of the repayment can be offset from monies owed to me at the time of termination.
Accepted:    /s/ John Garrison    
John Garrison

Date Signed:    October 15, 2015    

Terex Corporation 200 Nyala Farm Road Westport, CT 06880 USA TEL +1 203 222 7170 FAX +1 203 222 7976 www.terex.com

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