Document:

Exhibit 10.19

 

SELECTIVE SEVERANCE PROGRAM
 NOTIFICATION LETTER

 

To:                                         

 

Due to the restructuring of GrafTech International Holdings Inc. (the “Company”) during                      , your position has been eliminated and you will be released from employment with the Company on                       (this is referred to as your “Separation Date”), with a “last day of active work” of                       .

 

As a result, you are eligible for a severance allowance and other benefits under the Company’s Selective Severance Program (“Program”).

 

If you meet (and continue to meet) the terms and conditions of the Program, you will be eligible for Program benefits as follows:

 

Severance Payments

 

·                  Following the Separation Date, a severance allowance will be provided as follows:

 

	
Years of Service: XX
    	
 
    	
Severance: X months’ pay
    

 

	
Company Service Credit (thru last day worked)
    	
 
    	
Severance
    
	
 
    	
 
    	
 
    
	
Under 1 Year
    	
 
    	
1 month’s pay
    
	
 
    	
 
    	
 
    
	
At least 1 and Under 5 Years
    	
 
    	
2 months’ pay
    
	
 
    	
 
    	
 
    
	
At least 5 and Under 7 Years
    	
 
    	
3 months’ pay
    
	
 
    	
 
    	
 
    
	
At least 7 and Under 10 Years
    	
 
    	
4 months’ pay
    
	
 
    	
 
    	
 
    
	
At least 10 Years
    	
 
    	
4 months’ pay plus 0.4 months’ pay for each full year of Company   Service in excess of 10 years of service (prorated to a full month)
    

 

·                  Minimum severance benefit is one (1) month.

 

·                  Maximum severance benefit is twelve (12) months.

 

·                  Severance payments under the Program will be made on regular paydays, less applicable lawful payroll deductions and in accordance with the Company’s regular payroll practices, for the applicable period of time set forth above and in the Program (the “Severance Period”); there will be no lump sum payments except for vacation pay accrued and unused as of your Separation Date.

 

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·                  The amount payable will be calculated on the basis of your base salary in effect on your Separation Date including extended hours pay and shift differential, if any, but excluding all overtime premiums, variable pay, and/or the impact of any temporary pay cuts.

 

·                  In the event of your death at any time during the Severance Period, any remaining payments shall be made to your estate or other legal representatives.

 

Continued Medical, Dental, and EAP Benefits

 

·                  Continued Medical and Dental coverage for you and your eligible dependents: If you timely elect to continue coverage under the Company’s medical or dental plans (the “Group Health Plans”) in accordance with the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), the Company will pay a portion of your premiums for COBRA coverage, subject to applicable withholdings, until the earliest of: (i) the end of the six (6) month period following your last day of employment, (ii) the day on which you become eligible for group health coverage under another employer’s plan,(1) (iii) the day you become employed by another employer, or (iv) the day on which your COBRA coverage ends for any reason, including but not limited to the failure to timely pay your share of the COBRA premiums. The amount of the Company’s monthly COBRA subsidy will be equal to the employer portion of Group Health Plan coverage for active employees for the same level of coverage.

 

The Company’s subsidy for COBRA continuation coverage is contingent upon you timely paying your portion of the COBRA premium for the applicable month in accordance with any payment procedures required by the Company or its COBRA administrator.

 

After the period for the Company’s COBRA subsidy ends, you may continue such coverage for the remainder of the COBRA coverage period at your own expense if still eligible.

 

The COBRA continuation coverage described in this Program is provided under the Group Health Plans, and is subject to all the terms and conditions set forth in the Group Health Plans and will be coordinated with applicable state and federal laws.

 

·                  Employee Assistance Program: If you elect to participate in this Program but decline medical coverage, you may continue participation in the Employee Assistance Program (EAP) for six (6) calendar months following your release date, under the same terms as noted above for the medical plan.

 

Other Benefits

 

·                  Incentive Compensation Programs: If you are a participant in the GrafTech International Ltd. Incentive Compensation Program or Sales Incentive Plan, are on the payroll as an active employee as of the last day of the applicable performance period and are eligible to receive an “Award” (as defined in the applicable Incentive Plan) for

 

(1)                                 The Company may require verification of employment status as a means to determine when to terminate extended benefit plan coverage.

 

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such performance period, you will have an individual multiplier of 80% of the earned Award based on the results of the business, local, or individual metrics identified for the performance period. The Award will be payable in accordance with the terms of the applicable Incentive Plan.

 

·                  Outplacement Assistance: The Company will provide Outplacement Assistance for three (3) months from the date that you initiate this service with the vendor. If you are interested in Outplacement Assistance, please contact your Human Resources manager.

 

If you decline to sign and return the Release or if you revoke a signed Release, Outplacement Assistance will be discontinued. Local availability of services will determine the format through which outplacement assistance is provided.

 

Except as otherwise explicitly indicated, eligibility for the above benefits is subject to the following:

 

·                  You must execute the attached Release and return it to your Human Resources manager NO EARLIER THAN your Separation Date and NO LATER THAN five (5) calendar days after the Separation Date, which is at least forty-five (45) calendar days after you receive this Notification Letter and the Release. A signed Release received by the Company postmarked on or before the fifth calendar day after the Separation Date will be considered timely. You are advised to review the Release with an attorney.

 

You will not receive Program benefits if you:

 

·                  Voluntarily terminate employment prior to the last day of work.

 

·                  Are discharged prior to the last day of work for unsatisfactory work performance, as determined in the sole discretion of the Company.

 

·                  Are discharged prior to the last day of work for misconduct or other violation of Company policy or rules, as determined in the sole discretion of the Company.

 

·                  Breach any contractual or legal obligation to the Company, including but not limited to any noncompetition, confidentiality or other restrictive covenant in effect with the Company. See enclosed agreement.

 

·                  Do not sign and return the Release in the time frame specified above.

 

·                  Elect in writing to revoke the Release within seven (7) calendar days after its execution.

 

After you have executed the Release and begin to receive Program benefits, those benefits will immediately cease if you:

 

·                  Are employed prior to the expiration of the Program benefits in a facility, activity, function or business which has been divested or outsourced by the Company and you become employed by the purchaser, or outsourcing party, or an affiliate of any of them.

 

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·                  Are employed prior to the expiration of the Program benefits by any business or affiliate of the Company.

 

After you have executed the Release and begin to receive Program benefits, those benefits will immediately cease, and instead, employee will be paid a lump sum equal to 60% of the remaining balance of salary continuation benefits, if, prior to the expiration of the Program benefits, the employee:

 

·                  Is employed by any other organization and employee’s compensation with new employer is at least 70% of the salary received from GrafTech as of the Release Date.

 

The cessation of Program benefits for any reason stated above will not affect the continued validity and enforceability of the Release.

 

If you elect not to participate in the Program described above, you will remain eligible for other benefits prescribed by law, including:

 

·                  Payment of any unused accrued vacation pay to which you are entitled per Company policy; and,

 

·                  Continuation of health insurance benefits pursuant to COBRA, as applicable (additional information for which will be provided under separate cover).

 

The following benefits will terminate upon the Separation Date, regardless of whether you elect to participate in the Program:

 

·                  Benefits under our Basic Life Insurance Group Policy will terminate on your Separation Date, but you may convert the group life policy to a private policy. If you are eligible for retiree life insurance, this benefit is capped at $10,000.

 

·                  Short and long term disability eligibility terminates as of the Separation Date. For any employee who becomes eligible for (and receives) a long term disability benefit following the date of the Notification Letter, such disability benefits may be reduced by severance payments hereunder in accordance with the terms of the Long Term Disability Plan.

 

 

	
 
    	
 
    
	
 
    	
Barbara Farrar, HR Generalist
    

 

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SELECTIVE SEVERANCE PROGRAM
 RELEASE AGREEMENT

 

GrafTech International Holdings Inc. (the “Company”) and XXXXX, his/her heirs, executors, administrators, successors, and assigns (collectively referred to throughout this Release Agreement as “Employee”), intending to be legally bound, agree to the following:

 

Employee’s date of termination of employment with the Company is                        (the “Separation Date”). Employee may not sign this Selective Severance Program Release Agreement (hereinafter the “Release”) before the Separation Date.

 

In consideration of, but subject to, my receipt of Selective Severance Program (“Program”) benefits as described herein and in the Selective Severance Program Notification Letter (“Notification Letter”) to me dated                       , which is incorporated herein by reference, I knowingly and voluntarily release and discharge GrafTech International Holdings Inc., its parents, divisions, predecessors, insurers, subsidiaries and affiliates, and its and their respective successors, assigns, directors, officers, employees, representatives, consultants, advisors, counsel, and agents, individually and in their business capacities, and their employee benefit plans and programs and their administrators and fiduciaries (collectively referred to as the “Company” or “Releasees”), from all claims and causes of action whatsoever (whether known or unknown), asserted or unasserted, which I have or may have against Releasees as of the date of execution of this Release. These include, but are not limited to any alleged violation of:

 

1.                                      The Age Discrimination in Employment Act, as amended (29 U.S.C. Section 621-634) (the “ADEA”), and any other federal, state or municipal employment discrimination statutes pursuant to which claims based on age may be asserted against the Company;

2.                                      Claims and causes of action arising under any federal, state or municipal employment discrimination statutes, as amended, including, but not limited to:

 

a.              Title VII of the Civil Rights Act of 1964, 42 U.S.C. §2000e et seq.,

b.              the Americans With Disabilities Act, as amended, 42 U.S.C. §12101 et seq.,

c.               Sections 1981 through 1988 of Title 42 of the United States Code,

d.              the Family and Medical Leave Act, 29 U.S.C. § 5601 et seq.,

e.               the Employee Retirement Security Income Act, as modified below,

f.                the Equal Pay Act,

g.               the Civil Rights Act of 1866,

h.              the Immigration Reform and Control Act,

i.                  the Worker Adjustment and Retraining Notification Act,

j.                 the Fair Credit Reporting Act,

k.              the Genetic Information Nondiscrimination Act of 2008,

l.                  the Ohio Civil Rights Act,

m.          the Ohio Whistleblower Protection Act,

n.              the Ohio Age Discrimination in Employment Act,

o.              Ohio statutory provisions regarding retaliation/discrimination for pursuing workers’ compensation claim set forth in Ohio Rev. Code § 4123.90,

p.              the Ohio Minimum Fair Wages Act,

 

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q.              the Ohio Wage Payment Act,

r.                 the Ohio Uniformed Services Employment and Reemployment Act, and/or

s.                the Ohio Family Military Leave Act.

 

3.                                      any other federal, state, or local law, rule, regulation, or ordinance,

4.                                      any other claim or cause of action whatsoever, including, but not limited to, any public policy, contract, tort, or common law claim, and/or;

5.                                      any basis for recovering costs, fees, or other expenses including attorneys’ fees incurred in these matters.

 

I understand and agree that I will not receive the monies and/or benefits that constitute consideration to sign this Release, as set forth above and as set forth in the Selective Severance Program Notification Letter which is incorporated herein by reference except for my execution of this Release and the fulfillment of the promises contained herein.

 

Except as expressly stated in this Release, I understand and agree that I am waiving and releasing any and all claims that I may ever have had or that I now have against the Company, regardless of their nature or origin, and that the fact that such claim or cause of action is not listed above does not mean that such claim or cause of action is not included in this Release. This Release does not apply to any claim or cause of action which, under applicable law, cannot be released or waived. I understand that I am not waiving any rights I may have to: (i) my own vested accrued employee benefits under the Company’s health, welfare, or retirement plans as of my Separation Date; (ii) benefits and/or the right to seek benefits under applicable workers’ compensation and/or unemployment compensation statutes; (iii) pursue claims which by law cannot be waived by signing this Release; (iv) enforce this Release; and/or (v) challenge the validity of this Release.

 

If any claim or cause of action is not subject to release or waiver, then, to the extent permitted by applicable law, I waive any right or ability to be (and agree not to act as) a class or collective action representative and to participate (and agree not to participate) in any putative or certified class, collective or multi-party action or proceeding, based on such a claim in which the Company or any other Release identified in this Release is a party.

 

It is expressly understood that I do not waive rights or claims that may arise after the effective date of this Release and which are not the subject of this Release. Notwithstanding anything in this Agreement to the contrary, nothing in this Release prohibits or prevents me from filing a charge with or participating, testifying, or assisting in any investigation, hearing, whistleblower proceeding or other proceeding before any federal, state, or local government agency (e.g., EEOC, NLRB, SEC, etc.), nor does anything in this Release preclude, prohibit, or otherwise limit, in any way, my rights and abilities to contact, communicate with, report matters to, or otherwise participate in any whistleblower program administered by any such agencies. However, to the maximum extent permitted by law, I agree that if such an administrative claim is made, I shall not be entitled to recover any individual monetary relief or other individual remedies with respect to the claims released herein.

 

I represent, promise and agree that: (i) neither I nor any agent acting on my behalf has commenced or prosecuted any complaint, lawsuit or other civil action in any court against the

 

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Company on the basis of any claims, causes of action, or other matters within the scope of this Release.

 

I declare and expressly warrant that I am not a Medicare beneficiary; that I am not suffering from end stage renal failure or amyotrophic lateral sclerosis; that I have not received Social Security disability benefits for 24 months or longer; and/or that I have not applied for Social Security disability benefits, and/or have not been denied Social Security disability benefits and am appealing the denial. I affirm, covenant and warrant that I have made no claim for illness or injury against, nor am I aware of any facts supporting any claim against the Company under which the Company could be liable for medical expenses incurred by me before or after the execution of this Agreement. Because I am not a Medicare recipient as of the date of this Agreement, I am aware of no medical expenses which Medicare has paid and for which the Company is or could be liable now or in the future. I agree and affirm that, to the best of my knowledge, no liens of any governmental entities, including those for Medicare conditional payments, exist.

 

I agree that, when requested to do so by the Company, I will cooperate in any legal disputes and/or proceedings and/or business matters relating to issues and/or incidents which took place during the term of my employment. I acknowledge that such cooperation may include, without limitation, appearances in court or discovery proceedings. If the Company makes such a request, I understand that the Company will reimburse me for reasonable travel, lodging, meal and similar out-of-pocket expenses incurred by me (and that are not reimbursed or paid by a third party) in connection therewith upon submission of appropriate supporting documentation.

 

Without violating the terms of this Release, I understand and agree that I will only discuss the terms of this Release with my attorney, my tax advisor and members of my immediate family, provided that they agree to keep the information in this Release strictly confidential and not disclose it to any other person.

 

In addition, I understand that this Release is intended to avoid any disputes and it shall not be construed by any person or entity as an admission of any liability or wrongdoing of any kind. I further agree that, prior to the termination of my employment, I will return to the Company all records, files, equipment, desk or office or file keys, credit cards, computer programs and disks, or other Company property which is in my possession.

 

I agree that I will not in any way disparage the Company, or any of the Releasees, including, but not limited to, their officers, directors and employees, or make or solicit any comments, statements, or the like to the media or to others that may be considered to be derogatory or detrimental to the good name or business reputation of the Company or any of the Releasees. In the event that I violate this provision, I acknowledge that the Company has the right to institute an action against me for any damages plus the reimbursement of attorneys’ fees and costs incurred in connection with the enforcement of this provision. It is understood that the rest of this Agreement would, nevertheless, remain in full force and effect.

 

Attached as “Attachment 1” is a list of the job titles and ages of all individuals eligible for/selected for the termination in the                                                as well as the individuals who are ineligible/were not selected for the                                            .

 

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I affirm that I have received the Selective Severance Program Notification Letter along with any attachments and/or appendices. I have carefully read and fully understand all the provisions of the Program described in the Notification Letter and this Release, and I have signed this Release knowingly and voluntarily. I acknowledge that I have (i) been given at least forty-five (45) calendar days to review and consider this Release and accompanying material, (ii) been advised to consult with an attorney before executing this Release, (iii) have had any questions answered to my satisfaction, and (iv) have not relied upon any representation or statement, written or oral, not set forth in this Release or the Notification Letter.

 

I acknowledge that this Release and the Notification Letter contain the entire understanding between the Company and me and supersedes all prior agreements and understandings regarding the subject matter of this Release and the Notification Letter unless otherwise stated herein. If any provision of this Release is deemed to be invalid, the remainder of this Release is enforceable in all other respects. I acknowledge that I have not relied on any representations, promises, or agreements of any kind made to me in connection with my decision to accept this Release, except for those set forth in this Release.

 

I acknowledge receipt of the Notification letter and Attachment 1, which contains additional information regarding those eligible and those not selected for the applicable Selective Severance Program benefits.

 

I agree and understand that this Release is governed by the laws of the State of Ohio without regard to its conflict of law provisions, and that the Release will be binding not only on me but also on my heirs, administrators and assigns with respect to the claims and causes of action covered by this Release. As of the date of my signing of this Release, I have made no assignment of any claims or causes of action against the Company. In the event of a breach of any provision of this Release, either party may institute an action specifically to enforce any term or terms of this Release and/or to seek any damages for breach. Should any provision of this Release be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, excluding the general release language, such provision shall immediately become null and void, leaving the remainder of this Release in full force and effect.

 

The Parties agree that neither this Release nor the furnishing of the consideration for this Release shall be deemed or construed at any time for any purpose as an admission by Releasees of wrongdoing or evidence of any liability or unlawful conduct of any kind.

 

This Release may not be modified, altered or changed except in writing and signed by both Parties wherein specific reference is made to this Release.

 

I UNDERSTAND THAT I HAVE AT LEAST FORTY-FIVE (45) CALENDAR DAYS TO CONSIDER THIS RELEASE. I UNDERSTAND THAT I AM ALSO ADVISED TO CONSULT WITH AN ATTORNEY PRIOR TO MY SIGNING THIS RELEASE.

 

I UNDERSTAND THAT I CAN REVOKE THIS RELEASE, BUT ONLY BY DOING SO IN WRITING WITHIN A PERIOD OF SEVEN (7) CALENDAR DAYS FOLLOWING ITS EXECUTION. ANY REVOCATION WITHIN THIS PERIOD MUST BE SUBMITTED, IN WRITING, TO BARBARA FARRAR AND STATE, “I HEREBY REVOKE MY ACCEPTANCE OF OUR RELEASE AGREEMENT.” THE REVOCATION MUST BE PERSONALLY

 

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DELIVERED TO BARBARA FARRAR OR HER DESIGNEE, OR MAILED TO BARBARA FARRAR, GRAFTECH INTERNATIONAL HOLDINGS INC., SUITE 300, PARK CENTER I, 6100 OAK TREE BVD., INDEPENDENCE, OH 44131 AND POSTMARKED WITHIN SEVEN (7) CALENDAR DAYS AFTER EMPLOYEE SIGNS THIS RELEASE.

 

I AGREE THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO THIS RELEASE, DO NOT RESTART OR AFFECT IN ANY MANNER THE ORIGINAL CONSIDERATION PERIOD OF AT LEAST FORTY-FIVE (45) CALENDAR DAYS.

 

I AFFIRM THAT I HAVE BEEN PAID AND/OR HAVE RECEIVED ALL COMPENSATION, WAGES, BONUSES, COMMISSIONS, AND/OR BENEFITS WHICH ARE DUE AND PAYABLE AS OF THE DATE I SIGN THIS RELEASE. I AFFIRM THAT I HAVE BEEN GRANTED ANY LEAVE TO WHICH I WAS ENTITLED UNDER THE FAMILY AND MEDICAL LEAVE ACT OR RELATED STATE OR LOCAL LEAVE OR DISABILITY ACCOMMODATION LAWS.

 

I FURTHER AFFIRM THAT I HAVE NO KNOWN WORKPLACE INJURIES OR OCCUPATIONAL DISEASES.

 

I ALSO AFFIRM THAT I HAVE NOT DIVULGED ANY PROPRIETARY OR CONFIDENTIAL INFORMATION OF THE COMPANY AND I WILL CONTINUE TO MAINTAIN THE CONFIDENTIALITY OF SUCH INFORMATION CONSISTENT WITH THE COMPANY’S POLICIES AND MY AGREEMENT(S) WITH THE COMPANY AND/OR COMMON LAW. I ALSO ACKNOWLEDGE THAT I HAVE BEEN INFORMED, IN ACCORDANCE WITH 18 U.S.C. § 1833(b), THAT I MAY NOT BE HELD CRIMINALLY OR CIVILLY LIABLE UNDER ANY FEDERAL OR STATE TRADE SECRET LAW FOR THE DISCLOSURE OF A TRADE SECRET WHERE THE DISCLOSURE EITHER IS MADE (1) IN CONFIDENCE TO A FEDERAL, STATE, OR LOCAL GOVERNMENT OFFICIAL, EITHER DIRECTLY OR INDIRECTLY, OR TO AN ATTORNEY; AND (2) SOLELY FOR THE PURPOSE OF REPORTING OR INVESTIGATING A SUSPECTED VIOLATION OF LAW; OR IS MADE IN A COMPLAINT OR OTHER DOCUMENT FILED IN A LAWSUIT OR OTHER PROCEEDING, IF SUCH FILING IS MADE UNDER SEAL.

 

I FURTHER AFFIRM THAT I HAVE NOT BEEN RETALIATED AGAINST FOR REPORTING ANY ALLEGATIONS OF WRONGDOING BY THE COMPANY OR ITS OFFICERS, INCLUDING ANY ALLEGATIONS OF CORPORATE FRAUD.

 

I AFFIRM THAT ALL OF THE COMPANY’S DECISIONS REGARDING MY PAY AND BENEFITS THROUGH MY SEPARATION DATE WERE NOT DISCRIMINATORY BASED ON AGE, DISABILITY, RACE, COLOR, SEX, RELIGION, NATIONAL ORIGIN OR ANY OTHER CLASSIFICATION PROTECTED BY LAW.

 

I AFFIRM THAT I HAVE RETURNED ALL OF THE COMPANY’S PROPERTY, DOCUMENTS, AND/OR ANY CONFIDENTIAL INFORMATION IN MY POSSESSION OR CONTROL. I ALSO AFFIRM THAT I AM IN POSSESSION OF ALL OF MY PROPERTY THAT I HAD AT THE COMPANY’S PREMISES AND THAT THE COMPANY IS NOT IN POSSESSION OF ANY OF MY PROPERTY.

 

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I FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTER INTO THIS AGREEMENT INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS I HAVE OR MIGHT HAVE AGAINST RELEASEES.

 

 

	
Employee:
    	
 
    	
Company:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
GrafTech International Holdings Inc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
(Signature)
    	
 
    	
 
    	
 
    	
(Signature)
    
	
 
    	
 
    	
 
    	
Print
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Print
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
Date:
    	
 
    
							

 

 

IF YOU HAVE QUESTIONS CONCERNING THE SELECTIVE SEVERANCE PROGRAM BENEFITS OFFERED TO YOU OR THIS RELEASE, YOU MAY WISH TO CONSULT YOUR BENEFITS ADMINISTRATOR, TAX CONSULTANT, AND/OR ACCOUNTANT BEFORE YOU SIGN IT. SIGNING THIS DOCUMENT WAIVES CERTAIN LEGAL RIGHTS, AND YOU ARE THEREFORE ALSO ADVISED TO CONSULT AN ATTORNEY BEFORE SIGNING IT.

 

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ATTACHMENT 1 TO SELECTIVE SEVERANCE PROGRAM RELEASE AGREEMENT

 

GrafTech International Holdings Inc. (the “Company”) hereby informs you that you will be released from employment with the Company due to the restructuring of the organization (“                                     “). You are eligible for a severance allowance and other benefits under the Selective Severance Program. The following information is provided to you in accordance with law.

 

(a)                                 Severance has been offered to the employees of GrafTech International Holdings Inc. whose employment is being terminated as a result of the
                           .

 

(b)                                 The eligibility factors for severance are as follows: you must be an employee of GrafTech International Holdings Inc. whose employment is being terminated as a result of the                                                 .

 

(c)                                  The time limits are as follows: you must submit a signed Release NO EARLIER than your Separation Date and NO LATER than five (5) calendar days after the Separation Date, which is at least forty-five (45) calendar days from your receipt of the Notification Letter and Release.

 

(d)                                 The job titles and ages of all individuals in your organizational unit or group who were and were not selected for termination and offered Selective Severance Program benefits for signing a Release are as follows:

 

	
Job Title
    	
 
    	
Selected
    	
 
    	
Not Selected
    	
 
    	
Age
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
XXX
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

11Exhibit 10.20

 

Mr. David J. Rintoul
 6907 Pennwell Drive
 Spring, TX 77389

 

Re:  Employment Agreement

 

Dear David:

 

This letter agreement (the “Agreement”) sets forth the terms and conditions of your employment with GrafTech International Holdings Inc. (the “Company”).  It is important that you understand clearly both what your benefits are and what the Company expects of you.  By signing this Agreement, you are agreeing to employment on the following terms:

 

1.                                      Effective Date.  Your employment will commence on March I, 2018 (the “Effective Date”).

 

2.                                      Title and Duties.  You will serve in the position of President and Chief Executive Officer for the Company and report to the GrafTech International Ltd. Board of Directors (the “Board”).  You will be a Named Executive Officer (NEO) as defined by the U.S. Securities and Exchange Commission.  You will also be named as a Director on the Board.  In such position, you will have duties and responsibilities typically associated with such title, together with such other duties and responsibilities consistent with your position as reasonably assigned to you from time to time by the Board.

 

3.                                      Conduct During Employment.  In connection with your employment with the Company, you agree to observe and comply with all of the rules, regulations, policies and procedures established by the Company from time to time and all applicable laws, rules and regulations imposed by any governmental regulatory authority from time to time.  Without limiting the foregoing, you agree that during your employment with the Company, you will devote your full business time, attention, skill and best efforts to the performance of your employment duties and you are not to engage in any other business or occupation.

 

4.                                      Base Salary.  Your initial annual base salary will be $625,000.00 and will be payable in accordance with the Company’s regular payroll practices.  Your base salary will generally be reviewed annually coincident with your annual performance review during the first quarter of each year.

 

5.                                      Reimbursement of Expenses.  All reasonable business expenses incurred by you in the ordinary course of business will be reimbursed in accordance with the Company’s standard policies and procedures, subject to the Company’s requirements with respect to reporting of such expenses.

 

6.                                      Annual Bonus.  You will participate in GrafTech’s Incentive Compensation Plan (“ICP”) and be eligible to recieve a bonus of l 00% of your annual base salary based on the achievement of mutually agreed targets that will be set annually.  The Company in its sole discretion may amend or terminate any bonus plans at any time.

 

 

7.                                      Long-Term Incentive.  You shall receive a grant of common share stock options at the Initial Public Offering (IPO) share price.  The actual number of options issued to you shall be determined pursuant to the following formula:  $6,250,000 (representing 10 times your annual base salary) divided by the IPO share price stated in dollars/share.  The options will have an exercise price per share equal to the fair market value, as defined by an equity plan that is to be adopted by the Company or on the grant date to be defined by the Company, and shall be issued according to an equity plan to be prepared by the Company and be subject to certain terms and conditions including a ten-year term and five-year vesting according to the following schedule:

 

·                  20% will vest on the first anniversary of the original grant date (as defined by the Company at the time of the IPO) with an additional 20% vesting on each anniversary date for the following four years until all options are vested.

·                  Accelerated vesting may occur by mutual agreement after the third anniversary in the event of early retirement and a fully executed succession plan.

·                  Options will vest fully in the event of a Change in Control which is defined as a situation in which Brookfield Asset Management Inc. (including any affiliates) reduces its ownership share to less than 35%, or where another party, other than a Brookfield-related entity, acquires greater than 50% of the voting securities of the Company.

 

8.                                      Employee Benefits.  You will be eligible to participate in Company-sponsored benefits, including health benefits, 401(k) plan (including a 4% Company cash match on eligible employee contributions), a defined contribution retirement plan (with 1% contribution on eligible earnings), vacation, sick leave, holidays and other benefits that the Company may offer to similarly situated employees from time to time.  Your eligibility to receive such benefits will be subject in each case to the generally applicable terms and conditions for the benefits in question and to the determinations of any person or committee administering such benefits.  The Company expressly reserves the right to amend, suspend or terminate the benefits available to you and the Company’s other employees from time to time, in its sole discretion.  You will be covered by workers• compensation insurance, state disability insurance and other governmental benefit programs as required by state law.  Your annual vacation allotment shall be four weeks (20 days) which shall be prorated during 2018 to 17 days.  You will also be eligible to take nine paid holidays as well as two employee optional days after September 1, 2018.

 

9.                                      Adjustments and Changes in Employment Status.  The Company reserves the right to make personnel decisions regarding your employment, including but not limited to decisions regarding any transfers or other changes in duties or assignments, changes in your salary and other compensation, changes in benefits and changes in Company policies or procedures.  Nevertheless, this provision is subject to the terms set forth in Section 11 below.

 

10.                               Relocation Expenses.  The Company will reimburse you for reasonable out-of-pocket expenses associated with selling your residence in Texas, purchasing a residence in Cleveland and moving your household goods in conjunction with this relocation (the “Relocation Expenses”). Your relocation will be managed by Brookfield Global Relocation Services (BGRS) per GrafTech’s New Hire Relocation Policy. You understand that you should review this Policy and obtain any necessary approvals before incurring expenses for which you expect to seek reimbursement. You agree that if you resign from your employment without Good Reason (as

 

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defined below) or are terminated for Cause (as defined below) at any point within two years of the Effective Date, you will be responsible for reimbursing the Company for the Relocation Expenses that you incurred.  You agree that the Company may deduct such expenses from any compensation, bonus, or severance payment that it may owe you at the time of termination.  In addition to the Relocation Expenses, the Company will also provide an allowance of up to $75,000 to reimburse you for losses associated with the sale of your home in Texas (the “Residence Sale Losses”).  You agree that if you resign from your employment without Good Reason or are terminated for Cause at any point within three years of the Effective Date, you will be responsible for reimbursing the Company for the Residence Sale Losses that you incurred.  You agree that the Company may deduct such expenses from any compensation, bonus, or severance payment that it may owe you at the time of termination.

 

11.                               Severance.  If your employment with the Company is terminated as the result of your Resignation For Good Reason or as a result of a decision by the Company to terminate your employment with the Company (other than for Cause or by reason of your death or disability), and provided that you sign, deliver and do not revoke a full release of claims (in a form satisfactory to the Company) within twenty-one (21) days (or in the event that such termination is “in connection with an exit incentive or other employment termination program,” forty-five (45) days) following the date of termination, the Company will pay you 12 months’ of your base salary plus annual bonus as of the time of your termination in the aggregate as severance, payable in substantially equal installments in accordance with the Company’ s regular payroll practices, over the course of 12 months beginning with the first full month following your last day of employment; provided, however, in the event that any regular payroll date occurs prior to the effective date of the required release of claims, any amount that would otherwise have been payable under this Section 11 shall be deferred and paid together with the regular salary installment on the first regular payroll date following such effective date.  The severance benefits set forth in this Section 11 are your sole and exclusive remedy if your employment with the Company is terminated as a result of your Resignation For Good Reason or as a result of a decision by the Company to terminate your employment with the Company (other than for Cause or by reason of your death or disability) and such severance benefits shall immediately cease should you fail to comply with your obligations under this Agreement.

 

For purposes of this Agreement:

 

(a)                                 “Cause” means (i) gross negligence or willful failure by you to perform your duties and responsibilities to the Company (or a subsidiary or a Successor Company, if appropriate) after written notice thereof and a failure to remedy such failure within twenty (20) days of such notice; (ii) commission of any act of fraud, embezzlement, dishonesty or any other willful misconduct by you, at your direction, or with your prior personal knowledge that has caused or is reasonably expected to cause injury to the Company (or a subsidiary or Successor Company, if appropriate); (iii) your conviction of, or pleading guilty or nolo contendere to, (x) a felony or (y) a crime that has, or could reasonably be expected to result in, an adverse impact on the performance of your duties and responsibilities to the Company (or a subsidiary or a Successor Company, if appropriate), or otherwise has, or could reasonably be expected to result in, an adverse impact on the business, business reputation or business relationships of the Company (or a subsidiary or a Successor Company, if appropriate);

 

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(iv) material unauthorized use or disclosure by you of any confidential information of the Company (or a subsidiary or Successor Company, if appropriate) or any other party to whom you owe an obligation of nonuse and nondisclosure as a result of your relationship with the Company (or a subsidiary or Successor Company, if appropriate) unless otherwise permitted herein; (v) breach by you of any of your material obligations under any written agreement with the Company (or a subsidiary or Successor Company, if appropriate), including this letter and the Proprietary Information and Inventions Agreement, or of the Company’s (or a subsidiary’s or Successor Company’s, if appropriate) Code of Conduct, code of ethics or any other material written policy or of a fiduciary duty or responsibility to the Company (or a subsidiary or Successor Company, if appropriate) after written notice thereof and a failure to remedy such breach within twenty (20) days of such notice; or (vi) your misappropriation of the assets or business opportunities of the Company (or a subsidiary or Successor Company, if appropriate).

 

(b)                                 “Successor Company” means the successor entity resulting from a Change of Control or a parent or subsidiary of such successor entity.

 

(c)                                  “Change of Control” has the meaning set forth in the Company’s Common Share Option Plan.  Notwithstanding the foregoing sentence, a transaction shall not constitute a Change of Control if the primary purpose is to change the jurisdiction of the Company’s incorporation, create a holding company that will be owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction, or engage in a bona fide equity financing transaction.

 

(d)                                 “Resignation For Good Reason” means a decision by you to resign from the Company or terminate employment if:  (i) any of the following events occur without your express prior written consent; (ii) within ninety (90) days after you learn of the occurrence of such event, you give written notice to the Company describing such event and demanding cure; (iii) such event is not fully cured within twenty (20) days after such notice is given; and (iv) you terminate your employment within thirty (30) days thereafter:  (a) the Company materially breaches any of its obligations in this Agreement; or (b) materially diminishes your base salary; (c) materially changes or diminishes your job title and/or the nature and/or scope of your job responsibilities and duties; or (d) the Company relocates the facility that is Employee’s principal place of business with the Employer to a location more than fifty miles from the immediately preceding location (excluding travel in the ordinary course of business), unless Employer maintains or provides an alternate business location within fifty miles of the immediately preceding location which includes a reasonably suitable office for Employee to continue to perform his duties, or permits Employee to perform his duties from a home office.

 

12.                               Restrictive Covenants.  You hereby agree as follows (for purpose of this Section 12, “Company” shall include the Company and each of its subsidiaries and affiliates):

 

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(a)                                 Non-disparagement.  You hereby agree that you will not at any time make, publish or communicate to any person or entity any defamatory or disparaging remarks, comments or statements concerning the Company or its businesses, or any of its current or former employees, officers, directors, stockholders, and existing and prospective customers, suppliers, investors and other associated third parties.  Notwithstanding the foregoing, nothing prohibits you from reporting possible violations of federal law or regulation to any government agency or entity, or making other disclosures that are protected under the whistleblower provisions of law.  You also understand that you are not required to inform the Company of any such reports or disclosures.  In addition, you understand that nothing herein shall be construed to limit your right to respond accurately and fully to any question, inquiry or request for information when required by legal process.

 

(b)                                 Non-Competition.  In light of your receipt and access to the Company’s proprietary information during your relationship with the Company, you hereby agree that, during your employment with the Company and for a period of 24 months following the termination of your employment for any reason you will not engage in Prohibited Activity within the United States or Puerto Rico.  For purposes of this non-competition clause, “Prohibited Activity” is activity in which you contribute your knowledge, directly or indirectly, in whole or in part, as an employee, employer, owner, operator, manager, advisor, consultant, agent, partner, director, stockholder, officer, volunteer, intern or any other similar capacity to an entity engaged in the same or similar business as the Company.  Prohibited Activity also includes activity that may require or inevitably require disclosure of trade secrets, proprietary information or Confidential Information (as such term is defined in the Proprietary Information and Inventions Agreement).  Nothing in this Section 12 shall prohibit you from purchasing or owning less than one percent (1%) of the publicly traded securities of any corporation, provided that such ownership represents a passive investment and that you are not a controlling person of, or a member of a group that controls, such corporation.  In addition, you agree that this covenant does not unduly restrict your ability to find future employment and is no greater than necessary to protect the Company’s interests in preserving its goodwill and the value of its Proprietary Information;

 

(c)                                  Non-Solicitation of Customers.  You have had and will have access to and learn about much or all of the Company’s Customer Information.  “Customer Information” includes, but is not limited to, names, phone numbers, addresses, e-mail addresses, order history, order preferences, chain of command, pricing information and other information identifying facts and circumstances specific to the customer and relevant to sales and services.  You understand and acknowledge that loss of this customer relationship and/or goodwill will cause significant and irreparable harm.  You hereby agree that, during your employment with the Company and for a period of 24 months following the termination of your employment for any reason you will not directly or indirectly solicit, contact (including but not limited to e-mail, regular mail, express mail, telephone, fax, and instant message), attempt to contact or meet with the Company’s current, former or prospective customers for purposes of (i) offering or accepting goods or services similar to or competitive with those offered by the

 

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Company or (ii) encouraging, inducing, or convince any such customer to end, reduce, or change its relationship with the Company.

 

(d)                                 Nonsolicitation of Service Providers.  You further hereby agree that, during your employment with the Company and for a period of 24 months following the termination of your employment for any reason you will not, directly or indirectly, (i) solicit, induce, recruit or encourage any of the Company’s employees, consultants or other service providers to terminate their relationship with the Company (or in the case of a consultant, materially reducing their services services), or attempt to do so, whether for your benefit or that of any other person or entity, or (ii) hire any individual who was employed by the Company within the six (6) month period prior to the date of such hiring.

 

(e)                                  By your execution of this letter, you acknowledge and recognize the highly competitive nature of the Company’s business, that access to Confidential Information renders you special and unique within the Company’s industry, and that you will have the opportunity to develop substantial relationships with existing and prospective clients, accounts, customers, consultants and contractors, investors and strategic partners of the Company during the course of and as a result of your employment with the Company.  In light of the foregoing, you recognize and acknowledge that the restrictions and limitations set forth in this letter are reasonable, and protect the value of the business and assets of the Company.

 

13.                               Taxes.  All forms of compensation referred to in this letter are subject to reduction to reflect applicable withholding and payroll taxes and all other deductions required by law.  You acknowledge that the Company does not have a duty to design its compensation policies in a manner that minimizes your tax liabilities, and you will not make any claim against the Company or its Board of Directors related to tax liabilities arising from your compensation.

 

14.                               409A.  For purposes of this letter, a termination of employment will be determined consistent with the rules relating to a “separation from service” as defined in Section 409A of the Internal Revenue Code of I 986, as amended, and the regulations thereunder (“Section 409A”).  Notwithstanding anything else provided herein, to the extent any payments provided under this letter agreement in connection with your separation from service constitute deferred compensation subject to Section 409A, and you are deemed at the time of such termination of full-time employment to be a “specified employee” under Section 409A, then, in order to comply with Section 409A, such payment shall not be made or commence until the earlier of (i) the day after the expiration of the 6-month period measured from your separation from service from the Company or (ii) the date of your death following such a separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to you including, without limitation, the additional tax for which you would otherwise be liable under Section 409A(a)(l)(B) in the absence of such a deferral.  The first payment thereof will include a catch-up payment covering the amount that would have otherwise been paid during the period between your termination of full-time employment and the first payment date but for the application of this provision, and the balance of the installments (if any) will be payable in accordance with their original schedule.  To the extent that any provision of this letter agreement is ambiguous as to its compliance with Section 409A, the provision will be read in such a manner

 

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so that all payments hereunder comply with Section 409A.  To the extent any payment under this letter agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A.  Payments pursuant to this letter agreement are intended to constitute separate payments for purposes of Section l.409A-2(b)(2) of the Treasury Regulations.  Notwithstanding any provision hereof to the contrary, if any payment constitutes nonqualified deferred compensation subject to Section 409A, and such payment would otherwise be paid (assuming the release of claims described in Section 10 is given) prior to the last day on which the release could become irrevocable assuming the latest possible execution and delivery of the release (such last day, the “Release Deadline”), and if the employment termination date and the Release Deadline span two calendar years, then such payments shall be made, if ever, only in the second calendar year, even if the release becomes irrevocable in the first calendar year (and any remaining payments due shall be paid or provided in accordance with the normal payment dates specified for them herein).

 

15.                               No Conflicting Obligations.  By execution of this letter, you represent and warrant that you are under no contractual commitments inconsistent with your obligations to the Company hereunder and that your execution of this letter and the performance of the contemplated services does not and will not conflict with or result in any breach or default under any agreement you have entered into, or will enter into, with any other party.  You agree not to enter into any written or oral agreement that conflicts with this letter.

 

16.                               Other Requirements.  You agree and understand that this Agreement will not go into full force and effect and is expressly contingent upon:  your execution of the following agreements:  the Company’s Confidentiality Agreement, its Proprietary Information Agreement, and its Code of Conduct Certification of Compliance; your successfully passing the Company’s background check and substance screening test; and meeting the requirements of the Immigration Reform and Control Action of 1986, including proof of legal employment status.  You understand that if you fail to meet these requirements, this Agreement shall become null and void.

 

17.                               Complete Agreement.  This letter supersedes any prior agreements, representations or promises of any kind, whether written, oral, express or implied between the parties hereto with respect to its subject matter.  Likewise, this letter will constitute the full, complete and exclusive agreement between you and the Company with respect to its subject matter.  This letter may only be changed by a writing, signed by you and an authorized representative of the Company.  The provisions of this letter shall survive the termination of the term of this letter and/or your employment to the extent necessary to give effect thereto.

 

18.                               Severability; Waiver.  If any term of this letter is held to be invalid, void or unenforceable, the remainder of the terms herein will remain in full force and effect and will in no way be affected, and the parties will use their best efforts to find an alternative way to achieve the same result.  Our failure to enforce any provision of this letter shall not constitute a waiver of our right to pursue any prior or subsequent breach, violation or default of this letter.

 

19.                               Injunctive Relief.  You acknowledge that should you violate or threaten to violate the provisions of this letter, it will be difficult or impossible to determine the resulting damage to the Company.  Therefore, in the event of my breach or threatened breach of the provisions of this

 

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letter, in addition to any other remedies it may have, the Company shall be entitled to temporary and permanent injunctive relief to enforce the provisions of this letter without the necessity of proving actual damage.  No bond shall be required of the Company.  Notwithstanding any other provision to the contrary, you acknowledge and agree that post-termination periods set forth in Section 12 shall be tolled during any period of violation of any of the covenants in Section 12 and during any other period required for litigation during which the Company or any subsidiary or affiliate seeks to enforce such covenants against you if it is ultimately determined that you were in breach of such covenants.

 

20.                               Attorneys’ Fees.  You agree that you will be liable for all costs or expenses, including, but not limited to, reasonable attorneys’ fees, that the Company may incur in enforcing the provisions of this letter.  The Company’s right to costs or expenses, including attorneys’ fees shall include any fees, costs or expenses incurred in the pursuit of any appeal.

 

21.                               Governing Law; Disputes.  This letter shall be governed and construed in accordance with the laws of the State of Ohio without giving effect to the principles of conflict of laws.  All disputes shall be resolved in a state or federal court located in Cuyahoga County, Ohio.  You agree that such a court shall have jurisdiction over you to resolve any dispute arising from or related to this letter.

 

22.                               Blue-Pencil Clause.  It is your intent and understanding, and that of the Company, that if any term, restriction, covenant or promise herein is found to be unenforceable by a court or tribunal of competent jurisdiction, then such term, restriction, covenant or promise will be deemed modified to the minimal extent necessary to make it enforceable.

 

The parties have had a reasonable opportunity to review and consider this letter with counsel of their choosing and, by their signatures below, enter into the letter willingly.  To confirm your agreement with and acceptance of these terms please sign one copy of this letter and return it to the Company.  The other copy is for records.

 

Sincerely,

 

GRAFTECH INTERNATIONAL HOLDINGS INC.

 

	
By:
    	
/s/   Denis A. Turcotte
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Its:
    	
Denis A. Turcotte, Chairman
    	
 
    	
Date:
    	
3/1/2018
    
	
 
    	
 
    	
 
    
	
Agreed and accepted as of this date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   David J. Rintoul
    	
 
    	
Date:
    	
3/1/2018
    
	
 
    	
 
    	
 
    
	
David J. Rintoul
    	
 
    	
 
    

 

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