Document:

Exhibit

Exhibit 10.8

FIRST AMENDMENT TO THE EMPLOYMENT AGREEMENT

This First Amendment to the Employment Agreement (the “First Amendment”), entered into as of October 3, 2018 (the “Effective Date”), amends that certain Employment Agreement (the “Agreement”) between Paul Fehlman and AZZ incorporated, now known as AZZ Inc. (the “Company”), dated February 24, 2014.

WHEREAS, the Agreement shall be amended solely to clarify compliance with Section 409A of the Internal Revenue Code of 1986.

NOW, THEREFORE, the Agreement shall be amended effective as of the Effective Date as provided below:

		
	1.
	Definitions.  All capitalized terms used herein and not expressly defined herein shall have the respective meanings given to such terms in the Agreement.

		
	2.
	Entire Agreement.  Except as expressly modified by this First Amendment, the Agreement shall be and remain in full force and effect in accordance with its terms and shall constitute the legal, valid, binding and enforceable obligations of the Company and Executive.

		
	3.
	Section 3.04 of the Agreement is hereby replaced in its entirety to read as follows:

“Change in Control. If Executive’s employment is terminated (including by the Company’s election not to extend the Employment Term beyond the second anniversary of the date hereof ) during a “Change in Control” Period as defined in the Change in Control Agreement dated February 24, 2014, between Executive and the Company (the “Change in Control Agreement”), this Agreement shall terminate, and the provisions of ARTICLE III of the Change in Control Agreement shall apply in lieu of ARTICLE IV of this Agreement, provided that the provisions of ARTICLE V and ARTICLE VI of this Agreement shall survive the termination of this Agreement.”
		
	4.
	Section 4.02 (b) of the Agreement is hereby replaced in its entirety to read as follows:

“an amount equal to Executive’s Base Salary (not including any bonus payable) as of the date of such termination for the greater of (i) twelve (12) months or (ii) the remainder of the Employment Term, in either case payable in accordance with the Company’s regular payroll procedures beginning sixty (60) days after the date of termination;”
		
	5.
	The last paragraph of Section 4.02 is hereby amended to add the following sentence:

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“Such release must be executed by Executive and delivered to the Company, and have become irrevocable, no later than the date on which such payments are to be made or commence.”
		
	6.
	Section 4.04(b) is hereby replaced in its entirety to read as follows:

“an amount equal to Executive’s Base Salary (not including any bonus payable) as of the date immediately prior to the second anniversary of the date hereof for twelve (12) months, payable in accordance with the Company’s regular payroll procedures beginning sixty (60) days after the date of termination.”

		
	7.
	The last paragraph of Section 4.04 is hereby amended to add the following sentence:

“Such release must be executed by Executive and delivered to the Company, and must have become irrevocable, no later than the date on which such payments are to commence.”

		
	8.
	Section 8.02 of the Agreement is hereby replaced in its entirety to read as follows:

“Termination of Employment. A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits that are considered nonqualified deferred compensation under Code Section 409A upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A, and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms and concepts shall mean a “separation from service” within the meaning of Code Section 409A, and references to “date of termination” shall mean the date on which a “separation from service” occurs.  In general, Executive will incur a “separation from service” on the date the Company and Executive reasonably believe that no further services will be performed or that the level of bona fide services (whether as an employee or independent contractor) will permanently decrease to no more than twenty (20) percent of the level of services performed over the immediately preceding thirty-six (36) months. The determination of whether and when a “separation from service” has occurred for proposes of this Agreement shall be made in accordance with Section l.409A-l(h) of the Treasury Regulations.”

		
	9.
	Section 1.01 to Exhibit A (Form of Release) as attached to the Agreement is hereby replaced in its entirety to read as follows:

“Relationship with the Company. Executive will separate from service with the Company effective _______________, 20____ (“Separation Date”).”

		
	10.
	Section 2.01 of Exhibit A (Form of Release) as attached to the Agreement is hereby replaced in its entirety to read as follows:

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“Severance. Upon Executive’s execution and delivery of this Separation Agreement to the Company and the expiration of the revocation period described in Section 4.02(c) of this Separation Agreement, the Company shall pay to Executive the amounts set forth in Section 4.02 or Section 4.04 of the Employment Agreement, as applicable.  Such amounts shall be paid in the manner and the time specified in the Employment Agreement and shall be reduced by standard withholding and authorized deductions.”
This First Amendment amends the Agreement as set forth herein.  All previously existing obligations under the Agreement are hereby reaffirmed in all respects.

IN WITNESS WHEREOF, the Company has executed this First Amendment as of the Effective Date.

AZZ INC.:

By:  /s/ Tom Ferguson            
Tom Ferguson
President and Chief Executive Officer

EXECUTIVE:

/s/ Paul Fehlman            
Paul Fehlman

3Exhibit

Exhibit 10.9

FIRST AMENDMENT TO THE CHANGE IN CONTROL AGREEMENT

This First Amendment to the Change in Control Agreement (the “First Amendment”),entered into as of October 3, 2018 (the “Effective Date”), amends that certain Change in Control Agreement (the “Agreement”) between Tom Ferguson and AZZ Incorporated, now known as AZZ Inc. (the “Company”), dated November 4, 2013.

WHEREAS, the Agreement shall be amended to solely clarify compliance with Section 409A of the Internal Revenue Code of 1986.

NOW, THEREFORE, the Agreement shall be amended effective as of the Effective Date as provided below:

		
	1.
	Definitions.  All capitalized terms used herein and not expressly defined herein shall have the respective meanings given to such terms in the Agreement.

		
	2.
	Entire Agreement.  Except as expressly modified by this First Amendment, the Agreement shall be and remain in full force and effect in accordance with its terms and shall constitute the legal, valid, binding and enforceable obligations of the Company and Executive.

		
	3.
	Section 3.02 of the Agreement is hereby amended to add the following paragraph at the end of the section as follows:

“Notwithstanding the foregoing provisions of Section 3.02(b), unless Executive’s termination of employment occurs within two (2) years following a “change in control event” as defined in Treasury Regulation Section 1.409A-3(i)(5), then (i) the amount of severance pay under Section 3.02(b) that does not exceed the amount of severance that would have been payable under Section 4.02 or Section 4.04, as applicable, of the Employment Agreement, if such termination had not occurred during a Change in Control Period, shall be paid in the same time and form as provided under the Employment Agreement, and (ii) any additional amounts payable under Section 3.02(b) shall be paid at the time and manner set forth herein.  The requirements of this paragraph shall not apply to any severance that is exempt from Section 409A of the Code.”
		
	4.
	Section 4.01of the Agreement is hereby replaced in its entirety to read as follows:

“280G Payments. If any payment or benefit Executive will or may receive from the Company or otherwise (a “280G Payment”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then any such 280G Payment (a “Payment”) shall be equal to the Reduced Amount (as defined below). The “Reduced Amount” shall be either (x) the largest portion 

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of the Payment that would result in no portion of the Payment (after reduction) being subject to the Excise Tax or (y) the largest portion, up to and including the total, of the Payment, whichever amount (i.e., the amount determined by clause (x) or by clause (y)), after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate), results in Executive’s receipt, on an after-tax basis, of the greater economic benefit notwithstanding that all or some portion of the Payment may be subject to the Excise Tax. If a reduction in Payment is required pursuant to the preceding sentence the reduction shall be made (i) first by reducing severance pay under Section 3.02(b) of this Agreement (in inverse order of payment, if applicable), (ii) then by reducing other parachute payments, exclusive of equity awards, pro rata, and (iii) finally by reducing the accelerated vesting of equity awards, pro rata.”

		
	5.
	Section 1.01 to Exhibit A (Form of Release and Waiver) as attached to the Agreement is hereby replaced in its entirety to read as follows:

“Relationship with the Company. Executive will separate from service with the Company effective _______________, 20____ (“Separation Date”).”

		
	6.
	Section 2.01 of Exhibit A (Form of Release and Waiver) as attached to the Agreement is hereby replaced in its entirety to read as follows:

“Severance. Upon Executive’s execution and delivery of this Release to the Company and the expiration of the revocation period described in Section 4.02(c) of this Release, the Company shall pay Executive the amounts set forth in Section 3.02 of the Change in Control Agreement.  Such amounts shall be paid in the manner and the time specified in the Change in Control Agreement and shall be reduced by standard withholding and authorized deductions.”

This First Amendment amends the Agreement as set forth herein.  All previously existing obligations under the Agreement are hereby reaffirmed in all respects.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, each of the parties has executed this First Amendment as of the Effective Date.

EXECUTIVE:

/s/ Tom Ferguson            
Tom Ferguson

AZZ INC.

By: /s/ Kevern R. Joyce        
Kevern R. Joyce
Chairman of the Board

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