Document:

Exhibit 10.1

 

CONFIDENTIAL SEPARATION AGREEMENT AND RELEASE

 

WHEREAS, Calgon Carbon Corporation (“Calgon Carbon”) employed John S. Stanik (“Mr. Stanik”) under an Employment Agreement made as of February 5, 2010 and effective January 1, 2010 (the “Employment Agreement”); and

 

WHEREAS, Mr. Stanik has elected to voluntarily retire from Calgon Carbon, such retirement to be effective as of July 31, 2012 (“Termination Date”); and

 

WHEREAS, the terms of the Employment Agreement provide that Mr. Stanik shall receive only his accrued and unpaid salary, previously deferred compensation, and any other vested benefits under generally applicable Calgon Carbon programs, and that Calgon Carbon has no further severance obligations to Mr. Stanik after his Termination Date; and

 

WHEREAS, in recognition of his service to Calgon Carbon, and for good and valuable consideration, Calgon Carbon and Mr. Stanik desire to enter into this Confidential Separation Agreement and Release (“Separation Agreement”) to resolve any and all matters between them relating to Mr. Stanik’s employment and cessation of that employment.

 

NOW, THEREFORE, in consideration of the mutual undertakings set forth below, this Separation Agreement will govern Mr. Stanik’s cessation of employment with Calgon Carbon and will resolve, finally and completely, any and all possible claims and disputes between Calgon Carbon and Mr. Stanik arising from his employment and cessation of employment:

 

1.                                      Except as specifically provided herein, this Separation Agreement will replace and supersede the Employment Agreement, any rights of Mr. Stanik under Restricted Performance Stock Unit Agreement or Stock Option Agreement between Calgon Carbon and Mr. Stanik under the 2008 Equity Incentive Plan or its predecessors (together with any Restricted Stock Agreement as described below, collectively, the “Equity Agreements”), and any other agreements pertaining to Mr. Stanik’s employment by Calgon Carbon, and shall supplement any Restricted Stock Agreement between Calgon Carbon and Mr. Stanik, as provided herein.

 

 

2.                                      Calgon Carbon’s employment records will reflect that Mr. Stanik’s employment with Calgon Carbon terminated as of the Termination Date by resignation due to retirement under Section 4(a) of the Employment Agreement.

 

3.                                      For purposes of this Separation Agreement, the Termination Date and the term “termination,” when used in the context of a condition to, or timing of, payment hereunder that is “deferred compensation” subject to Section 409A of the Internal Revenue Code of 1986, as amended (the “IRC”), shall be interpreted and applied so as to constitute a “separation from service” as that term is defined in Section 409A of the IRC, including using a date other than July 31, 2012 as the effective date of retirement if necessary solely for this purpose.

 

4.                                      Mr. Stanik acknowledges that only because he entered into this Separation Agreement, he is entitled to any of the payments provided for in subsections 4(a) through 4(f) below and the Consulting Agreement payments, except for those set forth in Section 4(b).  After timely receipt of a fully signed and dated copy of this Separation Agreement and Consulting Agreement from Mr. Stanik, which cannot be earlier than the Termination Date or later than August 15, 2012, and subject to Mr. Stanik having not revoked this Separation Agreement within the time period provided under Section 21 below, Calgon Carbon shall make the following payments, with respect to which Mr. Stanik is not provided, directly or indirectly, with any election as to the taxable year in which any of the payments will be made.

 

(a)                                 Health Coverage.

 

(i)                                     Calgon Carbon shall pay the applicable premium in excess of the employee paid portion for continued health coverage under the Consolidated Omnibus Budget Reconciliation Act, reflected in Section 4980B of the Code, as amended (“COBRA”) (including medical, dental and vision coverage) (“Health Benefits”) for Mr. Stanik and each of his covered dependents as of the day before the Termination Date, in each case for up to 18 months from the Termination Date, as long as his primary residence is within the 48 contiguous United States and he remains eligible for and elects such coverage in accordance with the requirements under the applicable Calgon Carbon health and welfare benefit plans intended to satisfy the continuation requirements under

 

 

COBRA.  Such coverage will be the same as that provided to active employees, which may change from time to time, and as to which Mr. Stanik and his dependents will be entitled to make changes to coverage elections on the same basis as active Calgon Carbon employees.  If the period for which Mr. Stanik and/or any covered dependents is entitled to COBRA coverage extends beyond 18 months, the 18-month maximum period for which Calgon Carbon shall make the COBRA premium payments shall be increased to the maximum number of months of eligible COBRA coverage.  The employer paid portion will be reported by Calgon Carbon as taxable income to Mr. Stanik.

 

(ii)                                  After the expiration of the COBRA period, and for a period, including the COBRA period, extending not longer than a total of 54 months, Calgon Carbon shall reimburse Mr. Stanik for up to $100,000 per year for medical expenses for Mr. Stanik, his spouse, and dependents provided the dependents would have been eligible for continued COBRA coverage if the COBRA period had not expired.  For this purpose, medical expenses include the purchase of individual health coverage, provided that if Mr. Stanik is eligible to purchase such coverage through an exchange, Mr. Stanik may, at his discretion, purchase such coverage through an exchange if available at lower cost and be reimbursed for the full amount of such coverage (subject to the $100,000 per year limitation set forth above) or, if he elects not to purchase such coverage through an exchange, Mr. Stanik’s reimbursement will be limited to the cost of such coverage had it been purchased through an exchange, and provided further, that medical expenses shall be otherwise limited to those expenses that would be an eligible reimbursable expense under the Calgon Carbon flexible spending arrangement without regard to dollar limits imposed by that arrangement.  In order to receive reimbursement under this clause (ii), Mr. Stanik must submit appropriate documentation of payment of such expenses.  Reimbursement will be made not more frequently than calendar quarterly and not less frequently than calendar annually, within 30 days after the end of the quarter or year, provided required documentation is received within 7 days after the quarter or year -end.  In no event will reimbursements be made later than the taxable year that ends after the taxable year in which Mr. Stanik incurs the expense.

 

 

These reimbursements will be reported by Calgon Carbon as taxable income to Mr. Stanik.

 

(iii)                               Notwithstanding the above, Calgon Carbon’s obligations under this Section 4(a) shall cease if Mr. Stanik is eligible for medical coverage through or from another employer (including any company he may own or form or as a result of being a Board member), or if he fails to make timely payment of the applicable premium under clause (i) above.  Mr. Stanik’s death shall not terminate Calgon Carbon’s obligations under this Section 4(a).  In addition, the amount to be reimbursed in one taxable year shall not affect the amount to be reimbursed in any other taxable year and such reimbursement under subsection 4(a)(ii) shall not be subject to liquidation or exchange for any other benefit.

 

(iv)                              Notwithstanding the foregoing, if Calgon Carbon reasonably determines, based upon a written legal opinion of qualified counsel, that providing any benefits or making any payments under this Section 4(a) would violate applicable law (including, without limit, Section 2716 of the Public Health Service Act), Calgon Carbon shall cease to make such payments to Mr. Stanik.  In such event, Mr. Stanik and Calgon Carbon shall attempt in good faith to agree upon a reasonable substitute benefit and/or payment that would not violate applicable law.

 

(b)                                 Accrued Base Salary and Accrued and Unused Vacation Pay.

 

(i)                                     Calgon Carbon shall pay, on the first regularly scheduled payroll date following the Termination Date, Mr. Stanik’s accrued and unpaid base salary.

 

(ii)                                  Calgon Carbon shall pay, as soon as administratively practical following the Termination Date, but not later than August 31, 2012, Mr. Stanik’s remaining accrued but unpaid vacation, which amounts to $42,700.52, less applicable deductions and required tax withholdings, for 20 days of accrued but unused 2012 vacation and $32,025.39, less

 

 

applicable deductions and required tax withholdings, for 15 days of prorated 2013 vacation (2.5 days per full month worked in 2012), all as accrued prior to the Termination Date.

 

(c)                                  Lump Sum Payment.  Calgon Carbon shall pay Mr. Stanik $1,870,000 in a single lump sum less applicable deductions and required tax withholdings.  The lump sum payment will be made on the first business day following the 6-month anniversary of the Termination Date.

 

(d)                                 Consulting Agreement.  Effective August 1, 2012, Calgon Carbon and Mr. Stanik shall enter into the attached Agreement for Consulting Services (the “Consulting Agreement”), which provides Mr. Stanik with a monthly retainer of $12,500 for up to 24 months for his services as an independent contractor.

 

(e)                                  Equity Agreements.  The following provisions apply with respect to the Equity Agreements.

 

(i)                                     Mr. Stanik shall forfeit all 2010, 2011, and 2012 Restricted Performance Stock Units and all unvested 2011 and 2012 Stock Options, without any further action by Calgon Carbon or otherwise.

 

(ii)                                  Mr. Stanik shall become 100% vested as of the Termination Date, in all otherwise unvested Restricted Stock awards previously granted to him under the Restricted Stock Agreements dated as of March 4, 2010, March 1, 2011, and March 2, 2012, (24,689 shares of Calgon Carbon Corporation common stock in the aggregate) without any further action by Calgon Carbon or otherwise.  By not later than August 31, 2012, Calgon Carbon shall (A) deliver to Mr. Stanik certificate(s) representing the shares of Restricted Stock vested hereunder, (B) remove any prohibition of access by Mr. Stanik to any shares issued in book entry form, and (C) return to Mr. Stanik any stock power he previously delivered to Calgon Carbon in respect of such Restricted Stock.

 

 

(iii)                               For purposes of all incentive and non-statutory stock options previously granted to Mr. Stanik that are vested and unexercised as of the date of this Agreement, the termination of Mr. Stanik’s employment shall be deemed a voluntary termination with the consent of Calgon Carbon, for purposes of vested options granted under the 2008 Equity Incentive Plan, and a normal retirement for purposes of vested options granted under any predecessor option plan, such that all vested options shall remain exercisable by Mr. Stanik (a) in the case of vested incentive stock options, for three (3) months following the Termination Date, and (b) in the case of vested non-statutory stock options, for one (1) year following the Termination Date.

 

(iv)                              For purposes of all stock options exercised by Mr. Stanik within the one year period prior to the Termination Date, the termination of Mr. Stanik’s employment shall be deemed a normal retirement and any forfeiture of option gain provisions of any option plan or agreement shall be inapplicable.

 

For the avoidance of doubt, Mr. Stanik shall continue to be subject to the clawback provisions set forth in the Calgon Carbon “Recoupment Policy” adopted December 2009 or in any Equity Agreement.

 

(f)                                   Reimbursements for Tax and Legal Advice.

 

(i)                                     Calgon Carbon shall reimburse Mr. Stanik for up to $10,000 of expenses for tax advice from his tax advisor relating to entering into this Separation Agreement that are incurred prior to August 1, 2012.

 

(ii)                                  Calgon Carbon shall reimburse Mr. Stanik for up to $15,000 of expenses for legal advice from his lawyer relating to entering into this Separation Agreement that are incurred prior to August 1, 2012.

 

Reimbursements under this clause 4(f) shall be made on or before December 31, 2012, but only if Mr. Stanik has provided sufficient documentation of such expenses not later than December 1, 2012, and

 

 

with such payment to be subject to any applicable deductions and required tax withholding.  No such reimbursement shall be made after December 31, 2012.  Such reimbursements shall not be subject to liquidation or exchange for any other benefit.

 

5.                                      Accrual of other Calgon Carbon benefits and participation in Calgon Carbon’s 401(k), pension, and all other Calgon Carbon benefit plans will terminate on the Termination Date, except as specifically provided otherwise in this Separation Agreement.  Mr. Stanik understands and agrees that:

 

(a)                                 except as provided herein, he will receive no shares or other payments or amounts under any Equity Agreement other than to the extent he exercises, and pays for, vested incentive or non-statutory stock options pursuant to their terms as specified in Section 4(e)(iii) hereof;

 

(b)                                 the vesting of the Restricted Stock under Section 4(e)(ii) is as specifically set forth by the terms of the Release attached as Appendix A, in full and final settlement and release of all possible legal claims by him, including without limitation, claims under the Equity Agreements or related plans; and

 

(c)                                  in any event, the payments under Section 4 above, except for Section 4(b), and the Consulting Agreement payments, exceed anything to which he is otherwise entitled to receive from Calgon Carbon without regard to this Separation Agreement.

 

6.                                      Mr. Stanik understands and agrees that neither Calgon Carbon, nor any successor or affiliate of Calgon Carbon, will be obligated in any way to provide him with future employment, compensation, or benefits for any reason, except for 401(k) and other pension plan payments due under the terms of such plans, payments and benefits specified in this Separation Agreement, and the right to COBRA continued health coverage or the right to convert to individual health or other insurance coverage or other benefits to the extent required by law.  Mr. Stanik further agrees not to seek any such employment, re-employment, compensation or benefits from Calgon Carbon or any of its affiliates or successors.

 

 

7.                                      Mr. Stanik is solely responsible for all tax liabilities and other consequences beyond the actual withholdings or deductions made by Calgon Carbon from amounts payable under this Separation Agreement.  Calgon Carbon shall have no requirement to pay and shall not pay Mr. Stanik for any tax reason, including, without limit, unanticipated tax liabilities or other tax consequences related to this Separation Agreement, the Consulting Agreement or otherwise.  Mr. Stanik agrees that Calgon Carbon has no such responsibility or obligation, and he indemnifies Calgon Carbon, and holds Calgon Carbon harmless, from any such tax liabilities or other tax consequences.

 

8.                                      By entering into this Separation Agreement, Calgon Carbon expressly denies any unlawful or unfair conduct.

 

9.                                      Except as otherwise required by law, including any necessary administrative filings,

 

(a)                                 neither Mr. Stanik — meaning him or anybody acting on his behalf — nor Calgon Carbon — meaning any director or member of its senior management with actual knowledge of this Separation Agreement and who is acting on Calgon Carbon’s behalf — will engage, directly or indirectly, in any publicity or other action or activity to or with any person or entity that reflects adversely upon Mr. Stanik or his work performance with Calgon Carbon or adversely affects or reflects upon Calgon Carbon, its board, officers, employees, agents, and business, including any successor or affiliate of Calgon Carbon.  Mr. Stanik understands and agrees that this includes, without limit, any conversation or activity that could or would foster conflict, negativism, low morale, or an anti-management posture among Calgon Carbon’s employees and/or the public, as well as any untruthful, defamatory, harassing or disparaging communications about Calgon Carbon, its board, officers, employees, agents, and business, including any successor or affiliate of Calgon Carbon.  This would apply, for instance, to any modification to Calgon Carbon’s strategic plan or management structure.  Mr. Stanik and Calgon Carbon further agree that these obligations will continue, without termination or expiration, despite the termination or expiration of any other obligation in this Separation Agreement.

 

 

(b)                                 Mr. Stanik and Calgon Carbon agree to keep confidential and not disclose the terms of this Separation Agreement and the Consulting Agreement to any person, with the exception of attorneys or other individuals consulted by Mr. Stanik and Calgon Carbon to understand the interpretation, application, or legal or financial effect of this Separation Agreement and the Consulting Agreement or to implement any portion of either of them, as long as, as a precondition of receipt of this Separation Agreement or any information contained in it, any such person pledges to strictly maintain such confidentiality.  Notwithstanding the foregoing, Mr. Stanik acknowledges that Calgon Carbon will be required to describe this Separation Agreement in Current Report on Form 8-K to be filed with the United States Securities and Exchange Commission and that this Separation Agreement will be filed as an exhibit to such Current Report.

 

10.                               Mr. Stanik agrees to continue to fully comply with and be bound by the confidentiality and non-competition and related provisions set forth in the Employment Agreement, the Equity Agreements, and the Consulting Agreement.

 

11.                               Mr. Stanik agrees to immediately return any and all Calgon Carbon documents or other materials — whether in “hard copy,” electronic or other form — including, without limit, all strategic plans, budgets, pricing, and other financial and business information, customer lists and all other customer information, files, software, policy manuals, office supplies, keys, name tags, and all other Calgon Carbon property and equipment in his possession or under his control, irrespective of whether such information is considered and kept confidential by and for Calgon Carbon.  To the extent Mr. Stanik needs any such documents or other materials to perform consulting services to Calgon Carbon under the attached Consulting Agreement, he will return them when the Consulting Agreement ends.

 

12.                               Mr. Stanik agrees to cooperate fully with Calgon Carbon in the defense of any claims made by or against Calgon Carbon by, among other things, making himself periodically available to Calgon Carbon and its representatives, at reasonable times and on reasonable notice, consistent with Mr. Stanik’s scheduled professional responsibilities, to discuss and provide assistance concerning such claims to the extent that they relate to services performed by him for Calgon Carbon or its

 

 

affilates, information known by him, or any alleged act or omission by him.  Mr. Stanik will remain fully supportive of Calgon Carbon in all matters, including litigation matters.  Nothing in this Section, however, will be interpreted to obligate Mr. Stanik to violate the law or any legal obligation.  Mr. Stanik further agrees to cooperate in authorizing and processing any documentation needed by Calgon Carbon for any other business—related matter.  Calgon Carbon will reimburse Mr. Stanik for his reasonable, out-of-pocket expenses associated with such cooperation, including reasonable travel expenses.  All reimbursement payments with respect to expenses incurred within a particular year shall be made within 15 days of receipt from Mr. Stanik of evidence of such expenses, and in any event no later than the end of Mr. Stanik’s taxable year following the taxable year in which the expense was incurred.  The amount of reimbursable expenses incurred in one taxable year of Mr. Stanik shall not affect the amount of reimbursable expenses in any other taxable year and such reimbursement shall not be subject to liquidation or exchange for any other benefit.

 

13.                               Disputes shall be resolved as follows:

 

(a)                                 Mr. Stanik and Calgon Carbon waive any right to a court (including jury) proceeding and instead agree to submit any dispute over the application, interpretation, validity, or any other aspect of the Separation Agreement to final and binding and confidential arbitration consistent with the application of the Federal Arbitration Act and the employment of comparable procedural employment-related rules of the American Arbitration Association (“AAA”) before an arbitrator who is a member of the National Academy of Arbitrators (“NAA”) out of an NAA panel of 11 arbitrators to be supplied by the AAA and selected by alternate striking of names by Mr. Stanik first and then Calgon Carbon.  Only true neutrals will be eligible for consideration as arbitrators and under no circumstances will AAA furnish the names of individuals who represent employees, unions, or employers.  Judgment on the award rendered by the arbitrator may be entered in any Pennsylvania court having jurisdiction.  Each party shall pay the fees of its own attorneys, the expenses of its witnesses and all other expenses connected with presenting its case; except that, to the extent permitted by law, the arbitrator, in his or her discretion, may award reasonable attorneys’ fees to the prevailing party.  Other costs of the arbitration, including the cost of

 

 

any record or transcripts of the arbitration, AAA’s administrative fees, the fee of the arbitrator, and all other fees and costs, shall be paid by Calgon Carbon.  Arbitration is to be the exclusive method for resolving any and all claims by the parties against each other for payment of damages under this Separation Agreement or relating to Mr. Stanik’s employment; except that either party may seek provisional relief, including without limit, injunctive relief, in any Pennsylvania court of competent jurisdiction.  Seeking any such relief shall not be a waiver of such party’s right to compel arbitration.

 

(b)                                 Mr. Stanik acknowledges and agrees that Calgon Carbon’s remedies at law for a breach or threatened breach of any of the provisions of Sections 9 through 12 would be inadequate and Calgon Carbon would suffer irreparable damages as a result of such breach or threatened breach.  Accordingly, Mr. Stanik agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, Calgon Carbon, without posting any bond, will be entitled to obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable or other remedy which may then be available.

 

14.                               If an arbitrator or other authority determines that any term, condition, clause, or other provision of this Separation Agreement is void or invalid, he, she or it will have discretion to modify such term, condition, clause, or other provision of this Separation Agreement to make it valid.  Alternatively, if he, she or it declines to make such a modification and rules it invalid, the remaining portions of this Separation Agreement will remain in full force and effect.

 

15.                               Mr. Stanik and Calgon Carbon understand and agree that the terms and conditions of this Separation Agreement and the Consulting Agreement constitute the full and complete understandings, agreements, and promises of the parties, and that there are no oral or written understandings, agreements, promises or inducements made or offered with respect to the matters covered hereby other than those set forth in this Separation Agreement and the Consulting Agreement.  Any amendment to this Separation Agreement must be in writing and signed by Mr. Stanik and Calgon Carbon to be effective.  This Agreement shall be binding upon, and inure to the benefit of, the parties and their respective successors, heirs and permitted assigns.

 

 

16.                               In exchange for Calgon Carbon’s promises contained in this Separation Agreement, and other good and sufficient consideration, and intending to be legally bound, Mr. Stanik has executed the Release attached and incorporated herein as “Appendix A.”  If, contrary to this Separation Agreement, a lawsuit is filed by or on behalf of Mr. Stanik, or Mr. Stanik otherwise commits a material breach of this Separation Agreement, Calgon Carbon will have the right, without affecting the continued validity and enforceability of this Separation Agreement, and in addition to its other legal and equitable remedies, to discontinue all further payments and benefits due under this Separation Agreement and to seek damages and other redress at law for any and all damages, costs and fees until full and final resolution of the alleged breach.  Mr. Stanik understands and agrees that the consideration outlined in this Separation Agreement, including, without limit, the options, benefits, and payments in Section 4 are provided by Calgon Carbon with the expectation of and in reliance upon Mr. Stanik’s full and final settlement of all possible legal claims, as well as his pledge to fully comply with the terms of this Separation Agreement, specifically including the promises in Sections 9, 10, 11, and 12.

 

17.                               Nothing in this Separation Agreement will prevent or otherwise hinder Mr. Stanik’s access to the federal Equal Employment Opportunity Commission.  But the Release in Appendix A, as stated, will bar Mr. Stanik from any remedy.

 

18.                               This Separation Agreement will be governed by Pennsylvania law, without regard to its choice of law provisions and except as preempted by applicable federal law.

 

19.                               Mr. Stanik acknowledges receipt of Calgon Carbon’s letter outlining possible legal rights under the federal Older Workers Benefit Protection Act (“OWBPA”) and urging him to consult with an attorney, that he has had at least a 21-day opportunity — an opportunity he is free to use in whole or in part — to consider the terms of this Separation Agreement, and that he has agreed to and signed this Separation Agreement voluntarily after such 21-day opportunity.  Attached as “Appendix B” is a true and correct copy of that letter.  Mr. Stanik may not assign any rights or obligations under the Separation Agreement.  Calgon Carbon may assign the Separation Agreement, without Mr. Stanik’s consent, to any of its direct or indirect subsidiaries provided that Calgon Carbon shall provide written notice of such assignment to Mr. Stanik, and

 

 

provided further that such assignment shall not release Calgon Carbon from any of its obligations hereunder.

 

20.                               Mr. Stanik and Calgon Carbon swear that they have read this Separation Agreement carefully, understand it fully, and intend to be legally bound by its terms.  Mr. Stanik further swears that he has had a full and fair opportunity to consult with an attorney to help him fully understand and appreciate the interpretation, application, and full legal effect of this Separation Agreement and that he has agreed to and signed this Separation Agreement voluntarily following good faith bargaining over its terms.

 

21.                               This Separation Agreement will become legally effective and enforceable on the 8th calendar day following Mr. Stanik’s timely execution of this Separation Agreement and delivery to the Calgon Carbon unless, during the 7 days after delivery of this Separation Agreement to Calgon Carbon and before the effective date, Mr. Stanik revoked this Separation Agreement in a writing delivered to Calgon Carbon.

 

22.                               All notices required or permitted under this Separation Agreement will be in writing and considered delivered when delivered in person or deposited in the United States mail, with postage prepaid and addressed as follows:

 

	
To   Mr. Stanik:
    	
 
    	
John   S. Stanik
   234 E. Edgewood Drive
   Pittsburgh, PA 15317

with   a copy to (which shall not constitute notice):

 

Thorp   Reed & Armstrong, LLP
   One Oxford Centre
   301 Grant Street, 14th Floor
   Pittsburgh, PA 15219
   Attention: Jeffrey J. Conn
    

 

 

	
To   Calgon Carbon:
    	
 
    	
Richard   D. Rose
   Senior Vice President,
   General Counsel & Secretary
   Calgon Carbon Corporation
   400 Calgon Carbon Drive
   Pittsburgh, PA 15205
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
with   a copy to (which shall not constitute notice):

Reed   Smith LLP
   225 Fifth Avenue
   Pittsburgh, PA 15222
   Attention: Dodi Walker Gross
    

 

These addresses may be changed by either party by written notice to the other party.

 

This Separation Agreement is signed on the dates set forth below to be effective as of the 31st day of July, 2012.

 

	
/s/   John S. Stanik
    	
 
    	
Dated:  July 31, 2012
    
	
John   S. Stanik
    	
 
    	
 
    
	
For   Myself, My Heirs, Personal
    	
 
    	
 
    
	
Representative   and Assigns
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
CALGON   CARBON CORPORATION
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
/s/   Richard D. Rose
    	
 
    	
Dated:  July 31, 2012
    
	
 
    	
Richard   D. Rose
    	
 
    	
 
    
	
 
    	
Senior   Vice President, General Counsel & Secretary
    	
 
    	
 
    

 

 

APPENDIX A

 

RELEASE

 

I, John S. Stanik, in exchange for the promises contained in the attached Separation Agreement, unconditionally release Calgon Carbon Corporation, its subsidiaries and affiliates, their board officers, directors, employees, shareholders, agents, successors and/or assigns and all Calgon Carbon benefit plans and their administrators, agents, employees, successors and assigns (collectively called “Company”), from any and all claims, issues, or causes of action, known or unknown, arising out of my Company employment and cessation of that employment, including the federal Age Discrimination in Employment Act, Employee Retirement Income Security Act of 1974, Civil Rights Act of 1964, Civil Rights Act of 1991, Rehabilitation Act of 1973, Americans with Disabilities Act, Family and Medical Leave Act of 1993, Older Workers Benefit Protection Act, Equal Pay Act; the Pennsylvania Human Relations Act; federal, state and local wrongful discharge laws; and any and all other federal, state, and/or local employment and other legal claims, such as whistleblower claims and claims for possible attorneys’ fees and costs, and all as amended from time to time.  Notwithstanding the foregoing or anything contained herein to the contrary, this Release does not apply to:  (i) any rights to indemnification or reimbursement from Company pursuant to constituent documents, under applicable Law or by written contract; (ii) rights to benefits under any policy of directors and officers insurance or similar insurance; (iii) any rights to enforce the terms of this Release or the Separation Agreement;  (iv) any rights under the Consulting Agreement; or (v) rights to exercise vested incentive and non-statutory stock options in accordance with their terms as specified in section 4(e) (iii) of the attached Separation Agreement.  To the extent, however, that any entity or person sues on my behalf concerning any possible claim, I agree that this Separation Agreement and Release (“Separation Agreement”) has fully and finally satisfied any and all possible claims, and I agree to waive and otherwise relinquish eligibility for any recovery beyond what I received in this Separation Agreement, even if I participate or otherwise assist in such litigation.

 

 

I have read this Release.

 

I understand this Release.

 

I execute this Release voluntarily and without coercion.

 

I understand I have the right to consult with an attorney.

 

I intend to be legally bound by this Release.

 

	
 
    	
 
    	
 
    
	
John   S. Stanik
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
SWORN   TO and subscribed before me this
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
          day   of July, 2012.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Notary Public
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
My   Commission Expires: (Seal)
    	
 
    	
 
    

 

 

APPENDIX B

 

June       , 2012

 

VIA HAND DELIVERY TO:

 

Mr. John S. Stanik
 234 E. Edgewood Drive
 Pittsburgh, PA  15317

 

RE:                           Your Rights Under The Older Workers Benefit Protection Act / 
 Age Discrimination and Employment Act

 

Dear John:

 

Before you agree to resolve your separation from employment and execute the enclosed Confidential Separation Agreement and Release, we direct your attention to a federal law called the Older Workers Benefit Protection Act (“OWBPA”), a law that amended the Federal Age Discrimination and Employment Act.

 

Among other rights, you have the right to consult with an attorney prior to executing any agreement which resolves your separation from employment, including, without limit, an agreement in which you release all possible legal claims against Calgon Carbon Corporation and its subsidiaries and affiliates and its benefit plans.

 

Under OWBPA, for instance, you have at least 21 days after receipt of a proposed separation agreement and release to decide whether to release your possible legal claims against Calgon Carbon Corporation.  Whether you use all or part of the 21-day opportunity is your choice and your choice alone.  The 21-day period starts with the date of this letter and is not extended for any reason, even if changes are made before you sign.  In addition, under OWBPA, you have 7 days following delivery of any such executed agreement to revoke it so that it has no continuing or past legal effects.  Only upon expiration of 7 days following your signing and delivering such agreement would the agreement become effective and otherwise enforceable.

 

This letter does not contain all of the rights for which you may be eligible under OWBPA.  That is why Calgon Carbon Corporation and I strongly advise you to consult with an attorney.  In that way, you can understand your full legal rights under OWBPA and other laws, you can proceed with a clearer understanding of your rights and responsibilities and Calgon Carbon Corporation’s rights and responsibilities, and together we can reach a fair, equitable, binding resolution in connection with your cessation of employment.

 

Please note that you have only until           , 2012 to execute the enclosed Confidential Separation Agreement and Release.  We look forward to hearing from you either directly or through your attorney.

 

Yours very truly,

 

Richard D. Rose
 Senior Vice President, General Counsel and SecretaryExhibit 10.2

 

 

AGREEMENT FOR CONSULTING SERVICES

 

This Consulting Services Agreement (this “Agreement”) is made by and between Calgon Carbon Corporation (the “Company” or “CCC”), a Delaware corporation, with its principal offices located at 400 Calgon Carbon Drive, Pittsburgh, Pennsylvania 15205, and John S. Stanik, (“Consultant”), an individual who resides at 234 E. Edgewood Drive, Pittsburgh, PA  15317.

 

1.              As an independent consultant, Consultant agrees to perform for CCC the consulting services described in this Section 1, during the period also described herein.

 

1.1       Scope of the Services and Work

 

1.1.1                     Consultant’s services and tasks include but may not be limited to the following:

 

a.                                      Statement of Purpose — Consultant has considerable experience as the former Chief Executive Officer of CCC for which CCC desires to utilize the Consultant’s experience and expertise.

 

b.                                      Scope of Services and Work — Consultant agrees to provide consulting and operational services relating to transition matters (including the provision of reasonable consulting assistance to his successor at CCC), and investor and customer relations, and any other matters he is reasonably requested to provide at the direction of the CCC Board of Directors or President and/or Chief Executive Officer or General Counsel.  CCC agrees that, except as may be provided in this Agreement for Consulting Services, Consultant shall not be restricted in any manner from providing services to any other person or entity.  Consultant agrees to provide timely documentation of his services when requested.

 

1.1.2                     Period of Performance:

 

a.                                      The period of performance of consulting services hereof shall commence as of August 1, 2012 and terminate as of July 31, 2014, unless otherwise sooner terminated by the Company or Consultant in accordance with the provisions of this Agreement.

 

1.2       The Company will pay Consultant a retainer fee of $12,500 per month, payable on the last business day of each month in arrears.  Consultant will accomplish his services in a work schedule not to exceed 4 business days per calendar month.

 

2.              Consultant shall maintain accurate books and records of any services or work performed for which he is entitled to consulting fees.  CCC may examine or audit any such records at any time, upon reasonable prior notice to Consultant.

 

The monthly fee is all inclusive and there shall not be any separate reimbursement for expenses of any kind incurred in the performance of the consulting services hereunder; except if any services require travel or air transportation and prior approval of CCC’s General Counsel is granted.  Expenses will not be reimbursed unless appropriate documentation and receipts are provided within 30 days after the expense was incurred and Consultant shall receive reimbursement with the next monthly payment of the consulting fee.

 

 

3.              Consultant shall operate and have the status of an independent consultant and shall not act as or be an agent or employee of CCC.  Except as set forth in the Confidential Separation Agreement and Release entered into between CCC and Consultant and executed in July 2012, Consultant shall not be entitled to benefits relating to employment by CCC. Consultant shall bear sole responsibility for the payment of all applicable governmental taxes related to the performance of his services hereunder including, without limitation, federal, state and local income taxes and all Social Security and other employment taxes. As an independent consultant, Consultant will be solely responsible for determining the means and methods for performing the consulting services described in Scope of Services and Work.  Consultant will determine the time, the place, and the manner in which he will accomplish his services within an overall schedule established and approved by CCC.

 

4.              Consultant represents that he is not under any obligation of confidentiality or non-competition that would prevent, prohibit or restrict him from performing his services hereunder.

 

Consultant further represents that he is aware of the laws relating to non-competition and confidential information; and that he will not use any information or materials or undertake any action which would violate any such laws while performing consulting services and work for CCC.

 

Consultant acknowledges that the services rendered to CCC by Consultant will be of a special and unusual character having a unique value to CCC, and that Consultant will have access to proprietary and Confidential Information belonging to CCC, the loss of which cannot adequately be compensated by damages in an action at law.  Consultant acknowledges that the obligations undertaken hereunder by Consultant are express conditions of Consultant’s agreement to undertake such obligations.  Consultant further acknowledges that pursuant to the efficient and effective operation of CCC and to protect and maintain the secrecy of its Confidential Information, CCC has and will establish various policies and procedures.  Consultant understands and agrees to become aware of these policies and procedures, and discharge his responsibilities in a manner that is consistent with their terms, provided that Consultant will be responsible for becoming aware of, and complying with, policies and procedures adopted after the date of this Agreement only from and after the time that CCC has provided Consultant with a copy of such policy or procedure.

 

“Confidential Information” shall mean all information whatsoever owned or acquired by CCC about the business of CCC or any of its affiliates, in whatever form it may be, hereafter exist, or be produced, created, or recorded, that is heretofore or hereafter disclosed to Consultant or created by Consultant in support of CCC’s activities that has not been placed in the public domain for unrestricted use.  Confidential Information includes any business or technical information whatsoever related to CCC’s activities, and includes but is not limited to any: (i) process, machine, article of manufacture, formula, plan, program, protocol, know-how, method, tool, device or composition of matter used or developed by or for CCC, to include the specification, description or design of any software developed by or for or owned by CCC including the business methodologies; computer networking architecture; computer, networking and Internet security architecture; methods of operation, technologies, software (including object code and source code form, and unique principles, engineering, logic and coherence, and methods or concepts utilized therein), algorithms, hardware and/or software configurations, functional attributes, and interfaces with third party hardware and/or software, whether patentable, copyrightable or not; (ii) business plans and marketing concepts and other business, marketing or sales information of CCC; (iii) financial information or projections regarding CCC; and financial, pricing and/or credit information regarding past,

 

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current and prospective customers, clients or vendors and other business contacts or associates of CCC; (iv) a listing of names, addresses, telephone numbers or other information, including but not limited to the terms (including renewal information) of contractual relationships between CCC and its customers/clients, relating to past, current and prospective customers, clients, vendors and other business contacts or associates of CCC; (v) internal corporate policies and procedures of CCC; (vi) information, drawings, proposals, job notes, reports, records, descriptions, specifications, information concerning any matters relating to the product development and/or marketing strategies, pricing, costs and sales of CCC and any of its past, current and prospective customers, clients or vendors and other business contacts or associates of CCC; (vii) information concerning the licenses entered into by CCC, including the prices it obtains or has obtained for the licensing of its own or third party technology, products, services and/or intellectual property rights; (viii) any information concerning the business of CCC and CCC’s goodwill, including but not limited to trademarks, service marks, domain names and any other company, product or service identifying information, whether registered or unregistered; (ix) any information falling under the definition of a “Trade Secret” pursuant to the Pennsylvania Uniform Trade Secrets Act; and (x) all information pertaining to any Intellectual Property rights, including but not limited to patent, copyright, trademark and trade secret rights, as defined below, in and to any of the foregoing throughout the world.

 

Consultant acknowledges that the unauthorized use or disclosure of Confidential Information would constitute a breach of trust and cause irreparable injury to CCC.  Consultant further acknowledges that it is vital to the protection of CCC’s goodwill and to the maintenance of CCC’s competitive position that Consultant be restrained from disclosing to others, or using for Consultant’s own advantage, any Confidential Information while engaged by CCC and/or at any later time.  During both the term of Consultant’s engagement with CCC and following the voluntary or involuntary termination of Consultant’s engagement with CCC for any reason whatsoever, Consultant hereby agrees to the following:

 

(a)           Consultant shall not, without the prior written consent of CCC, directly or indirectly, use for his own benefit, publish or reveal to any third party any Confidential Information, unless the person or entity has a need to know the information but only to the extent necessary to affect the purposes of such use or disclosure and only upon express authorization by CCC.  Consultant hereby admits that misappropriation or other improper use or disclosure of Confidential Information will cause irreparable harm to CCC.

 

(b)           Consultant shall restrict access to Confidential Information and take appropriate action to protect the confidentiality and proprietary character of Confidential Information by any and all reasonable measures, and shall not cause or fail to take any action necessary to prevent any Confidential Information from losing its character as confidential, proprietary, or privileged.

 

(c)           Consultant acknowledges and agrees that certain of CCC’s Confidential Information constitute trade secrets, and are generally not known or available to third parties.  Consultant understands that trade secret information can last indefinitely and agrees to protect such trade secret information with utmost due care pursuant to this Agreement, policies and procedures instituted by CCC, and applicable law.

 

(d)           Consultant shall not, directly or indirectly, copy (including download), take, or remove from CCC’s premises any of CCC’s books, records, customer lists, software (in whole or in part, in either object code or source code form) or any other documents or materials or any such materials entrusted to CCC’s possession for the provision of CCC’s services regardless of ownership; provided, however, Consultant may be permitted to use

 

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certain such CCC materials at a location other than CCC’s premises for purposes of carrying out his engagement hereunder but only upon specific written authorization by CCC and the express condition that Consultant will not copy any CCC materials or retain any CCC materials following termination and as set forth in subpart (f).

 

(e)           [Intentionally Omitted]

 

(f)            Consultant agrees that, upon request of CCC or upon termination of engagement as a consultant, whichever occurs first, Consultant shall turn over to CCC all computer tapes, CDs and DVDs, disks and other computer hardware, software and media, and all other documents, memoranda, notes, plans, records or other material, in hard copy, electronic, or other form, in his possession or under his control that (i) may contain or be derived from any Intellectual Property or Confidential Information (as those terms are defined herein) or (ii) are connected with or derived from Consultant’s services to CCC.  Consultant agrees to maintain the integrity of all stored information and agrees not to alter, damage or destroy said information before returning it to CCC.  The duty not to use or disclose Confidential Information shall survive any termination of Consultant’s engagement with CCC.

 

(g)           In addition to the foregoing, Consultant acknowledges that he continues to be bound by all confidentiality provisions applicable to Consultant at the time of the termination of his employment relationship with CCC, including under his employment agreement and equity compensation arrangements.

 

5.              Consultant acknowledges and agrees that he continues to be bound by all non-compete provisions of his prior employment agreement with CCC for the period of this Agreement and for a period of two (2) years after the termination of this Agreement.

 

6.              Consultant acknowledges and agrees that he will continue to be subject to insider trading rules and policies established by CCC from time to time (provided that relative to any rules and policies adopted after the date of this Agreement, Consultant shall only be responsible for compliance from and after the time that Consultant is provided a copy of any such rules and policies) until the termination of this Agreement and as otherwise required by law.  CCC agrees that it will not provide reports or information relating to CCC or its subsidiaries or affiliates to Consultant unless any such report or information is reasonably required by Consultant in the performance of his services hereunder.

 

7.              Consultant agrees to perform his consulting services in a professional and workmanlike manner consistent with the highest industry standards, and with that standard of care, skill and diligence to achieve the accuracy, competence, and completeness needed by CCC to fulfill its business obligations.

 

8.              Unless otherwise agreed by CCC in writing, Consultant shall personally perform the consulting services provided herein, without assigning or outsourcing any portion of the services to be performed hereunder without the written consent of CCC.

 

9.             Consultant acknowledges and agrees that CCC shall own exclusively all work performed or prepared by Consultant pursuant to this Agreement (collectively, the “Work Product”) including, without limitation, all calculations, sketches, notes, reports, data, models, programs and samples programs, derivative works, source code, object code, discoveries, concepts, inventions, innovations, improvements, materials, documentation, know-how, techniques, methods, processes, ideas and other intellectual property which are conceived, made, proposed, or developed by Consultant, alone or with others, in connection with any work

 

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assignment pursuant to this Agreement, whether or not prepared on or off the premises of CCC or during regular work hours.  Consultant shall promptly notify CCC of the creation of any such Work Product.  In the event CCC shall desire to file an application for a Letter Patent on any work product including a continuation or divisional application, or to secure a reissue of any Letters Patent based on one of the inventions or to file application for a Letter Patent on any work product including a disclaimer with respect to any Letters Patent, Consultant, upon request, will sign any and all rightful oaths and perform all lawful acts requisite for the filing of such papers.

 

Consultant hereby grants, assigns and transfers to CCC all worldwide rights, title and interest in and to all Work Product including, without limitation, all patent rights, copyrights, trade secret rights, and all present and future rights of any kind pertaining to all such Work Product whether or not such rights are now known, recognized or contemplated, together with any related goodwill.  During and after the term of this Agreement, Consultant shall provide CCC, at CCC’s expense, all assistance reasonably required to perfect such right, title and interest, including without limitation, the execution of all papers and documents and performance of all acts necessary or appropriate in CCC’s discretion by Consultant, to evidence or further document CCC’s ownership of the Work Product.

 

In addition, upon termination of this Agreement, all documents and other property provided to Consultant by CCC shall be returned to CCC, including all keys and other hardware.  Consultant’s obligations under this paragraph shall survive the termination or expiration of this Agreement and continue forever.

 

10.       Each of Consultant and CCC, by written notice two (2) weeks in advance of the effective date of such termination, may terminate this Agreement.  If Consultant initiates such termination, CCC’s liability shall not exceed the compensation as provided herein for services performed up to the date of termination.  If CCC initiates such termination, CCC shall be liable (i) for compensation for services performed up to the date of termination and (ii) for compensation for the unexpired portion of the term of this Agreement.  Any amounts due and owing under this Section 11 shall be paid to Consultant in accordance with Section 1.2.

 

11.       Consultant shall have no authority to bind CCC in any manner, by contract or otherwise.  Consultant shall not use CCC’s name, tradenames, trademarks, services marks, or other intellectual property, whether in printed, electronic, broadcast, digital or other readable or otherwise understandable media, without the prior written consent of CCC.

 

12.       Consultant shall defend, indemnify and hold harmless CCC and its employees and representatives against any and all liability, loss, costs, expenses, damage, claim or demand (including death) (“Loss”) arising out of or resulting in any manner from or occurring in connection with the breach of Consultant’s performance of his obligations under or in connection with this Agreement.  CCC shall indemnify and hold harmless Consultant and his heirs, representatives and assigns from any Loss arising from the performance by Consultant of his obligations hereunder except to the extent such Loss arises due to the failure by Consultant to act in good faith and in a manner Consultant reasonably believes to be in the best interests of CCC.

 

13.       This Agreement shall not be assigned by a party hereto without the prior written consent of the other party provided that CCC may at any time assign this Agreement to any fully-owned subsidiary without the consent of Consultant provided further that any such assignment by CCC will not relieve it of its obligations to pay Consultant any amounts due and owing to Consultant hereunder in the event the assignee fails to pay.  This Agreement shall be binding

 

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upon, and inure to the benefit of, the parties and their respective successors, heirs and permitted assigns.

 

14.       This Agreement, modifiable only in writing and signed by both parties, supersedes any and all prior oral or written communications, offers or agreements related to the subject matter hereof.  Any prior non-assertion or non-application by CCC in regard to any term or condition of this Agreement shall not constitute a waiver by CCC of that or any other term or condition of this Agreement.

 

15.       In no event shall either party be liable to the other party under or in connection with this Agreement in any way for consequential, indirect, incidental, special or punitive damages of any type.

 

16.       Additional General Provisions.

 

(a)           Disputes under this Agreement shall be resolved and subject to the same provisions of Section 13 of the Confidential Separation Agreement and Release entered into between CCC and Consultant and executed in July 2012.

 

(b)           In any proceeding, it shall be presumed that the Confidential Information constitutes protectable trade secrets, and Consultant shall bear the burden of proving by clear and convincing evidence that any such information, materials or matters were publicly or rightfully known.

 

(c)           Nothing contained herein is intended to create a contract of employment between CCC and Consultant and the parties expressly acknowledge that either party may at any time terminate this consulting relationship for any lawful reason in accordance with the terms of the Agreement; however, Consultant agrees to be bound by CCC employee policies while on the CCC premises and otherwise in dealing with employees of CCC and/or customers of CCC on the same basis as if he was an employee.

 

(d)           Consultant acknowledges that he has had adequate time to review this Agreement.  Having carefully read and considered the provisions hereof, Consultant agrees that its restrictions are fair and reasonable and are reasonably required for the protection of the interests of CCC.  Consultant understands that this Agreement is intended to limit disclosure of Confidential Information of CCC.  These restrictions are voluntarily given by Consultant in return for the benefits and opportunities of being engaged by CCC as a consultant.

 

(e)           It is understood and agreed that the construction and interpretation of this Agreement shall at all times and in all respects be governed by the internal laws of the Commonwealth of Pennsylvania, except to the extent preempted by federal law, without giving effect to the choice of law provisions thereof.

 

(f)            This Agreement represents the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements or understandings between the parties with respect to the subject matter hereof, whether oral or written, express or implied, except for the Confidential Settlement Agreement and Release between CCC and Consultant.  No failure or delay by either party in exercising any right, power, or privilege under this Agreement shall operate as a waiver thereof.

 

(g)           Notices an all other communications provided for in this Agreement shall be in writing and shall be deemed to have been duly given when delivered in person or

 

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mailed by United States Registered or Certified Mail, return receipt requested, to CCC, Attention Richard D. Rose, Esquire, or to Consultant at the respective addresses set forth in the preamble of this Agreement, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of changes of address shall be effective only upon receipt.

 

(h)           If an arbitrator or other authority determines that any term, condition, clause, or other provision of this Agreement is void or invalid, he, she or it will have discretion to modify such term, condition, clause, or other provision of this Agreement to make it valid.  Alternatively, if he, she or it declines to make such a modification and rules it invalid, the remaining portions of this Agreement will remain in full force and effect.

 

(i)            This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which taken together shall be one and the same Agreement.

 

Executed on the 31st day of July, 2012.

 

 

	
Consultant: John S. Stanik
    	
 
    	
Calgon   Carbon Corporation:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ John S. Stanik
    	
 
    	
/s/   Richard D. Rose
    
	
 
    	
 
    	
By:   Richard D. Rose
   Title: Senior Vice President,
   General Counsel and Secretary
    

 

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