Document:

EX-10.II  Employment Agreement

 

Exhibit 10 (ii)

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT
AGREEMENT (this “Agreement”) is made and entered into this
17th day of July, 2002, between COOPER TIRE & RUBBER COMPANY, a Delaware
corporation with its principal offices located at 701 Lima Avenue, Findlay,
Ohio 45840, (the “Company”), and Duane R. Stephens, residing at 6929 TR 255,
Findlay, Ohio 45840 (the “Executive”)

W I T N E S S E T H:

     WHEREAS, the Company desires to retain the services of the Executive in
the capacity of Vice President of Cooper Tire & Rubber Company and President of
The Cooper Tire Company; and

     WHEREAS, the Executive desires to provide his services to the Company on
the terms and conditions herein provided.

     NOW, THEREFORE, in consideration of the premises and the mutual promises
and agreements contained herein and other good and valuable consideration, the
sufficiency and receipt of which are hereby acknowledged, and intending to be
legally bound hereby, the Company and the Executive hereby agree as follows:

     1.     Certain Defined Terms. In addition to terms defined elsewhere herein,
the following terms have the following meanings when used in this Agreement
with initial capital letters:

            (a)  “Affiliate” means any corporation, limited liability company, joint
venture, partnership, or other legal entity in which the Company owns, directly
or indirectly, or has previously owned, at least fifty percent (50%) of the
capital stock, profits, interest or capital interest.

            (b)  “Award Agreement” means an RSU Award Agreement between the Executive
and the Company.

            (c)  “Average Compensation” means the Executive’s average annual
compensation, including Base Pay and any annual and long-term incentive
compensation earned, during the five (5) calendar years prior to the year in
which a Termination occurs.

            (d)  “Base Pay” means the Executive’s rate of annual base salary, as
defined in the Compensation Plan, as in effect from time to time.

            (e)  “Board” means the Board of Directors of the Company.

            (f)  “Cause” means:

		
	 	     (X) prior to a Change in Control,
termination of the Executive’s employment with the
Company by the Board because of:

1

 

		
	 	     (i) the willful and continued
failure by the Executive to perform substantially
the duties of the Executive’s position, and the
failure of the Executive to correct such failure
of performance after notification by the Board of
any such failure; or
	 
	 	     (ii) any other willful act or
omission which is materially injurious to the
financial condition or business reputation of, or
is otherwise materially injurious to, the Company
or any affiliate thereof, and failure of the
Executive to correct such act or omission after
notification by the Board of any such act or
omission; or
	 
	 	     (iii) the conviction of a
criminal violation involving fraud, embezzlement
or theft in connection with Executive’s duties or
in the course of Executive’s employment with the
Company.

		
	 	     (Y) following a Change in Control,
termination of the Executive’s employment with the
Company by the Board because of:

		
	 	     (i) any act or omission
constituting a material breach by the Executive of
any of his significant obligations or agreements
under this Agreement or the continued failure or
refusal of the Executive to adequately perform the
duties reasonably required hereunder which is
materially injurious to the financial condition or
business reputation of, or is otherwise materially
injurious to, the Company or any Affiliate
thereof, after notification by the Board of such
breach, failure or refusal and failure of the
Executive to correct such breach, failure or
refusal within thirty (30) days of such
notification (other than by reason of the
incapacity of the Executive due to physical or
mental illness); or
	 
	 	     (ii) the commission by and
conviction of the Executive of a felony, or the
perpetration by and criminal conviction of or
civil verdict finding the Executive committed a
dishonest act or common law fraud against the
Company or any affiliate thereof (for the
avoidance of doubt, conviction and civil verdict,
in each case, shall mean when no further appeals
may be taken by the Executive from such conviction
or civil verdict and such conviction or civil
verdict becomes final and binding upon the
Executive with no further right of appeal); or
	 
	 	     (iii) any other willful act or
omission which is materially injurious to the
financial condition or business

2

 

		
	 	reputation of, or
is otherwise materially injurious to, the Company
or any affiliate thereof, and failure of the
Executive to correct such act or omission after
notification by the Board of any such act or
omission; or

		
	 	any notification to be given by the Board in accordance
with Section 1(e)(X)(i), 1(e)(X)(ii), 1(e)(Y)(i) or
1(e)(Y)(iii) shall specifically identify the breach,
failure, refusal, act or omission to which the
notification relates and, in the case of Section
1(e)(X)(i), 1(e)(X)(ii), 1(e)(Y)(i) or 1(e)(Y)(iii),
shall describe the injury to the Company, and such
notification must be given within twelve (12) months of
the Board becoming aware, or within twelve (12) months
of when the Board should have reasonably become aware
of the breach, failure, refusal, act, or omission
identified in the notification. Notwithstanding
Section 23, failure to notify the Executive within any
such twelve (12) month period shall be deemed to be a
waiver by the Board of any such breach, failure,
refusal, act or omission by the Executive and any such
breach, failure, refusal, act or omission by the
Executive shall not then be determined to be a breach
of this Agreement.

		
	 	For the avoidance of doubt and for the purpose of determining
Cause, the exercise of business judgment by the Executive
shall not be determined to be Cause, even if such business
judgment materially injures the financial condition or
business reputation of, or is otherwise materially injurious
to the Company or any Affiliate thereof, unless such business
judgment by the Executive was not made in good faith, or
constitutes willful or wanton misconduct, or was an
intentional violation of state or federal law.

     (g)  “Change in Control” means the occurrence during the Term of any of the
following events:

            (i)  the Company merges into itself, or is merged or consolidated with,
another entity and as a result of such merger or consolidation less than 51% of
the voting power of the then-outstanding voting securities of the surviving or
resulting entity immediately after such transaction are directly or indirectly
beneficially owned in the aggregate by the former stockholders of the Company
immediately prior to such transaction;

            (ii)  all or substantially all the assets accounted for on the consolidated
balance sheet of the Company are sold or transferred to one or more
corporations or persons, and as a result of such sale or transfer less than 51%
of the voting power of the then-outstanding voting securities of such entity or
person immediately after such sale or transfer is directly or indirectly
beneficially held in the aggregate by the former stockholders of the Company
immediately prior to such transaction or series of transactions;

3

 

            (iii)  a person, within the meaning of Section 3(a)(9) or 13(d)(3) (as in
effect on the date of this Agreement) of the Securities Exchange Act of 1934,
(the “Exchange Act”) become the beneficial owner (as defined in Rule 13d-3 of
the Securities and Exchange Commission pursuant to the Exchange Act) of (i) 15%
or more but less than 35% of the voting power of the then outstanding voting
securities of the Company without prior approval of the Board, or (ii) 35% or
more of the voting power of the then-outstanding voting securities of the
Company; provided, however, that the foregoing does not apply to any such
acquisition that is made by (w) any Affiliate of the Company; (x) any employee
benefit plan of the Company or any Affiliate; or (y) any person or group of
which employees of the Company or of any Affiliate control a greater than 25%
interest unless the Board determines that such person or group is making a
“hostile acquisition;” or (z) any person or group that directly or indirectly
through one or more intermediaries, controls or is controlled by, or is under
common control with, the Executive; or

            (iv)  a majority of the members of the Board are not Continuing Directors,
where a “Continuing Director” is any member of the Board who (x) was a member
of the Board on the date of this Agreement or (y) was nominated for election or
elected to such Board with the affirmative vote of a majority of the Continuing
Directors who were members of such Board at the time of such nomination or
election.

     (h)  “Code” means the Internal Revenue Code of 1986, as amended.

     (i)  “Committee” means the Compensation Committee of the Board.

     (j)  “Common Stock” means the Company’s common stock, par value $1.00 per
share.

     (k)  “Company” means the Company as hereinbefore defined.

     (l)  “Compensation Plan” means the Company’s Top Management Compensation
Plan adopted by the Board on April 28, 1973.

     (m)  “Disability” or “Disabled” means when, the Executive has been totally
disabled by bodily injury or disease so as to prevent him from being physically
able to perform the job duties as required under this Agreement, and such total
disability shall have continued for five (5) consecutive months, and, in the
opinion of a qualified physician selected by the Company, such disability will
presumably be permanent and continuous during the remainder of Executive’s
life.

     (n)  “Good Reason” means the occurrence of any of the following, without
Executive’s express, prior written consent:

            (i)  a material breach by the Company of Section 2 or Section 4 of this
Agreement, including but not limited to, the assignment to the Executive of any
duties inconsistent with his status as Vice President of Cooper Tire & Rubber
Company and President of The Cooper Tire Company, or his removal from such
position, or a substantial alteration in the nature of his responsibilities
from those described herein, except, in each case, in connection with a
promotion of the Executive, and the failure of the Company to remedy such
breach within thirty (30) days after receipt of written notice of such breach
from the Executive;

4

 

            (ii)  the relocation of the office of the Company where the Executive is
employed to a location that is 150 miles away from the current location, except
for relocation to the Company’s headquarters and required travel on the
Company’s business to an extent reasonably required to perform his duties
hereunder;

            (iii)  except as required by law, the failure by the Company to continue to
provide the Executive with benefits at least as favorable as those provided to
him under the Plans (as defined in Section 4(b)), the taking of any action by
the Company which would directly or indirectly materially reduce any of such
benefits or deprive the Executive of any material fringe benefits enjoyed by
him or the failure by the Company to provide Executive with the number of paid
vacation days to which he is entitled on the basis of years of service with the
Company in accordance with the Company’s normal vacation policy in effect at
the date of this Agreement;

            (iv)  the failure of the Company to obtain a satisfactory agreement from
any successor to assume and agree to perform this Agreement, as contemplated in
Section 19 hereof or, if the business of the Company for which the Executive’s
services are principally performed is sold, the purchaser of such business
shall fail to agree to assume this Agreement or to provide Executive with the
same or a comparable position, duties, benefits, and base salary and incentive
compensation as provided in Section 4 of this Agreement;

            (v)  the failure of the Board to elect Executive to his existing position
or an equivalent position; or

            (vi)  following the six-month anniversary date after a Change in Control of
the Company has occurred, voluntary termination by Executive for any reason, or
without reason, during a period of thirty (30) days from such date.

     (o)  “Incentive Compensation Plan” means the Cooper Tire & Rubber Company
1998 and 2001 Incentive Compensation Plan, as amended.

     (p)  “Nonqualified Supplementary Benefit Plan” means the Cooper Tire &
Rubber Company Nonqualified Supplementary Benefit Plan, effective November 8,
1984, as amended.

     (q)  “Retirement Plans” means the Salaried Employees’ Retirement Plan and
the Nonqualified Supplementary Benefit Plan or any successor plans thereto
which provide comparable benefits.

     (r)  “Salaried Employees’ Retirement Plan” means the Cooper Tire & Rubber
Company Salaried Employees’ Retirement Plan, effective January 1, 1989, as
amended.

     (s)  “Severance Period” means, in the event of a Termination, the period of
time commencing on the Termination Date and continuing for the greater of:

		
	 	     (i) two (2) years, or
	 
	 	     (ii) the remainder of the Term (as defined in Section 3).

5

 

     (t)  “Termination” means:

            (i)  the involuntary termination of the Executive’s employment by the
Company at any time without Cause, for any reason other than retirement, death
or disability, or

            (ii)  termination of his employment by the Executive for Good Reason.

     (u)  “Termination Date” means the date on which the Executive’s employment
with the Company is terminated by the company or the Executive for any reason
or for no reason. If the Executive’s employment is terminated by the Company,
such date shall be specified in a written notice of termination (which date
shall be no earlier than the date of furnishing such notice), or if no such
date is specified therein, the date of receipt by the Executive of such written
notice of termination, otherwise the Executive shall specify such date in a
written notice of his resignation.

     (v)  “1998 Option Plan” means the Cooper Tire & Rubber Company 1998
Employee Stock Option Plan, as amended.

2.     Employment and Duties.

     (a)  General. The Company hereby employs the Executive and the Executive
agrees upon the terms and conditions herein set forth to serve as Vice
President of Cooper Tire & Rubber Company and President of The Cooper Tire
Company, and, in such capacity, shall perform such duties as may be delineated
in the Bylaws of the Company, and such other duties, commensurate with the
Executive’s title and position of Vice President of Cooper Tire & Rubber
Company and President of The Cooper Tire Company, as may be assigned to the
Executive from time to time by the President of the Company or such other
officer of the Company as may be designated by the President.

     (b)  Exclusive Services. Throughout the Term (as defined in Section 3),
Executive shall, except as may from time to time be otherwise agreed in writing
by the Company and during reasonable vacations and unless prevented by ill
health, devote his full-time and undivided attention during normal business
hours to the business and affairs of the Company consistent with his senior
executive position, shall in all respects conform to and comply with the lawful
and reasonable directions and instructions given to him by the Board or such
officer of the Company as may be designated by the Board, and shall use his
best efforts to promote and serve the interests of the Company.

     (c)  Restrictions on Other Employment. Throughout the Term and provided
that such activities do not contravene the provisions of Section 2(b) hereof or
Section 15 hereof:

            (i)  Executive may engage in charitable and community affairs;

            (ii)  Executive may perform inconsequential services without specific
compensation therefor in connection with the management of personal
investments; and,

6

 

            (iii)  Executive may, directly or indirectly, render services to any other
person or organization (including service as a member of the Board of Directors
of any other unaffiliated company), for which he receives compensation, that is
not in competition with the Company, subject in each case to the approval of
the Board. Executive may retain all fees he receives for such services, and
the Company shall not reduce his compensation by the amount of such fees. For
purposes of this Section 2(c)(iii) competition shall have the same meaning as
intended for the purposes of Section 15.

3.     Term of Employment. Subject to the provisions of Section 5 through Section
10 hereof, the Company shall retain the Executive and the Executive shall serve
in the employ of the Company for a period (the “Term”) commencing on 17th day
of July, 2002, and continuing in effect through December 31, 2004; provided,
however, that commencing on January 1, 2003, and each January 1 thereafter
until the year in which the Executive’s 63rd birthday occurs, the Term shall
automatically be extended for one additional year unless, no later than
September 30 of the preceding year, the Company or the Executive shall have
given notice to the other that it does not wish to extend this Agreement.

4.     Compensation and Other Benefits. Subject to the provisions of this
Agreement, the Company shall pay and provide the following compensation and
other benefits to the Executive during the Term as compensation for services
rendered hereunder:

     (a)  Base Salary. The Company shall pay to the Executive Base Pay at the
rate of $360,000.00 per annum, payable biweekly. The Base Pay will be reviewed
not less than annually by the Board or by the Compensation Committee and may be
increased, but not decreased.

     (b)  Employee Benefit Plans. At all times during the Term, the Executive
shall be provided the opportunity to participate in such Retirement Plans, and
such employee pension benefit plans, whether or not qualified, and employee
welfare benefit plans, programs and arrangements (collectively, the “Plans”) as
are generally made available to executives of the Company. Unless otherwise
required by law, the Plans, when considered as a whole, will provide for
benefits to Executive no less favorable than those currently provided.

     (c)  Incentive Compensation. The Executive shall be eligible to
participate in the annual incentive compensation program established by the
Compensation Plan.

     (d)  Long-Term Incentive Compensation. The Executive shall be eligible to
participate in such long-term incentive plans and programs as the Company
generally provides to its senior executives.

5.     Termination Without Cause or for Good Reason Prior to a Change in Control.
If, prior to the expiration of the Term, the Executive’s employment is
terminated by the Company without Cause, or if the Executive terminates his
employment hereunder for Good Reason, in each case prior to a Change in
Control, and conditioned upon the Executive’s delivering to the Company the
Release provided for in Section 16 with all periods for revocation expired, the
Executive shall be entitled to receive:

7

 

     (a)  “Severance Pay” which shall equal the sum of the biweekly payments
that the Executive would receive if he were paid at the rate of his Average
Compensation for the remainder of the Term. Severance Pay shall be paid in a
single lump sum in cash within thirty (30) days following the expiration of
such revocation period.

     (b)  The Company shall provide the Executive with lifetime life, accident
and health insurance benefits substantially similar to those to which Executive
and Executive’s family were entitled immediately prior to the Termination.
Benefits otherwise receivable by Executive pursuant to this subsection 5(b)
shall be reduced to the extent comparable benefits are actually received by
Executive from other employment, and any such benefits actually received by
Executive shall be reported to the Company.

     (c)  In addition to the pension benefits to which the Executive is entitled
under the Retirement Plans, the Company shall pay the Executive in cash within
thirty (30) days following the Termination Date, a single lump sum equal to the
actuarial equivalent of the excess of (1) the retirement pension (determined as
a straight life annuity commencing at age sixty-five (65)) which he would have
accrued under the terms of the Retirement Plans (without regard to any
amendment to such Retirement Plans or other pension benefit program described
herein), determined as if the Executive were fully vested thereunder and had
accumulated (after the Termination Date) twenty-four (24) additional months
(or, if greater, the number of months remaining in the Term) of service credit
thereunder at his highest annual rate of compensation during any calendar year
for the five (5) years immediately preceding the Termination Date (but in no
event shall the Executive be deemed to have accumulated additional months of
service credit after his sixty-fifth (65th) birthday), over (2) the retirement
pension (determined as a straight life annuity commencing at age sixty-five
(65)) which the Executive had then accrued pursuant to the provisions of the
Retirement Plans. For purposes of this subsection, “actuarial equivalent”
shall be determined using the 1994 Uninsured Pensioner Mortality Table (UP-94)
and annual compound interest at the Corporate Bond yield average for bonds
rated Aaa by Moody’s reduced by fifty (50) basis points (.5 percent). The rate
chosen from the aforereferenced table will be for the calendar month five
months prior to the month which contains the effective date of payment and will
be truncated to the lower 0.25% increment (e.g. 6.00%, 6.25%, 6.50%, etc.).

     (d)  Notwithstanding any provision in the Award Agreement, all restricted
stock units granted to the Executive which have not otherwise vested shall
immediately vest and within thirty (30) days following the Termination Date,
the Company shall pay to Executive an amount equal to the fair market value
(computed as the average of the high and low trades reported on the New York
Stock Exchange) of the Common Stock represented by such restricted stock units
determined as of the Termination Date. Such cash payment shall be deemed to be
in lieu of and in substitution for any right Executive may have to such
restricted stock units under the terms of the Award Agreement, and Executive
agrees to surrender all restricted stock units being cashed out hereunder
immediately prior to receiving the cash payment described above;

     (e)  Notwithstanding any provision in the Incentive Compensation Plan, 1998
Option Plan or other relevant plan or program, all stock options granted to the
Executive by the Company which have not otherwise vested shall be vested.
Within thirty (30) 

8

 

days after the Termination Date, the Company shall pay to
Executive in cash an amount equal to the aggregate of the difference between
the exercise price of each stock option granted to the Executive prior to the
Termination Date, and the fair market value (computed as the average of the
high and low trades reported on the New York Stock Exchange) of the Company’s
stock subject to the related option, determined as of the Termination Date.
Such cash payment shall be deemed to be in lieu of and in substitution for any
right Executive may have to exercise such stock option or a related stock
appreciation right under the terms of the relevant stock option plan describing
such rights, and Executive agrees to surrender all stock options and related
stock appreciation rights being cashed out hereunder prior to receiving the
cash payment described above.

6.     Termination Without Cause or for Good Reason Following a Change in Control,
etc.

     (a)  If, prior to the expiration of the Term and, subsequent to a Change in
Control and during the Severance Period, the Executive’s employment is
terminated by the Company without Cause or if the Executive terminates his
employment hereunder for Good Reason, and conditioned upon the Executive’s
delivering to the Company the Release provided for in Section 16 with all
periods for revocation expired, the Company shall pay or provide to the
Executive:

          (i) a single lump sum cash payment within five (5) business days following
the expiration of such revocation period equal to the Executive’s then current
Base Pay and pro rata incentive compensation accrued through his Termination
Date; plus

          (ii) a single lump sum cash payment within five (5) business days the
expiration of such revocation period equal to the greater of:

		
	 	     (A) the Executive’s Severance Pay; or
	 
	 	     (B) three (3) times the sum of (x) Executive’s Base Pay
plus (y) target annual incentive compensation for the year
prior to the Change in Control; plus

          (iii) a single lump sum cash payment within five (5) business days
following the expiration of such revocation period equal to the actuarial
equivalent of:

		
	 	     (A) the excess of (1) the retirement pension (determined
as a straight line annuity commencing at age sixty-five (65))
which he would have accrued under the terms of the Retirement
Plans (without regard to any amendment to such Retirement
Plans or other pension benefit program described herein),
determined as if the Executive were fully vested thereunder
and had accumulated (after the Termination Date) thirty-six
(36) additional months (or, if greater, the number of months
remaining in the Term) of service credit thereunder at his
highest annual rate of compensation during any calendar year
for the five (5) years immediately preceding the Termination
Date (but in no event shall Executive be deemed to have
accumulated additional months of service credit after his

9

 

		
	 	sixty-fifth (65th) birthday), over (2) the retirement pension
(determined as a straight life annuity commencing at age
sixty-five (65)) which Executive had then accrued pursuant to
the provisions of the Retirement Plans; plus
	 
	 	     (B) the retirement pension Executive has accrued under
the Nonqualified Supplementary Benefit Plan.

		
	 	For purposes of this subsection, “actuarial equivalent” shall be
determined using the 1994 Uninsured Pensioner Mortality Table
(UP-94) and annual compound interest at the Corporate Bond yield
average for bonds rated Aaa by Moody’s reduced by fifty (50) basis
points (.5 percent). The rate chosen from the aforereferenced
table will be for the calendar month five months prior to the month
which contains the effective date of payment and will be truncated
to the lower 0.25% increment (e.g. 6.00%, 6.25%, 6.50%, etc.);

          (iv)  for thirty-six (36) months following his Termination Date, the
Company shall arrange to provide Executive with life, accident and health
insurance benefits substantially similar to those to which Executive and
Executive’s family were entitled immediately prior to his Termination. Benefits otherwise receivable by
Executive pursuant to this subsection 6(a)(iv) shall be reduced to the extent
comparable benefits are actually received by Executive during the remainder of
such period following Executive’s Termination, and any such benefits actually
received by Executive shall be reported to the Company;

          (v)  following the end of the period specified in subsection 6(a)(iv),
lifetime retiree medical and life insurance coverage, which shall be based on
the Company’s plans in effect immediately prior to the Change in Control; and

          (vi)  outplacement services by a firm selected by the Executive, at the
expense of the Company in an amount up to 15% of the Executive’s Base Pay.

     (b)  Notwithstanding any provision in the Award Agreement or this Section
6, all restricted stock units granted to the Executive which have not otherwise
vested shall immediately vest and within five (5) days after the consummation
of the Change in Control the Company shall pay to Executive an amount equal to
the fair market value (computed as the average of the high and low trades
reported on the New York Stock Exchange) of the Common Stock represented by
such restricted stock units determined as of the consummation of the Change in
Control. Such cash payment shall be deemed to be in lieu of and in
substitution for any right Executive may have to such restricted stock units
under the terms of the Award Agreement, and Executive agrees to surrender all
restricted stock units being cashed out hereunder immediately prior to
receiving the cash payment described above.

     (c)  Notwithstanding any provision in the Incentive Compensation Plan, the
1998 Option Plan, other relevant plan or program or this Section 6, all stock
options granted to the Executive by the Company which have not otherwise vested
shall be vested and within five (5) business days after the consummation of the
Change in Control, the Company shall pay to Executive in cash an amount equal
to the aggregate

10

 

of the difference between the exercise price of each stock
option granted to Executive prior to the consummation of the Change in Control,
and the fair market value (computed as the average of the high and low trades
reported on the New York Stock Exchange) of the Common Stock subject to the
related option, determined as of the consummation of the Change in Control.
Such cash payment shall be deemed to be in lieu of and in substitution for any
right Executive may have to exercise such stock option or a related stock
appreciation right under the terms of the relevant stock option plan describing
such rights, and Executive agrees to surrender all stock options and related
stock appreciation rights being cashed out hereunder prior to receiving the
cash payment described above.

7.     Termination for Cause or Without Good Reason. If, prior to the expiration
of the Term, the Executive’s employment is terminated by the Company for Cause,
or if the Executive terminates his employment hereunder without Good Reason,
the Executive shall not be eligible to receive Base Pay under Section 4(a) or
to participate in any Plans under Section 4(b) with respect to periods after
the Termination Date, and except as otherwise provided by applicable law, and
except for the right to receive vested benefits under any Plan in accordance
with the terms of such Plan. However, the Executive shall be eligible to
receive a pro rata portion of any incentive compensation for the Company’s
fiscal year during which the Termination Date occurs, but not for any later
years.

8.     Termination by Death. If the Executive dies prior to the expiration of
the Term, Executive’s beneficiary, estate or family, as applicable, shall be
entitled to receive:

          (i)  for a period of 90 days beginning on the date of the Executive’s death
a biweekly amount equal to the biweekly Base Pay paid to the Executive by the
Company for the payroll period immediately prior to his death,

          (ii)  any pro rata portion of the Executive’s incentive compensation for
the fiscal year in which Executive’s death occurs, and

          (iii)  lifetime health insurance benefits in effect
immediately prior to
Executive’s death.

9.     Termination by Disability. If, prior to the expiration of the Term, the
Executive becomes Disabled, the Company or the Executive shall be entitled to
terminate his employment, and Executive shall be entitled to:

		
	 	     (a) any pro rata portion of the Executive’s incentive
compensation for the fiscal year in which the Executive’s
Disability occurs, and

		
	 	     (b) all available benefits under the Plans, including
lifetime life, accident and health insurance benefits
substantially similar to those to which Executive and
Executive’s family were entitled immediately prior to
Executive’s termination of employment with the Company because
of Executive becoming Disabled.

10.     Termination by Retirement. If, prior to the expiration of the Term, the
Executive voluntarily elects to retire under the Salaried Employees’ Retirement
Plan, Executive’s employment will be terminated as of the date of such
retirement.

11

 

11.     Funding Upon Potential Change in Control.

          (a)  Upon the earlier to occur of (i) a Change in Control or (ii) a
declaration by the Board that a Change in Control is imminent, the Company
shall promptly pay to the extent it has not done so, and in any event within
five (5) business days, a sum equal to the present value on the date of the
Change in Control (or on such fifth business day if the Board has declared a
Change in Control to be imminent) of the payments to be made to the Executive
under the provisions of Sections 6 and 12 hereof, which shall be transferred to
National City Bank (the “Trustee”) and added to any principal of the Trust
under a Mastor Grant Trust Agreement, dated November 9, 2001 between the
Company and Trustee (the “Trust Agreement”).

          (b)  Any payments of compensation, pension, severance or other benefits by
the Trustee pursuant to the Trust Agreement shall, to the extent thereof,
discharge the Company’s obligation to pay compensation, pension, severance and
other benefits hereunder, it being the intent of the Company that assets in
such Trust be held as security for the Company’s obligation to pay
compensation, pension, severance and other benefits under this Agreement.

     12.     Certain Additional Payments by the Company.

          (a) Anything in this Agreement to the contrary notwithstanding, in the
event that following a Change in Control the Executive’s employment with the
Company is terminated by the Company or the Executive, and it shall be
determined (as hereafter provided) that any payment (other than the Gross-Up
payments provided for in this Section 12) or distribution by the Company or any
of its Affiliates to or for the benefit of the Executive, whether paid or
payable or distributed or distributable pursuant to the terms of this Agreement
or otherwise pursuant to or by reason of any other agreement, policy, plan,
program or arrangement, including without limitation any stock option,
performance share, performance unit, stock appreciation right or similar right,
or the lapse or termination of any restriction on or the vesting or
exercisability of any of the foregoing (a “Payment”), would be subject to the
excise tax imposed by Section 4999 of the Code (or any successor provision
thereto) by reason of being considered “contingent on a change in ownership or
control” of the Company, within the meaning of Section 280G of the Code (or any
successor provision thereto) or to any similar tax imposed by state or local
law, or any interest or penalties with respect to such tax (such tax or taxes,
together with any such interest and penalties, being hereafter collectively
referred to as the “Excise Tax”), then the Executive shall be entitled to
receive an additional payment or payments (collectively, a “Gross-Up Payment”);
provided, however, that no Gross-Up Payment shall be made with respect to the
Excise Tax, if any, attributable to (i) any incentive stock option (“ISO”), as
defined by Section 422 of the Code (or any successor provision thereto) granted
prior to the execution of this Agreement where the addition of a Gross-Up
Payment would cause the ISO to lose such status, or (ii) any stock appreciation
or similar right, whether or not limited, granted in tandem with any ISO
described in clause (i). The Gross-Up Payment shall be in an amount such that,
after payment by the Executive of all taxes (including any interest or
penalties imposed with respect to such taxes), including any Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payment.

12

 

          (b)  Subject to the provisions of Section 12(f), all determinations
required to be made under this Section 12, including whether an Excise Tax is
payable by the Executive and the amount of such Excise Tax and whether a
Gross-Up Payment is required to be paid by the Company to the Executive and the
amount of such Gross-Up Payment, if any, shall be made by a nationally
recognized accounting firm (the “Accounting Firm”) selected by the Executive in
his sole discretion. The Executive shall direct the Accounting Firm to submit
its determination and detailed supporting calculations to both the Company and
the Executive within 30 calendar days after the Termination Date, if
applicable, and any such other time or times as may be requested by the Company
or the Executive. If the Accounting Firm determines that any Excise Tax is
payable by the Executive, the Company shall pay the required Gross-Up Payment
to the Executive within five (5) business days after receipt of such
determination and calculations with respect to any Payment to the Executive.
If the Accounting Firm determines that no Excise Tax is payable by the
Executive, it shall, at the same time as it makes such determination, furnish
the Company and the Executive an opinion that the Executive has substantial
authority not to report any Excise Tax on his federal, state or local income or
other tax return. As a result of the uncertainty in the application of Section
4999 of the Code (or any successor provision thereto) and the possibility of
similar uncertainty regarding applicable state or local tax law at the time of
any determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Company should have been
made (an “Underpayment”), consistent with the calculations required to be made
hereunder. In the event that the Company exhausts or fails to pursue its
remedies pursuant to Section 12(f) and the Executive thereafter is required to
make a payment of any Excise Tax, the Executive shall direct the Accounting
Firm to determine the amount of the Underpayment that has occurred and to
submit its determination and detailed supporting calculations to both the
Company and the Executive as promptly as possible. Any such Underpayment shall
be promptly paid by the Company to, or for the benefit of, the Executive within
five (5) business days after receipt of such determination and calculations.

          (c)  The Company and the Executive shall each provide the Accounting Firm
access to and copies of any books, records and documents in the possession of
the Company or the Executive, as the case may be, reasonably requested by the
Accounting Firm, and otherwise cooperate with the Accounting Firm in connection
with the preparation and issuance of the determinations and calculations
contemplated by Section 12(b). Any determination by the Accounting Firm as to
the amount of the Gross-Up Payment shall be binding upon the Company and the
Executive.

          (d) The federal, state and local income or other tax returns filed by the
Executive shall be prepared and filed on a consistent basis with the
determination of the Accounting Firm with respect to the Excise Tax payable by
the Executive. The Executive shall make proper payment of the amount of any
Excise Payment, and at the request of the Company, provide to the Company true
and correct copies (with any amendments) of his federal income tax return as
filed with the Internal Revenue Service and corresponding state and local tax
returns, if relevant, as filed with the applicable taxing authority, and such
other documents reasonably requested by the Company, evidencing such payment.
If prior to the filing of the Executive’s federal income tax return, or
corresponding state or local tax return, if relevant, the Accounting Firm
determines that the amount of the Gross-Up Payment should be reduced, the
Executive shall within five (5) business days pay to the Company the amount of
such reduction.

13

 

          (e)  The fees and expenses of the Accounting Firm for its services in
connection with the determinations and calculations contemplated by Section
12(b) shall be borne by the Company. If such fees and expenses are initially
paid by the Executive, the Company shall reimburse the Executive the full
amount of such fees and expenses within five (5) business days after receipt
from the Executive of a statement therefor and reasonable evidence of his
payment thereof.

          (f)  The Executive shall notify the Company in writing of any claim by the
Internal Revenue Service or any other taxing authority that, if successful,
would require the payment by the Company of a Gross-Up Payment. Such
notification shall be given as promptly as practicable but no later than ten
(10) business days after the Executive actually receives notice of such claim
and the Executive shall further apprise the Company of the nature of such claim
and the date on which such claim is requested to be paid (in each case, to the
extent known by the Executive). The Executive shall not pay such claim prior
to the earlier of (i) the expiration of the 30-calendar-day period following
the date on which he gives such notice to the Company and (ii) the date that
any payment of amount with respect to such claim is due. If the Company
notifies the Executive in writing prior to the expiration of such period that
it desires to contest such claim, the Executive shall:

		
	 	     (i) provide the Company with any written records or documents
in his possession relating to such claim reasonably requested by
the Company;

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

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

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

provided, however, that the Company shall bear and pay directly all costs and
expenses (including interest and penalties) incurred in connection with such
contest and shall indemnify and hold harmless the Executive, on an after-tax
basis, for and against any Excise Tax or income tax, including interest and
penalties with respect thereto, imposed as a result of such representation and
payment of costs and expenses. Without limiting the foregoing provisions of
this Section 12(f), the Company shall control all proceedings taken in
connection with the contest of any claim contemplated by this Section 12(f)
and, at its sole option, may pursue or forego any and all administrative
appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim (provided, however, that the Executive may participate
therein at his own cost and expense) and may, at its option, either direct the
Executive to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and the Executive agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in

14

 

one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay
the tax claimed and sue for a refund, the Company shall advance the amount of
such payment to the Executive on an interest-free basis and shall indemnify and
hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income or other tax, including interest or penalties with respect thereto,
imposed with respect to such advance; and provided further, however, that any
extension of the statute of limitations relating to payment of taxes for the
taxable year of the Executive with respect to which the contested amount is
claimed to be due is limited solely to such contested amount. Furthermore, the
Company’s control of any such contested claim shall be limited to issues with
respect to which a Gross-Up Payment would be payable hereunder and the
Executive shall be entitled to settle or contest, as the case may be, any other
issue raised by the Internal Revenue Service or any other taxing authority.

          (g)  If, after the receipt by the Executive of an amount advanced by the
Company pursuant to Section 12(f), the Executive receives any refund with
respect to such claim, the Executive shall (subject to the Company’s complying
with the requirements of Section 12(f)) promptly pay to the Company the amount
of such refund (together with any interest paid or credited thereon after any
taxes applicable thereto). If, after the receipt by the Executive of an amount
advanced by the Company pursuant to Section 12(f), a determination is made that
the Executive shall not be entitled to any refund with respect to such claim
and the Company does not notify the Executive in writing of its intent to
contest such denial or refund prior to the expiration of thirty (30) calendar
days after such determination, then such advance shall be forgiven and shall
not be required to be repaid and the amount of any such advance shall offset,
to the extent thereof, the amount of Gross-Up Payment required to be paid by
the Company to the Executive pursuant to this Section 12.

     13 Mitigation. Nothing in this Agreement shall be construed to require
Executive to mitigate his damages upon termination of employment without Cause
or for Good Reason. The Company hereby acknowledges that it will be difficult
and may be impossible for the Executive to find reasonably comparable
employment following the Termination Date and that the non-competition covenant
contained in Section 15 will further limit the employment opportunities for the
Executive. In addition, the Company acknowledges that its severance pay plans
applicable in general to its salaried employees do not provide for mitigation,
offset or reduction of any severance payment received thereunder. Accordingly,
the payment of the severance compensation by the Company to the Executive in
accordance with the terms of this Agreement is hereby acknowledged by the
Company to be reasonable, and the Executive will not be required to mitigate
the amount of any payment provided for in this Agreement by seeking other
employment or otherwise, nor will any profits, income, earnings or other
benefits from any source whatsoever create any mitigation, offset, reduction or
any other obligation on the part of the Executive hereunder or otherwise.

     14 Legal Fees and Expenses. It is the intent of the Company that the
Executive not be required to incur legal fees and the related expenses
associated with the interpretation, enforcement or defense of Executive’s
rights under this Agreement by litigation or otherwise because the cost and
expense thereof would substantially detract from the benefits intended to be
extended to the Executive hereunder. Accordingly, if it should appear to the
Executive that the Company has failed to comply with any of its obligations
under this Agreement or in the event that the Company or any

15

 

other person takes
or threatens to take any action to declare this Agreement void or
unenforceable, or institutes any litigation or other action or proceeding
designed to deny, or to recover from, the Executive the benefits provided or
intended to be provided to the Executive hereunder, the Company irrevocably
authorizes the Executive from time to time to retain counsel of Executive’s
choice, at the expense of the Company as hereafter provided, to advise and
represent the Executive in connection with any such interpretation, enforcement
or defense. Notwithstanding any existing or prior attorney-client relationship
between the Company and such counsel, the Company irrevocably consents to the
Executive’s entering into an attorney-client relationship with such counsel,
and in that connection the Company and the Executive agree that a confidential
relationship shall exist between the Executive and such counsel. Without
respect to whether the Executive prevails, in whole or in part, in connection
with any of the foregoing, the Company will pay and be solely financially
responsible for any and all attorneys’ and related fees and expenses incurred
by the Executive in connection with any of the foregoing; provided that, in
regard to such matters, the Executive has not acted in bad faith or with no
colorable claim of success.

     15 Secrecy and Noncompetition.

          (a)  No Competing Employment. For so long as the Executive is employed by
the Company and continuing for two (2) years after the termination of such
employment for any reason (the “Non-Compete Period”), Executive shall not,
unless he receives the prior written consent of the Board, directly or
indirectly, whether as owner, consultant, employee, partner, venturer, agent,
through stock ownership (except ownership of less than one percent (1.0%) of
the number of shares outstanding of any securities which are publicly traded),
investment of capital, lending of money or property, rendering of services, or
otherwise, compete with any of the businesses engaged in by the Company or
Affiliate at the time of the termination of the Executive’s employment
hereunder (such businesses are herein after referred to as the “Business”), or
assist, become interested in or be connected with any corporation, firm,
partnership, joint venture, sole proprietorship or other entity which so
competes with the Business. The restrictions imposed by this subsection shall
not apply to any geographic area in which neither the Company nor any Affiliate
is engaged in the Business.

          (b)  No Interference. During the Non-Compete Period, the Executive shall
not, whether for his own account or for the account of any other individual,
partnership, firm, corporation or other business organization or entity (other
than the Company), intentionally solicit, endeavor to entice away from the
Company or any Affiliate or otherwise interfere with the relationship of the
Company or any Affiliate with, any person who is employed by or associated with
the Company or any Affiliate (including, but not limited to, any independent
sales representatives or organizations) or any person or entity who is, or was
within the then most recent 12-month period, a customer or client of the
Company or any Affiliate.

          (c)  Secrecy. Executive recognizes that the services to be performed by
him hereunder are special, unique and extraordinary in that, by reason of his
employment hereunder and his past employment with the Company, he may acquire
or has acquired confidential information and trade secrets concerning the
operation of the Company or any Affiliate, the use or disclosure of which could
cause the Company substantial loss and damages which could not be readily
calculated and for which no

16

 

remedy at law would be adequate. Accordingly,
Executive covenants and agrees with the Company that he will not at any time,
except in performance of Executive’s obligations to the Company hereunder or
with the prior written consent of the Board, directly or indirectly, disclose
any secret or confidential information that he may learn or has learned by
reason of his association with the Company or any Affiliate, or use any such
information to the detriment of the Company or any Affiliate. The term
“confidential information”, includes, without limitation, information not
previously disclosed to the public or to the trade by the Company’s management
with respect to the Company’s or any Affiliate’s products, manufacturing
processes, facilities and methods, research and development, trade secrets,
know-how and other intellectual property, systems, procedures, manuals,
confidential reports, product price lists, customer lists, marketing plans or
strategies, financial information (including the revenues, costs or profits
associated with the Company’s or any Affiliate’s products), business plans,
prospects or opportunities. Executive understands and agrees that the rights
and obligations set forth in this subsection 15(c) are perpetual and, in any
case, shall extend beyond the Non-Compete Period and Executive’s employment
hereunder.

          (d)  Exclusive Property. Executive confirms that all confidential
information is and shall remain the exclusive property of the Company. All
business records, papers and documents kept or made by Executive relating to
the business of the Company shall be and remain the property of the Company.
Upon the termination of his employment with the Company or upon the request of
the Company at anytime, Executive shall promptly deliver to the Company, and
shall not, without the consent of the Board (which consent shall not be
unreasonably withheld), retain copies of, any written materials not previously
made available to the public, records and documents made by Executive or coming
into his possession concerning the business or affairs of the Company excluding
records relating exclusively to the terms and conditions of his employment
relationship with the Company. Executive understands and agrees that the
rights and obligations set forth in this subsection 15(d) are perpetual and, in
any case, shall extend beyond the Non-Compete Period and Executive’s employment
hereunder.

          (e)  Stock Ownership. Other than as specified in Section 2(c) or 15(a)
hereof, nothing in this Agreement shall prohibit Executive from acquiring or
holding any issue of stock or securities of any company or other business
entity.

          (f)  Injunctive Relief. Without intending to limit the remedies available
to the Company, executive acknowledges that a breach of any of the covenants
contained in this Section 15 may result in material irreparable injury to the
Company for which there is no adequate remedy at law, that it will not be
possible to measure damages for such injuries precisely and that, in the event
of such a breach or threat thereof, the Company shall be entitled to obtain a
temporary restraining order and/or a preliminary or permanent injunction
restraining the Executive from engaging in activities prohibited by this
Section 15 or such other relief as may be required to specifically enforce any
of the covenants in this Section 15.

          (g) Extension of Non-Compete Period. In addition to the remedies the
Company may seek and obtain pursuant to subsection (f) of this Section 15, the
Non-Compete Period shall be extended by any and all periods during which
Executive shall be found by a court possessing personal jurisdiction over him
to have been in violation of the covenants contained in this Section 15.

17

 

     16 Release. The receipt of payments provided for in Section 5, Section 6
and Section 12 is conditioned upon the Executive executing and delivering a
release substantially in the form of Annex A hereto, and upon the expiration of
the revocation period provided for in Annex A.

     17 Breach. In addition to the remedies provided for in Section 15(f), if
Executive is in breach of this Agreement, then the Company may, at its sole
option, (i) in the case of a breach of any provision of this Agreement,
immediately terminate all remaining payments and benefits described in Section
5 or Section 6 of this Agreement, and (ii) in the case of a breach of either
Section 15(a) or Section 15(c) of this Agreement, obtain reimbursement from
Executive of all payments by the Company already provided pursuant to Section 5
or Section 6 of this Agreement, plus any expenses, fees and damages incurred as
a result of the breach, with the remainder of this Agreement, and all promises
and covenants herein, remaining in full force and effect.

     18 Continued Availability and Cooperation.

          (a)  In the event of a Termination, the Executive shall cooperate fully
with the Company and with the Company’s counsel in connection with any present
and future actual or threatened litigation or administrative proceeding
involving the Company that relates to events, occurrences or conduct occurring
(or claimed to have occurred) during the period of the Executive’s employment
by the Company. This cooperation by the Executive shall include, but not be
limited to:

		
	 	     (i) making himself reasonably available for interviews and
discussions with the Company’s counsel as well as for depositions
and trial testimony;

		
	 	     (ii) if depositions or trial testimony are to occur, making
himself reasonably available and cooperating in the preparation
therefor as and to the extent that the Company or the Company’s
counsel reasonably requests;

		
	 	     (iii) refraining from impeding in any way the Company’s
prosecution or defense of such litigation or administrative
proceeding; and

		
	 	     (iv) cooperating fully in the development and presentation of
the Company’s prosecution or defense of such litigation or
administrative proceeding.

          (b)  In addition to Executive’s obligations under this Section 18, during
the Non-Compete Period, Executive shall make himself available for consultation
with and advice to the Company at times and for periods of time which are
mutually agreeable to the Company and Executive.

     19 Successors; Assignability.

          (a)  By Executive. Neither this Agreement nor any right, duty, obligation
or interest hereunder shall be assignable or delegable by the Executive

18

 

without
the Company’s prior written consent; provided, however, that nothing in this
subsection shall preclude the Executive from designating any of his
beneficiaries to receive any benefits payable hereunder upon his death, or the
executors, administrators, or other legal representatives, from assigning any
rights hereunder to the person or persons entitled thereto.

          (b)  By the Company. The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. Failure of the Company to obtain such assumption and
agreement prior to the effectiveness of any such succession shall be a breach
of this Agreement and shall entitle the Executive to compensation from the
Company in the same amount and on the same terms as the Executive would be
entitled to hereunder if the Executive had terminated his employment for Good
Reason subsequent to a Change in Control, except that for purposes of
implementing the foregoing, the date on which any such succession becomes
effective shall be deemed the Termination Date.

     20 Employment Rights. Nothing expressed or implied in this Agreement
shall create any right or duty on the part of the Company or the Executive to
have the Executive remain in the employment of the Company at any time prior to
a Change in Control; provided, however, that any termination of employment of
the Executive or the removal of the Executive from the office or position in
the Company following the commencement of any discussion with a third person
that ultimately results in a Change in Control shall be deemed to be a
Termination of the Executive after a Change in Control for purposes of this
Agreement. Executive expressly acknowledges that he is an employee at will,
and that the Company may terminate him at any time during the Term for any
reason if the Company makes the payments and provides the benefits provided for
under Section 5 or 6 of this Agreement, and otherwise comply with its other
continuing covenants in this Agreement, including without limitation, Section
4.

     21 Withholding of Taxes. The Company may withhold from any amounts
payable under this Agreement all federal, state, city or other taxes as shall
be required pursuant to any law or government regulation or ruling.

     22 Severability. If the final determination of a court of competent
jurisdiction declares, after the expiration of the time within which judicial
review (if permitted) of such determination may be perfected, that any term or
provision hereof is invalid or unenforceable, (a) the remaining terms and
provisions hereof shall be unimpaired and (b) the invalid or unenforceable term
or provision shall be replaced by a term or provision that is mutually
agreeable to the parties hereto and is valid and enforceable and that comes
closest to expressing the intention of the invalid or unenforceable term or
provision. Notwithstanding the foregoing, the invalidity or unenforceability
of any provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement which shall
nevertheless remain in full force and effect.

     23 Amendment; Waiver. This Agreement may not be modified, amended or
waived in any manner except by an instrument in writing signed by both parties
hereto. The waiver by either party of compliance with any provision of this
Agreement by the other party shall not operate or be construed as a waiver of
any other provision of this

19

 

Agreement, or of any subsequent breach by such
party of a provision of this Agreement.

     24 Governing Law. All matters affecting this Agreement, including the
validity thereof, are to be governed by, interpreted and construed in
accordance with the substantive laws of the State of Ohio, without giving
effect to the principles of conflict of laws of such State.

     25 Notices. Any notice hereunder by either party to the other shall be
given in writing by personal delivery or certified mail, return receipt
requested. If addressed to Executive, the notice shall be delivered or mailed
to Executive at his principal residence, 291 Jefferis Road, Downingtown,
Pennsylvania 19335, or to such other address as Executive shall give notice in
writing in accordance herewith. If addressed to the Company, the notice shall
be delivered or mailed to the Company at its executive offices at 701 Lima
Avenue, Findlay, Ohio 45840 to the attention of the Board. A notice shall be
deemed given, if by personal delivery, on the date of such delivery or, if by
certified mail, on the date shown on the applicable return receipt.

     26 Previous Agreements. No agreements or representations, oral or
otherwise, express or implied, with respect to the subject matter hereof have
been made by either party which are not expressly set forth in this Agreement;
provided, however, that this Agreement shall not supersede or in any way limit
the rights, duties or obligations of the Employee or the Company under the
Plans, except that payments pursuant to Section 5(a) or Section 6(b) shall be
in lieu of any other cash severance pay provided by the Company.

     27 Counterparts. This Agreement may be executed by either of the parties
hereto in counterpart, each of which shall be deemed to be an original, but all
such counterparts shall together constitute one and the same instrument.

     28 Headings. The headings of sections herein are included solely for
convenience of reference and shall not control the meaning or interpretation of
any of the provisions of this Agreement.

     IN WITNESS WHEREOF, the Company has caused the Agreement to be signed by
its officers pursuant to the authority of its Board, and Executive has executed
this Agreement, as of the day and year first written above.

	 	 	 
	 	COOPER TIRE & RUBBER COMPANY
	 
	 	By:	 /s/ Thomas A. Dattilo

Thomas A. Dattilo

Title:  Chairman & CEO
	 
	 	/s/ D. R. Stephens

Duane R. Stephens, Executive

20

 

ANNEX A

Form of Release

          WHEREAS, there has been a Termination (as such term is defined in the
Employment Agreement (the “Agreement”) made and entered into on 17th day of
July, 2002, between the undersigned (the “Executive”) and COOPER TIRE & RUBBER
COMPANY (“Cooper”), of the Executive’s employment from Cooper; and

          WHEREAS, the Executive is required to sign this Release in order to
receive the severance benefits as described in Section 5, Section 6 and Section
12 of the Agreement.

          NOW THEREFORE, in consideration of the promises and agreements contained
herein and other good and valuable consideration, the sufficiency and receipt
of which are hereby acknowledged, and intending to be legally bound, the
Executive agrees as follows:

          1 This Release is effective on the date hereof and will continue in effect
as provided herein.

          2 In consideration of the payments to be made and the benefits to be
received by the Executive pursuant to Section 5, Section 6 and Section 12 of
the Agreement, which the Executive acknowledges are in addition to payments and
benefits which the Executive would be entitled to receive absent the Agreement,
the Executive, for himself and his dependents, successors, assigns, heirs,
executors and administrators (and his and their legal representatives of every
kind), hereby releases, dismisses, remises and forever discharges its
predecessors, parents, subsidiaries, divisions, related or affiliated
companies, officers, directors, stockholders, members, employees, heirs,
successors, assigns, representatives, agents and counsel (the “Company”) from
any and all arbitrations, claims, including claims for attorney’s fees,
demands, damages, suits, proceedings, actions and/or causes of action of any
kind and every description, whether known or unknown, which Executive now has
or may have had for, upon, or by reason of any cause whatsoever (“claims”),
against the Company, including but not limited to:

		
	 	     (a) any and all claims arising out of or relating to Executive’s
employment by or service with the Company and his termination from the
Company;

		
	 	     (b) any and all claims of discrimination, including but not limited
to claims of discrimination on the basis of sex, race, age, national
origin, marital status, religion or handicap, including, specifically,
but without limiting the generality of the foregoing, any claims under
the Age Discrimination in Employment Act, as amended, Title VII of the
Civil Rights Act of 1964, as amended, the Americans with Disabilities
Act, Ohio Revised Code Section 4101.17 and Ohio Revised Code Chapter
4112, including Sections 4112.02 and 4112.99 thereof, and any other
applicable state statutes and regulations, and

1

 

		
	 	     (c) any and all claims of wrongful or unjust discharge or breach of
any contract or promise, express or implied;
provided, however, that the foregoing shall not apply to claims to enforce
rights that Executive may have as of the date hereof or in the future under any
of Cooper’s health, welfare, retirement, pension or incentive plans, under any
indemnification agreement between the Executive and Cooper, under Cooper’s
indemnification by-laws, under the directors’ and officers’ liability coverage
maintained by Cooper, under the applicable provisions of the Delaware General
Corporation Law, that Executive may have in the future under the Agreement or
under this Release.

          3 Executive understands and acknowledges that the Company does not admit
any violation of law, liability or invasion of any of his rights and that any
such violation, liability or invasion is expressly denied. The consideration
provided for this Release is made for the purpose of settling and extinguishing
all claims and rights (and every other similar or dissimilar matter) that
Executive ever had or now may have against the Company to the extent provided
in this Release. Executive further agrees and acknowledges that no
representations, promises or inducements have been made by the Company other
than as appear in the Agreement.

          4 Executive further agrees and acknowledges that:

		
	 	     (a) The release provided for herein releases claims to and including
the date of this Release;

		
	 	     (b) He has been advised by the Company to consult with legal counsel
prior to executing this Release, has had an opportunity to consult with
and to be advised by legal counsel of his choice, fully understands the
terms of this Release, and enters into this Release freely, voluntarily
and intending to be bound;

		
	 	     (c) He has been given a period of twenty-one (21) days to review and
consider the terms of this Release, prior to its execution and that he
may use as much of the twenty-one (21) day period as he desires; and

		
	 	     (d) He may, within 7 days after execution, revoke this Release.
Revocation shall be made by delivering a written notice of revocation to
the General Counsel at Cooper. For such revocation to be effective,
written notice must be actually received by the General Counsel at Cooper
no later than the close of business on the 7th day after Executive
executes this Release. If Executive does exercise his right to revoke
this Release, all of the terms and conditions of the Release shall be of
no force and effect and Cooper shall not have any obligation to make
further payments or provide benefits to Executive as set forth in Section
5, Section 6, and Section 12 of the Agreement.

          5 Executive agrees that he will never file a lawsuit or other complaint
asserting any claim that is released in this Release.

          6 Executive waives and releases any claim that he has or may have to
reemployment after the Termination Date as defined in the Agreement.

2

 

          IN WITNESS WHEREOF, the Executive has executed and delivered this Release
on the date set forth below.

	 	 	 
	Dated:________________________________	 	
________________________________

Duane R. Stephens

Executive

3<PAGE>
                                                                   EXHIBIT 10(a)

             Schedule of Certain Executive Officers who are Parties
              to the Severance Pay Agreements in the Forms Attached
         as Exhibit 10(b) to the Company's Quarterly Report on Form 10-Q
                       For the Period Ended June 30, 1997

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

Form A of Severance Pay Agreement
---------------------------------

Christopher M. Connor
Joseph M. Scaminace

Form B of Severance Pay Agreement
---------------------------------

John L. Ault
Sean P. Hennessy
Thomas E. Hopkins
Conway G. Ivy
John G. Morikis
Ronald P. Nandor
Thomas W. Seitz
Louis E. Stellato
Alexander Zalesky

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]