Document:

exv10wr

 

EXHIBIT 10.R

	 	 	 
	 	 	
Johnson Controls, Inc.
	 	 	
5757 North Green Bay Avenue
	 	 	
Post Office Box 591
	 	 	
Milwaukee, WI 53201-0591
	 	 	
Tel. 414/524 2233
	 	 	
FAX: 414/524 3311
	 	 	 
	 	 	
John M. Barth
	 	 	
President and
	 	 	
Chief Executive Officer
	 	 	 
		 	 
	 	
Mr. Giovanni Fiori
	 	
Via Riaffrico, 38
	 	 	
51016 Montecatini Terme
	 	 	
(Pistoia) ITALY
	 	 	 
	 	 	
November 21, 2002

Dear John:

          Upon your signature, this letter shall be effective as an
amendment to the Executive Employment Agreement covering your
employment by Johnson Controls, Inc. or its affiliated companies,
(“JCI”). It is recognized that you are not covered by a JCI
pension, unlike other members of JCI senior management, and to
compensate for this difference it is agreed as follows:

1.       Should you choose to work at JCI until your 65th birthday, you
would be paid a supplemental pension of E25,000 per month until
your death.

2.       Should you choose to take early retirement prior to your 65th
birthday, you would be paid a severance payment of E2,000,000 in
lump sum upon such early retirement in lieu of any pension. Such
severance payment would be paid upon execution of the Agreement
attached as Exhibit A.

3.       You will be enrolled in the JCI Executive Survivor Plan
effective immediately to provide protection against the financial
impact of death prior to your retirement. The Plan is attached as
Exhibit B.

          Your actual retirement date would need to be mutually agreed
upon between us no later than July 1, 2005. If you understand the
terms of this letter and are in agreement with its terms, please
sign both copies of this letter and keep one copy for your
personal files.

	 	 	 
	GIOVANNI FIORI	 	
JOHNSON CONTROLS, INC.
	 	 	 
	 	 	 
	/s/ GIOVANNI FIORI	 	
By:    /s/ JOHN M. BARTH
	 	 	 
	Date: December 4, 2002	 	
Title:   President & CEO

Attachments

 

 

	 	 	 
	 	 	
Johnson Controls, Inc.
	 	 	
5757 North Green Bay Avenue
	 	 	
Post Office Box 591
	 	 	
Milwaukee, WI 53201-0591
	 	 	
Tel. 414/524 2233
	 	 	
FAX: 414/524 3311
	 	 	 
	 	 	 
		 	 

Exhibit A

SETTLEMENT AGREEMENT

BETWEEN

                                               with registered office at                                               ,
(hereinafter “The Company”) in the person of its special attorney, by virtue of
the special power of attorney granted to him on                                       — on the one
part –

AND

                                             , born in                    , on                              and resident at
                                                                         , — on the other part –

WHEREAS

a) There has been an employment relationship in force for an indefinite term
between                              and                              since                                               .

b) The parties have decided to mutually terminate the employment between
                             and                                       and to finally settle all outstanding
questions in relation to the same.

NOW HAVING REGARD TO ALL THE ABOVE

with a view to settling all outstanding questions as indicated above and
preventing any other question arising from the employment relationship
arising between the parties, the parties,

HEREBY AGREE AND STIPULATE AS FOLLOWS

1.   Recitals.

The above Recitals are incorporated herein and form a substantial part of these Minutes.

2.   Termination of employment.

 

 

A) The employment relationship between the parties will be terminated by mutual
agreement for all legal effects by virtue of the consent expressed herein on
the date hereof, i.e.                    , and waiving all reciprocal obligations relative
to notice.

B) The Company by virtue of the mutual termination of the employment undertakes
to pay to Mr.                     all the indemnities and the amounts due to him by
virtue of the termination of his employment due by law (vacation not taken,
thirteenth and fourteenth monthly salary installments, severance pay). The
latter indemnities are equal to                     gross.

C) Mr.                     simply reserves the right to carry out an accounting check upon
the exactness of the calculations relative to the indemnities and amounts due
to him at the end of his employment as soon as he has checked the relating
salary details.

3.   Incentive to leave the Company.

The Company shall also pay to Mr.                     the sum of USD                     gross (and
thus                     net) by way of incentive to leave the Company as provided by
Art. 12, paragraph 4, lett. b) of Law n. 153 of April 30, 1969 as amended by
Art. 6 of Legislative Decree n. 314 of September 2, 1997 n. 314. As Mr.                    
is more than 55 years of age the above sum will be taxed at the same tax rate
as severance pay (T.F.R.) reduced by one half, as provided under Art. 17, 4th
paragraph of Presidential Decree n. 917 of December 22, 1986.

4.   Ways and terms of payment.

The sum indicated in point 2B (amounts due upon termination of his employment)
shall be paid as soon as the relative figures are available, but in any event
by and no later than                    . The sum indicated in point 3 above shall be paid
to Mr.                     through                     upon execution of the minutes of settlement
before the Direzione del Lavoro of                    , which the Company has already
asked for the parties to be summoned.

5.   Waivers.

With the full and due fulfillment of all the obligations contained in this
agreement the parties declare that they do not have anything further to claim
from each other and that they waive any claim or request in any way connected
or associated with or even caused by the employment relationship with the
manager and its termination and thus by way of example only also waive any
claim relative to a different seniority, to salary arrears of any nature and
type, to further damages also under articles 2116, 2103 and 2087 Civil Code.

In particular, Mr.                     waives any claims for compensation and thus, by way of
example only, for biological damages, damages from demotion, damage to his
personal life, damage to

 

 

health, patrimonial damage, moral damage for mobbing, both direct and indirect
past, present and future.

Finally the Company vis-à-vis such waivers, declares that it will hold Mr.
                    harmless against any liability which he may have incurred in the lawful
performance of his duties during his employment with the Company.

The fulfillment of the conditions set forth in the above points, in accordance
with the mutual intent of making this agreement a general and all inclusive
settlement, will remove the grounds for any claim past, present or future,
which is based, in any way on the relationship between the parties as indicated
above.

The lawyers of the parties sign this settlement by way of waiver to their joint
and several right under article 68 LPF.

Read Confirmed Signed.<PAGE>
                                                                    EXHIBIT 10.1

                      (INSITUFORM TECHNOLOGIES LETTERHEAD)

December 1, 2003

Mr. Christian G. Farman
245 East 93rd Street, Apartment 32 B
New York, NY  10128

Dear Chris:

Subject to Compensation Committee and Board of Director approval, we are pleased
to offer you the position of Vice President and Chief Financial Officer of
Insituform Technologies, Inc. ("ITI" or "Insituform"). The principal terms and
conditions of the offer are as follows:

1. Base Salary. The annual base salary for the position of Vice President and
Chief Financial Officer will be $265,000. Your base salary will be reviewed on
an annual basis by the Compensation Committee of the Board of Directors of ITI.

2. Stock Options. You will be granted 12,500 stock options shortly after you
begin fulltime employment with Insituform. Such options become exercisable with
respect to 25% of such shares on the grant date and on each of the first, second
and third anniversaries of the grant date. The strike price for the options will
be the closing market price of the common stock on the date your options are
granted by the Compensation Committee, which is expected to be the first day of
your active employment with ITI. The options will expire on the seventh
anniversary of the grant date. To the maximum extent permitted under the
limitations contained in the Internal Revenue Code, the options will be
"incentive stock options," with the remainder being non-qualified stock options.

3. Annual Incentive Bonus. During 2004, you will be entitled to receive an
annual incentive bonus in an amount calculated as a percentage of your base
salary determined by reference to: (i) a range of percentages identified by the
Compensation Committee based upon a center point objective of 50% (intended to
provide an opportunity of up to two times such center point) and (ii) the
accomplishment by ITI of such annual goals attendant to such range as shall also
have been determined by the Compensation Committee. The foregoing annual goals
will be determined as reasonable targets given ITI's results of operations and
prospects, intended to provide you with incentives to achieve such performance.
The amount and criteria for your annual incentive bonus will be reviewed
annually by the Compensation Committee.

4. Long Term Incentives. You are eligible to participate in the Insituform
Technologies, Inc. Long-Term Incentive Plan (the "LTIP"), which includes both
equity and cash compensation. Equity grants are made under the Insituform
Technologies, Inc. 2001 Employee Equity Incentive Plan. LTIP grants for officers
are determined by the Compensation Committee on an annual basis. Specific
information concerning the actual grants will be communicated to you when
approved by the Compensation Committee, anticipated to take place during the
first half of 2004. Any cash award is based on the achievement of goals
established by the Compensation Committee.

5. Deferred Compensation. You are eligible to participate in the Senior
Management Voluntary Deferred Compensation Plan (the "DCP"). Tax deferred
contributions may be made into the DCP after the maximum allowable contribution
(as defined by the IRS) has been made into ITI's 401(k) plan. The first 3% of
DCP contributions are matched by ITI at 100% and the next 2% of contributions
are matched at a 50% rate. The maximum company match into both the 401(k) and
DCP together is $8,000.

<PAGE>

Mr. Christian G. Farman
December 1, 2003
Page 2

6. Additional Benefits.

(a) You will be provided with a car allowance of $850 per month, subject to
adjustment in accordance with ITI's policy.

(b) You are eligible to participate in the company's medical, dental, vision,
life insurance, and long-term disability plans, and any future plans and
programs implemented by ITI for its employees generally or by the Compensation
Committee for you specifically, and in the ITI 401(k) Profit Sharing Plan and
any future plans or programs supplemental to the ITI 401(k) Profit Sharing Plan.
Details about specific benefits will be provided to you in benefit plan
documents.

(d) You will receive holidays in accordance with ITI's policy. During 2004, you
will receive three weeks vacation. During your fifth year of employment and
beyond, you will receive four weeks vacation.

(e) You will be provided relocation assistance as provided for in ITI's
relocation policy, including reimbursement for the cost of temporary
accommodations and weekly travel to and from your current home for a mutually
agreeable period prior to relocating your family to St. Louis. Your relocation,
including the sale of your home, must be handled through ITI's relocation
coordinator.

7. Severance. As Vice President and Chief Financial Officer, you will report to
the Chief Executive Officer and you will serve at the pleasure of the ITI Board
of Directors; however, if your employment is terminated by ITI for reasons other
than "cause" (as defined below) during your first twenty-four months' of
employment, you will receive, upon such termination, a severance payment equal
to twelve months' base salary, car allowance and medical/dental benefits, and
reasonable outplacement assistance.

The amount of "base salary" will be calculated as the product obtained by
multiplying (i) the number of months of severance to which you are entitled by
(ii) your highest monthly base salary during the twelve months prior to
termination.

"Cause" shall be defined as:

         (i) your willful and continued failure to perform substantially your
         duties with ITI or any of its affiliates (other than such failure
         resulting from incapacity due to physical or mental illness), after a
         written demand for substantial performance is delivered to you by the
         Chairman of the Board of Directors which specifically identifies the
         manner in which the Board of Directors believes that you have not
         substantially performed your duties; or

         (ii) your willful engaging in illegal conduct or gross misconduct which
         is materially and demonstrably injurious to ITI, whether or not
         subsequently discontinued or corrected; or

         (iii) your conviction of a crime other than misdemeanor traffic
         offenses or commission of an act of moral turpitude; or

         (iv) your inability to report for work for a period of four months or
         greater.

No act or failure to act, on your part, shall be considered "willful" unless it
is done, or omitted to be done, by you in bad faith or without reasonable belief
that your action or omission was in the best interests of ITI. The

<PAGE>

Mr. Christian G. Farman
December 1, 2003
Page 3

cessation of employment shall not be deemed to be for "cause" unless and until
there shall have been delivered to you a copy of a resolution duly adopted by
the affirmative vote of no less than a majority of the entire membership of the
Board of Directors, finding that, in the good faith opinion of the Board of
Directors, you are guilty of the conduct described.

8. Confidentiality and Non-Competition; Code of Conduct; Drug Testing;
Background Check. You must sign ITI's standard Employee Confidentiality, Work
Product and Non-Competitive Agreement. You must sign and agree to abide by ITI's
Business Code of Conduct. You must successfully pass ITI's standard drug/alcohol
screen, verification of academic credentials, reference and background checks.

This letter (and the terms of the plans, documents and standard agreements
referred to herein) contains the entire agreement of the parties with respect to
the subject matter hereof, and supersedes any and all prior understandings,
commitments and agreements with respect thereto. The terms of this letter (but
not the standard agreements referred to herein) will expire when the severance
provisions expire.

Your appointment as Vice President and Chief Financial Officer will not be
effective until your first day of active employment with ITI at its executive
offices in Chesterfield, Missouri, which must occur within four weeks of the
date of this letter.

If the above terms accurately reflect your understanding and agreement, please
sign this letter where indicated below and return it to me acknowledging your
acceptance.

Very truly yours,

INSITUFORM TECHNOLOGIES, INC.

/s/ Thomas S. Rooney, Jr.
-------------------------------------
Thomas S. Rooney, Jr.
President and Chief Executive Officer

ACCEPTED AND AGREED:

/s/ Christian G. Farman
-------------------------------------
Christian G. Farman

Date December 2, 2003
     --------------------------------

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