Document:

a50325095ex10_1.htm

Exhibit 10.1

 

 

June 26, 2012

 

Mr. Randall S. Dearth

341 Cobblestone Circle

McKees Rocks, PA  15136

Dear Randy:

This is to confirm Calgon Carbon Corporation’s offer of employment for the position of President and Chief Executive Officer at the Company’s corporate headquarters near Pittsburgh. Your employment will begin on August 1, 2012 (the “Effective Date”).  On the Effective Date you will be granted options to acquire 50,000 shares of the Company’s common stock pursuant to the Company’s 2008 Equity Incentive Plan.  The options will have an exercise price equal to the fair market value of the Company’s common stock on the Effective Date and will vest in two equal installments on the first two anniversary dates following the Effective Date and will have a term of seven years from the Effective Date.  Also on the Effective Date you will be granted 15,000 shares of restricted stock pursuant to the Company’s 2008 Equity Incentive Plan.  These shares will vest in one single installment on the third anniversary of the Effective Date.

The base annual salary for this exempt position will be $500,000 per year paid in twelve (12) equal monthly amounts.  You will be eligible for participation in the Company’s Senior Leadership Team incentive compensation program which provides for short-term (“STI”) and long-term incentive (“LTI”) opportunities.  Under the 2012 STI program, you will be eligible for an annual cash incentive target equal to 70% of your annual base salary prorated for the portion of the year you are employed effective on August 1, 2012.  STI is payable in 2013 and the actual amount you will receive, if any, is determined by the Company’s Compensation Committee based upon the Company’s performance and your personal performance.  Under our 2012 STI program STI can be paid in range of 0% of the incentive target to 175% of the incentive target based upon you performance against deliverables as determined by our Compensation Committee.  Subject to Board of Directors’ approval for 2013, the LTI component consists of 25% time vested restricted stock and 25% stock options, and 50% performance stock units. LTI for our CEO is currently targeted at 150% of base salary.  The incentive compensation program is subject to changes as directed by the Company’s Compensation Committee.

This offer includes participation in Calgon Carbon Corporation’s comprehensive benefit program which takes effect immediately upon your date of employment and covers medical/dental, vision, life insurance, accidental death and dismemberment, long term disability, and participation in the retirement savings program. Exhibit A is a current summary of our benefit program.   Our benefit program may change from time to time.  In addition you will receive twelve (12) paid holidays per year, and you will be eligible for two weeks of vacation in 2012, and five weeks of vacation starting in 2013.

This offer is contingent upon your successful completion of a pre-placement physical examination and background check.  Additionally, upon employment, you will be required to sign our standard Conditions of Employment statement relating to confidentiality, non-competition and non-solicitation matters.

 

 

 

 

  

  

  

 

We look forward to having you join our organization.  If you have any other questions please feel free to call me at 772-229-7676.

 

	
Sincerely,

	  	  	  	  
	  	  	  	  	  
	
/s/ Seth E. Schofield

	  	  	  	  
	  	  	  	  	  
	
Seth E. Schofield

	  	
Accepted and Agreed:

	  	  
	 	 	 	 	 
	
 

	  	
/s/ Randall S. Dearth

	  	
06/26/2012

	  	  	
Randall S. Dearth

	  	
Date

 

 

 

 

 

  

  

  

 

 

 

Exhibit A

 

 

2012

 

 

Note: Deductions for premiums are taken out on a pre-tax basis for Eligible Benefits (Medical, Dental, & Vision) listed in the Premium Only Plan (POP).

	
MEDICAL PLANS

	 

 

	
HIGHMARK/UPMC

PREMIUM PLAN

	
HIGHMARK/UPMC

CORE PLAN

	
Deductible - $500 Ind/$1,000 Family

Office Visits – 100% after $20 co-pay

Hospital Expenses – 100% after deductible

Maternity – 100% after deductible

Diagnostic Services – 100% after deductible

Ambulance – 100% after network deductible

 

CVS/CAREMARK

Prescriptions - $10/$25/$40

	
Deductible - $500 Ind/$1,000 Family

Office Visits – 100% after $30 co-pay

Hospital Expenses – 90% after deductible

Maternity – 90% after deductible

Diagnostic Services – 90% after deductible

Ambulance – 90% after network deductible

 

CVS/CAREMARK

Prescriptions - $15/$30/$45

 

 

Note:  Plan coverage continues for surviving spouse and dependents for 24 months after employee’s death

 

	
 DENTAL PLAN

	 

 

	
♦

	
$5/individual; $18/family 

	
♦

	
Employee and dependents covered from first day of work

	
♦

	
Pays 100% of basic covered dental expenses up to an annual maximum of $1,250

	
♦

	
Pays 50% of major covered dental expenses (crowns, bridgework, etc.) after satisfying deductible of $25.00 per person per year

	
♦

	
Pays 50% of covered orthodontic work up to a life-time maximum of $1,000 after satisfying annual deductible of $25.00 per person per year

	
♦

	
Plan coverage continues for surviving spouse and dependents for 24 months after employee’s death

 

	
 HIGHMARK VISION

	 

 

	
♦

	
Eye examination and eyeglasses or contact lenses every year

	
♦

	
With Medical -      Employee No Charge          +1 Dependent = $8.23         +2 Dependents (or more) =$14.81

	
♦

	
Without Medical – Single = $5.77                     Employee +1 = $14.00           Employee +2 (or more)  = $20.58

	
♦

	
Plan coverage continues for surviving spouse and dependents for 24 months after employee’s death

 

	
 FLEXIBLE SPENDING ACCOUNTS

	 

 

	
♦ 

	
May save pre-tax;  Medical – up to $4,000/year; Dependent Care – up to $5,000/year

 

 

  

  

  

 

	
 GROUP LIFE INSURANCE

	 

 

	
♦

	
Employee covered from first day of work

	
♦

	
1X basic annual salary entirely paid by Company

	
♦

	
Additional optional life insurance may be purchased up to a maximum of $750,000, inclusive

of the company paid portion (1x basic annual salary)

	
♦

	
Life insurance for spouse may be purchased up to a maximum of $250,000

	
♦

	
Life insurance for children may be purchased up to $25,000

	
♦

	
Provides an annual 1X basic annual salary for Accidental Death and Dismemberment (AD & D)  – 

entirely paid by the Company

	
♦

	
You may purchase additional Accidental Death and Dismemberment (AD & D) for Individual

 

	 TRAVEL ACCIDENT INSURANCE	 

 

	
♦

	
 4X base annual earnings to a maximum of $300,000

 

	 EDUCATIONAL ASSISTANCE	 

 

	
♦

	
Reimbursement up to 18 credits a year with a maximum of three courses per semester for tuition and fees

 

	 SICK PAY	 

 

	
♦

	
Entirely paid by the Company

	
♦

	
Provides full pay for specified periods of time based on length of continuous service (maximum of 26 weeks)

 

	 LONG TERM DISABILITY	 

 

	
 ♦  

	
Entirely paid by the Company

	
♦

	
Covers employee from first day of work

	
♦

	
Guarantees 60% of basic monthly salary

 

	 RETIREMENT SAVINGS PROGRAM	 

 

	
♦

	
Employee automatically enrolled at 2%

	
♦

	
Provides for saving up to 50% of base salary up to annual maximum

	
♦

	
Provides for several investment options

	
♦

	
Employee may save in pre-tax (401(k)) form or in after-tax (401A) form, depending on savings goals

	
♦

	
Provides various settlement options at retirement

	
♦

	
Monthly employer match 50% of first 2% saved (Pre-tax only)

	
♦

	
Quarterly fixed company contribution 3% of total pay

	
♦

	
Annual discretionary company contribution (0-4%)

 

 

  

  

  

 

	 RELOCATION ASSISTANCE	 

 

	
♦

	
Reimbursement for expenses related to the moving and storage (where necessary) of household goods,

transportation of employee and family, and a house hunting trip

       

	 VACATION & HOLIDAYS	 

 

	
♦

	
Twelve paid holidays

	
♦

	
Two weeks vacation in first anniversary year; three weeks in fifth anniversary year

 

 

 

2012 Cost Sharing for Benefits

 

	
 

2012 Medical Plan Tier

	Core PPO Plan 

EE Cost

Annual Base

Salary

≤$40,000

	 	
Core PPO Plan

EE Cost

Annual Base

Salary

<$40,000

	 	
Premium PPO

Plan EE Cost

Annual Base

Salary

≤$40,000

	 	

Premium PPO

Plan EE Cost

Annual Base

Salary

>$40,000

	
Employee Only

	$	72.41	 	$	132.31	 	 	$	125.86	 	$	171.70	 
	
Employee + One

	$	166.35	 	$	232.45	 	 	$	314.54	 	$	380.85	 
	
Employee + Child(ren)

	$	143.26	 	$	208.30	 	 	$	270.24	 	$	333.07	 
	
Employee + Family

	$	189.74	 	$	257.30	 	 	$	374.96	 	$	442.79	 

	
2012 Dental/Vision

Plan Tier

	
 

Dental EE Cost

Sharing

	
Vision EE Cost

Sharing (with

Medical)

	
Vision EE Cost

Sharing

(without

Medical)

	
Employee Only

	
$5.00

	
No Charge

	
$5.77

	
Employee + One

	
$18.00

	
$8.23

	
$14.00

	
Employee + Two

	
$18.00

	
$14.81

	
$20.58

	
Family

	
$18.00

	
$14.81

	
$20.58a50325095ex10_2.htm

Exhibit 10.2

 

 

June 26, 2012

 

Mr. Randall S. Dearth

341 Cobblestone Circle

McKees Rocks, PA  15136

Dear Randy:

You are currently an independent director of Calgon Carbon Corporation but you will become an employee and an employee director when you take your new role as President and Chief Executive Officer.  The purpose of this letter is to memorialize our understanding with respect to you role on the Audit and Compensation Committees of the Board of Directors and certain matters regarding your director compensation.

Effective immediately, you will resign your positions on both the Audit Committee and the Compensation Committee so that at no time will you serve on those committees when you are no longer an independent director.

On April 27, 2012 you received a cash retainer of $57,500 which was intended to be your cash compensation for twelve months of service as an outside director.  As you will become an employee effective on August 1, 2012, you will have served approximately 1⁄4 of the year as an outside director and thus, will have been overpaid $43,125.  Thus, you agree that on or before July 31, 2012, you will pay to Calgon Carbon Corporation the sum of $43,125.  Such payment should be directed to Richard D. Rose, Senior Vice President, General Counsel and Secretary. Of course you will begin to earn your salary as an employee effective with your beginning of employment on August 1, 2012.

Finally, in each of April 2010, May 2011 and May 2012, you received grants of time vesting restricted stock pursuant to certain Restricted Stock Agreements for Non-Employee Directors.  The shares of restricted stock vest ratably over three years on each anniversary of the date of grant.  We agree that all of the currently un-vested such shares (7,568 shares) shall continue to vest as scheduled so long as you remain as a director of the Company and your transformation from a non-employee director to an employee director shall have no effect in this regard.

We look forward to having you join our organization.  If you have any other questions please feel free to call me at 772-229-7676.

 

	
Sincerely,

	  	  	  	  
	  	  	  	  	  
	
/s/ Seth E. Schofield

	  	  	  	  
	  	  	  	  	  
	
Seth E. Schofield

	  	
Accepted and Agreed:

	  	  
	 	 	 	 	 
	
 

	  	
/s/ Randall S. Dearth

	  	
06/26/2012

	  	  	
Randall S. Dearth

	  	
Date

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