Document:

amerexgroup_s8-ex1002.htm

     

    EXHIBIT
10.2

    COMPENSATION
AGREEMENT BETWEEN AMEREX GROUP, INC.

    
      AND
MELISSA MAHLER

      

      This Compensation Agreement is dated as
of May 15, 2008 between Amerex Group, Inc. an Oklahoma corporation (the
“Company”), and Melissa Mahler (“Consultant”).

      

      WHEREAS,
the Company has requested the Consultant to provide the Company with legal
services (“Services”) in connection with their business, and the Consultant has
agreed to provide the Company with such Services at her sole discretion, at
hourly rates and otherwise on terms to be negotiated at such time, and reserves
the right, at any time, to agree to or deny such Services; and

      

      WHEREAS, the Company wishes to
compensate the Consultant with shares of its common stock for such services
rendered;

      

      NOW THEREFORE, in consideration of the
mutual covenants hereinafter stated, it is agreed as follows:

      

      1.           The
Company will register 800,000 shares of the Company’s common stock, par value
$.001 per share, and issue the shares to the Consultant from time to time
following the filing of a registration statement on Form S-8 with the Securities
and Exchange Commission registering such shares, as set forth in Section 2
below.  The Consultant, in her sole discretion, may agree or decline
to perform the Services requested by the Company.  If Consultant
agrees to perform services requested, then the hourly rates or other fees for
such services shall be negotiated and agreed upon
contemporaneously.

      

      2.           The
shares issued to the Consultant shall represent consideration for those Services
performed by the Consultant for the Company based on the following arrangement:
Upon the rendering of Services, or on a monthly basis, as may be negotiated
between the parties, the Consultant will provide the Company with an invoice and
the Company will then deliver or cause to be delivered to the Consultant, within
15 calendar days after receipt of the invoice, certificates representing shares
of the common stock of the Company, for the full amount of the invoice, based on
per share value that represents a 50% discount to market calculated using the
Volume Weighted Average Price (“VWAP”) for the three trading days prior to the
date of the invoice.

      

      3.           The
foregoing compensation plan and the shares to be issued thereunder shall be
registered using a Form S-8.  The Company shall file such Form S-8
with the Securities and Exchange Commission within five business days of the
execution of this agreement.

      

      IN
WITNESS WHEREOF, this Compensation Agreement has been executed by the Parties as
of the date first above written.

      
 

    

    
      	 	CONSULTANT 
	 	 
	 	 
	 	         
      /s/ Melissa
      Mahler                             
      
	 	Melissa
    Mahler
	 	 
	 	 
	 	COMPANY
	 	AMEREX GROUP,
      INC. 
	 	 
	 	 
	 	By:    /s/ Nicholas J.
      Malino                       
      
	 	
              Nicholas J.
      Malino 

            
	 	

              Chief
      Executive OfficerFiled by Bowne Pure Compliance

Exhibit 10.1

CONFIDENTIAL

May 5, 2008

Mr. David D. Petratis 

29 Rolling Hills Drive 

Barrington
Hills, IL 60010

Dear Dave:

We are pleased to offer you the position of President and Chief Executive
Officer with Quanex Building Products Corporation (“Company”), effective July 1, 2008
(“Effective Date”), after approval of the Quanex Building Products Corporation’s Board of Directors.
Your election as a Director will also be accomplished at that time. When Mr. Raymond A. Jean retires as Chairman of the
Board of Directors of Quanex Building Products Corporation in December 2008, the Board of Directors will elect you
as Chairman of the Board of Directors at that time.

Your total compensation will include the following:

	 	1.	 	
Base Salary. Your base salary will be $29,166.66 paid semi-monthly (annualized
at $700,000). Your base salary will be increased to an annualized amount of $725,000 on December 1, 2008.

	 	2.	 	
Annual Incentive Award (AIA). The AIA target for your position is 100% of your
base salary. You will receive a guaranteed AIA award of $500,000 for the fiscal year ending October 31, 2008, to
be paid in December 2008 after approval of the Board of Directors. Should the fiscal year for 2008 AIA award exceed the
guaranteed amount, you will receive the greater of the guaranteed or computed amount.

	 	3.	 	
Initial Restricted Stock Grant. You will receive 40,000 shares of the
Company’s Restricted Stock the Effective Date of your employment. This stock will cliff vest on your third
employment anniversary date. However in the event of a change in control, as defined in the 2008 QBP Omnibus Incentive
Plan, you will become fully vested in your restricted stock award of 40,000 shares.

	 	4.	 	
Initial Stock Option Grant. You will receive a Non-Incentive Stock Option to
purchase 100,000 shares of Quanex Building Products Corporation common stock for a per-share exercise price equal to
the closing prices on the Effective Date. The option grant will vest in thirds on the first, second and third
employment anniversary dates. However, the option will become fully vested and exercisable in the event of a change in
control, as defined in the 2008 Omnibus Incentive Plan.

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	 	5.	 	
Long Term Incentive Awards. You will also be eligible to receive a Long Term
Incentive Award in December 2008 based upon approval of the Compensation and Management Development Committee.
Currently, the Long Term Incentive Award is comprised of grants from the Omnibus Incentive Plan that include a mix of
options, restricted stock and Performance Units. The Performance Units have historically been based on the Company
achieving a certain level of Earnings per Share growth and Relative Total Shareholder Return results against our peer
group over a three year period.

	 	6.	 	
“Make Whole” Grant and Cash Payment – You will be granted an
additional 25,000 shares of the Company’s Restricted Stock the Effective Date of your employment. This stock will
vest in thirds on the first, second and third employment anniversary dates. However in the event of a change in
control, as defined in the 2008 QBP Omnibus Incentive Plan, you will become fully vested in your restricted stock award
of 25,000 shares. You will also receive a cash payment of $750,000 on the Effective Date of your employment. However,
in the event you vest in your Schneider Electric equity award granted on June 28, 2005, you agree to forfeit the
right to receive the cash payment of $750,000.

	 	7.	 	
Company Furnished Automobile. You may select a four door, luxury or sport
utility, vehicle with a maximum company investment cost of $60,000. Insurance will be paid by the Company. You will be
reimbursed for gasoline and maintenance costs.

	 	8.	 	
Vacation. You will be entitled to four weeks of paid vacation each calendar
year.

	 	9.	 	
Benefits. You will be eligible to participate in the Quanex Building Products
Group Benefits Plan beginning on the first day of the month following 30 days of employment. It is a flexible
cafeteria plan that offers a variety of benefit choices from which you can select that will best meet the needs of you
and your family. Additionally, the Company provides certain benefits that are employer-paid (i.e., short-term
disability, long-term disability, basic life insurance, and AD&D benefits).

	 	10.	 	
Officer Life Insurance. You will participate in the Quanex Building Products
Corporation Officer Life Insurance Plan.

	 	11.	 	
Financial and Tax Counsel. You will be eligible to receive financial, tax and
legal consulting services at Company expense up to a maximum of $10,000 per year.

	 	12.	 	
401(k) Plan. You will be eligible to participate in the Quanex
Building Products Salaried and Nonunion Employee 401(k) Plan beginning the first day of employment. You may contribute
up to a maximum of 50% of your eligible compensation up to the government mandated maximum. Under the terms of the
401(k) Savings Plan, Quanex will match $0.50 for each dollar you contribute up to a maximum of 5% of your eligible
compensation. There is a five year vesting schedule on the Company match. In addition, you may elect to save on a
before-tax or after-tax basis, or a combination of the two.

	 	13.	 	
Pension. You will be eligible for pension benefits from two programs, Quanex
Building Products Salaried and Nonunion Employee Pension Plan (the qualified plan), and the Quanex Building Products
Supplemental Employee Retirement Plan (SERP).

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	 	a.	 	
Qualified Plan. You will be eligible for the qualified plan provided you meet
the vesting requirements of the plan. The qualified plan consists of a notional account balance in your name. The
account will receive an annual benefit credit of 4% based on your base pay plus bonus paid during the year. In addition
to annual interest credits based on the 30 year Treasury (rate is established each August for the next year). The
benefit is portable once you are vested (100% after three years of vesting service), you can take it with you if you
leave.

	 	b.	 	
SERP. The SERP is a nonqualified plan designed to provide substantial additional
pension benefits to Corporate Officers. In addition, it implicitly restores benefits on pay in excess of the qualified
plan limit (currently $185,000). Under the SERP, an eligible participant receives a monthly single life annuity payable
at age 65 equal to:

	 	•	 	
2.75% of the average of the highest 36-month of salary and bonus compensation from the
last 60 months of employment,

	 	•	 	
multiplied by the named executive officer’s years of service (but not in excess
of 20 years), and

	 	•	 	
reduced by (i) any benefits payable under the Pension Plan and (ii) 50% of
the named executive officer’s Social Security benefits adjusted pro rata for years of service not in excess of
20 years.

To be eligible to receive a benefit you must remain
employed until you have accumulated five years of service. You are eligible for early retirement benefits when you
attain age 55 with five years of service. The early retirement benefit is calculated based on average compensation and
service at early retirement, and reduced by 5% for each year benefit commencement precedes age 65.

In the event of a change in control, you will be eligible
to receive a lump sum payment in lieu of any other benefit payable from the SERP. The lump sum is equal to the present
value of the SERP life annuity, which is payable immediately without reduction for early payment, based on your years
of service and compensation at date of termination. The SERP will be administered in a manner that is intended to
comply with Section 409A of the Internal Revenue Code.

	 	14.	 	
Relocation. You will be relocated from your home in Barrington Hills to
Houston, Texas in accordance with the terms of the Quanex Building Products Corporation Executive Relocation Policy,
including an incidentals allowance of $50,000. This will include participation in the home purchase program, when and
if that option is necessary to facilitate your relocation. The company will do all that is necessary, to assist you and
your family in this process. The relocation policy and guide are enclosed.

	 	a.	 	
Kevin P. Delaney, Senior Vice President – General Counsel, will assist you and
your family in this process. His direct line is (713) 877-5349.

	 	b.	 	
Dina Snow, Legal Assistant, will coordinate your relocation process and provide
necessary liaison with relocation and transportation services. Her direct line is (713) 877-5351 and her fax is
(713) 626-7549.

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	 	15.	 	
Change in Control. As an Officer of Quanex Building Products Corporation you
will be eligible for protection under the provision of the Corporate Change in Control Agreement. A blank copy
of the agreement is attached.

	 	a.	 	
The Change in Control Agreement provides for a “double trigger.” First a
change in control of Quanex Building Products Corporation must occur. Generally a change in control would occur if an
unrelated person purchased 20 percent or more of Quanex Building Products Corporation’s outstanding stock.
Second, your employment must be terminated by the acquiring organization for other than cause, or you must resign for
“good reason” as defined in the Change in Control Agreement.

	 	b.	 	
Examples of “good reason” defined in the Change in Control Agreement
include: (1) when the common stock of Quanex Building Products Corporation or the entity into which Quanex
Building Products Corporation is merged is no longer being actively traded on the New York Stock Exchange; and
(2) the “relocation of the executive’s principal office outside the portion of the metropolitan area
of the City of Houston, Texas that is located within the Highway known as ‘Beltway 8.’”

	 	16.	 	
Executive Severance Provision. The purpose of this provision is to establish a
severance provision for you that recognizes (a) the relatively more difficult employment transition that occurs
upon the termination of employment of higher paid individuals; and (b) that you, to a greater extent than other
salaried employees, serve at the pleasure of the Board of Directors. Therefore, in the event that your employment is
terminated by the Board of Directors for a reason other than an Event of Termination for Cause as defined in
your Change in Control Agreement, you shall be entitled to the following benefits upon execution of a Release of Claims
Agreement in such form as is satisfactory to the Company:

	 	a.	 	
Base Salary for Two Years. Annualized base salary as in effect immediately
before the date of termination of employment, paid semi-monthly for a period of 24 months starting on the date of
termination of employment.

	 	b.	 	
Partial AIA Bonus Payment. The AIA bonus you earned in the fiscal year in which
your termination of employment occurs will be determined on a prorated basis by the Board of Directors. However, if
your termination of employment occurs during the fiscal year ending October 31, 2008, you shall receive the AIA
bonus outlined in paragraph two of this letter agreement.

	 	c.	 	
Continuation of Welfare Benefits. The Company, at its expense, will pay COBRA
(Consolidated Omnibus Reconciliation Act) premiums for the Company’s group health plan coverage (i.e. medical,
dental, vision, life, disability and any other company welfare plans in which you participate) for 18 months
following the termination of your employment.

However, no benefits are payable to you under this
“severance provision” if you are entitled to receive change in control benefits under your Change in
Control Agreement.

In the event your termination is an “Event of
Termination for Cause” as defined in your Change in Control Agreement, or for a material violation of the
Company’s

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Code of Business Conduct and Ethics, you will not be
entitled to the severance terms as set forth above.

	 	17.	 	
Additional Perquisites. Employee benefits are described in the enclosed
booklets. Also, as an Officer of the Corporation you will receive other perquisites which we can discuss at your
convenience.

	 	18.	 	
Background Check and Drug Screen. The offer is contingent upon your completing
and passing a drug test to be taken at the company’s expense, as well as a successful completion of the
background check.

	 	19.	 	
Principal Office. The Quanex Corporation offices at 1900 West Loop South,
Suite 1500, Houston, Texas will be your principal office.

Your employment may be terminated by either you or Quanex Building Products
Corporation at any time upon thirty days advance, written notice. This agreement is governed by the laws of the State
of Texas.

We believe that you will help provide the leadership we need to meet our
long-term goals established for the Corporation. The executive management team enjoys a positive and effective working
relationship. The members of the Board of Directors and the executive management team look forward to welcoming you to
this team.

I look forward to your positive response on or before May 9th.

Sincerely,

Joseph J. Ross 

Lead Director 

of the Quanex Building Products
Corporation Board of Directors

Enclosures

ACCEPTANCE OF OFFER

	 	 	 
	
                                                                 

	 	                                                                 
	
 

	 	 
	
David D. Petratis 

	 	Date

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