Document:

exhibit1014.htm

EXHIBIT 10.14

 

 

Employment Agreement

 

 

This Employment Agreement (the “Agreement”) is entered into this 8th day of May, 2013 (the “Execution Date”) by and between Globe Specialty Metals, Inc. (the “Company”) and Joseph Ragan (“Executive”).

 

WHEREAS, the Company desires to employ Executive on the terms and conditions set forth herein; and

 

WHEREAS, Executive has agreed to perform services for the Company as set forth below.

 

NOW THEREFORE, in consideration of the mutual covenants set forth herein, the parties agree as follows:

 

1. Position. Executive shall serve as the Company’s Chief Financial Officer, reporting to the Company’s Chairman, Chief Executive Officer and the Board of Directors (the “Board”). Executive shall diligently perform such responsibilities that are customarily associated with the position of Chief Financial Officer and as otherwise may be assigned to Executive from time to time by the Executive Chairman, Chief Executive Officer or Board.  This Agreement shall be effective as of May 20, 2013 (the “Commencement Date”).

 

2. Term.

 

(a) Executive’s employment will be for a term of three (3) years from the Commencement Date (the “Initial Term”) with automatic one (1)-year renewal terms thereafter (the Initial Term, together with any such renewal term, the “Term”), unless Executive or the Company give written notice to the other at least ninety (90) days prior to the expiration of the Term of such party’s election not to further extend this Agreement or unless sooner terminated as provided herein. Any termination of Executive’s employment will be governed by the terms set forth in this Agreement.

 

(b) Unless the Company provides Executive with notice of nonrenewal of the Term pursuant to Section 2(a) accompanied by a timely written notice of termination for Cause (as defined in Section 4(h)(iii) of this Agreement) in accordance with the procedures set forth in Section 4(e), the expiration of the Initial Term or the Term will be have the results specified in Section 4(l).

 

(c) If requested by the Company or Executive, the parties, at least 120 days prior to the expiration of the Term, shall commence good faith negotiations with respect to the renewal of this Agreement.  The election of either party not to further extend this Agreement shall not constitute a termination of Executive’s employment for the purposes of Section 4 of  this Agreement, and upon such expiration the Company shall have no further obligation to Executive other than as specified in Section 4(l).

 

3. Compensation and Benefits.

 

(a)  Executive’s base pay shall be at an annual rate of no less than $450,000.00, which shall be payable twice monthly in accordance with the Company’s customary payroll practices, subject to applicable withholding (the “Base Pay”).  The Base Pay shall be subject to annual upward adjustments (but not decreases) at the discretion of the Board.

 

(b) Commencing with this Agreement, Executive shall be a participant in, and shall receive an award under, the Company’s 2012 Long-Term Incentive Plan and shall receive a non-performance-based bonus as set forth in Exhibit B (collectively referred to in this Agreement as the “Bonus Plans”).  In addition, Executive may be awarded other bonuses, stock options and/or other stock benefits at the discretion of the Board (collectively with awards under the Bonus Plans, “Incentive Awards”), provided that Executive’s participation in the Bonus Plans and any other incentive plan or equity plan shall be in accordance with the terms of such plans. Unless otherwise required by law or plan documents, the vesting of Executive’s unvested Incentive Awards shall accelerate and vest in full (along with any accrued but unvested benefits under any supplemental retirement plan, excess retirement plan and deferred compensation plan maintained or contributed to by the Company or any of its Affiliates) upon (i) Executive’s termination of employment by reason of death, (ii) Executive’s termination of employment by reason of Disability (as provided in Section 4(b)), (iii) Executive’s termination of employment for Good Reason (as provided in Section 4(c)), (iv) Executive’s termination of employment by the Company other than for Cause (as provided in Section 4(f)), (v) Executive’s termination of employment by the Company during the Protection Period, other than for Cause (as provided in Section 4(g)), or (vi) Executive’s termination of employment during the Protection Period for Good Reason (as provided in Section 4(g)).  Any award or benefit the vesting of which is accelerated under this Section 3(b) shall be paid in accordance with the terms of the applicable plan unless otherwise provided in this Agreement.

 

(c)  Executive shall be offered the various benefits currently offered by the Company generally to its senior executives including, without limitation, life and health insurance (“Benefits”). Subject to the preceding sentence, any such Benefits may be modified or terminated from time to time at the sole discretion of the Company. Where a particular Benefit is subject to a formal plan (for example, medical insurance), eligibility to participate in and receive any particular Benefit is governed solely by the applicable formal plan document.

 

(d)  Executive shall be fully reimbursed for all reasonable and necessary business expenses upon presentation of adequate documentation to the Company demonstrating same, including up to $8,000 of Executive’s reasonable legal fees and expenses in connection with negotiating and entering into this Agreement.  Reimbursement payments due to Executive hereunder shall be paid to Executive as soon as administratively practicable, and in any event within twenty (20) days after being properly submitted.  If Executive becomes entitled to taxable reimbursements or the provision of in-kind benefits, such reimbursements and benefits shall not be subject to liquidation or exchange for another benefit and the amount of such reimbursements and benefits that Executive receives in one taxable year shall not affect the amount of such reimbursements and benefits that Executive receives in any other taxable year.

 

(e)  Executive annually will be granted twenty (20) days plus all federal holidays and all major religious holidays of his faith as paid time off days (“PTO” days) for Executive’s use for vacation, personal or sick leave. Executive’s accrued but unused PTO days shall not carry over from year to year and shall not be paid to Executive upon termination of employment.

 

(f)  Promptly following the close of business on the Commencement Date, the Company shall pay the Executive $75,000 in immediately available funds as a sign on bonus.

 

 

4. Termination of Employment and Effect of Termination.

 

(a)  Upon Death of Executive. Executive’s employment hereunder shall terminate upon his death, in which event the Company shall have no further obligation to Executive or his estate under this Agreement other than (i) the payment of accrued but unpaid Base Pay, (ii) the payment of the Incentive Awards to the extent then vested (after taking into account the accelerated vesting provisions under Section 3(b)), for the avoidance of doubt, all Incentive Awards shall vest in full upon Executive’s death, and (iii) a pro rata payment of the Incentive Awards (including under the Bonus Plans or any successor thereto) that would have been awarded had the employment termination not occurred for service in the then current plan year through the date of employment termination.  The amounts described in clause (i) shall be paid upon employment termination, the Incentive Awards described in clause (ii) shall be paid in accordance with the applicable plan terms (except that all such amounts shall be paid upon Executive’s death), and the amounts described in clause (iii) shall be awarded when such Incentive Awards would have been awarded had Executive’s employment continued and shall be paid at the time awarded.  The amounts described in such clauses (i) and (ii) and the associated payment terms are referred to herein as the “Accrued Obligations” and the amount described in such clause (iii) and the associated payment terms are referred to herein as the “Pro Rata Bonus.”

 

(b)  Due to Executive’s Disability. If Executive incurs a Disability and based upon the opinion of Executive’s treating physician, the Executive Chairman or Chief Executive Officer makes a good faith judgment that Executive is unable to perform his duties with or without a reasonable accommodation, and that his condition is likely to continue for at least twelve months, then the Company may, to the extent permitted by applicable law, terminate Executive’s employment upon written notice to Executive, in which event the Company shall have no further obligation to Executive other than payment of the Accrued Obligations and the Pro Rata Bonus.

 

(c)  By Executive for Good Reason. Executive may terminate his employment for Good Reason, provided Executive has first given written notice to the Company of such alleged Good Reason and the Company has failed to cure such Good Reason within thirty (30) days of receipt of such notice. Executive must provide prompt notice of the occurrence giving rise to the Good Reason. In the event that Executive elects to terminate this Agreement for Good Reason, Executive shall be entitled to:

 

(i) payment of the Accrued Obligations and the Pro Rata Bonus; and

 

(ii) a lump sum severance payment (which shall be paid upon effectiveness of the Release, as defined below) comprised of the following cash amounts:

 

(x) the product of one and the annual Base Pay,

 

(y) the product of one and the value of the Incentive Awards granted or vested during the calendar year that ended immediately before (or, if applicable, coincident with) the date of termination of employment, with the value of any shares subject to such Incentive Awards valued as of the date of employment termination (with the Incentive Awards granted within such period valued without regard to time vesting conditions and treated as if any performance vesting conditions that remained open at the time of employment termination were attained at target level), and

 

(z) an amount that, after payment of taxes, is equal to the cost of twelve months COBRA coverage for Executive and his dependents under the Company’s health, dental and vision plans, at such rates as are in effect as of the date of employment termination.

 

Executive’s entitlement to the payments described in clause (ii) (the “Severance Payments”) is conditioned on his execution of the release in the form attached hereto as Exhibit A (the “Release”) within 32 days after his employment termination (and, if the 40th day after his employment termination falls in the calendar year following the year that includes his employment termination date, the amounts described in clause (ii) shall be paid on such 40th day even if the Release is effective before such date).  In addition to the foregoing provisions, the provisions of Section 6(d) and Section 6(e) of this Agreement shall terminate upon the date of termination of employment pursuant to this Section 4(c).

 

(d)  By Executive without Good Reason. Executive may terminate his employment without Good Reason upon ninety (90) days’ prior written notice to the Company. In the event Executive terminates his employment without Good Reason, Executive shall be entitled to payment of the Accrued Obligations. In the event Executive’s employment is terminated pursuant to this Section 4(d), the Company may in its discretion relieve Executive of his duties and provide him with Base Pay, Incentive Awards and Benefits through the date of termination specified by Executive in his notice of resignation.

 

(e)  By Company for Cause. The Executive Chairman or Chief Executive Officer may terminate Executive’s employment for Cause upon written notice to Executive given within 90 days after such officer has knowledge of the event giving rise to such notice. Executive’s employment shall not be deemed to have been terminated for Cause unless the Company shall have given Executive (i) written notice setting forth the reason for the Company’s termination of Executive’s employment for Cause and (ii) if such reason is Cause described in clause (B) of the definition of Cause, a statement that, in the good faith opinion of the officer giving the original notice, any cure required pursuant to such clause was not successfully accomplished. In the event Executive is terminated for Cause, the Company’s only obligation to Executive will be the payment of the Accrued Obligations.

 

(f)  By the Company for Other than Cause. The Executive Chairman or Chief Executive Officer may terminate Executive’s employment for reasons other than Cause after giving at least sixty (60) days’ prior written notice of such termination to Executive. In the event the Company terminates Executive pursuant to this Section 4(f), Executive shall be entitled to payment of the Accrued Obligations, the Pro Rata Bonus and the Severance Payments, pursuant to the Release provisions and payment terms provided in Section 4(c).  In addition to the foregoing provisions, the provisions of Section 6(d) and Section 6(e) of this Agreement shall terminate upon the date of termination of employment pursuant to this Section 4(f).

 

(g)  In Connection with a Change of Control. If Executive’s employment is terminated during the Protection Period by the Company (or surviving entity, acquirer, successor or assign) other than for Cause, Disability or as a result of Executive’s death, or if Executive terminates his employment during the Protection Period for Good Reason, the Company shall pay Executive the amounts provided in Section 4(c), except that “one times the Average Annual Compensation” shall replace clauses (ii)(x) and (y) of the definition of “Severance Payments” contained therein.  Such amounts shall be paid pursuant to the Release provisions and payment terms provided in Section 4(c).  If, after the date of Executive’s employment termination, his employment termination is determined to have occurred during the Protection Period, any amounts payable pursuant to this Section 4(g) as a result of such employment termination shall be paid without duplication of (and shall be offset by) amounts previously paid to Executive (if any) pursuant to Section 4(c) or 4(f), as applicable.

 

(h) Definitions.  For the purposes of this Agreement, the following terms have the following meanings:

 

(i)  “Affiliate” means (a) any corporation (other than the Company) in an unbroken chain of corporations ending with the Company if, at the time of the determination, each of the corporations other than the Company owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain, or (b) any corporation (other than the Company) in an unbroken chain of corporations beginning with the Company if, at the time of the determination, each of the corporations other than the last corporation in the unbroken chain owns stock possessing fifty percent (50%) or more of the total combined voting power of all classes of stock in one of the other corporations in such chain.

 

 (ii)  “Average Annual Compensation” shall mean an amount equal to the annual average of the sums of (x) Executive’s annual Base Pay (and any other salary) from the Company and its Affiliates, plus (y) the value, as of the date of employment termination, of the Incentive Awards granted or vested, in each case during the five calendar years that ended immediately before (or, if applicable, coincident with) the date of termination of employment (with the Incentive Awards granted during such five-year period valued without regard to time vesting conditions and treated as if any performance vesting conditions that remained open at the time of employment termination were attained at target level).

 

(iii)  “Cause” shall mean termination for:

 

(A) Executive’s indictment, conviction or entry of nolo contendere plea to any felony (excluding a felony arising on account of vicarious liability or a moving violation) or any crime involving moral turpitude, dishonesty, fraud or embezzlement;

 

(B) Executive’s failure to perform his duties as reasonably directed by the Executive Chairman, Chief Executive Officer or Board or breach of any material term of this Agreement, after written notice to Executive (x) describing the nature of such failure or breach and (y) describing the method of remedy and allowing thirty (30) days’ opportunity to cure, if such failure or breach is susceptible of cure; or

 

(C) Executive’s commission of any act involving bad faith, moral turpitude, dishonesty, fraud, embezzlement, disloyalty or other similar conduct.

 

(iv)  “Change of Control” means the occurrence of any of the following events:

 

(A) Any “Person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the “Beneficial Owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such Person or any securities acquired directly from the Company or its Affiliates) representing 50% or more of the combined voting power of the Company’s then outstanding securities, excluding any Person who becomes such a Beneficial Owner in connection with a transaction described in clause (1) or (2) of paragraph (C) below; or

 

(B) individuals who, on the Execution Date, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s shareholders was approved or recommended by a vote of at least a majority of the directors then still in office who either were directors on the date hereof or whose appointment, election or nomination for election was previously so approved or recommended, cease to constitute a majority of the number of directors then serving in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company; or

 

(C) a merger or consolidation of the Company or any direct or indirect subsidiary of the Company with any other corporation, other than (1) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof) more than 50% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation or (2) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no Person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company (not including in the securities Beneficially Owned by such Person any securities acquired directly from the Company or its Affiliates) representing 50% or more of the combined voting power of the Company’s then outstanding securities; or

 

(D) approval by the stockholders of a sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, more than 50% of the combined voting power of the voting securities of which is owned by shareholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.

 

 (v) “Disability” shall have the meaning provided in Section 409A(a)(2)(C) of the Internal Revenue Code of 1986, as amended (the “Code”).

 

(vi) “Good Reason” shall mean Executive’s resignation following any of:

 

(A) a material reduction of Executive’s aggregate annual (1) compensation (comprised of Base Pay and Incentive Awards) as in effect on the date hereof or as the same may be increased from time to time, or (2) Base Pay, Incentive Awards  and Benefits as in effect on the date hereof or as the same may be increased from time to time; provided, that for purposes of this clause (A), an Incentive Award, if smaller than the Incentive Award made in an earlier year, shall not be deemed to have been reduced if it is determined in accordance with the provisions of the Incentive Award as set forth in the applicable Bonus Plan (including the provisions with respect to reduction based upon the ability of the Compensation Committee to exercise negative judgment);

 

(B) Executive’s authorities, duties, or responsibilities are materially diminished;

 

(C) a requirement that Executive report to a person or entity other than the Chairman, Chief Executive Officer or the Board; or

 

(D) a material breach by the Company of any of the terms of this Agreement.

 

(vii) “Protection Period” means the period beginning six months before the date of a Change of Control and ending on the last day of the 24th calendar month following the date of the Change of Control.

 

(i) Section 280G.

 

(i) Anything in this Agreement to the contrary notwithstanding, in the event the Accounting Firm (as defined below) shall determine that receipt of all Payments (as defined below) would subject Executive to the excise tax under Section 4999 of the Code, the Accounting Firm shall determine whether to reduce any of the Payments paid or payable pursuant to this Agreement (the “Agreement Payments”) so that the Parachute Value (as defined below) of all Payments, in the aggregate, equals the Safe Harbor Amount (as defined below). The Agreement Payments shall be so reduced only if the Accounting Firm determines that Executive would have a greater Net After-Tax Receipt (as defined below) of aggregate Payments if the Agreement Payments were so reduced. If the Accounting Firm determines that Executive would not have a greater Net After-Tax Receipt of aggregate Payments if the Agreement Payments were so reduced, Executive shall receive all Agreement Payments to which Executive is entitled hereunder.

 

(ii) If the Accounting Firm determines that the aggregate Agreement Payments should be reduced so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount, the Company shall promptly give Executive notice to that effect and a copy of the detailed calculation thereof. All determinations made by the Accounting Firm under this Section 4(i) shall be binding upon the Company and Executive and shall be made as soon as reasonably practicable and in no event later than thirty (30) days following the date of termination. For purposes of reducing the Agreement Payments so that the Parachute Value of all Payments, in the aggregate, equals the Safe Harbor Amount, only amounts payable under this Agreement (and no other Payments) shall be reduced.  If a reduction in the Payments is necessary so that the Parachute Value of all Payments equals the Safe Harbor Amount and none of the Payments constitutes a “deferral of compensation” within the meaning of and subject to Section 409A (“Nonqualified Deferred Compensation”), then the reduction shall occur in the manner Executive elects in writing prior to the date of payment.  If any Payment constitutes Nonqualified Deferred Compensation, then the Payments to be reduced will be determined by the Accounting Firm in a manner that enables Executive to retain the greatest aggregate economic benefit as of the day following the Release effective date, and to the extent the economic benefit of Payments is determined to be equivalent, the Payments will be reduced in the reverse order of when they are scheduled to be paid (and, in the case of Payments of equity securities, transferable). All fees and expenses of the Accounting Firm shall be borne solely by the Company.

 

(iii) As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that amounts will have been paid or distributed by the Company to or for the benefit of Executive pursuant to this Agreement that should not have been so paid or distributed (“Overpayment”) or that additional amounts which will have not been paid or distributed by the Company to or for the benefit of Executive pursuant to this Agreement could have been so paid or distributed (“Underpayment”), in each case, consistent with the calculation of the Safe Harbor Amount hereunder. In the event that the Accounting Firm, based upon the actual assertion of a deficiency by the Internal Revenue Service against either the Company or Executive that the Accounting Firm believes has a high probability of success, determines that an Overpayment has been made, Executive shall promptly (and in no event later than sixty (60) days following the date on which the Overpayment is determined) pay any such Overpayment to the Company; provided, however, that no amount shall be payable by Executive to the Company if and to the extent such payment would not either reduce the amount on which Executive is subject to tax under Sections 1 and 4999 of the Code or generate a refund of such taxes. If the Accounting Firm, based upon controlling precedent or substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be paid promptly (and in no event later than sixty (60) days following the date on which the Underpayment is determined) by the Company to or for the benefit of Executive.

 

(iv) To the extent requested by Executive, the Company shall cooperate with Executive in good faith in valuing, and the Accounting Firm shall take into account the value of, services provided or to be provided by Executive (including without limitation Executive’s agreeing to refrain from performing services pursuant to a covenant not to compete or similar covenant, including that set forth in Section 6 of this Agreement) before, on or after the date of a change in ownership or control of the Company (within the meaning of Q&A-2(b) of the final regulations under Section 280G of the Code), such that payments in respect of such services may be considered reasonable compensation within the meaning of Q&A-9 and Q&A-40 to Q&A-44 of the regulations under Section 280G of the Code and/or exempt from the definition of the term “parachute payment” within the meaning of Q&A-2(a) of the regulations under Section 280G of the Code in accordance with Q&A-5(a) of the regulations under Section 280G of the Code.

 

(v) Section 4(i) definitions. The following terms shall have the following meanings for purposes of this Section 4(i):

 

“Accounting Firm” shall mean a nationally recognized certified public accounting firm that is selected by the Company for purposes of making the applicable determinations under Section 4(i) and is reasonably acceptable to Executive, which firm shall not, without Executive’s consent, be a firm serving as accountant or auditor for the individual, entity or group effecting the Change of Control.

 

“Net After-Tax Receipt” shall mean the present value (as determined in accordance with Sections 280G(b)(2)(A)(ii) and 280G(d)(4) of the Code) of a Payment net of all taxes imposed on Executive with respect thereto under Sections 1 and 4999 of the Code and under applicable state and local laws, determined by applying the highest marginal rate under Section 1 of the Code and under state and local laws which applied to Executive’s taxable income for the immediately preceding taxable year, or such other rate(s) as the Accounting Firm determined to be likely to apply to Executive in the relevant tax year(s).

 

“Parachute Value” of a Payment means the present value as of the date of the change of control for purposes of Section 280G of the Code of the portion of such Payment that constitutes a “parachute payment” under Section 280G(b)(2) of the Code, as determined by the Accounting Firm for purposes of determining whether and to what extent the excise tax under Section 4999 of the Code will apply to such Payment.

 

“Payment” means any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of Executive, whether paid or payable pursuant to this Agreement or otherwise.

 

“Safe Harbor Amount” means (A) 3.0 times Executive’s “base amount,” within the meaning of Section 280G(b)(3) of the Code, minus (B) $1.00.

 

(j) Additional Limitation.  Notwithstanding any other provision with respect to the timing of payments under this Section, if, at the time of Executive’s separation from service, within the meaning of Section 409A of the Code (without regard to the alternative definitions thereunder) (the “Separation Date”), Executive is deemed to be a “specified employee” of the Company within the meaning of Section 409A of the Code, then only to the extent necessary to comply with the requirements of Section 409A of the Code, any payments to which Executive may become entitled under Section 4 that are subject to Section 409A of the Code (and not otherwise exempt from its application) will be withheld until the first (1st) business day of the seventh (7th) month following Executive’s termination of employment, at which time Executive shall be paid an aggregate amount equal to the accumulated, but unpaid, payments otherwise due to Executive under the terms of Section 4.  For purposes of determining the timing of payments to Executive following termination of employment, all references to such termination shall mean the Separation Date.

 

(k) Tax Treatment.  This Agreement is intended to comply with (or be exempt from) Section 409A of the Code. The Company does not guarantee the tax treatment or tax consequences associated with any payment or benefit set forth in this Agreement, including but not limited to consequences related to Code Section 280G or Code Section 409A. Executive and the Company agree to both negotiate in good faith and jointly execute an amendment to modify this Agreement to the extent necessary to comply with the requirements of Code Section 409A; provided that no such amendment shall be required that would increase the total financial obligation of the Company or the total after-tax cost to Executive under this Agreement.

 

(l)  Expiration of Term.  If Executive’s employment hereunder shall terminate upon expiration of this Agreement (other than if accompanied by a timely written notice of termination for Cause in accordance with the procedures set forth in Section 4(e)), the Company shall have no further obligation to Executive other than (i) the payment of accrued but unpaid Base Pay, (ii) the payment of the Incentive Awards to the extent then vested, (iii) the subsequent payment of the unvested Incentive Awards as their time vesting schedules are completed and (iv) a pro rata payment of the Incentive Awards (including under the Bonus Plans or any successor thereto) that would have been awarded had the employment termination not occurred for service in the then current plan year through the date of employment termination.  The amounts described in clause (i) shall be paid upon employment termination, the Incentive Awards described in clause (ii) and clause (iii) shall be paid in accordance with the applicable plan terms (except that amounts payable pursuant to clause (ii) shall be paid upon Executive’s termination), and the amounts described in clause (iv) shall be awarded when such Incentive Awards would have been awarded had Executive’s employment continued and shall be paid at the time awarded.

 

5. Indemnity. The Company hereby covenants and agrees to indemnify Executive and hold Executive harmless from any and all claims arising from or relating to Executive’s performance of Executive’s duties hereunder to the fullest extent permitted by law and/or the Company’s Directors and Officers Liability Insurance or applicable certificate of incorporation or bylaws or other applicable document in respect to any and all actions, suits, proceedings, claims, demands, judgments, losses, damages and reasonable out-of-pocket costs and expenses (including reasonable out-of-pocket attorney’s fees and expenses) resulting from Executive’s good faith performance of his duties and obligations with the Company or any of its affiliates or as the fiduciary of any benefit plan of the Company or its affiliates.  To the extent permitted by applicable laws, the Company, within 30 days of presentation of invoices, shall reimburse Executive for all reasonable out-of-pocket legal fees and disbursements reasonably incurred by Executive in connection with any such indemnifiable matter.  In addition, the Company shall cover Executive under its directors and officers liability insurance policy both during the term of this Agreement and during the six-year period thereafter in the same amount and to the same extent as the Company covers its other officers and directors during any such period of time.

 

6. Confidentiality; Non-Competition and Non-Solicitation.

 

(a) Duty Not to Disclose Confidential Information. Executive will be exposed to and have access to Confidential Information. Executive agree to hold all Confidential Information in strict confidence and trust for the sole benefit of the Company, and he will not disclose, use, copy, publish, summarize or remove any Confidential Information from the Company’s premises, except as specifically authorized in writing by the Company or in connection with the usual course of Executive’s employment, except that it will not be a violation of this Agreement if, in enforcement of Executive’s rights under this Agreement or another arrangement between Executive and the Company or any of its Affiliates, Executive makes use of information reasonably necessary to such enforcement.

 

(b) Definition. “Confidential Information” means all Company proprietary information, technical data, trade secrets, know-how and any idea in whatever form, tangible or intangible, including without limitation, research, product plans, customer and client lists, developments, inventions, processes, technology, designs, drawings, marketing and other plans, business strategies and financial data and information. “Confidential Information” shall also mean information received by the Company from customers or clients or other third parties subject to a duty to keep confidential but, notwithstanding anything to the contrary contained herein, shall exclude Executive’s personal rolodex and contacts list.  Notwithstanding the foregoing, “Confidential Information” shall not include (i) information that, at the time of disclosure, is in the public domain other than as a result of the breach by Executive of any obligation of confidentiality or non-disclosure owed to the Company or any of its affiliates, and (ii) information required to be disclosed by any judicial or administrative proceedings or applicable laws so long as, to the extent legal and practicable, reasonable prior notice is given of such disclosure and, to the extent legal and practicable, a reasonable opportunity is afforded to the Company, at its sole expense, to contest such disclosure.

 

(c) Documents and Materials. Executive further agrees that Executive will return all Confidential Information, including all copies and versions of such Confidential Information (including but not limited to information maintained on paper, disk, CD-ROM, network server, or any other retention device whatsoever) and other property of the Company, to the Company immediately upon cessation of Executive’s employment with the Company. These terms are in addition to any statutory or common law obligations that Executive may have relating to the protection of the Company’s Confidential Information or its property. These restrictions shall survive the termination of employment.

 

(d) Non-Competition. Unless previously terminated pursuant to Section 4(c) or 4(f) of this Agreement, during the Term and for a period of two years thereafter (the “Noncompete Period”), Executive shall not, directly or indirectly, either alone or in association with others, own, manage, operate, sell, control or participate in the ownership, management, operation, sales or control of, be involved with the development efforts of, serve as a technical advisor to, license intellectual property to, provide services to or in any manner engage in any business that directly competes with any specific business (1) in which the Company and its Affiliates (taken as a whole) are materially engaged as of the date of Executive’s termination or resignation or (2) for which the Company or any of its Affiliates has, within one year prior to Executive’s termination or resignation, taken substantial, demonstrable steps to become materially engaged, in which the Company and its Affiliates (taken as a whole), within one year after Executive’s termination or resignation, would reasonably be expected to be materially engaged; provided, however, that Executive may own as a passive investor up to 5.0% of any class of an issuer’s publicly traded securities (as used in this sentence, “material” shall mean material to the aggregate results of the Company and its Affiliates taken as a whole). The Noncompete Period shall be extended by the length of any period during which Executive is found by a court or arbitrator to be in breach of the terms of this Section 6(d).  Executive acknowledges (i) that the business of the Company and its Affiliates is, and is expected to remain, international in scope and without geographical limitation; (ii) notwithstanding the state of incorporation or principal office of the Company or any of its Affiliates, or any of their respective executives or employees (including Executive), it is expected that the Company and its Affiliates will have business activities and have valuable business relationships within its industry throughout the world; and (iii) as part of his responsibilities, Executive will travel around the world in furtherance of the Company’s and its Affiliates’ businesses and their relationships. Accordingly, the restrictions set forth in this Section 6 shall be effective in all cities, counties and states of the United States and all countries in which the Company or any of its Affiliates has an office or has made commercial sales within 12 months prior to the date of Executive’s termination or resignation.

 

            (e) Non-Solicitation; Non-Hire. During the Noncompete Period, Executive will not, directly or indirectly, (i) recruit, solicit or induce, or attempt to recruit, solicit or induce any employee or employees of the Company or any of its Affiliates to terminate their employment with, or otherwise cease their relationship with, the Company or (ii) hire any person who was an employee of the Company or any of its Affiliates within six (6) months prior to the time such employee is proposed to be hired by Executive; (iii) solicit, divert or take away, or attempt to solicit, divert or take away, the business or patronage of any of the clients, customers or accounts, or prospective clients, customers or accounts, of the Company or any of its Affiliates for similar products that the Company produces.

 

(f) Saving Clause.  If any restriction set forth in this Section is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

 

(g) Acknowledgement.  The restrictions contained in this Section are necessary for the protection of the business and goodwill of the Company and are considered by Executive to be reasonable for such purpose. Executive agrees that any breach of this Section will cause the Company substantial and irrevocable damage and therefore, in the event of any such breach, in addition to such other remedies which may be available, the Company shall have the right to seek specific performance and injunctive relief.

 

(h) Representations.  Executive represents that his performance of all the terms of this Agreement as an employee of the Company does not and will not breach any existing (i) agreement to keep in confidence proprietary information, knowledge or data acquired by him in confidence or in trust prior to his employment with the Company or (ii) agreement to refrain from competing, directly or indirectly, with the business of any previous employer or any other party.

 

(i) Exclusivity.  The restrictive covenants set forth in this Section 6 replace and supersede any similar restrictive covenants in any other agreements or plans to which Executive has or shall become subject in connection with Executive’s service to the Company and its Affiliates.  Other than these restrictive covenants and any obligations imposed by applicable law or regulation, absent Executive’s written consent there shall be no other restrictions imposed by the Company or any Affiliate on Executive’s activities following the Term, and no Incentive Award or other compensation or Benefit shall be conditioned on Executive’s assent to any restrictive covenant that imposes limitations greater than those set forth in this Section 6, and any such restrictive covenant shall be void to the extent it conflicts with a provision contained in this Agreement.

 

7. Notices. All notices required or permitted under this Agreement shall be in writing and shall be deemed effective upon (a) the date of receipt, if sent by personal delivery (including delivery by reputable overnight courier), or (b) the date of receipt or refusal, if deposited in the United States Post Office, by registered or certified mail, postage prepaid and return receipt requested, (c) the next business day, if sent by reputable overnight courier for delivery on such business day, or (d) the date of receipt, if transmitted by facsimile, in each case at the address of record of Executive or the Company, as applicable, or at such other place as may from time to time be designated by either party in writing.

 

8. Assignment. This Agreement is not assignable by Executive but may be assigned by the Company to an Affiliate of the Company (provided such Affiliate has financial resources substantially comparable to those of the Company prior to such assignment or to any transactions made by the Company in connection with such assignment) without Executive’s prior consent.

 

9. Merger Clause/Governing Law/Arbitration.

 

(a)  Entire Agreement.  This Agreement constitutes the entire agreement regarding the terms and conditions of Executive’s employment with the Company and its Affiliates.  This Agreement supersedes any prior agreements, or other promises or statements (whether oral or written) regarding the terms of employment with the Company and its Affiliates.  This Agreement may only be amended in a writing that is executed by both Executive and the Company.

 

(b)  Governing Law; Arbitration.  This Agreement shall be governed by the law of the State of New York without regard to conflicts of laws. If any dispute arises out of or relates to this Agreement, or the breach thereof (a “Dispute”), such Dispute shall be finally resolved by arbitration administered by the American Arbitration Association under its Employment Dispute Rules, and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction.  The arbitration will be conducted in New York County, New York, before a sole arbitrator named in accordance with such rules, and shall be conducted in accordance with the United States Arbitration Act.  The parties agree that the existence of any Dispute subject to this provision, any proceedings to resolve such Dispute, and all submissions received by any party from any other party in connection with such Dispute or proceedings shall be treated as confidential.  At the discretion of the arbitrator, the non-prevailing party in such arbitration may be ordered to pay the reasonable out-of-pocket costs and legal fees and disbursements incurred by the prevailing party in such arbitration and in preparation therefor, but in no event shall the arbitrator be authorized to order reinstatement of Executive.  Nothing in this Section shall be construed to derogate the Company’s right to seek legal and equitable relief in a court of competent jurisdiction for breaches of Section 6 as contemplated by Section 6(g).

 

10. Validity. The invalidity or unenforceability of any provision or provisions of this Agreement shall not be deemed to affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. A court or arbitrator shall modify any invalid or unenforceable provision to make it valid and enforceable to the maximum extent permitted by law.

 

11. Successors. This Agreement shall be binding upon the Company, its successors and assigns, including any corporation or other business entity which may acquire all or substantially all of the Company’s assets or business, or within which the Company may be consolidated or merged, or any surviving corporation in a merger involving the Company.

 

12. No Mitigation.  Executive shall not be required to mitigate the amount of any payments or benefits provided for under this Agreement by seeking other employment, nor shall any amounts to be received by Executive under this Agreement be reduced by any other compensation earned from a subsequent employer (including self-employment).

 

13. Headings. The headings in this Agreement are inserted for convenience only and shall not affect its construction.

 

14. Counterparts. This Agreement may be executed in one or more counterparts, each of which and together will constitute one and the same instrument.

 

[signature page follows]

  

  

  

 

In witness whereof, the parties hereto have signed this Agreement as of the date first set forth above.

 

Globe Specialty Metals, Inc.

 

 

By:  /s/ Jeff Bradley 

Name:  Jeff Bradley

Title:  Chief Executive Officer

 

 

By:  /s/ Joseph Ragan 

Name:  Josepn Ragan

Title:  Chief Financial Officer

 

 

 

  

  

  

 

 

EXHIBIT A

 

 

Agreement and Release

 

Agreement and Release (“Agreement”), by Joseph Ragan (“Executive” and referred to herein as “you”) and Globe Specialty Metals, Inc., a Delaware corporation (the “Company”).

 

1.           In exchange for your waiver of claims against the Released Persons (as defined below) and compliance with the other terms and conditions of this Agreement, following the effectiveness of this Agreement, the Company shall provide you with the payments and benefits provided in your employment agreement with the Company, effective as of 8, 2013 (the “Employment Agreement”), in accordance with the terms and conditions of the Employment Agreement.

 

2.           (a)  In consideration for the payments and benefits to be provided to you pursuant to Section 1 above, which you acknowledge are more than to which you would otherwise be entitled, you hereby waive any claim you may have for employment by the Company and agree not to seek such employment or reemployment by the Company in the future.  You further agree to and do forever release and discharge the Company and its subsidiaries, divisions, affiliates and related business entities, successors and assigns, and any of its or their respective directors and officers, shareholders, employees and agents (in their capacity as such) (collectively, the “Released Persons”) from any and all claims, suits, demands, causes of action, covenants, obligations, debts, costs, expenses  fees and liabilities of any kind whatsoever (including, without limitation, back pay, front pay, compensatory damages, punitive damages, exemplary damages, attorneys’ fees and costs actually incurred), in law or equity, by statute or otherwise, whether known or unknown, vested or contingent, suspected or unsuspected and whether or not concealed or hidden (collectively, the “Claims”), arising out of or related to your employment with the Company or the termination thereof, which you have had, now have, or may have against any of the Released Persons by reason of any act, omission, transaction, practice, plan, policy, procedure, conduct, occurrence, or other matter arising up to and including the date on which you sign this Agreement, except as provided in subsection (c) below.

 

(b)  Without limiting the generality of the foregoing, this Agreement is intended to and shall release the Released Persons from any and all such claims and causes of action arising out of or related to your employment with the Company or the termination thereof, including, but not limited to: (i) any and all rights or claims under the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act, the Employee Retirement Income Security Act of 1974 (excluding claims for accrued, vested benefits under any employee benefit or incentive plan of the Released Persons, subject to the terms and conditions of such plan and applicable law), the Family and Medical Leave Act, the Worker Adjustment and Retraining Notification Act of 1988, the Fair Labor Standards Act of 1938; (ii) any and all other rights or claims whether based on federal, state, or local law (statutory or decisional), rule, regulation or ordinance, including, but not limited to, breach of contract (express or implied), wrongful discharge, tort, fraud, detrimental reliance, defamation, emotional distress or compensatory or punitive damages; and (iii) any claim for attorneys’ fees, costs, disbursements and/or the like.

 

(c)  Notwithstanding the foregoing, nothing in this Agreement shall be a waiver of Claims: (i) that arise after the date on which you sign this Agreement, (ii) for the payments, benefits or rights required to be provided under the Employment Agreement or under any Incentive Award; (iii) related to any equity award, equity interest, or incentive program in which you may have received grants or allocations at or before the date of your employment termination; (iv) regarding rights of indemnification under the Employment Agreement or otherwise; or (v) relating to any accrued, vested benefits under any employee benefit plan or incentive plan of the Released Persons, subject to the terms and conditions of such plan and applicable law.

 

(d)  In signing this Agreement, you acknowledge that you intend that this Agreement shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied.  You expressly consent that this Agreement shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown, unsuspected or unanticipated Claims, if any, as well as those relating to any other Claims hereinabove mentioned or implied.

 

3.           (a)  This Agreement is not intended, and shall not be construed, as an admission that any of the Released Persons has violated any federal, state or local law (statutory or decisional), ordinance or regulation, breached any contract or committed any wrong whatsoever against you.

 

(b)  Should any provision of this Agreement require interpretation or construction, it is agreed by the parties that the entity interpreting or constructing this Agreement shall not apply a presumption against one party by reason of the rule of construction that a document is to be construed more strictly against the party who prepared the document.

 

(c)  You represent and warrant that you have not assigned or transferred to any person or entity any of my rights which are or could be covered by this Agreement, including but not limited to the waivers and releases contained in this Agreement.

 

4.           This Agreement is binding upon, and shall inure to the benefit of, the parties and their respective heirs, executors, administrators, successors and assigns.

 

5.           This Agreement shall be construed and enforced in accordance with the laws of the State of New York applicable to agreements made and to be performed entirely within such State.

 

6.           You acknowledge that you: (a) have carefully read this Agreement in its entirety and understand all of its terms, including the waiver and release of claims set forth in paragraph 2 above; (b) have had an opportunity to consider for at least twenty-one (21) days the terms of this Agreement; (c) are hereby advised by the Company in writing to consult with an attorney or other advisor of your choice in connection with this Agreement; (d) have had answered to your satisfaction by your independent legal counsel any questions you have asked with regard to the meaning and significance of any of the provisions of this Agreement; (e) are signing this Agreement voluntarily and of your own free will, and no promises or representations have been made to you by any person to induce you to enter into this Agreement other than the express terms set forth herein; and (f) agree to abide by all the terms and conditions contained herein.

 

7.           You understand that you will have at least twenty-one (21) days from the date of receipt of this Agreement to consider, sign and return this Agreement.  You may accept this Agreement by signing it and returning it to the Company’s General Counsel at the address specified pursuant to Section 7 of the Employment Agreement on or before _______.  After executing this Agreement, you shall have seven (7) days (the “Revocation Period”) to revoke this Agreement by indicating your desire to do so in writing delivered to the General Counsel at the address above by no later than the seventh (7th) day after the date you sign this Agreement.  The effective date of this Agreement shall be the eighth (8th) day after you sign the Agreement (irrespective of whether the Company has countersigned the Agreement) (the “Agreement Effective Date”), provided that you have not revoked the Agreement.  If the last day of the Revocation Period falls on a Saturday, Sunday or holiday, the last day of the Revocation Period will be deemed to be the next business day.  In the event you do not accept this Agreement as set forth above, or in the event you revoke this Agreement during the Revocation Period, this Agreement shall be deemed automatically null and void.

 

8.           Any dispute regarding this Agreement shall be subject to the dispute resolution provisions contained in the Employment Agreement.

 

 

 

 

 

 

 

 

EXECUTIVE

 

____________________________________

Joseph Ragan

 

GLOBE SPECIALTY METALS, INC.

 

 

____________________________________

[      Name           ]

[      Title           ]

  

  

  

 

 

EXHIBIT B

 

Award of

Performance-Based Bonus under the 2012 Long-Term Incentive Plan and

Non-Performance Based Bonus

 

Globe Specialty Metals, Inc. (the “Company”) hereby agrees to pay Joseph Ragan (the “Executive”) a performance-based bonus (the “Award”) and a non-performance based bonus (the “Bonus”) on the following terms:

 

Terms of Bonus:

 

1.           In addition to the Award, the Company also hereby agrees to pay the Executive an additional annual bonus of up to $200,000 with respect to each of 2013, 2014 and 2015, based on the Chief Financial Officer achieving certain individual performance goals to be adopted with respect to such years (the “Bonus”).  These goals will be established by the executive chairman, the chief executive officer and the Company’s Compensation Committee of the board of directors and communicated in writing to the Executive by January 31st of each of the years (or within ninety days of the Commencement Date in the case of 2013).  The Executive will be provided with an update of how he is performing compared to those pre-established goals on a quarterly basis. Prior to the end of each calendar year, the Executive will receive a written evaluation of his performance compared to that year’s pre-established goals.

 

2.           The Bonus is not an award under the Plan, but is included in this document for the convenience of the parties.

 

Terms of Award:

 

1.           The Award with respect to each of calendar year 2013, 2014 and 2015 shall be as follows:

 

(a) if 80% of modified EBITDA plus 20% of modified free cash flow for the calendar year is equal to or less than $160,000,000, the Executive shall receive an award equal to the sum of (i) 0.4763% of modified EBITDA and (ii) 0.1191% of modified free cash flow, or

 

(b) if 80% of modified EBITDA plus 20% of modified free cash for such calendar year exceeds $160,000,000, then the Executive shall receive an award equal to the sum of (i) 0.4400% of modified EBITDA and (b) 0.1100% of modified free cash flow.

 

A detailed description of “modified EBITDA” and “modified free cash” flow are set forth in Exhibit A to the 2011 Annual Executive Long Term Incentive Plan for the CFO and CLO the (“2011 Plan”), which definitions are hereby made part of this Award.  The results of acquisitions will be included in making the calculations of modified EBITDA and modified free cash flow.  “One-time costs” will be excluded in making the calculations of modified EBITDA and modified free cash flow.  The definition of one-time costs is set forth in Exhibit B to the 2011 Plan, which definition is hereby made part of this Award.  The Company’s Compensation Committee may elect, in its judgment, not to exclude certain one-time costs that otherwise would be excluded as a result of the definition. A sample calculation is set forth at Exhibit A.

 

2.           All calculations under the Award are to be based upon the results for the calendar years ending December 31, 2013, 2014 and 2015.

 

3.           If 80% of modified EBITDA plus 20% of modified free cash flow for the calendar year is equal to or less than $160,000,000, the total Award and Bonus pursuant to the foregoing provisions shall be capped at $1,000,000.  If 80% of modified EBITDA plus 20% of modified free cash flow for such calendar year exceeds $160,000,000, the total Award pursuant to the foregoing provisions shall be capped at $1,200,000.

 

4.           The Award shall be pro-rated for any partial year.

 

5.           The Award is expressly subject to the terms of the Company’s 2012 Long-Term Incentive Plan (the “Plan”), which terms are expressly incorporated herein by reference.

 

6.           Notwithstanding anything else to the contrary herein, for 2013 Executive shall receive a minimum Award of $250,000 divided by 365 multiplied by the number of days worked in 2013.

 

Thresholds and adjustments:

 

1.           The accrual of the Award is subject to the Company meeting a threshold performance requirement that the fraction determined by dividing modified EBITDA before “one-time costs” define in Exhibit B to the 2011 Plan (including the appropriate bonus accrual) for the calendar year by average Committed Capital exceed 0.2. A detailed description of “Committed Capital” is set forth in Exhibit A to the 2011 Plan, which definition is hereby made part of this Award.  Average Committed Capital will be calculated as the 13 point monthly average of Committed Capital for the calendar year, starting with Committed Capital. Committed Capital will exclude the impact of one-time costs defined in Exhibit B to the 2011 Plan. The Compensation Committee may elect, in its judgment, not to exclude certain one-time costs that otherwise would be excluded as a result of the definition.

 

2.           The Compensation Committee may exercise negative judgment to reduce the Award, including as noted in the framework for relative performance measures attached as Exhibit C to the 2011 Plan, which framework is hereby made part of this Award.

 

Payout terms:

 

1.           A portion of the Award will be paid in cash and a portion will be made by the award of restricted stock units (RSUs) that proportionally vest over three years but are not paid out until the end of the third year and will be paid out only in cash. The portion of the Award that will be paid in RSU’s will be equal to a maximum of the following:

 

Sum of 80% of “modified EBITDA”                                                                           Deferral percentage

and 20% of “modified free cash flow”                                                                of financial performance-based award

 

Below $70,000,000                                                                                  0.0%

$70,000,000                                                                                  2.1%

$80,000,000                                                                                       3.8%

$90,000,000                                                                                      6.1%

$100,000,000                                                                                    8.0%

$110,000,000                                                                                           10.5%

$120,000,000                                                                                           12.5%

$130,000,000                                                                                           16.2%

$140,000,000                                                                                           19.3%

$150,000,000                                                                                           22.0%

$160,000,000                                                                                           25.9%

$170,000,000                                                                                           29.4%

$180,000,000                                                                                           32.5%

$190,000,000                                                                                           35.3%

$200,000,000                                                                                           37.7%

 

Notwithstanding the above, the deferral percentage will be adjusted downward if the cash amount of the Award does not increase as the “modified EBITDA” and “modified free cash flow” increases.

 

2.           The Bonus will be paid in cash.

 

3.           Up to 95% of estimated cash under the Award and the Bonus will be paid in December of each year, based upon the Company’s estimate of the calendar year’s results, the Compensation Committee’s evaluation of relative performance for the first nine months of the calendar year and total stockholder return for the calendar year and the Company’s estimate of the performance of the goals under the Bonus.  If actual results for the calendar year are less than the estimate, the Executive will return to the Company any over-payment and the deferred amount will be appropriately adjusted.

 

Acceleration and termination:

 

1.           The Award and the Bonus shall be subject to the acceleration, termination and other terms set forth in Section 4 of the Employment Agreement dated May 8, 2013 between the Company and the Executive (the “Employment Agreement”).

 

Other terms:

 

1.           The Award and the Bonus shall be subject to a claw back provision providing that if the Board of Directors determines that (a) there was executive misconduct in a prior period in the preparation of the financial results for that period that results in a restatement and (b) the restatement is material, the Compensation Committee will determine if the extent, if any, that “covered payments” (x) were overstated as a result of the restatement and (y) should be returned to the Company. Covered payments include amounts paid to the Executive if the Executive is found to have actively participated in such executive misconduct.

 

2.           Subject to the provisions of the Employment Agreement with respect to termination by the Executive for Good Reason, the Board of Directors reserves the right to modify or terminate the Award or the Bonus.

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized representative and the Executive has executed this Agreement this 8th day of May, 2013.

 

 

GLOBE SPECIALTY METALS, INC.

By:  /s/ Jeff Bradley 

Name:  Jeff Bradley

Title:  Chief Executive Officer

 

 

EXECUTIVE

By:  /s/ Joseph Ragan 

Name:  Josepn Ragan

Title:  Chief Financial Officerexhibit1015.htm

EXHIBIT 10.15

 

 

SEPARATION AGREEMENT

 

This Separation Agreement (“Agreement”), effective as of the Effective Date described in Section 12 below, is made and entered into by and between Globe Specialty Metals, Inc. (“GSM”) and Malcolm Apppelbaum (“Executive”).  GSM and Executive are referred to collectively as the “Parties.”

 

WHEREAS, Executive currently is employed by GSM as Chief Financial Officer; 

 

WHEREAS, GSM and the Executive desire to cease the employment relationship; and

 

WHEREAS, the Parties desire to transition Executive’s duties as smoothly as possible and to resolve all matters between them on a full and final basis;

 

NOW, THEREFORE, in consideration of the promises contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows:

 

1.  Cessation.  Executive hereby ceases his employment with GSM effective as of the later of August 31, 2013 or the date that GSM’s Annual Report on Form 10-K for the fiscal year ending June 30, 2013 is filed with the Securities and Exchange Commission and attendant investor calls are completed (the “Cessation Date”).  Thereafter, Executive will not perform any services for GSM or its subsidiaries or affiliated entities (collectively “Affiliates”).  Prior to the Cessation Date, GSM may, upon prior written notice, terminate Executive’s employment for any reason, subject only to compliance with this Agreement. Promptly following the Cessation Date or such earlier date as Executive’s employment may be otherwise terminated, Executive will return all property of GSM and its Affiliates, and all copies, excerpts or summaries thereof, in his possession, custody or control.  Further, effective upon the Cessation Date, or such earlier date as Executive’s employment may be otherwise terminated, Executive shall be deemed to have resigned his membership on all boards of Affiliates and from other executive or corporate positions with Affiliates. 

 

2.  Transition.  Between the Effective Date and the date that Executive ceases employment (the “Transition Period”), Executive will, to the extent reasonably requested by GSM, continue to perform his current duties as Chief Financial Officer (the “Duties”) in a professional, loyal and timely manner consistent with his historical levels of performance.  If a replacement for Executive is found during the Transition Period, Executive will be responsible during the Transition Period for training, supporting and effectively transitioning his Duties to such replacement.

 

3.  Compensation and Benefits. 

 

(a) Through the Cessation Date, GSM will continue to (i) pay Executive his base salary at the rate in effect as of December 31, 2012, less customary withholdings (the “Salary Continuation”), and (ii) provide Executive with the benefits in which he participated as of December 31, 2012, namely, health insurance, in accordance with and to the extent required by the applicable plans, programs and policies, as the same may be amended or terminated by GSM in its discretion for all senior executives. After the Transition Period , Executive will not accrue any vacation, sick leave or other paid time off, and Executive will not receive any payment for any accrued but unpaid vacation, sick leave, or other paid time off as of the Cessation Date.  Further, Executive will not be entitled to any (i) cash bonus or performance payment with respect to the period after December 31, 2012 or (ii) award under the Long-Term Incentive Plan with respect to the period after December 31, 2012.  

 

(b) GSM will pay Executive his 2012 award under the Long-Term Incentive Plan in accordance with the terms of the plan, including the applicable portion of the 5% holdback as determined by the GSM’s Compensation Committee in the ordinary course of its administration of the plan.  Except as expressly provided in this Agreement, Executive’s entitlement to, participation in, and accrual of, all other salary or benefits from GSM shall cease as of the Cessation Date, provided that Executive shall have such rights in such benefits as are required by law and applicable plan documents, namely distribution to Executive of any vested benefits in GSM’s 401(k) plan in accordance with plan documents.  The amounts of the Stock Options and RSUs in which Executive is vested as of the Effective Date and the additional amounts of Stock Options and RSUs in which Executive will become vested after the Cessation Date are set forth in Appendix 1.  The timing and settlement of the RSUs are subject to Section 409A of the Internal Revenue Code as described in Section 18 below.  GSM has provided no advice to Executive with respect to the tax treatment governing the exercise of the Stock Options or vesting of RSU’s, and Executive hereby acknowledges and agrees that he shall look solely and exclusively to his own tax advisors for information and counsel.

 

5.  Reinstatement.  Executive waives all claims for reinstatement or employment with GSM and its Affiliates, and its and their successors and assigns, and he agrees not to seek such reinstatement or employment in the future unless the parties agree otherwise in writing.

 

6.  Release. In exchange for the benefits provided in this Agreement, Executive is executing a release in substantially the form attached hereto as Appendix 2.  Except as expressly provided in this Agreement, Executive acknowledges and agrees that GSM has paid him any and all compensation unconditionally owed to him and that GSM owes no other sums to him, including, but not limited to, salary, vacation pay, severance pay, reimbursement for business expenses, bonuses and employer contributions to the 401(k) plan.

 

7.  Confidentiality of this Agreement.  Except to enforce this Agreement or as required by law or otherwise to satisfy applicable Securities and Exchange Commission or stock exchange disclosure requirements, or to the extent each party in good faith deems necessary in communications with analysts or institutional investors, the Parties agree to keep this Agreement, and the terms of this Agreement strictly confidential.  Subject to the foregoing, Executive shall not disclose the same to any third party except his heirs, attorneys, accountants, financial advisors, immediate family members and, in relation to matrimonial litigation, the court, personnel of the court, attorneys and other advisors.  Likewise subject to the foregoing, GSM shall not disclose the same to any third party except its directors, officers, attorneys, accountants and employees responsible for effectuating the Agreement.

 

8.  Nondisparagement and Nonassistance.  Executive agrees not to provide any disparaging information relating to GSM or its Affiliates or its or their management employees, officers or directors to any person or entity, and he agrees not to provide any form of assistance to, or to cooperate with, any person or entity asserting or intending to assert any claim or investigation against GSM or its Affiliates except as may be required by law or legal process.  GSM shall instruct its Board, its senior management and its human resources department not to provide any disparaging information relating to Executive to any person or entity, and it agrees not to provide any form of assistance to, or to cooperate with, any person or entity asserting or intending to assert any claim or investigation against Executive, except as may be required by law or legal process.  Executive understands and acknowledges that nothing in this Agreement prohibits or restricts him from filing a claim or participating in a proceeding relating to a violation of federal, state or local law relating to fraud or any rule of the Securities and Exchange Commission, but Executive represents and affirms that he knows of no facts or circumstances that would warrant the filing of such a claim.  GSM or its Affiliates represent and affirm that they know of no facts or circumstances that would warrant the filing of a claim against the Executive for a violation of federal, state or local law relating to fraud or any rule of the Securities and Exchange Commission.   

 

9.  Cooperation.  Executive agrees to reasonably cooperate with GSM upon request by answering questions and providing information about matters of which he has personal knowledge.  In the event that GSM becomes involved in any civil or criminal litigation, administrative proceeding or governmental investigation, Executive shall, upon request, provide reasonable cooperation and assistance to GSM, including without limitation, furnishing relevant information, attending meetings and providing statements and testimony.  GSM shall reimburse Executive for all reasonable expenses he incurs in complying with this Section 9.  Any such expense shall be reimbursed by GSM no later than 15 days after Executive submits reasonably detailed information to GSM as to the amount and character of such expense.

 

10.  Confidentiality; Non-Competition and Non-Solicitation.  

 

(a) Duty Not to Disclose Confidential Information. Executive agrees to hold all Confidential Information in strict confidence and trust for the sole benefit of GSM, and he will not disclose, use, copy, publish, summarize or remove any Confidential Information from GSM’s premises, except as specifically authorized in writing by GSM or in connection with the course of Executive’s employment, except that it will not be a violation of this Agreement if, in enforcement of Executive’s rights under this Agreement or another arrangement between Executive and GSM or any of its Affiliates, Executive makes use of information reasonably necessary for such enforcement.

 

(b) Definition. “Confidential Information” means GSM proprietary information, technical data, trade secrets, know-how and any idea in whatever form, tangible or intangible, including without limitation, research, product plans, customer and client lists, developments, inventions, processes, technology, designs, drawings, marketing and other plans, business strategies and financial data and information. “Confidential Information” shall also mean information received by GSM from customers or clients or other third parties subject to a duty to keep confidential but, notwithstanding anything to the contrary contained herein, shall exclude Executive’s personal rolodex and contacts list.  Notwithstanding the foregoing, “Confidential Information” shall not include (i) information that, at the time of disclosure, is in the public domain other than as a result of the breach by Executive of any obligation of confidentiality or non-disclosure owed to GSM or any of its affiliates, and (ii) information required to be disclosed by any judicial or administrative proceedings or applicable laws so long as, to the extent legal and practicable, reasonable prior notice is given of such disclosure and, to the extent legal and practicable, a reasonable opportunity is afforded to GSM, at its sole expense, to contest such disclosure. 

 

(c) Documents and Materials. Executive further agrees that Executive will return all Confidential Information, including all copies and versions of such Confidential Information (including but not limited to information maintained on paper, disk, CD-ROM, network server, or any other retention device whatsoever) and other property of GSM, to GSM immediately upon cessation of Executive’s employment with GSM. These terms are in addition to any statutory or common law obligations that Executive may have relating to the protection of GSM’s Confidential Information or its property. These restrictions shall survive the termination of employment. Executive may retain his personal Rolodex and contacts information .

 

(d) Non-Competition. During the Transition Period and for a period of two years thereafter (the “Noncompete Period”), Executive shall not, directly or indirectly, either alone or in association with others, own, manage, operate, sell, control or participate in the ownership, management, operation, sales or control of, be involved with the development efforts of, serve as a technical advisor to, license intellectual property to, provide services to or in any manner engage in any business that directly competes with any specific business (i) in which GSM and its Affiliates (taken as a whole) are materially engaged as of the date of Executive’s termination or Cessation or (ii) for which GSM or any of its Affiliates has, within one year prior to Executive’s termination or Cessation, taken substantial, demonstrable steps to become materially engaged, in which GSM and its Affiliates (taken as a whole), within one year after Executive’s termination or Cessation, would reasonably be expected to be materially engaged; provided, however, that Executive may own as a passive investor up to 5% of any class of an issuer’s publicly traded securities (as used in this sentence, “material” shall mean material to the aggregate results of GSM and its Affiliates taken as a whole). The Noncompete Period shall be extended by the length of any period during which Executive is found by a court or arbitrator to be in breach of the terms of this Section 10(d).  Executive acknowledges (i) that the business of GSM and its Affiliates is, and is expected to remain, international in scope and without geographical limitation; (ii) notwithstanding the state of incorporation or principal office of GSM or any of its Affiliates, or any of their respective executives or employees (including Executive), GSM and its Affiliates have, and it expected that GSM and its Affiliates will continue to have, business activities and valuable business relationships within its industry throughout the world; and (iii) as part of his responsibilities, Executive has traveled around the world in furtherance of GSM’s and its Affiliates’ businesses and their relationships. Accordingly, the restrictions set forth in this Section 10 shall be effective in all cities, counties and states of the United States and all countries in which GSM or any of its Affiliates has an office or has made commercial sales within 12 months prior to the date of Executive’s Cessation of employment.

 

 (e) Non-Solicitation; Non-Hire. During the Noncompete Period, Executive will not, directly or indirectly, (i) recruit, solicit or induce, or attempt to recruit, solicit or induce any employee or employees of GSM or any of its Affiliates to terminate their employment with, or otherwise cease their relationship with, GSM or (ii) hire any person who was an employee of GSM or any of its Affiliates within six (6) months prior to the time such employee is proposed to be hired by Executive; (iii) solicit, divert or take away, or attempt to solicit, divert or take away, the business or patronage of any of the clients, customers or accounts, or prospective clients, customers or accounts, of GSM or any of its Affiliates for similar products that GSM produces.

 

(f) Saving Clause.  If any restriction set forth in this Section is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable. 

 

(g) Acknowledgement.  The restrictions contained in this Section are necessary for the protection of the business and goodwill of GSM and are considered by Executive to be reasonable for such purpose. Executive agrees that any breach of this Section will cause GSM substantial and irrevocable damage and therefore, in the event of any such breach, in addition to such other remedies which may be available, GSM shall have the right to seek specific performance and injunctive relief. 

 

(h) Representations.  Executive represents that his performance of all the terms of this Agreement does not and will not breach any existing (i) agreement to keep in confidence proprietary information, knowledge or data acquired by him in confidence or in trust prior to his employment with GSM or (ii) agreement to refrain from competing, directly or indirectly, with the business of any previous employer or any other party. 

 

(i) Exclusivity.  The restrictive covenants set forth in this Section replace and supersede any similar restrictive covenants in any other agreements or plans to which Executive has or shall become subject in connection with Executive’s service to GSM and its Affiliates.  Other than these restrictive covenants and any obligations imposed by applicable law or regulation, absent Executive’s written consent, there shall be no other restrictions imposed by GSM or any Affiliate on Executive’s activities following the Transition Period.

 

11. Miscellaneous.  This Agreement represents the entire agreement of the parties, and supersedes all other agreements, discussions and understandings of the parties, concerning the subject matter hereof, including, but not limited to, the Employment Agreement dated November 30, 2011 between GSM and the Executive, the performance-based bonus and non-performance based bonus plans set forth therein and any award under any Long Term Incentive Plan. All other express or implied agreements of the parties not expressly contained or incorporated by reference herein are terminated and of no further force or effect.  This Agreement may not be modified in any manner except in a written document signed by both parties.  Should any provision of this Agreement be held to be invalid or unenforceable by a court of competent jurisdiction, it shall be deemed severed from the Agreement, and the remaining provisions of the Agreement shall continue in full force and effect, and the court shall modify such provision to make it valid to the maximum extent permitted by law.  

 

12.  Consultation and Consideration.  Executive is advised to consult with an attorney at his own expense prior to executing this Agreement.  He may have a period of up to 21 days from the date he receives this Agreement to consider this Agreement, but he may knowingly and voluntarily take less time to consider it.  If Executive signs this Agreement, he will have seven (7) days to revoke it (the “Revocation Period”).  Any notice of revocation must be in writing and received by Stephen Lebowitz of GSM prior to the expiration of the Revocation Period.  Thus, this Agreement will not become effective or enforceable until such date that both parties sign it and the Revocation Period expires without Executive exercising his right of revocation (the “Effective Date”).  If Executive signs this Agreement, he represents that he enters into it knowingly and voluntarily with full understanding of its meaning and effect. 

 

13.  Governing Law; Arbitration.  This Agreement shall be governed by the law of the State of New York without regard to conflicts of laws. If any dispute arises out of or relates to this Agreement, or the breach thereof (a “Dispute”), such Dispute shall be finally resolved by arbitration administered by the American Arbitration Association under its National Rules for the Resolution of Employment Disputes, and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction.  The arbitration will be conducted in New York County, New York, before a sole arbitrator named in accordance with such rules, and shall be conducted in accordance with the Federal Arbitration Act.  The parties agree that the existence of any Dispute subject to this provision, any proceedings to resolve such Dispute, and all submissions received by any party from any other party in connection with such Dispute or proceedings shall be treated as confidential.  At the discretion of the arbitrator, the non-prevailing party in such arbitration may be ordered to pay the reasonable out-of-pocket costs and legal fees and disbursements incurred by the prevailing party in such arbitration and in preparation therefor and in any enforcement or appeal of the arbitration award.  Nothing in this Section shall be construed to derogate GSM’s right to seek legal and equitable relief in a court of competent jurisdiction for breaches of Section 10 as contemplated by Section 10(g).

 

14.  Assignment.  This Agreement shall be binding upon and shall inure to the benefit of the parties and their respective successors and assigns.  Executive may not assign any right or obligation hereunder without GSM’s prior written consent.  GSM may assign its rights and obligations hereunder to any successor in interest.  All compensation and benefits under this Agreement shall be paid or provided promptly  to the Executive's estate in the event of his death. 

 

15.  Notices.  All notices, requests, demands, and other communications provided for by this Agreement shall be in writing and shall be sent by certified mail, return receipt requested, postage prepaid or sent by nationally recognized overnight delivery service.  Except as otherwise provided hereunder, a notice shall be deemed to be given in each case on the business day following the date of its mailing.  All notices shall be addressed and mailed or delivered to the following addresses:

 

If to GSM :          Globe Specialty Metals, Inc.

One Penn Plaza

250 West 34th Street, Suite 4125

New York, NY  10119

Attn:  Stephen Lebowitz

 

If to Executive:                         Malcolm Appelbaum

27 Barker Avenue, Apt 1516

White Plains, NY 10601

 

 

Each party may change its/his address for notices by giving notice in accordance herewith.

 

16.  Headings. The headings in this Agreement are inserted for convenience only and shall not affect its construction.

 

17.  Counterparts.  This Agreement may be executed in one or more counterparts, by facsimile, PDF or otherwise, each of which shall be deemed an original and together which shall constitute one and the same instrument.

 

18.  Section 409A of the Code. To the extent that such requirements are applicable, this Agreement is intended to comply with the requirements of Section 409A of the Internal Revenue Code (“Section 409A”) and shall be interpreted and administered in accordance with that intent.  If any provision of the Agreement would otherwise conflict with or frustrate this intent, that provision will be interpreted and deemed amended so as to avoid the conflict.  Further, for purposes of the limitations on nonqualified deferred compensation under Section 409A, each payment of compensation under this Agreement shall be treated as a separate payment of compensation for purposes of applying the deferral election rules under Section 409A and the exclusion from Section 409A for certain short-term deferral amounts.  Anything to the contrary herein notwithstanding, in the event that any such benefit or payment is deemed to not comply with Section 409A, GSM and Executive agree to renegotiate in good faith any such benefit or payment so that either (i) Section 409A will not apply or (ii) compliance with Section 409A will be achieved, provided, however, that any resulting renegotiated terms shall provide to Executive, to the extent reasonably practicable, the after-tax economic equivalent based on what otherwise would have been provided to Executive pursuant to the terms of this Agreement.  

 

19.  Nonadmission.  By entering into this Agreement, neither party is admitting that it did anything wrong or improper or that it has any liability to the other party.

 

[signatures appear on following page]

 

 

  

  

  

 

 

Executive has had an opportunity to carefully review and consider this Agreement with an attorney, and he has had sufficient time to consider it.  After such careful consideration, he knowingly and voluntarily enters into this Agreement with full understanding of its meaning and effect.

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement.

 

 

 

	 	MALCOLM APPELBAUM	GLOBE SPECIALTY METALS, INC.	 
	 	 	 	 
	 	/s/ Malcolm Appelbaum	/s/ Jeffrey Bradley	 
	 	March 2, 2013	Chief Executive Officer	 
	 	 	March 6, 2013	 

 

 

 

 

 

 

  

  

  

APPENDIX 1

 

OPTIONS AND RSUs

 

a.The 87,500 options granted on August 11, 2011 with an exercise price of $18.81/share will fully vest in accordance with the schedule as if Executive were continuing to be employed  (currently 43,750 will be unvested on August 31, 2013). Executive will be allowed to exercise these options upon and after vesting, using cash settlement, anytime up to the expiration date of August 11, 2016.

 

b.The 61,136 options granted on November 14, 2011 with an exercise price of $14.72/share will fully vest in accordance with the schedule as if Executive were continuing to be employed. These options currently cliff-vest on December 31, 2014. Executive will be allowed to exercise these options, using cash settlement, anytime after vesting up to the expiration date of September 1, 2017.

 

c.The 2,984 RSU's granted on January 1, 2011 will fully vest in accordance with the schedule as if Executive were continuing to be employed  (currently 995 would be unvested on August 31, 2013) and shall be paid on December 31, 2014.

 

d.The 20,380 RSU's granted on November 30, 2011 will fully vest in accordance with the schedule as if Executive were continuing to be employed  (currently these would cliff-vest on December 31, 2014) and shall be paid on November 29, 2014.

 

e.The 15,235 RSU's granted on January 1, 2012 will fully vest in accordance with the schedule as if Executive were continuing to be employed  (currently 10,156 would be unvested on August 31, 2013) and shall be paid on December 31, 2015.

 

f.The 756 RSU's granted on February 9, 2012 will fully vest in accordance with the schedule as if Executive were continuing to be employed  (currently 756 would be unvested on August 31, 2013) and shall be paid on February 8, 2015.

 

g.The 725 RSU's granted on March 28, 2012 will fully vest on in accordance with the schedule as if Executive were continuing to be employed  (currently 483 would be unvested on August 31, 2013) and shall be paid on March 27, 2015.

 

h.Any RSU's granted in accordance with the calendar 2012 bonus will fully vest in accordance with the schedule as if Executive were continuing to be employed and shall be paid three years from the date of grant.

 

 

 

 

 

  

  

  

APPENDIX 2

 

 

Agreement and Release

 

Agreement and Release (“Agreement”), by Malcolm Appelbaum (“Executive” and referred to herein as “you”) and Globe Specialty Metals, Inc., a Delaware corporation (the “Company”).

 

1.In exchange for your waiver of claims against the Released Persons (as defined below) and compliance with the other terms and conditions of this Agreement, following the effectiveness of this Agreement, the Company shall provide you with the payments and benefits provided in your Separation Agreement dated March __, 2013 (the “Separation Agreement”). 

 

2.  (a)  In consideration for the payments and benefits to be provided to you pursuant to Section 1 above, which you acknowledge are more than to which you would otherwise be entitled, you hereby waive any claim you may have for employment by the Company and agree not to seek such employment or reemployment by the Company in the future.  You further agree to and do forever release and discharge the Company and its subsidiaries, divisions, affiliates and related business entities, successors and assigns, and any of its or their respective directors and officers, shareholders, employees and agents (in their capacity as such) (collectively, the “Released Persons”) from any and all claims, suits, demands, causes of action, covenants, obligations, debts, costs, expenses, fees and liabilities of any kind whatsoever (including, without limitation, back pay, front pay, compensatory damages, punitive damages, exemplary damages, attorneys’ fees and costs actually incurred), in law or equity, by statute or otherwise, whether known or unknown, vested or contingent, suspected or unsuspected and whether or not concealed or hidden (collectively, the “Claims”), arising out of or related to your employment with the Company or the termination thereof, which you have had, now have, or may have against any of the Released Persons by reason of any act, omission, transaction, practice, plan, policy, procedure, conduct, occurrence, or other matter arising up to and including the date on which you sign this Agreement, except as provided in subsection (c) below.

 

(b) Without limiting the generality of the foregoing, this Agreement is intended to and shall release the Released Persons from any and all such claims and causes of action arising out of or related to your employment with the Company or the termination thereof, including, but not limited to: (i) any and all rights or claims under the Age Discrimination in Employment Act (“AEDA”), the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans with Disabilities Act, the Employee Retirement Income Security Act of 1974 (excluding claims for accrued, vested benefits under any employee benefit or incentive plan of the Released Persons, subject to the terms and conditions of such plan and applicable law), the Family and Medical Leave Act, the Worker Adjustment and Retraining Notification Act of 1988, or the Fair Labor Standards Act of 1938; (ii) any and all other rights or claims whether based on federal, state, or local law (statutory or decisional), rule, regulation or ordinance, including, but not limited to, breach of contract (express or implied), wrongful discharge, tort, fraud, detrimental reliance, defamation, emotional distress or compensatory or punitive damages; and (iii) any claim for attorneys’ fees, costs, disbursements and/or the like.

 

(c) Notwithstanding the foregoing, nothing in this Agreement shall be a waiver of Claims: (i) that arise after the date on which you sign this Agreement, (ii) for the payments, benefits or rights required to be provided under the Separation Agreement; (iii) related to any equity award, equity interest, or incentive program in which you may have received grants or allocations at or before the date of your employment termination; (iv) regarding rights of indemnification or liability insurance coverage (such as directors' and officers' liability insurance), including without limitation, for legal fees and other claims or payments related to Executive's employment; or (v) relating to any accrued, vested benefits under any employee benefit plan or incentive plan of the Released Persons, subject to the terms and conditions of such plan and applicable law.  You agree that you are waiving your right to any monetary recovery should an administrative agency pursue a claim on your behalf. Nothing in this Agreement is intended to interfere with or deter your right to challenge the knowing and voluntary nature of the waiver of an ADEA claim or to file an ADEA charge, complaint or lawsuit or to participate in any investigation or proceeding conducted by the Equal Employment Opportunity Commission or other state or local agency with jurisdiction over such claims. However, in response to any such claim or proceeding, the Company shall be entitled to assert that all of your claims have been released in a final binding settlement.

 

(d) In signing this Agreement, you acknowledge that you intend that this Agreement shall be effective as a bar to each and every one of the Claims hereinabove mentioned or implied.  You expressly consent that this Agreement shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown, unsuspected or unanticipated Claims, if any, as well as those relating to any other Claims hereinabove mentioned or implied.  

 

3.  (a)  This Agreement is not intended, and shall not be construed, as an admission that any of the Released Persons has violated any federal, state or local law (statutory or decisional), ordinance or regulation, breached any contract or committed any wrong whatsoever against you.

 

(b) Should any provision of this Agreement require interpretation or construction, it is agreed by the parties that the entity interpreting or constructing this Agreement shall not apply a presumption against one party by reason of the rule of construction that a document is to be construed more strictly against the party who prepared the document.

 

(c)You represent and warrant that you have not assigned or transferred to any person or entity any of my rights which are or could be covered by this Agreement, including but not limited to the waivers and releases contained in this Agreement.

 

4.  This Agreement is binding upon, and shall inure to the benefit of, the parties and their respective heirs, executors, administrators, successors and assigns.

 

5.  This Agreement shall be construed and enforced in accordance with the laws of the State of New York applicable to agreements made and to be performed entirely within such State.

 

6.  You acknowledge that you: (a) have carefully read this Agreement in its entirety and understand all of its terms, including the waiver and release of claims set forth in paragraph 2 above; (b) have had an opportunity to consider for at least twenty-one (21) days the terms of this Agreement; (c) are hereby advised by the Company in writing to consult with an attorney or other advisor of your choice in connection with this Agreement; (d) have had answered to your satisfaction by your independent legal counsel any questions you have asked with regard to the meaning and significance of any of the provisions of this Agreement; (e) are signing this Agreement voluntarily and of your own free will, and no promises or representations have been made to you by any person to induce you to enter into this Agreement other than the express terms set forth herein; and (f) agree to abide by all the terms and conditions contained herein.

 

7.  You understand that you will have at least twenty-one (21) days from the date of receipt of this Agreement to consider, sign and return this Agreement.  You may accept this Agreement by signing it and returning it to the Company’s General Counsel at the address specified pursuant to Section 15 of the Separation Agreement on or before February __, 2013.  After executing this Agreement, you shall have seven (7) days (the “Revocation Period”) to revoke this Agreement by indicating your desire to do so in writing delivered to the General Counsel at the address above by no later than the seventh (7th) day after the date you sign this Agreement.  The effective date of this Agreement shall be the eighth (8th) day after you sign the Agreement (irrespective of whether the Company has countersigned the Agreement) (the “Agreement Effective Date”), provided that you have not revoked the Agreement.  If the last day of the Revocation Period falls on a Saturday, Sunday or holiday, the last day of the Revocation Period will be deemed to be the next business day.  In the event you do not accept this Agreement as set forth above, or in the event you revoke this Agreement during the Revocation Period, this Agreement shall be deemed automatically null and void.

 

8.Any dispute regarding this Agreement shall be subject to the dispute resolution provisions contained in the Separation Agreement.  

 

 

 

EXECUTIVE

 

____________________________________

Malcolm Appelbaum

 

GLOBE SPECIALTY METALS, INC.

 

 

By:____________________________________

[Name ]

[Title ]

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