Document:

Exhibit
10.b

 

KRONE
ACQUISITION

 

KEY
EMPLOYEE RETENTION PLAN

 

 

KRONE
ACQUISITION

 

KEY
EMPLOYEE RETENTION PLAN

 

TABLE
OF CONTENTS

 

	
  ARTICLE I.

  	
  DEFINITIONS AND
  INTERPRETATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 1.01

  	
  Definitions

  	
   

  
	
   

  	
  Section 1.02

  	
  Interpretation

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE II.

  	
  ELIGIBILITY AND BENEFITS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 2.01

  	
  Eligible Employees

  	
   

  
	
   

  	
  Section 2.02

  	
  Termination Notices from Participants

  	
   

  
	
   

  	
  Section 2.03

  	
  Termination Notices from Company

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE III.

  	
  SEVERANCE AND RELATED
  TERMINATION BENEFITS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 3.01

  	
  Termination of Employment

  	
   

  
	
   

  	
  Section 3.02

  	
  Termination of Employment Following
  Sale of Krone Business Segment

  	
   

  
	
   

  	
  Section 3.03

  	
  Condition to Receipt of Severance
  Benefits

  	
   

  
	
   

  	
  Section 3.04

  	
  Gross-Up Payment

  	
   

  
	
   

  	
  Section 3.05

  	
  Limitation of Benefits

  	
   

  
	
   

  	
  Section 3.06

  	
  Plan Unfunded; Participant’s Rights
  Unsecured

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV.

  	
  DISPUTE RESOLUTION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 4.01

  	
  Negotiation

  	
   

  
	
   

  	
  Section 4.02

  	
  Arbitration

  	
   

  
	
   

  	
  Section 4.03

  	
  Exclusivity, etc.

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE V.

  	
  AMENDMENT AND TERMINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI.

  	
  MISCELLANEOUS PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Section 6.01

  	
  Type of Plan

  	
   

  
	
   

  	
  Section 6.02

  	
  Cumulative Benefits

  	
   

  
	
   

  	
  Section 6.03

  	
  No Mitigation

  	
   

  
	
   

  	
  Section 6.04

  	
  Enforceability

  	
   

  
	
   

  	
  Section 6.05

  	
  Administration

  	
   

  
	
   

  	
  Section 6.06

  	
  Consolidations, Mergers, Etc.

  	
   

  

 

i

 

	
   

  	
  Section 6.07

  	
  Successors and Assigns

  	
   

  
	
   

  	
  Section 6.08

  	
  Notices

  	
   

  
	
   

  	
  Section 6.09

  	
  Tax Withholdings

  	
   

  
	
   

  	
  Section 6.10

  	
  No Employment Rights Conferred

  	
   

  
	
   

  	
  Section 6.11

  	
  Entire Plan

  	
   

  
	
   

  	
  Section 6.12

  	
  Severability

  	
   

  
	
   

  	
  Section 6.13

  	
  Governing Law

  	
   

  
	
   

  	
  Section 6.14

  	
  Service of Legal Process

  	
   

  
	
   

  	
  Section 6.15

  	
  Condition Precedent to Plan
  Effectiveness

  	
   

  

 

ii

 

KRONE
ACQUISITION

KEY EMPLOYEE RETENTION PLAN

 

WHEREAS, ADC
Telecommunications, Inc., a Minnesota corporation (“ADC”), Krone International
Holding Inc., a Delaware corporation (“Krone International”), Krone Digital
Communications Inc., a Delaware corporation (together with Krone International,
“Krone”), GenTek Holding Corporation, a Delaware corporation and the sole
shareholder of Krone (“Seller”), and GenTek Inc., a Delaware corporation and
the parent entity of Seller (“GenTek”), have made and entered into a share
purchase agreement (the “Share Purchase Agreement”), dated March 25, 2004,
the terms and conditions of which provide for the acquisition of all of the
outstanding shares of Krone by ADC;

 

WHEREAS, GenTek maintains
the GenTek Key Employee Retention Plan (the “GenTek KERP”), the purpose of
which is to provide key employees of Krone and other affiliated companies of
GenTek with competitive compensation, including severance protection,
supplemental retirement benefits and other incentives for continued service;

 

WHEREAS, Pursuant to the
Share Purchase Agreement, from and after the closing of the transactions
contemplated by the Share Purchase Agreement, ADC has agreed to assume all
liabilities, responsibilities and obligations for any severance benefits
(i) to which any Contract Employee (as defined below) may become entitled
under the GenTek KERP, and (ii) subject to GenTek’s obligation to bear the
first $1,000,000 of severance benefits to become due and payable under the
terms of the GenTek KERP (if the terminations or resignations of employment
giving rise to such $1,000,000 occur within the first twelve months after the
closing date), to which any other participant under the GenTek KERP who is an
employee of Krone (and Krone’s subsidiaries) may become entitled under the
GenTek KERP;

 

WHEREAS, concurrent with
the signing of the Share Purchase Agreement, six employees of Krone (the
“Contract Employees”) entered into employee retention agreements with ADC which
provide that, from an after the closing of the transactions contemplated by the
Share Purchase Agreement, severance benefits available to Contract Employees
under the GenTek KERP will be maintained by ADC under a comparable severance
plan;

 

WHEREAS, ADC, by
resolution of the Compensation Committee of its Board of Directors, has
authorized the creation of a key employee retention plan which is intended to
satisfy the requirements of the Share Purchase Agreement and the Contract
Employees’ retention agreements; and

 

WHEREAS, This is the key
employee retention plan so contemplated.

 

RESOLVED, that subject to
and contingent upon the occurrence of closing of the transactions contemplated
by the Share Purchase Agreement, ADC does hereby create and establish this
KRONE ACQUISITION KEY EMPLOYEE RETENTION PLAN.

 

 

ARTICLE I

 

DEFINITIONS
AND INTERPRETATIONS

 

Section 1.01                                Definitions.  Capitalized terms used in this Plan shall have the following
respective meanings, except as otherwise provided or as the context shall
otherwise require:

 

“ADC” shall mean ADC Telecommunications,
Inc.

 

“Administrative Committee” shall mean the
committee consisting of the Chief Financial Officer of ADC, the General Counsel
of ADC, the Vice President of Human Resources of ADC and the Chief Executive
Officer of ADC.

 

“Annual Salary” shall mean the base salary
paid to a Participant on an annual basis exclusive of any bonus payments or
additional payments under any Benefit Plan.

 

“Beneficial Owner” shall have the meaning
set forth in Rule 13d-3 under the Securities Exchange Act of 1934.

 

“Benefit Plan” shall mean any “employee
benefit plan” (including any employee benefit plan within the meaning of
Section 3(3) of ERISA), program, arrangement or practice maintained,
sponsored or provided by ADC or any Employer, including those relating to
compensation, bonuses, profit-sharing, stock option, or other stock related
rights or other forms of incentive or deferred compensation, vacation benefits,
insurance coverage (including any self-insured arrangements) health or medical
benefits, disability benefits, workers’ compensation, supplemental unemployment
benefits, severance benefits and post-employment or retirement benefits
(including compensation, pension, health, medical or life insurance or other
benefits).

 

“Board” means the Board of Directors of ADC.

 

“Cause” means (a) the continued failure
by the Participant substantially to perform his or her duties and obligations
to any Employer (other than any such failure resulting from his or her
incapacity due to physical or mental illness), including, without limitation,
repeated refusal to follow the reasonable directions of his or her employer,
knowing violation of the law in the course of performance of the duties of
Participant’s employment with any Employer, repeated absences from work without
a reasonable excuse, or intoxication with alcohol or illegal drugs while on any
Employer’s premises during regular business hours; (b) fraud or material
dishonesty against any Employer; (c) a conviction or plea of guilty or
nolo contendere to the commission of a felony or a crime involving
material dishonesty or moral turpitude; or (d) willful malfeasance or
misconduct in connection with a Participant’s duties hereunder or any act or
omission that is results in demonstrable injury to the financial condition or
business reputation of

 

2

 

ADC or its
affiliates.  Determination of Cause
shall be made by the Compensation Committee in its sole discretion.

 

“Code” shall mean the Internal Revenue Code
of 1986, as amended.  Reference in this
Plan to any section of the Code shall be deemed to include any amendments
or successor provisions to such section and any regulations under such
section.

 

“Compensation Committee” shall mean the
Compensation Committee of the Board.

 

“Contract Employee”  shall have the meaning set forth in the
preamble to this Plan.

 

“Disability” shall mean, when used with
reference to any Participant, long term disability under the applicable long
term disability plan maintained by ADC or any Employer under which the
Participant is covered.

 

“Effective Date” shall mean the later of the
date the Plan is approved by the Compensation Committee or the date of the
closing of the transactions contemplated by the Share Purchase Agreement.

 

“Employer” shall mean Krone, ADC or any
other affiliate of ADC to the extent that such entity is the employer of a
Participant under this Plan.

 

“Enhanced Severance Participant” shall mean
each Participant who is entitled to enhanced severance benefits pursuant to
Section 3.02.

 

“ERISA” shall mean the Employee Retirement
Income Security Act of 1974, as amended, and the rules and regulations
promulgated thereunder.

 

“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended.

 

“GenTek KERP” shall have the meaning set
forth in the preamble to this Plan.

 

“Good Reason” shall mean, when used with
reference to any Participant, any of the following actions or failures to act,
but in each case only if it occurs while such Participant is employed by any
Employer and then only if it is not consented to by such Participant in
writing:

 

(i)                                     a
material adverse change in such Participant’s reporting responsibilities,
titles or elected or appointed offices as in effect immediately prior to the
effective date of such change;

 

(ii)                                  a
material reduction by ADC in such Participant’s base salary and bonus
opportunity in effect immediately prior to the effective date of such
reduction, not including any reduction resulting from changes in the

 

3

 

market value of
securities or other instruments paid or payable to Participant; or

 

(iii)          any change of more than
50 miles in the location of the principal place of employment of such
Participant immediately prior to the effective date of such change.

 

For purposes of this
definition, none of the actions described in clauses (i) and (ii) above
shall constitute “Good Reason” with respect to any Participant if it was an
isolated and inadvertent action not taken in bad faith by ADC and if it is
remedied by ADC within 30 days after receipt of written notice thereof
given by such Participant (or, if the matter is not capable of remedy within 30
days, then within a reasonable period of time following such 30 day period, provided
that ADC has commenced such remedy within said 30 day period); provided that
“Good Reason” shall cease to exist for any action described in clauses (i)
through (iii) above on the 60th day following the later of the occurrence of
such action or the Participant’s knowledge thereof, unless such Participant has
given ADC written notice thereof prior to such date.

 

“Krone” shall have the meaning set forth in
the preamble to this Plan.

 

“Participants” shall mean:  (i) those Contract Employees who were
formerly participants in the GenTek KERP and who are eligible to participate in
this Plan as of the Effective Date and (ii) any other employees of ADC or an
Employer who were formerly participants in the GenTek KERP and who are from
time to time designated by the Administrative Committee as eligible
Participants pursuant to the terms of the Share Purchase Agreement.

 

“Person” shall have the meaning given in
Section 3(a)(9) of the Exchange Act, as modified and used in
Sections 13(d) and 14(d) thereof, except that such term shall not include
(i) ADC or any of its subsidiaries, (ii) a trustee or other fiduciary
holding securities under an employee benefit plan of ADC or any of its
affiliates, (iii) an underwriter temporarily holding securities pursuant to
an offering of such securities, or (iv) a corporation owned, directly or
indirectly, by substantially all of the stockholders of ADC in substantially
the same proportions as their ownership of stock of ADC.

 

“Plan” shall mean this Krone Acquisition Key
Employee Retention Plan, as amended, supplemented or modified from time to time
in accordance with its terms.

 

“Sale of the Krone Business Segment” means
the sale of all of the outstanding shares of Krone to ADC.

 

“Severance Participant” shall mean each
Participant who is entitled to severance benefits under Section 3.01 and
who is not an Enhanced Severance Participant entitled to severance benefits
under Section 3.02.

 

4

 

“Severance Payment” shall have the meaning
set forth in Article III.

 

“Share Purchase Agreement” shall have the
meaning set forth in the preamble to this Plan.

 

“Termination Date” shall mean, with respect
to any Participant, the termination date specified in the Termination Notice
delivered by such Participant to ADC in accordance with Section 2.02 or
the actual date of termination of such Participant’s employment by ADC for any
reason other than Cause or Disability, as applicable.

 

“Termination Notice” shall mean, as
appropriate, written notice from (a) a Participant to ADC purporting to
terminate such Participant’s employment for Good Reason in accordance with
Section 2.02 or (b) ADC to any Participant purporting to terminate
such Participant’s employment for Cause or Disability in accordance with
Section 2.03.

 

Section 1.02                                Interpretation.  In this Plan, unless a clear contrary intention appears,
(a) the words “herein,” “hereof’ and “hereunder” refer to this Plan as a
whole and not to any particular Article, Section or other subdivision, (b) reference
to any Article or Section, means such Article or Section hereof
and (c) the words “including” (and with correlative meaning “include”)
means including, without limiting the generality of any description preceding
such term.  The Article and
Section headings herein are for convenience only and shall not affect the
construction hereof.

 

5

 

ARTICLE II

 

ELIGIBILITY
AND BENEFITS

 

Section 2.01                                Eligible Employees.  This Plan is solely for the benefit of
Participants, and no other employees, personnel, consultants or independent
contractors shall be eligible to participate in this Plan or to receive any
rights or benefits hereunder. 
Participants shall include:  (i)
those Contract Employees who were formerly participants in the GenTek KERP and
who are eligible to participate in this Plan as of the Effective Date and (ii)
any other employees of ADC or an Employer who were formerly participants in the
GenTek KERP and who are from time to time designated by the Administrative Committee
as eligible Participants pursuant to the terms of the Share Purchase Agreement.

 

Section 2.02                                Termination Notices from Participants.  For purposes of this Plan, in order for any
Participant to terminate his or her employment for Good Reason, such Participant
must give a Termination Notice to ADC, which notice shall be signed by such
Participant, shall be dated the date it is given to ADC, shall specify the
Termination Date and shall state that the termination is for Good Reason and
shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for such Good Reason. 
Any Termination Notice given by a Participant that does not comply in
all material respects with the foregoing requirements as well as the “Good
Reason” definition provisions set forth in Section 1.01 shall be invalid
and ineffective for purposes of this Plan. 
If ADC receives from any Participant a Termination Notice that it
believes is invalid and ineffective as aforesaid, it shall promptly notify such
Participant of such belief and the reasons therefor.

 

Section 2.03                                Termination Notices from Company.  For purposes of this Plan, in order for ADC
to terminate any Participant’s employment for Cause, ADC must give a
Termination Notice to such Participant, which notice shall be dated the date it
is given to such Participant, shall. 
specify the Termination Date and shall state that the termination is for
Cause and shall set forth in reasonable detail the particulars thereof.  For purposes of this Plan, in order for ADC
to terminate any Participant’s employment for Disability, ADC must give a
Termination Notice to such Participant, which notice shall be dated the date it
is given to such Participant, shall specify the Termination Date and shall
state that the termination is for Disability and shall set forth in reasonable
detail the particulars thereof.  Any
Termination Notice given by ADC that does not comply, in all material respects,
with the foregoing requirements shall be invalid and ineffective for purposes
of this Plan.  Any Termination Notice
purported to be given by ADC to any Participant after the death or retirement
of such Participant shall be invalid and ineffective.

 

6

 

ARTICLE III

 

SEVERANCE
AND RELATED TERMINATION BENEFITS

 

Section 3.01                                Termination of Employment.  In the event that (i) a Severance
Participant terminates his or her employment for Good Reason, (ii) any
Employer terminates a Severance Participant’s employment for any reason other
than for Cause; or (iii) any Employer or Severance Participant terminates
employment due to Disability or death, in each case after the Effective Date,
then such Severance Participant (or his or her beneficiary) shall be entitled
to receive, and ADC shall be obligated to pay to the Severance Participant,
within sixty (60) days after such Severance Participant’s Termination Date, a
lump sum cash payment equal to (a) the Severance Participant’s current
Annual Salary on the Termination Date multiplied by the severance multiplier
applicable for such Severance Participant as set forth on the applicable
schedule to the GenTek KERP (the “Severance Payment”) plus (b) all
unused vacation time accrued by such Severance Participant as of the
Termination Date under ADC’s vacation policy, plus (c) all accrued but
unpaid compensation earned by such Severance Participant as of the Termination
Date.  In addition, for a period of
months equal to the Severance Participant’s applicable severance multiplier
multiplied by twelve (12), such Severance Participant (or his or her
beneficiary) shall continue to be covered by all life, health care, medical and
dental insurance plans and programs (excluding disability) of the applicable
Employer under which he or she was covered on the Termination Date.

 

Section 3.02                                Termination of Employment Following Sale of Krone
Business Segment.  In the
event of the Sale of the Krone Business Segment which occurs prior to
November 13, 2004, each Enhanced Severance Participant shall be entitled
to receive, in the event of a termination of employment during the twelve-month
period immediately following such Sale of the Krone Business Segment by
(i) the Enhanced Severance Participant for Good Reason or (ii) ADC or any
Employer other than for Cause (excluding death or Disability), the benefits set
forth in Section 3.01, except that in lieu of the Severance Payment, the
Enhanced Severance Participant shall be entitled to receive a lump sum cash
payment equal to the sum of the Severance Participant’s current Annual Salary
on the Termination Date plus such Enhanced Severance Participant’s target
annual bonus with respect to the year in which the Termination Date occurs,
multiplied by the change of control severance multiplier applicable for such
Enhanced Severance Participant as set forth in the applicable schedule to
the GenTek KERP, provided, however, that on November 13, 2004, an Enhanced
Severance Participant shall cease to be an Enhanced Severance Participant and
shall become a Severance Participant whose severance payments and benefits are
governed exclusively by Section 3.01. 
Any obligation incurred by ADC or its successor under this
Section 3.02 shall be paid to the Enhanced Severance Participant within
sixty (60) days of the Termination Date.

 

Section 3.03                                Condition to Receipt of Severance Benefits.  As a condition to receipt of any payment or
benefits under this Article III, such Participant must enter into a
Non-Solicitation, Non-Compete, Non-Disclosure, and Non-Disparagement Agreement
with ADC and its affiliates

 

7

 

and an additional release
of claims agreement substantially similar to the form attached hereto pursuant
to which agreement Participant releases ADC and its successors, assigns,
divisions, affiliates, representatives, agents, officers, directors,
stockholders, and employees from any claims, demands and/or causes of action
relating to or arising out of the termination of his or her employment with ADC
or any Employer, including, but not limited to any statutory claims under the
Age Discrimination in Employment Act of 1967, the Americans with Disabilities
Act of 1990 and/or the Civil Rights Acts of 1964 and 1991.

 

Section 3.04                                Gross-Up Payment.

 

(a)                                  Anything
in this Plan to the contrary notwithstanding, in the event it shall be
determined that any payment or distribution to or for the benefit of any
Enhanced Severance Participant under this Plan (the “Triggering Payment”) would
be subject to the excise tax imposed by Section 4999 of the Code or any interest
or penalties with respect to such excise tax (collectively, such excise tax,
together with any such interest or penalties, the “Excise Tax”), then such
Enhanced Severance Participant shall be entitled to receive from ADC an
additional payment (the “Gross-Up Payment”) in an amount such that after
payment by such Enhanced Severance Participant of all taxes (including any
interest or penalties imposed with respect to such taxes) including any Excise
Tax imposed on the Gross-Up Payment, such Enhanced Severance Participant
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon
the Triggering Payment.  All
determinations required to be made under this Section 3.04 with respect to
a particular Enhanced Severance Participant shall be made in writing within ten
(10) business days of the receipt of notice from the Enhanced Severance
Participant that there has been a Triggering Payment (or at such earlier time
as is requested by ADC and the Enhanced Severance Participant) by the
independent accounting firm then retained by ADC in the ordinary course of
business (which firm shall provide detailed supporting calculations to ADC and
such Participant) and such determinations shall be final and binding on ADC and
all Enhanced Severance Participants.  Any
fees incurred as a result of work performed by any independent accounting firm
pursuant to this Section 3.04 shall be paid by ADC.

 

(b)                                 For
purposes of determining the amount of the Gross-Up Payment, the Enhanced
Severance Participant shall be deemed to pay: 
(i) Federal income taxes at the highest applicable marginal rate of
Federal income taxation for the calendar year in which the Gross-Up Payment is
to be made, and (ii) any applicable state and local income taxes at the
highest applicable marginal rate of taxation for the calendar year in which the
Gross-Up Payment is to be made, net of the maximum reduction in Federal incomes
taxes which could be obtained from the deduction of such state or local taxes
if paid in such year.  In the event that
the Excise Tax is subsequently determined by the independent accounting firm or
pursuant to any proceeding or negotiations with the Internal Revenue Service to
be less than the

 

8

 

amount taken into account
hereunder in calculating the Gross-Up Payment made, the Enhanced Severance
Participant shall repay to ADC, at the time that the amount of such reduction
in the Excise Tax is finally determined, the portion of such prior Gross-Up
Payment that would not have been paid if such Excise Tax had been applied in
initially calculating such Gross-Up Payment, plus interest on the amount of
such repayment at the rate provided in Section 1274(b)(2)(B) of the
Code.  Notwithstanding the foregoing, in
the event any portion of the Gross-Up Payment to be refunded to ADC has been
paid to any Federal, state or local tax authority, repayment thereof shall not
be required until actual refund or credit of such portion has been made to the
Enhanced Severance Participant, and interest payable to ADC shall not exceed
interest received or credited to the Enhanced Severance Participant by such tax
authority for the period it held such portion. 
The Enhanced Severance Participant and ADC shall mutually agree upon the
course of action to be pursued (and the method of allocating the expenses
thereof) if the Enhanced Severance Participant’s good faith claim for refund or
credit is denied.  In the event that the
Excise Tax is later determined by the independent accounting firm or pursuant
to any proceeding or negotiations with the Internal Revenue Service to exceed
the amount taken into account hereunder at the time the Gross-Up Payment is
made (including, but not limited to, by reason of any payment the existence or
amount of which cannot be determined at the time of the Gross-Up Payment), ADC
shall make an additional Gross-Up Payment in respect of such excess (plus any
interest or penalty payable with respect to such excess) at the time that the
amount of such excess if finally determined. 
The Gross-Up Payment (or portion thereof) provided for in this
Section 3.04 shall be paid to the Enhanced Severance Participant (or to
the applicable taxing authority) not later than ten (10) business days
following the payment of the Triggering Payments; provided, however, that if
the amount of such Gross-Up Payment (or portion thereof) cannot be finally
determined on or before the date on which payment is due, ADC shall pay to the
Enhanced Severance Participant by such date an amount estimated in good faith
by the independent accounting firm to be the minimum amount of such Gross-Up
Payment and shall pay the remainder of such Gross-Up Payment (together with
interest at the rate provided in Section 1274(b)(2)(B) of the Code) as
soon as the amount thereof can be determined, but in no event later than 45
calendar days after payment of the related Triggering Payment.  In the event that the amount of the
estimated Gross-Up Payment exceeds the amount subsequently determined to have
been due, such excess shall be refunded to ADC by the Enhanced Severance
Participant on the fifth business day after written demand by ADC for payment
(together with interest at the rate provided in Section 1274(b)(2)(B) of
the Code).

 

Section 3.05                                Limitation of Benefits.

 

(a)                                  Anything
in this Plan to the contrary notwithstanding, ADC’s obligation to continue
health and welfare benefits for any Severance Participant or Enhanced

 

9

 

Severance Participant
shall cease if and when such Participant becomes employed by a third party that
provides such Participant with health and welfare benefits.

 

(b)                                 Anything
in this Plan to the contrary notwithstanding, the amounts payable to any
Participant under Article III of this Plan shall be reduced by the aggregate
amount of all separation, severance or termination payments due to such
Participant under (i) any Benefit Plan (other than this Plan),
(ii) any agreement (except with respect to a severance provision therein)
between such Participant and any Employer, or (ii) any applicable law,
statute, rule, regulation, order or decree (or other pronouncement having the
effect of law) of any nation or governmental authority; provided, however, that
a Participant shall be entitled to decline acceptance of any severance payment
pursuant to Sections 3.01 or 3.02 and choose in lieu thereof any severance
benefits contained in an individual agreement between the Participant and any
Employer.

 

Section 3.06                                Plan Unfunded; Participant’s Rights Unsecured.  ADC shall not be required to establish any
special or separate fund or make any other segregation of funds or assets to
assure the payment of any benefit hereunder. 
The right of any Participant to receive the benefits provided for herein
shall be an unsecured claim against the general assets of ADC.

 

10

 

ARTICLE IV

 

DISPUTE
RESOLUTION

 

Section 4.01                                Negotiation.  In case a claim, dispute or controversy shall arise between any
Participant (or any person claiming by, through or under any Participant) and
ADC or any Employer (including the Compensation Committee) relating to or
arising out of this Plan, either disputant shall give written notice to the
other disputant (“Dispute Notice”) that it wishes to resolve such claim,
dispute or controversy by negotiations, in which event the disputants shall
attempt in good faith to negotiate a resolution of such claim, dispute or
controversy.  If the claim, dispute or
controversy is not so resolved within 30 days after the effective date of the
Dispute Notice (as described in Section 6.08), subject to
Section 4.03, either disputant may initiate arbitration of the claim,
dispute or controversy as provided in Section 4.02.  All negotiations pursuant to this
Section 4.01 shall be held at ADC’s principal offices in Eden Prairie,
Minnesota (or such other place as the disputants shall mutually agree) and
shall be treated as compromise and settlement negotiations for the purposes of
the federal and state rules of evidence and procedure.

 

Section 4.02                                Arbitration.  Subject to Section 4.03, any claim, dispute or controversy
arising out of or relating to this Plan which has not been resolved by
negotiations in accordance with Section 4.01 within 30 days of the effective
date of the Dispute Notice (as described in Section 6.08) shall, upon the
written request of either disputant, be finally settled by arbitration
conducted expeditiously in accordance with the commercial arbitration rules of
the American Arbitration Association regarding resolution of employment related
disputes.  The arbitrator may, without
limitation, award injunctive relief, but shall not be empowered to award
damages in excess of compensatory damages and each disputant shall be deemed to
have irrevocably waived any damages in excess of compensatory damages, such as
punitive damages.  The arbitrator’s
decision shall be final and legally binding on the disputants and their
successors and assigns, and judgment by the arbitrator may be entered in any
court having jurisdiction.  Each party
shall pay its own fees, disbursements, and costs relating to or arising out of
any arbitration.  All arbitration
conferences and hearings shall be held within a thirty (30) mile radius of
Eden Prairie, Minnesota.

 

Section 4.03                                Exclusivity, etc.   The dispute resolution
procedures set forth in Sections 4.01 and 4.02 shall not apply to any matter
which, by the express provisions of this Plan, is to be finally determined by
the Compensation Committee or by an accounting firm.  No legal action may be brought with respect to this Plan except
for the purpose of specifically enforcing the provisions of this
Article IV or for the purpose of enforcing any arbitration award made
pursuant to Section 4.02.

 

11

 

ARTICLE V

 

AMENDMENT
AND TERMINATION

 

The Compensation
Committee may amend or terminate the Plan at any time; provided however that
(i) no such amendment may adversely affect any rights of the Participants
who were Plan Participants prior to the date of such amendment (and may only
adversely affect the rights of any Plan Participants who become Plan
Participants on or following the date of such amendment or termination), and
(ii) with respect to ADC’s obligations to pay severance pursuant to
Sections 3.01 and 3.02, no termination of the Plan may be made prior to
November 13, 2008.  Notwithstanding
the foregoing, the Plan shall terminate when all of the obligations to
Participants hereunder have been satisfied in full.

 

12

 

ARTICLE VI

 

MISCELLANEOUS
PROVISIONS

 

Section 6.01                                Type of Plan.  The Plan is a severance pay welfare benefit plan and not a
pension benefit plan.  The Plan is
established with the understanding that it is an unfounded welfare plan maintained
primarily for the benefit of a select group of management or highly compensated
individuals within the meaning of ERISA.

 

Section 6.02                                Cumulative Benefits.  Except as to the extent provided in
Section 3.05, the rights and benefits provided to any Participant under
this Plan are cumulative of, and are in addition to, all of the other rights
and benefits provided to such Participant under any Benefit Plan or any
agreement between such Participant and any Employer.

 

Section 6.03                                No Mitigation.  No Participant shall be required to mitigate the amount of any
payment provided for in this Plan by seeking or accepting other employment
following a termination of his or her employment with ADC or otherwise.  Except as otherwise provided in Section 3.05,
the amount of any payment provided for in this Plan shall not be reduced by any
compensation or benefit earned by a Participant as the result of employment by
another employer or by retirement benefits. 
ADC’s obligations to make payments to any Participant required under
this Plan shall not be affected by any set off, counterclaim, recoupment,
defense or other claim, right or action that ADC may have against such
Participant.

 

Section 6.04                                Enforceability.  The provisions of this Plan (i) are for the benefit of, and
may be enforced directly by, each Participant and (ii) constitute a
continuing offer to all present and future Participants, until its termination
in accordance with Article V.  ADC,
by its adoption of this Plan, acknowledges and -agrees that each present and
future Participant (a) has relied upon and will continue to rely upon the
provisions of this Plan in becoming, and serving as, an employee of ADC or any
Employer, (b) shall not be prejudiced in his or her right to enforce
directly the provisions of this Plan in accordance with its terms by any act or
failure to act on the part of ADC.  The
failure of Participants or any applicable Employer to insist upon strict
adherence to any term of the Plan on any occasion shall not be considered a
waiver of such party’s rights or deprive such party of the right thereafter to
insist upon strict adherence to that term or any other term of the Plan.

 

Section 6.05                                Administration.

 

(a)                                  Except
with respect to the Administrative Committee’s authority to designate eligible
Participants in accordance with Section 2.01, the Compensation Committee
shall have exclusive authority to make determinations with respect to the
administration of this Plan, to construe and interpret its provisions and to
take all other actions deemed necessary or advisable for the proper
administration of this Plan, but such authority shall be subject to the
provisions of this Plan.  No

 

13

 

discretionary action by
the shall amend or supersede the express provisions of this Plan.

 

(b)                                 The
members of the Administrative Committee and the Compensation Committee shall
receive no additional compensation for their services relating to this
Plan.  Any expenses properly incurred by
the Administrative Committee and the Compensation Committee incident to this
Plan shall be paid by ADC.

 

(c)                                  ADC
shall indemnify and hold harmless each member of the Administrative Committee
and the Compensation Committee against and all expenses and liabilities arising
out of his or her administrative functions, including any expenses and
liabilities that are caused by or result from an act or omission constituting
the negligence of such member in the performance of such functions or
responsibilities, but excluding expenses and liabilities that are caused by or
result from such member’s own gross negligence or willful cause.  Expenses against which such member shall be
indemnified hereunder shall include, without limitation, the amounts of any
settlement or judgment, costs, counsel fees, and related charges reasonably
incurred in connection with a claim asserted or a proceeding brought or
settlement thereof.

 

Section 6.06                                Consolidations, Mergers, Etc.  In the event of a merger, consolidation or
other transaction, nothing herein shall relieve ADC from any of the obligations
set forth in the Plan; provided, however, that nothing in this
Section 6.06 shall prevent an acquirer of or successor to ADC from
assuming the obligations, or any portion thereof, of ADC hereunder pursuant to
the terms of the Plan provided that such acquirer or successor provides
adequate assurances of its ability to meet this obligation.  In the event that an acquirer of or
successor to ADC agrees to perform ADC’s obligations, or any portion thereof, hereunder,
ADC shall require any person, firm or entity which becomes its successor to
expressly assume and agree to perform such obligations in writing, in the same
manner and to the same extent that ADC would be required to perform hereunder
if no such succession had taken place.

 

Section 6.07                                Successors and Assigns.  This Plan shall be binding upon and inure to
the benefit of ADC and its successors and assigns.  This Plan and all rights of each Participant shall inure to the
benefit of and be enforceable by such Participant and his or her personal or
legal representatives, executors, administrators, heirs and permitted
assigns.  If any Participant should die
while any amounts are due and payable to such Participant hereunder, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the
terms of this Plan to such Participant’s devisees, legatees or other designees
or, if there be no such devisees, legatees or other designees, to such
Participant’s estate.  No payments,
benefits or rights arising under this Plan may be assigned or pledged by any
Participant, except under the laws of descent and distribution.

 

Section 6.08                                Notices. 
All notices and other communications provided for in this Plan shall be
in writing and shall be sent, delivered or mailed, addressed as follows:  (a) if to ADC, at ADC’s

 

14

 

principal office address
or such other address as ADC may have designated by written notice to all
Participants for purposes hereof, directed to the attention of the Chief Operating
Officer, and (b) if to any Participant, at his or her residence address on
the records of ADC or to such other address as he or she may have designated to
ADC in writing for purposes hereof. 
Each such notice or other communication shall be deemed to have been
duly given or mailed by United States certified or registered mail, return
receipt requested, postage prepaid, except that any change of notice address
shall be effective only upon receipt.

 

Section 6.09                                Tax Withholdings.  ADC shall have the right to deduct from any payment hereunder all
taxes (federal, state or other) which it is required to be withhold therefrom.

 

Section 6.10                                No Employment Rights Conferred.  This Plan shall not be deemed to create a
contract of employment between any Participant and ADC, any Employer or any
other affiliate of ADC.  Nothing
contained in this Plan shall (i) confer upon any Participant any right
with respect to continuation of employment with ADC, any Employer or any other
affiliate of ADC or (ii) subject to the rights and benefits of any
Participant hereunder, interfere in any way with the right of ADC or any
Employer to terminate such Participant’s employment at any time.

 

Section 6.11                                Entire Plan.  Except as set forth in this Section 6.11, this Plan contains
the entire understanding of the Participants, ADC and any Employer with respect
to the severance arrangements maintained on behalf of the Participants by ADC
and any Employer.  There are no
restrictions, agreements, promises, warranties, covenants or undertakings
between the Participants and ADC or any Employer with respect to the subject
matter herein other than those expressly set forth herein.

 

Section 6.12                                Severability.  If any provision of the Plan is, becomes or is deemed to be
invalid, illegal or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions of this Plan shall not be affected
thereby.

 

Section 6.13                                Governing Law.  This Plan has been executed and delivered in the State of
Minnesota and has been drawn in conformity to the laws of that State and shall,
except to the extent that U.S. federal law is controlling, be construed and
enforced in accordance with the domestic laws of the State of Minnesota without
giving effect to any choice or conflict of law provision or rule (whether of
the State of Minnesota or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of Minnesota.

 

Section 6.14                                Service of Legal Process.  The corporate secretary of ADC Telecommunications,
Inc. is designated as agent for service of legal process against the Plan.  Also, service of legal process may be made
upon ADC Telecommunications, Inc. as plan administrator.

 

Section 6.15                                Condition Precedent to Plan Effectiveness.  The effectiveness of the Plan and ADC’s
obligations thereunder are contingent on the occurrence of closing of the
transactions contemplated by the Share Purchase Agreement.  In the event that such closing does not
occur,

 

15

 

the Plan shall be null
and void, and no party shall be entitled to enforce any rights against ADC
thereunder.

 

IN WITNESS WHEREOF, and
as conclusive evidence of the adoption of this Plan by the Compensation
Committee, ADC has caused this Plan to be duly executed in its name and behalf
by its proper officer thereunto duly authorized as of the Effective Date.

 

 

	
   

  	
  ADC Telecommunications,
  Inc..

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Laura N. Owen

  
	
   

  	
   

  
	
   

  	
  Printed Name:

  	
  Laura N. Owen

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  Vice President, Human
  Resources

  
					

 

16

 

SEVERANCE
AGREEMENT

 

AND
GENERAL RELEASE

 

This Severance Agreement
and General Release (“Agreement”) is entered into
by                              (“Employee”),
ADC Telecommunications, Inc. (“ADC”), and GenTek Inc. (“GenTek”) (collectively,
the “Parties”).

 

WHEREAS,
Employee is a Participant in the GenTek Inc. Key Employee Retention Plan and
has entered into a GenTek, Inc. Retention Plan Participate Agreement
dated                        ;
and

 

WHEREAS,
a triggering event has occurred under the KERP and Employee’s employment with
ADC is being terminated; and

 

WHEREAS,
the Employee is entitled to receive certain severance benefits under the terms
of a Key Employee Retention Plan (the “KERP”) in exchange for Employee’s full
release of any claims that the Employee may have against ADC and GenTek, and in
exchange for the other covenants and agreements contained herein;

 

NOW,
THEREFORE, in consideration of the promises and mutual
covenants contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are expressly acknowledged, the Parties agree
and promise as follows:

 

1.                                                                                       EMPLOYEE’S SEPARATION.  Pursuant to this Agreement, Employee’s
employment shall be terminated effective as
of                            2004
(the “Separation Date”).

 

2.                                                                                       SEVERANCE CONSIDERATION.

 

a.                                       Pursuant
to the terms and conditions of the KERP and in accordance with the Award Letter
to the Employee
dated                     setting
forth the Employee’s entitlements under the KERP, within sixty (60) days after
the Separation Date, and provided Employee has not rescinded his acceptance of
this Agreement as permitted under Section 13 below, Employee shall be
entitled to be paid by ADC (i) the severance sum of
$                      ,
less applicable withholdings, (ii)
$        , which represents payment for
all unused vacation time accrued by Employee as of the Separation Date, less
applicable withholdings.  In addition,
and as part of Employee’s rights under the federal COBRA legislation, Employee
shall continue to be permitted to participate at employee rates in all
applicable continued life, health care, medical, and dental benefits under
which the Employee is covered as of the date hereof (the “Benefits”) for a
period continuing until the earlier of Employee becoming covered under a
different employer’s plan or
the                 month
following Employee’s Separation Date. 
The consideration identified herein shall be collectively referred to as
the “Severance Package”;

 

 

b.                                      Employee
acknowledges and agrees that the Severance Package constitutes consideration
beyond that which, but for the mutual covenants set forth in this Agreement,
ADC would not be obligated to provide, and Employee otherwise would not be
entitled to receive;

 

c.                                       Employee
acknowledges that Employee remains bound by the terms of the Non-Solicitation,
Non-Compete, Non-disclosure and Non-Disparagement Agreement previously signed
by Employee;

 

d.                                      Employee
acknowledges that except as otherwise provided in this Agreement, Employee’s
Benefits cease on Employee’s Separation Date and except for (i) the Severance
Package (which includes the Benefits set forth in Section 2(a)), (ii)
Employee’s salary through the Separation Date and [Following language is optional,
depending on circumstances: (iii) the payment of Employee’s 2004
KRONE Management Incentive Plan bonus in accordance with the terms agreed
between ADC and GenTek, to be paid as soon as reasonably practicable.]  Employee is not entitled to receive any
other compensation or benefits of any sort, including, without limitation,
salary, vacation, bonuses, short-term or long-term disability benefits, health
care continuation coverage (except as provided under federal law), from ADC or
GenTek or their respective affiliates, or any of their respective officers,
directors, employees, agents, insurance companies, attorneys, subsidiaries,
successors or assigns; and

 

e.                                       Employee
represents that Employee has not filed, initiated, or caused to be filed or
initiated, any legal action covering any claim released in this Agreement and
hereby agrees and promises that Employee will never file, initiate or cause to
be filed or initiated, at any time subsequent to the execution of the
Agreement, any claim, suit, complaint, action, or cause of action, in any state
or federal court based in whole or in part on the matters herein released,
except to the extent such waiver is precluded by law.  Employee further agrees not to seek to share or participate in
any recovery arising out of, based upon, or relating to matters released
hereunder, and agrees not to voluntarily participate, assist or cooperate in
any suit, action, or proceeding against or regarding the Released Parties, or
any of them, unless compelled by law.

 

3.                                       GENERAL RELEASE OF CLAIMS. In
consideration of the severance and benefits referred to herein, Employee hereby
forever releases and discharges ADC and GenTek, and their respective
affiliates, and their respective past and present officers, directors,
shareholders, partners, members, managers, attorneys, representatives, agents
and employees, and each of their respective predecessors, successors and
assigns (collectively, the “Released Parties”), from any and all claims,
charges, complaints, liens, demands, causes of action, obligations, damages and
liabilities, KNOWN OR UNKNOWN, SUSPECTED
OR UNSUSPECTED, that Employee had, now has, or may hereafter
claim to have against the Released Parties from the beginning of time to the
date Employee signs this Agreement. This release specifically extends to,
without limitation, claims or causes of action for sexual harassment, wrongful
termination, impairment of ability to compete in the open labor market, breach
of an express or implied contract, breach of the covenant of good faith and
fair dealing, breach of fiduciary duty, fraud, misrepresentation, defamation,
slander, infliction of emotional distress, discrimination, harassment,
disability, loss of future earnings, and claims under the United States Constitution,
and applicable state and federal

 

2

 

fair employment laws,
federal equal employment opportunity laws, and federal and state labor statutes
and regulations, including, but not limited to, Title VII of the Civil Rights
Act of 1964, as amended, the Fair Labor Standards Act, as amended, the National
Labor Relations Act, as amended, the Labor-Management Relations Act, as
amended, the Worker Retraining and Notification Act of 1988, as amended, the
Americans With Disabilities Act of 1990, as amended, the Rehabilitation Act of
1973, as amended, the Employee Retirement Income Security Act of 1974, as
amended and the Age Discrimination in Employment Act of 1967, as amended.  Notwithstanding the foregoing, the parties
expressly agree that Employee does not release any claim relating to the
enforcement of this Agreement or the breach hereof.

 

Employee understands and
agrees, except as provided herein, that this Agreement is intended to include
all claims, if any, which Employee may have and which Employee does not now
know or suspect to exist in Employee’s favor against the Released Parties, and
this Agreement extinguishes those claims.

 

4.                                       OWNERSHIP OF CLAIMS. Employee
represents and agrees that neither Employee nor anyone acting on Employee’s
behalf has assigned or transferred, or attempted to assign or transfer, to any
person or entity, any of the claims Employee is releasing in this Agreement.

 

5.                                       DISCOVERY OF DIFFERENT OR ADDITIONAL FACTS OR CHANGE
IN CIRCUMSTANCES. Employee acknowledges that Employee might
hereafter discover facts different from, or in addition to, those Employee now
knows or believes to be true with respect to a claim or claims released herein,
and Employee expressly agrees to assume the risk of possible discovery of
additional or different facts, and agrees that this Agreement shall be and
remain effective, in all respects, regardless of such additional or different
discovered facts.

 

6.                                       NON-ADMISSION OF LIABILITY. Nothing in
this Agreement shall be construed as an admission of liability by Employee or
the Released Parties; rather, Employee and the Released Parties are resolving
all matters arising out of their respective employer-employee relationships
with Employee and all other relationships between Employee and the Released
Parties, as to each of which each of the Released Parties and Employee denies
any liability.

 

7.                                       INDEMNIFICATION.  ADC
and Employee acknowledge that nothing in this Agreement shall be construed as a
waiver of any rights Employee has to seek indemnification pursuant to Minn.
Stat. §302A.521 in relation to work performed by Employee for ADC during the
period specified in the Retention Agreement. 
GenTek and Employee acknowledge that nothing in this Agreement shall
impair any rights Employee may have to indemnification pursuant to GenTek’s
certificate of incorporation or bylaws or any insurance policy maintained by
GenTek that otherwise covers Employee in relation to work performed by Employee
for GenTek.

 

8.                                       BINDING EFFECT. This Agreement shall be
binding upon the Parties and their respective heirs, administrators,
representatives, executors, successors and assigns,

 

3

 

and shall inure to the
benefit of the Parties and their respective heirs, administrators,
representatives, executors, successors and assigns.

 

9.                                       SEVERABILITY. While the provisions
contained in this Agreement are considered by the Parties to be reasonable in
all circumstances, it is recognized that provisions of the nature in question
may fail for technical reasons and, accordingly, it is hereby agreed and
declared that if any one or more of such provisions shall, either by itself or
themselves or taken with others, be adjudged to be invalid as exceeding what is
reasonable in all circumstances for the protection of the interests of ADC and
GenTek, but would be valid if any particular restrictions or provisions were
deleted or restricted or limited in a particular manner, then the said
provisions shall apply with any such deletions, restrictions, limitations,
reductions, curtailments, or modifications as may be necessary to make them
valid and effective.

 

10.                                 ENTIRE AGREEMENT; MODIFICATION. This
Agreement, the Retention Agreement and Participation Agreement constitute the
entire understanding among the Parties and may not be modified without the
express written consent of both Parties. This Agreement supersedes all prior
written and/or oral and all contemporaneous oral agreements, understandings and
negotiations regarding its subject matter.

 

11.                                 DISPUTE RESOLUTION. Each Party to this
Agreement agrees that any dispute arising under or out of the matters contained
herein shall be resolved in accordance with Article VI of the KERP.

 

12.                                 GOVERNING LAW. This Agreement shall be
governed by and construed and enforced pursuant to the laws of the State of
Minnesota applicable to contracts made and entirely to be performed therein.

 

13.                                 RIGHTS TO RESCIND.  Employee acknowledges that Employee has 21
days to consider signing this Agreement. 
Once executed and delivered by Employee, this Agreement shall become
effective even if the 21-day period has not expired, subject to valid
rescission by Employee.  Employee may
validly rescind acceptance of this Agreement to the extent it relates to waiver
and release of claims under the Age Discrimination in Employment Act (“ADEA”)
and the Minnesota Human Rights Act (“MHRA”) by providing written notice of
rescission within 15 days of signing this Agreement.  To be
effective, such rescission shall be in
writing, delivered by registered mail to Laura Owen, Vice President, Human
Resources, ADC Telecommunications, Inc., P.O. Box 1101, Minneapolis, MN 55440.

 

If EMPLOYEE exercises
such right to rescind this release of claims under the ADEA and/or MHRA, then
ADC may at its option either void and nullify this Agreement in its entirety,
or keep it in effect in all respects other than as to Employee’s release of
claims that Employee has rescinded.  If
ADC chooses to void and nullify this Agreement, neither EMPLOYEE nor ADC shall
have any rights or obligations under the Agreement, but Employee’s employment
with ADC shall, nevertheless, be terminated as of the Separation Date.

 

14.                                 VOLUNTARY
AGREEMENT; NO INDUCEMENTS.  Each
Party to this Agreement acknowledges and represents that Employee or it (a) has
fully and carefully read

 

4

 

this Agreement prior to
signing it, (b) has been, or has had the opportunity to be, advised by
independent legal counsel of his or its own choice at his or its own cost as to
the legal effect and meaning of each of the terms and conditions of this
Agreement, and (c) is entering into this Agreement freely and voluntarily and
not in reliance on any promises or representations other than as set forth in
this Agreement.

 

PLEASE
READ CAREFULLY. BY SIGNING THIS SEVERANCE RELEASE YOU ARE WAIVING ALL KNOWN AND
UNKNOWN CLAIMS AGAINST ADC AND THE RELEASED PARTIES.

 

I HAVE
READ THE FOREGOING AGREEMENT AND I ACCEPT AND AGREE TO ITS PROVISIONS VOLUNTARILY
WITH FULL UNDERSTANDING OF ITS CONSEQUENCES.

 

IN
WITNESS WHEREOF, the Parties have signed this Agreement as of
the date written below.

 

 

	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Employee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ADC Telecommunications,
  Inc.

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Laura Owen

  
	
   

  	
  Vice President, Human Resources

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GenTek Inc.

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Its:

  

 

5Exhibit
10.c

 

Terms
of Ronald A. Lowy Individual Award Letter

Under the KRONE Acquisition Key Employee Retention Plan

 

Pursuant to the Plan, Mr.
Lowy is entitled to a severance payment in the event that his employment with
the company is terminated (i) by the company for any reason other than “cause”
(as defined in the Plan), (ii) by Mr. Lowy for “good reason” (as defined in the
Plan) or (iii) as a result of Mr. Lowy’s death or “disability” (as defined in
the Plan).  The severance will consist
of a lump sum cash payment equal to his annual salary at the time of
termination multiplied by two (2).  Mr.
Lowy is also entitled to receive continuation of certain health and welfare
benefits for twenty-four (24) months or until he obtains benefits from a
subsequent employer, if earlier.  Any
severance payment made under the Plan shall be in lieu of any severance payment
that would have otherwise been payable to Mr. Lowy by the company pursuant to
any other plan, or individual agreement or arrangement.  As a condition to receipt of any severance
benefits (including the enhanced benefits described below), Mr. Lowy must have
executed the Severance Agreement and a General Release in the specified form.

 

In lieu of the severance
payment set forth above, Mr. Lowy is entitled to an enhanced severance payment
if he terminates his employment for “good reason” or his employment is
terminated by the company without “cause,” in each case on or prior to
November 13, 2004.  This enhanced
severance benefit is the same as the severance benefit set forth above, except
that the lump sum cash payment will be two (2) times the sum of Mr. Lowy’s
annual salary plus his target bonus for that year.  In addition, the company will pay Mr. Lowy a gross–up for any
excise tax imposed on excess parachute payments under Section 4999 of the
Internal Revenue Code.

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