Document:

mpr10q201110ex10cn.htm

Exhibit (10)(cn)

 

Met-Pro Corporation

Directors Retirement Plan Trust Agreement

 

This Met-Pro Corporation Directors Retirement Plan Trust Agreement is by and between Met-Pro Corporation, a Pennsylvania corporation (the “Company”) and Comerica Bank & Trust, National Association, a national banking association (the “Trustee”).

RECITALS

Company adopted the Met-Pro Corporation Directors Retirement Plan, as amended, (the “Plan”), a copy of which is attached hereto; and

   

Company may incur liability under the terms of such Plan with respect to the individuals participating in such Plan; and

  

Company established a trust (the "Trust") to provide itself with a source of funds to assist it in the meeting of its potential liabilities under the Plan, the assets held in the Trust to be subject to the claims of Company's general creditors in the event of Company's Insolvency, as herein defined, until paid to Plan participants and their beneficiaries in such manner and at such times as specified in the Plan; and

    

It is the intention of the parties that this Trust shall constitute an unfunded arrangement and shall not affect the status of the Plan as unfunded plans maintained for the purpose of providing deferred compensation for a select group of management or highly compensated employees for purposes of Title I of the Employee Retirement Income Security Act of 1974; and

    

Company previously entered into a trust agreement with Mellon Bank, N.A., dated February 11, 2000, and now wishes to remove Mellon Bank, N.A. as trustee and appoint Comerica Bank & Trust, National Association as successor Trustee of the Trust;

    

NOW THEREFORE, the parties do hereby establish the Trust and agree that the Trust shall be comprised, held and disposed of as follows:

 

Section 1        Establishment of Trust

  

(a) Company shall cause the prior trustee to transfer to the successor Trustee all Trust assets under its control.  Such transferred amounts, together with any future contributions, and any earnings thereon, are collectively referred to in this Agreement as the “Fund.”  The Company shall make contributions in cash or other property acceptable to the Trustee.  The Trustee shall hold, administer and distribute the Fund as provided in this Trust Agreement.  The Company shall have the sole duty and responsibility for the determination of the accuracy or sufficiency of the contributions to be made under the Plan.

  

(b) Immediately prior to a change of control (as defined in the Plan), the Company shall contribute to the Trust that amount necessary to fully fund all benefits under the Plan which become payable upon a change in control.  At the same time, the Company shall provide to the Trustee a Payment Schedule (as described in Section 2(b)).  Promptly after receiving the contribution and Payment Schedule, the Trustee shall pay each Plan participant or beneficiary the benefits specified in the Payment Schedule.  Notwithstanding the commencement of benefit payments, Fund assets shall remain subject to the claims of the Company’s general creditors and Section 3 herein.

  

(c) The Trust shall be irrevocable except as explicitly provided to the contrary in Sections 3 or 4.

  

Page 1 of 9

  

 

 

(d) The Trust is intended to be a grantor trust, of which the Company is the grantor, within the meaning of subpart E, part I, subchapter J, Chapter 1, subtitle A of the Internal Revenue Code of 1986, as amended, and shall be construed accordingly.

   

(e) The Fund shall be held separate and apart from other funds of the Company and shall be used exclusively to discharge the Company’s obligations under the Plan, except as provided to the contrary in Sections 3 or 4.  Neither any Plan participant nor beneficiary shall have a preferred claim on, or any beneficial ownership interest in, any assets of the Fund.  Any rights created under the Plan and this Trust Agreement shall be mere unsecured contractual rights of Plan participants and their beneficiaries against the Company.  The Fund is subject to the claims of the Company's general creditors to the extent provided under federal and state law if the Company becomes Insolvent.

  

(f)  The Company represents and warrants to the Trustee that the Plan is not covered under Title I of ERISA.

  

(g) The Company’s Chief Financial Officer or such Officer’s designee shall have authority to act for the Company under this Trust Agreement.

Section 2        Payment to Plan Participants and Beneficiaries

   

(a) Pending the Company’s funding of the Trust, the Company shall pay all benefits to Plan participants as they become due under the Plan.  After the Trust is funded, the Company may continue to make payments directly.  In such case, the Company shall notify the Trustee of its decision to make payments directly prior to the time payment is due.  In addition, if at any time the Fund is not sufficient to make payment in accordance with the terms of the Plan, the Company shall make the balance of each payment as it falls due.  The Trustee shall notify the Company if the Fund is not sufficient to make a scheduled payment.

  

(b) After the Company funds the Trust and in advance of the time that any amounts are payable under the Plan, the Company shall deliver to the Trustee a schedule (the "Payment Schedule") that indicates with respect to each participant:

  

	  	
(1)

	
The amounts payable or provides a formula or other instructions acceptable to the Trustee for determining the amounts so payable;

  

	  	
(2)

	
The form in which such amount is to be paid; and

  

	  	
(3)

	
The time of commencement and duration for payment of such amounts.  Except as otherwise provided herein, the Trustee shall make payments to the Plan participants and their beneficiaries in accordance with such Payment Schedule.

  

  

(c) It is the intent of the Company and the Trustee that the Company shall be responsible for determining and effecting all federal, state and local tax aspects of the Plan and the Trust, including, without limitation, income taxes payable on the Trust’s income, if any, any required withholding of income or other payroll taxes in connection with the payment of benefits from the Trust pursuant to the Plan, and all reporting required in connection with any such taxes.  To the extent that the Company is required by applicable law to pay or withhold such taxes or to file such reports, such obligation shall be a responsibility allocated to the Company, as the case may be, hereunder.  To the extent the Trustee is required by applicable law to pay or withhold such taxes or to file such reports, the Company shall inform the Trustee of such obligation, shall direct the Trustee with respect to the performance of such obligations and shall provide the Trustee with all information required by the Trustee to meet such obligations.

  

Page 2 of 9

  

 

 

(d) The entitlement of a Plan participant or his or her beneficiaries to benefits under the Plan shall be determined by the Company or such party as it shall designate under the Plan, and any claim for such benefits shall be considered and reviewed under the procedures set out in the Plan.

Section 3        Trustee Responsibility Regarding Payments to Trust Beneficiaries When Company is Insolvent 

 

(a) The Trustee shall cease payment of benefits to Plan Participants and their beneficiaries if the Company becomes Insolvent.  The Company shall be considered "Insolvent" for purposes of this Trust Agreement if: 

  

	  	
(1)

	
The Company is unable to pay its debts as they become due, or

	  	
(2)

	
The Company is subject to a pending proceeding as a debtor under the United States Bankruptcy Code.

(b) At all times during the continuance of this Trust, the Fund shall be subject to claims of general creditors of the Company under federal and state law as set forth below:

  

	  	
(1)

	
The Board of Directors and/or an authorized officer of the Company shall have the duty to inform the Trustee and affected participants in writing if the Company becomes Insolvent.  If a person claiming to be a creditor of the Company alleges in writing to the Trustee that the Company has become Insolvent, the Trustee shall determine whether the Company is Insolvent and, pending such determination, the Trustee shall discontinue payment of benefits to Plan Participants or their beneficiaries.  In all cases, the Trustee shall be entitled to rely conclusively upon the written certification of the Board of Directors or an authorized officer of the Company when determining whether the Company is Insolvent.  For purposes of this Section 3(b), the “authorized officers” of the Company shall include the Chief Executive Officer, President, Chief Financial Officer and/or the Secretary.

  

	  	
(2)

	
Unless the Trustee has actual knowledge that the Company is Insolvent, or has received notice from the Company or a person claiming to be a creditor alleging that the Company is Insolvent, the Trustee shall have no duty to inquire whether the Company is Insolvent.  The Trustee may in all events rely on such evidence concerning the Company's solvency as may be furnished to the Trustee and that provides the Trustee with a reasonable basis for making a determination concerning the Company's solvency.

  

	  	
(3)

	
If at any time the Trustee has determined that the Company is Insolvent, the Trustee shall discontinue payments to Plan participants or their beneficiaries and shall hold the assets of the Trust for the benefit of the Company's general creditors.  Nothing in this Trust Agreement shall in any way diminish any rights of the Plan participants or their beneficiaries to pursue their rights as general creditors of the Company with respect to benefits due under the Plan or otherwise. 

  

	  	
(4)

	
Trustee shall resume the payment of benefits to Plan participants or their beneficiaries in accordance with Section 2 of this Trust Agreement only after the Trustee has determined that the Company is not Insolvent (or is no longer Insolvent).

  

Section 4        Payments to the Company

Except as provided in Section 3, the Company shall have no right or power to direct the Trustee to return to the Company or to divert to others any of the Trust assets before all payment of benefits have been made to all participants and beneficiaries of the Plan pursuant to the terms of the Plan.

 

  

Page 3 of 9

  

 

 

Section 5        Investment and Other Authority

  

(a) Except and to the extent that a duly appointed independent Investment Manager or the Company is exercising investment discretion pursuant to this Agreement, the Trustee shall have the following powers and authority in the management and administration of the Fund, to be exercised in its sole judgment and discretion:

  

	
(1)

	  	
To purchase, subscribe or otherwise acquire for the Fund any securities or other property.  In making investments the Trustee shall diversify the investments so as to minimize the risk of large losses, unless under the circumstances it is the Trustee's opinion it is not prudent to do so.  

	
(2)

	  	
To sell, exchange, convey, convert, redeem, transfer, grant options upon, lend or otherwise dispose of any securities or property held by the Fund, by private contract or at public auction, for cash or on credit, and no person dealing with the Trustee shall be required to see to the application of the purchase money or to inquire into the validity, expediency or propriety of any such sale, action or other disposition.  

	
(3)

	  	
To settle, compromise or arbitrate any claims, debts or damages, due or owing to or from the Trust; to commence or defend suits or legal proceedings; and to represent the Trust in all suits or legal proceedings.  

	
(4)

	  	
To exercise any conversion privilege or subscription right in connection with any securities or other property of the Fund; to consent or object to the reorganization, consolidation, merger or readjustment of the finances of, or to the sale, mortgage, pledge or lease of the property of any corporation or association, any of the securities of which are in the Fund; to do any act with reference to the above, including the exercise of options, making of agreements and payment of expenses or assessments which may be deemed necessary or advisable in connection therewith; and to hold and retain any securities or other property which it may so acquire.  

	
(5)

	  	
To vote, personally or by general or limited proxy, any stock in the Fund and similarly to exercise, personally or by general or by limited power of attorney, any right appurtenant to any securities or other property in the Fund.  

	
(6)

	  	
To borrow money in such amounts and upon such terms and conditions as shall be deemed advisable or proper to carry out the purposes of the Trust and to pledge any securities or other property in the Fund for the repayment of any such loan.  

	
(7)

	  	
To hold part, or all, of the Fund uninvested, without liability for payment of interest thereon for a reasonable period of time.  

	
(8)

	  	
To employ suitable agents, including but not limited to an investment adviser which may or may not be a subsidiary or an affiliate of the Trustee, and counsel and pay their reasonable expenses and compensation.  

	
(9)

	  	
To register any securities in the Fund in its own name or in the name of a nominee, with or without the addition of words indicating that such securities are held in a fiduciary capacity; and to hold any securities in bearer form or by electronic book entry.  

	
(10)

	  	
To execute and deliver deeds, leases, mortgages, conveyances, contracts, waivers, releases or other instruments necessary or proper for accomplishing the foregoing powers. 

	  	  	  

 

  

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Notwithstanding any provision in this Agreement to the contrary, no part of the Fund may be invested in real estate at any time.

    

(b) "Securities or other property" as used above means stock (common or preferred) or any other interest in any corporation, bonds, notes, or other evidences of indebtedness or ownership (unsecured or secured by real or personal property wherever situated), without regard to any provision of Michigan law concerning investments by fiduciaries.

    

(c) The Company may select an investment manager (or managers) who may direct the Trustee to invest any part of the Fund in any securities or other property (except Employer property or securities), and direct that it sell any securities or property constituting part of the Trust, and the Trustee shall act on such directions and shall have no liability for acting in accordance with such directions or for the retention of any securities or property so purchased.  The Trustee will be protected in relying upon any telegram or letter purporting to have been sent by the investment manager which it believes in good faith to be genuine.  In directing investments, the investment manager shall diversify the investments so as to minimize the risk of large losses, unless under the circumstances it is the investment manager's opinion that it is clearly prudent not to do so.  The Trustee shall be fully protected in relying upon the certification of the Company with respect to the selection of such investment manager and it shall not be the responsibility of the Trustee to determine or review investment instructions given to it by such investment manager.  Each investment manager shall be a fiduciary under the Trust and shall acknowledge that it is a fiduciary under the Trust in writing delivered to the Trustee and the Company.

    

(d) Notwithstanding the foregoing provisions of this Section 5, the Trustee may, in good faith, accept investment directions from the Company or its authorized representative pursuant to a proper written designation. The Trustee shall hold, administer and dispose of such investments in accordance with directions to the Trustee contained in a written notice from the Company or its authorized representative. Any such notice shall advise the Trustee regarding the retention of investment powers by the Company and shall be of a continuing nature or otherwise, and may be revoked in writing by the Company.

    

(e) The Trustee shall not be liable but shall be fully protected by reason of its taking or refraining from taking any action at the direction of the Company, nor shall the Trustee be liable but shall be fully protected by reason of its refraining from taking any action because of the failure of the Company to give direction or order. The Trustee shall be under no duty to question or make inquiry as to any direction, notification or order or failure to give a direction, notification or order by the Company. The Trustee shall be under no duty to make any review of investments directed by the Company acquired for the Trust Fund and under no duty at any time to make any recommendation with respect to disposing of or continuing to retain any such investment. While the Company may direct the Trustee with respect to Plan investments, the Company may not:

  

	  	
(1)

	
Borrow from the Fund or pledge any assets of the Fund as security for a loan;  

	  	
(2)

	
Buy property or assets from or sell property or assets to the Fund;  

	  	
(3)

	
Charge any fee for services rendered to the Fund; or  

	  	
(4)

	
Receive any services from the Fund on a preferential basis.  

  

(f)  The Company hereby indemnifies and holds the Trustee or its nominee harmless from any and all actions, claims, demands, liabilities, losses, damages or reasonable expenses of whatsoever kind and nature in connection with or arising out of: 

    

	  	
(1)

	
Any action taken or omitted in good faith or any investment or disbursement of any part of the Fund made by the Trustee in accordance with the directions of the Company or 

  

Page 5 of 9

  

 

 

	  	
 

	
with respect to any investment previously made at the direction of the Company in the absence of further directions from the Company therefor; or

	  	
(2)

	
Any failure by the Trustee to pay for any property purchased by the Company for the Fund by reason of the insufficiency of funds in the Fund.  

  

(g) Anything herein to the contrary notwithstanding, the Company shall have no responsibility to the Trustee under the foregoing indemnification if the Trustee knowingly participated in or knowingly concealed any wrongful act or omission of the Company, or if the Trustee fails to perform any of the duties undertaken by it under the provisions of this Agreement, or if the Trustee fails to act in conformity with the directions of an authorized representative of the Company.

    

(h) Without in any way limiting the Trustee’s powers described in this Agreement, the Trustee shall have the power to do any of the following as directed by the Company from time to time:

  

	  	
(1)

	
Place all or part of the marketable securities of the Fund in a custody account maintained with UBS Financial Services Inc. (“UBS”);  

	  	
(2)

	
Engage UBS to act as custodian of the custody account and to act, pursuant to the Trustee’s or an investment manager’s instructions, as broker or dealer to execute transactions and to provide other services with respect to the custody account, including purchasing securities currently distributed, underwritten or issued by UBS or any of its affiliates; and  

	  	
(3)

	
Pay out of the Fund all reasonable custody charges, brokerage commissions, and other fees and expenses incurred pursuant to subsections (h)(1) or (2) above.

Section 6        Disposition of Income

  

During the term of this Trust, all income received by the Trust, net of expenses, fees and taxes, shall be accumulated and reinvested.

Section 7        Accounting by Trustee

  

The Trustee shall keep accurate and detailed records of all investments, receipts, disbursements, and all other transactions required to be made, including such specific records as shall be agreed upon in writing between the Company and the Trustee.  Within one-hundred twenty (120) days following the close of each calendar year and within ninety (90) days after the removal or resignation of the Trustee, the Trustee shall deliver to the Company a written account of its administration of the Fund during such year or during the period from the close of the last preceding year to the date of such removal or resignation, setting forth all investments, receipts, disbursements and other transactions effected by it, including a description of all securities and investments purchased and sold with the cost or net proceeds of such purchases or sales (accrued interest paid or receivable being shown separately), and showing all cash, securities and other property held in the Fund at the end of such year or as of the date of such removal or resignation, as the case may be.

    

The Trustee utilizes various standard industry pricing services and brokerage contacts to provide current pricing information for active publicly traded securities.  The Trustee shall attempt to provide a reasonably accurate current market value for assets not publicly traded.  Many fixed income securities are priced on a matrix system, resulting in a mathematical approximation of price derived by computer.  Although the Trustee will make reasonable and good faith efforts to provide accurate pricing, in some instances prices may not reflect the most accurate pricing readily available or the true value of the asset.  The Trustee shall have no liability for such an occurrence.

  

Page 6 of 9

  

 

 

Section 8        Responsibility of Trustee

  

(a) The Trustee shall act with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in like capacity and familiar with such matters would use in the conduct of an enterprise of like character and with like aims, provided, however, that subject to Section 5(g), the Trustee shall incur no liability to any person for any action taken pursuant to a direction, request or approval given by the Company which is contemplated by, and in conformity with, the terms of the Plan or this Trust and is given in writing by the Company.  In the event of a dispute between the Company and a party, the Trustee may apply to a court of competent jurisdiction to resolve the dispute.

  

(b) If the Trustee undertakes or defends any litigation arising in connection with this Trust which does not allege any negligence, fiduciary breach or other wrongdoing by the Trustee, the company agrees to indemnify the Trustee against the Trustee's costs, expenses and liabilities (including, without limitation, attorney's fees and expenses) relating thereto and to be primarily liable for such payments.  If the Company does not pay such costs, expenses and liabilities in a reasonably timely manner, the Trustee may obtain payment from the Trust.

    

(c) The Trustee may consult with legal counsel (who may also be counsel for the Company generally) with respect to any of its duties or obligations hereunder.

    

(d) The Trustee may hire agents, accountants, actuaries, investment advisors, financial consultants or other professionals to assist the Trustee in performing any of its duties or obligations hereunder.

    

(e) The Trustee shall have, without exclusion, all powers conferred on trustees by applicable law, unless expressly provided otherwise herein, provided, however, that if an insurance policy is held as an asset of the Trust, the Trustee shall have no power to name a beneficiary of the policy other than the Trust, to assign the policy (as distinct from conversion of the policy to a different form) other than to a successor Trustee, or to loan to any person the proceeds of any borrowing against such policy.

  

(f) Notwithstanding any powers granted to the Trustee pursuant to this Trust Agreement or under applicable law, the Trustee shall not have any power that could give this Trust the objective of carrying on a business and dividing the gains therefrom, within the meaning of §301.7701-2 of the Procedure and Administrative Regulations promulgated under the Internal Revenue Code.

Section 9        Compensation and Expenses of Trustee

   

The Company shall pay all administrative and trustee's fees and expenses.  If not so paid, the fees and expenses shall be paid from the Fund.

Section 10      Resignation and Removal of Trustee

  

(a) The Trustee may resign at any time by written notice to the Company, which shall be effective thirty (30) days after receipt of such notice unless the Company and Trustee agree otherwise.

      

(b) The Trustee may be removed by the Company upon thirty (30) days’ notice or upon shorter notice if acceptable to the Trustee.

  

(c)      Upon resignation or removal of the Trustee and appointment of a successor Trustee, all assets shall subsequently be transferred to the successor Trustee.  The transfer shall be completed within ninety (90) days after receipt of notice of resignation, removal or transfer, unless the Company extends the time limit.

  

(d) If the Trustee resigns or is removed, a successor shall be appointed, in accordance with Section 11, by the effective date of resignation or removal under paragraphs (a) or (b) of this section.  If no such 

  

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appointment has been made, the Trustee may apply to a court of competent jurisdiction for appointment of a successor or for instructions.  All expenses of the Trustee in connection with the proceeding shall be allowed as administrative expenses of the Trust.

Section 11      Appointment of Successor

  

If the Trustee resigns or is removed in accordance with Section 10(a) or (b), the Company may appoint any third party, such as a bank trust department or other party that may be granted corporate trustee powers under state law, as a successor to replace the Trustee upon resignation or removal.  The appointment shall be effective when accepted in writing by the new Trustee, who shall have all of the rights and powers of the former Trustee, including ownership rights in the trust assets.  The former Trustee shall execute any instrument necessary or reasonably requested by the Company or the successor Trustee to evidence the transfer.

Section 12      Amendment or Termination

  

(a) This Trust Agreement may be amended by a written instrument executed by Trustee and the Company.  Notwithstanding the foregoing, no such amendment shall conflict with the terms of the Plan or make the Trust revocable in connection with a change in control.

  

(b) The Trust shall not terminate until the date on which participants and their beneficiaries are no longer entitled to benefits pursuant to the terms of the Plan.  Upon termination of the Trust any assets remaining in the Trust shall be returned to the Company.

  

(c) Upon written approval of participants or beneficiaries entitled to payment of benefits pursuant to the terms of the Plan, the Company may terminate this Trust prior to the time all benefit payments under the Plan have been made.  All assets in the Fund at termination shall be returned to the Company.

Section 13      Miscellaneous

  

(a) Any provision of this Trust Agreement prohibited by law shall be ineffective to the extent of any such prohibition, without invalidating the remaining provisions hereof.

  

(b) Except as otherwise provided herein with respect to claims of the Company’s general creditors, benefits payable to participants and their beneficiaries under this Trust Agreement may not be anticipated, assigned (either at law or in equity), alienated, pledged, encumbered or subjected to attachment, garnishment, levy, execution or other legal or equitable process.

  

(c) This Trust Agreement shall be governed by and construed in accordance with the laws of the State of Michigan.

  

(d) The Company and the Trustee acknowledge that the right to trial by jury is a constitutional one, but that it may be waived.  The Company and the Trustee, after consulting (or having had the opportunity to consult) with counsel of their own choosing, each knowingly and voluntarily, and for their mutual benefit, waive any right to trial by jury in the event of litigation involving the performance or enforcement of, or in any way related to, this Agreement.

 

 

 

 

  

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Section 14      Effective Date

   

The effective date of this Trust Agreement shall be the 12th day of September, 2011.

	
Met-Pro Corporation

	  	
Comerica Bank

	
Company

	  	
Trustee

	  	  	  	  	  
	
By:

	/s/ Gary J. Morgan	  	
By:

	/s/ Ralph Johnston
	  	  	  	  	  
	
Its:

	Senior V/P Finance	  	
Its:

	Vice President
	  	  	  	  	  
	
Date:

	
September 12, 2011

	  	
Date:

	
September 14, 2011

 

 

 

M:\Compliance\Client Folders\Met-Pro\Directors Retirement TA.docx

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Page 9 of 9ODC EX 10.1 10.31.2011

Exhibit 10.1:

October 10, 2011

Steven Jay Adolph
1733 W. Irving Park
Chicago, Illinois  60613

Dear Steve;

The following is an agreement (“Agreement”) between Steven Jay Adolph (hereinafter referred to as “You”) and Oil-Dri Corporation of America (hereinafter referred to as “Oil-Dri” or “the Company”) regarding your separation of employment from Oil-Dri.  The purpose of this Agreement is to provide for an orderly departure under terms which are mutually acceptable to both parties and protection for the Company from any and all claims by You against the Company other than those based on this Agreement.  Therefore, in consideration of the mutual promises set forth in this Agreement, You and Oil-Dri agree to the following terms and conditions:

		
	1.
	Your employment with Oil-Dri will terminate on October 10, 2011.

		
	2.
	Although You are not otherwise entitled to receive any severance pay from Oil-Dri, in exchange for your promises contained in this Agreement, Oil-Dri agrees to give You severance compensation as stated below.

Oil-Dri will pay You severance equal to two (2) months of your current base salary for a total gross payment of $33,333.36 less required withholding.  One‐fourth of this severance payment is in consideration for the release of any claims under the Age Discrimination in Employment Act.  You will be eligible to receive up to an additional four (4) months of severance if you still remain unemployed during this period of time.  If you become employed, all severance payments will cease.*  *Does not include part-time consulting amounting to $2,000 or less during each bi-weekly period (2x monthly). If over $2,000 severance payments will be reduced by the amount exceeding $2,000 for the relevant pay period. You will need to communicate on a monthly basis to Dan Jaffee, your employment status during this period of time.*  *If Steve triggers the additional 4 months of severance the maximum that would be paid out would be to April 15, 2012.

These payments will be made semi-monthly on the Company's normal payroll dates.  Such payments will not commence until the eighth day after You sign this Agreement.  The last paydate of severance compensation will be December 15, 2011, unless payments end earlier as provided in paragraph number fifteen (15) of this Agreement. 

In addition, as further consideration of the mutual promises set forth in this Agreement, Oil Dri will agree, on a case by case basis, to waive the provisions of Section 3 of your Non-Competition Agreement to allow you to be employed by persons, corporations or other entities for which you would otherwise be prevented from soliciting business from, be employed by, or engaging in business competitive with Oil Dri.                                                                      
    
		
	3.
	All wages, vacation pay and other benefits due to You as of your separation date according to the established policies, plans, and procedures of the Company will be paid to You in accordance with the terms of those established policies, plans, and procedures. In addition, any benefit continuation rights or benefit conversion rights existing under the established plans of the Company will be made available to You in accordance with the terms of such established plans.  You will receive a separate letter with details concerning your benefits upon separation.  

		
	4.
	You understand and agree that severance compensation under paragraph number two (2) above will end upon your application for unemployment compensation benefits.  If Oil-Dri stops paying severance compensation because of your application for unemployment compensation benefits, that will have no effect upon the release provided in paragraph number five (5) below and the release shall remain in full force and effect.

		
	5.
	In consideration for receiving the severance compensation described in paragraph number two (2) above, You waive and release and promise never to assert any claims or causes of action, whether or not now known, against the 

1

Company or its acquisitions, predecessors, successors, or past or present subsidiaries, officers, directors, agents, employees, assigns and employee benefit plans, with respect to any matter, including but not limited to, any matter related to your employment with the Company or the termination of that employment. This means, among other things, that You waive any right to assert any claim or complaint against the Company, including, but not limited to, tort claims; claims of wrongful discharge, emotional distress, defamation, fraud, or breach of contract; claims for attorneys fees; any claims of discrimination or harassment based on sex, age, race, color, national origin, ancestry, religious creed, disability, sexual orientation, marital status, present or past history of physical or mental disability or handicap, veteran status or on any other basis, under Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act of 1967, the Older Workers Benefit Protection Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the Illinois Human Rights Act, and/or all other local state or federal laws, ordinances and regulations relating to employment.  This is a general release.  You understand and agree that this general release includes, but is not limited to, any claims arising out of or related to your employment with Oil-Dri and your separation from that employment.  However, nothing in this Agreement shall constitute a release by You of any claims that cannot by law be waived. This Agreement does not waive rights or claims that may arise after You sign this Agreement, nor does it prohibit You or the Company from seeking enforcement of the terms contained in this Agreement. 

		
	6.
	You understand and agree that, while this Agreement does not affect your rights to file a charge with or to participate as a witness in an investigation or proceeding conducted by the Equal Employment Opportunity Commission (the “EEOC”) or any similar state agency, by accepting the terms of this Agreement and the compensation provided as a result, You give up your right to receive any relief whatsoever, including but not limited to financial benefit or monetary recovery, from any lawsuit or settlement related to such rights and claims as You waived in paragraph number five (5) above, whether the lawsuit is filed or the settlement reached by the EEOC or anyone else.

		
	7.
	By signing this Agreement You are verifying to the Company that You:

		
	a.
	have not suffered a work-related injury that you have not properly disclosed to Oil‐Dri; and

		
	b.
	have been paid in full all wages due and owing to You for any and all work which You performed for Oil-Dri through the pay period of the paydate immediately preceding the date of your signature.  Oil-Dri agrees that if you performed work for Oil-Dri after that pay period, payment will be made to you according to the Company's established payroll practices.

		
	8.
	You will return to Dan Jaffee  all door and file keys, radio, beeper, equipment, tools, computer access codes, disks and instructional manuals, reports, files, memoranda, records, software, credit cards, and other physical or personal property which You received, prepared or helped prepare in connection with your employment with the Company.  You agree that You will not keep any copies or excerpts of any of the above items.

		
	9.
	You will promptly respond to any questions from Dan Jaffee, or any person designated by him, related to your work at Oil Dri until November 30, 2011.  For this purpose, You will provide Dan Jaffee with your current phone numbers and e‐mail address, if any.

		
	10.
	You waive and surrender any right you may have, now or hereafter, to employment with Oil‐Dri.  In reliance on this waiver, the Company may disregard any employment application submitted by You.

		
	11.
	You agree to refrain from using in any manner and to keep confidential any and all information and data concerning the business and affairs of Oil-Dri or its affiliates which You have received as a result of the employment relationship of the parties, except to the extent that You can demonstrate that the information or data (i) is generally available to the public through no act or failure to act of You, (ii) was already known to You on a non-confidential basis on the date of receipt, (iii) was disclosed to You on a non-confidential basis by a third party not having a confidential relationship with the Company with respect to such information, or (iv) has been independently acquired or developed without violating any of your obligations under this provision.

		
	12.
	You agree that you will not disclose to others the terms of this Agreement, except that You may disclose such information to your attorney, tax preparer and immediate family.  If you properly disclose the terms of the Agreement to anyone, you agree that you shall inform them that the Agreement is strictly confidential, and instruct them not to disclose it to anyone else.  

		
	13.
	You will direct all reference inquiries to Janelle Wood, Payroll Manager, who will respond only with the following information:  dates of employment, position(s) held, and confirmation of last salary.  To the extent that You direct references to other persons, the Company is not liable for any statements made by such non-designated individuals.  

2

You agree that the Company has no liability for any statements made regarding You by persons not employed by the Company at the time such statements are made.

		
	14.
	You will not do or say anything which criticizes or disparages the Company, its management or practices, which disrupt or impairs the Company's normal, ongoing business operations, or which harms the Company's reputation with its employees, customers, suppliers or the public.

		
	15.
	You understand and agree that if you breach any part of this Agreement, Oil-Dri's obligation for severance compensation as stated in paragraph number two (2) above ceases and Oil-Dri may recoup all such payments already made.  You and Oil-Dri agree that this Agreement constitutes the entire understanding of the parties concerning the cessation of the employment relationship and sets forth all compensation to be paid by the Company to You subsequent to cessation of the employment relationship.  This Agreement cancels and supersedes all previous agreements and understandings, oral or written, between the parties with respect to the subject matter hereof and may be modified only in a written document signed by You and a duly authorized officer of the Company.

		
	16.
	Nothing in this Agreement shall be treated as an admission by You or the Company of any liability, wrongdoing or violation of any law.

		
	17.
	This Agreement shall be governed by and construed in all respects under the laws of the State of Illinois without reference to its conflicts of laws, rules or principles.  If a court finds any part of this Agreement to be invalid or unenforceable, then that provision or part shall be modified so as to render it valid and enforceable, or, if necessary, shall be deemed removed from this Agreement.  In any event, the rest of the Agreement shall remain in full force and effect and shall be enforced to the maximum extent permitted by law.

 
		
	18.
	You have the right to consult with an attorney of your choice before signing this Agreement and Oil-Dri encourages You to do so.  You understand that you have up to  twenty-one (21) days after receiving this Agreement to review it and to discuss it with an attorney, and that You have seven (7) days after you have signed this Agreement during which you may revoke it.  You understand that if You do not return to the Company a signed and dated copy of this Agreement by the close of business on the 21st calendar day after your termination of employment, the provisions of this Agreement, including the severance compensation provisions, will be void and the Company will have no further obligations thereunder.  This Agreement must be signed and returned to Kevin Breese, Vice President of Human Resources, at the address shown below without any alteration. Any modification or alteration of any terms of this Agreement voids the Agreement in its entirety.  

If you wish to revoke this Agreement within the seven-day period, You may do so by delivering a letter of revocation to Kevin Breese, Vice President of Human Resources, at the address shown below.  Because of this revocation period, You understand that this Agreement shall not become effective or enforceable until the eighth day after the date you sign this Agreement.  After that, it becomes binding and irrevocable.

Please indicate your agreement with the terms stated above by signing below.

OIL-DRI CORPORATION OF AMERICA

By:     /s/ Daniel Jaffee                                                   
Daniel Jaffee, President/CEO    
Oil-Dri Corporation of America
410 N. Michigan Ave. - Suite 400
Chicago, IL  60611-4213                

I agree with the terms of this Agreement and deem it to be fair and equitable, as signified by my signature below.  Furthermore, I acknowledge that I have read and understand this Agreement and that I sign this release of all claims, known or unknown, voluntarily, with full appreciation that at no time in the future may I pursue any of the rights I have waived in this Agreement. 

  /s/ Steven Jay Adolph                          Date: October 11, 2011 
    Steven Jay Adolph                

3

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