Document:

Exhibit 10.1

 

SECOND
AMENDMENT TO 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

THIS SECOND AMENDMENT to the Amended and Restated
Employment Agreement (the “Second Amendment”),
is dated December 30, 2008 (the “Effective Date”),
and is made by and between Helen of Troy Limited (the “Company”)
and Gerald J. Rubin (“Executive”).

 

W
I T N E S S E T H:

 

WHEREAS, the parties previously entered into
that certain Amended and Restated Employment Agreement, between Helen of Troy
Limited and Gerald J. Rubin, dated March 1, 1999 and amended pursuant that
certain letter dated April 15, 2005 (the “Employment
Agreement”);

 

WHEREAS, Section 11.5 of the Employment
Agreement provides that the Employment Agreement may be amended by a written
instrument executed by the Company and the Employee;

 

WHEREAS, Section 409A of the Internal
Revenue Code of 1986, as amended (“Section 409A”)
and Section 457A of the Internal Revenue Code of 1986, as amended (“Section 457A”), imposes certain
limitations and restrictions on the time at which certain types of compensation
may be payable;

 

WHEREAS, all documents that may provide for the
payment of compensation that may be subject to Section 409A or Section 457A
must be brought into compliance with the requirements of Section 409A and Section 457A
on or before December 31, 2008, or the service provider to whom such
compensation is payable will be subjected to certain adverse tax consequences,
including, but not limited to, having to pay an additional tax of at least 20%
on such compensation; and

 

WHEREAS, the Company and the Employee have
determined that it is advisable to amend the Employment Agreement in accordance
with Section 457A and the final regulations promulgated under Section 409A
to ensure that, to the extent subject to Section 409A or Section 457A,
the Employment Agreement complies therewith and to avoid the imposition of any
adverse tax consequences under Section 409A or Section 457A.

 

NOW, THEREFORE, the Employment Agreement shall be
amended as of the Effective Date as set forth below.  Capitalized terms used in this Second
Amendment but not otherwise defined in this Second Amendment shall have the
meaning set forth in the Employment Agreement.

 

1.             Section 2.5
of the Employment Agreement shall be deleted and shall be replaced in its entirety
with the following:

 

2.5           Election With Respect To Compensation.  By written notice to the Board or to the
Committee given by Executive prior to the last day of any calendar year during
the term hereof, Executive may, with respect to the calendar year or years
during the term hereof next succeeding the calendar year in which such notice
is given, elect thereby to defer payment to him of such portion of his Basic
Compensation for such succeeding year or years as may be designated by
Executive. Similarly, by written notice to the Board of Directors or to the
Committee given by Executive prior to the last day of any fiscal year during
the term hereof, Executive may, with respect to the fiscal year or years during
the term hereof next succeeding the fiscal year in which such notice is given,
elect thereby to defer payment to him of such portion of his incentive
compensation for such succeeding fiscal year or years as may be designated by
Executive which compensation has not at the date of giving such notice been
fully earned by, or allocated to, Executive. Any amounts so deferred by
Executive shall bear interest thereon (compounded annually at the end of each
calendar year) from the date on which the 

 

 

deferred compensation is finally determined until paid at the published
prime rate charged by Chase Bank of Texas, National Association, El Paso, Texas
(determined with respect to each calendar year on the first business day of
such Bank during such calendar year) and shall be credited to a separate
bookkeeping account established and maintained on behalf of Executive by the
Company hereinafter called the “Deferred Compensation Account”. Executive’s
Deferred Compensation Account shall reflect his deferred compensation hereunder
and the interest, earnings and losses attributable thereto. Notwithstanding the
preceding, Executive may select one or more publicly traded mutual funds for
the deemed investment of all or any portion (in ten percent increments) of his
Deferred Compensation Account. Such selection, or any change thereof, shall be
made by written notice to the Committee, with a copy to the chief financial
officer of the Company, and shall be effective as of the first day of the next
succeeding month. Any investment selection timely and properly made by Executive
shall remain in effect until changed by Executive. Executive’s Deferred
Compensation Account balance shall be paid to Executive or, in the event of his
death, to his designated beneficiary, or if there is no such designation, to
Executive’s wife, if she is then living, or if not, to his estate, in
accordance with Executive’s election as to the time and form of payment made at
the time of the deferral election by written notice to the Board of Directors
or the Committee.  Any deferral election
under this Section 2.5, including any election to change the time and form
of payment previously elected, shall be made in accordance with Section 409A
of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations
and other guidance promulgated thereunder (the “Deferred Compensation Rules”).
Executive’s right to his Deferred Compensation Account balance shall be
nonforfeitable and termination of his employment with the Company for any
reason whatsoever (including for Cause pursuant to Section 3.1(c)) or
Executive’s failure to comply with the provisions of Section 5 shall not
reduce his Deferred Compensation Account balance (as subsequently adjusted for
interest, earnings and losses attributable thereto) or alter the method and the
time for payment thereof or the persons to whom same shall be paid.

 

By written notice to Executive prior to the last day
of any calendar year during the term hereof, Company may, with respect to the
calendar year during the term hereof in which such notice is given, elect to
defer payment to Executive of such portion of his Basic Compensation or
incentive compensation as would, were it paid to Executive during the calendar
year in which such notice is given, cause the total compensation paid to
Executive during the calendar year to exceed the limits on compensation to
Executive deductible by the Company under Section 162(m) of the
Internal Revenue Code of 1986, as amended (“Code Section 162(m)”). Any
amount so deferred by Company shall bear interest from the date when it would
otherwise have been payable until paid at the published prime rate charged by
Chase Bank of Texas, National Association, El Paso, Texas, on the date such
amount would otherwise have been payable. Executive’s right to the amounts so
deferred shall be nonforfeitable as provided above in this Section with
respect to his Deferred Compensation Account. 
Any such deferred payment shall be made in a lump sum payment either (a) before
the end of the first calendar year in which the Company reasonably anticipates
that if payment is made during such year, the deduction of such payment would
not be barred by Code Section 162(m) or (b) within 10 days
following Executive’s “separation from service” (within the meaning of the
Deferred Compensation Rules, a “Separation from Service”); provided, however,
in the event Executive is a “specified employee” (within the meaning of the
Deferred Compensation Rules, a “Specified Employee”) as of the date of his
Separation from Service, such payment will be paid on the earlier to occur of
the Executive’s death or the first day of the seventh month following Executive’s
Separation from Service.

 

2.             References
to “six months” in Sections 4.1(a)(i) and 4.1(b)(i) will be revised
to refer to “two and one half months.”

 

 

3.             Section 4.1(b)(vi) of
the Employment Agreement shall be deleted and shall be replaced in its entirety
with the following:

 

(vi)          The
Executive shall be entitled to continued participation in all employee benefit
plans, programs or arrangements available to Company executives in which
Executive was participating on the date of Executive’s Separation from Service
until the end of the fiscal year in which Executive’s Separation from Service
occurs.

 

4.             Section 4.1(d)(i) of
the Employment Agreement shall be deleted and shall be replaced in its entirety
with the following:

 

(i)            Payments,
each in an amount equal to the monthly rate of Basic Compensation then being
paid to Executive under this Agreement, which shall commence on the date of
Executive’s Separation from Service and shall continue until the date this
Agreement would have expired but for said occurrence (without regard to the
second sentence of Section 1.3);

 

5.             Section 4.1(d)(ii) of
the Employment Agreement shall be deleted and shall be replaced in its entirety
with the following:

 

(ii)           Payments,
payable annually within the 90 days following the close of each fiscal year of
the Company that ends during the period determined for the payments made under
clause (i) above, each in an amount equal to the highest annual incentive
compensation and bonus award made to Executive with respect to the Company’s
most recent three fiscal years ending prior to the date of Executive’s
Separation from Service;

 

6.             Section 4.1(d)(vi) of
the Employment Agreement shall be deleted and shall be replaced in its entirety
with the following:

 

(vi)          Continued
participation in all employee benefit plans, programs or arrangements available
to Company executives in which Executive was participating on the date of
Executive’s Separation from Service until the earlier of:

 

(A)          the
date this Agreement would have expired but for the occurrence of the date of
Executive’s Separation from Service, or

 

(B)           the
date, or dates, he receives equivalent coverage and benefits under the plans,
programs and arrangements of a subsequent employer (such coverages and benefits
to be determined on a coverage-by-coverage, or benefit-by-benefit, basis);

 

7.             New
Sections 11.15 and 11..16 shall be added to the Employment Agreement to read as
follows:

 

11.15       Timing of Payments and Compliance with Deferred
Compensation Rules.

 

(a)           Anything
herein to the contrary notwithstanding, any reimbursements, in-kind benefits or
tax gross-up payments provided hereunder shall be paid or provided in
accordance with the requirements of Treasury Regulation §§ 1.409A-3(i)(1)(iv) and
(v).

 

(b)           Anything
herein to the contrary notwithstanding, in the event Executive is a Specified
Employee as of the date of his Separation from Service, the amounts otherwise
payable pursuant to Sections 4.1(d)(i) and (ii) during the six month 

 

 

period following Executive’s Separation from Service will be paid in a
single lump sum payment on the earlier to occur of the Executive’s death or the
first day of the seventh month following Executive’s Separation from Service.

 

(c)           Anything
herein to the contrary notwithstanding, in the event Executive is a Specified
Employee as of the date of his Separation from Service, premiums payable with
respect to any benefits made available pursuant to Sections 4.1(b)(v), (b)(vi),
(c)(ii), (d)(v) and (d)(vi) as applicable, will be paid by the
Executive during the six month period following Executive’s Separation from
Service and will be reimbursed by the Company in a single lump sum payment on
the earlier to occur of the Executive’s death or the first day of the seventh
month following Executive’s Separation from Service.

 

(d)           The
terms “terminate,” “termination,” “termination of employment,” and similar
terms used herein are intended to mean a termination of employment that constitutes
a Separation from Service.

 

(e)           Neither
the Company nor the Executive, individually or in combination, may accelerate
any payment or benefit that is subject to Code Section 409A, except in
compliance with Code Section 409A and the provisions of this Agreement,
and no amount shall be paid prior to the earliest date on which it may be paid
without violating Code Section 409A.

 

(f)            For
purposes of applying the provisions of Code Section 409A to this
Agreement, each separately identified amount to which the Executive is entitled
under this Agreement shall be treated as a separate payment.  In addition, to the extent permissible under
Code Section 409A, any series of installment payments under this Agreement
shall be treated as a right to a series of separate payments.

 

(g)           The
parties intend that this Agreement and the benefits provided hereunder be
interpreted and construed to comply with Code Section 409A to the extent
applicable thereto.

 

11.16       Compliance with Code Section 457A.

 

Notwithstanding
anything to the contrary in this Agreement, the following provisions shall
apply from and after January 1, 2009:

 

(a)           This Agreement and the benefits
provided hereunder are intended to comply, to the extent applicable thereto,
with Code Section 409A and the Treasury Regulations and other guidance
promulgated or issued thereunder and with Code Section 457A and the
Treasury Regulations and other guidance promulgated or issued thereunder, and
the provisions of this Agreement shall be interpreted and construed consistent
with this intent.  If the Executive or
the Company believes, at any time, that any such benefit or right does not so
comply with Code Section 457A, it shall promptly advise the other and
shall negotiate reasonably and in good faith to amend the terms of such
benefits and rights such that they comply with Code Section 457A (with the
most limited possible economic effect on the Executive and on the Company).

 

(b)           “Ineligible
Compensation” means compensation relating to services performed for the benefit
or on behalf of the Company as determined by HoT-Nevada in its sole discretion
regardless of whether the cost of such compensation is actually borne by the
Company.  To the extent the Executive
performs such services for the Company, as well as for HoT-Nevada, and any
subsidiary or affiliate of the Company, the determination of what portion of
such compensation shall be considered Ineligible Compensation shall also be
made by HoT-Nevada in its sole discretion.

 

 

(c)           If and to
the extent required by Code Section 457A, and subject to Code Section 409A:

 

(i)            Any
Ineligible Compensation which is attributable to services performed for the
Company after December 31, 2008, as adjusted for any earnings and losses
attributable thereto, shall be paid to the Executive no later than the last day
of the twelfth month after the end of the taxable year of the Company during
which the right to the payment of such Ineligible Compensation is no longer
subject to a “substantial risk of forfeiture” within the meaning of Code Section 457A.

 

(ii)           In
the case of any deferred amount of Ineligible Compensation which is
attributable to services performed for the Company before January 1, 2009,
to the extent such deferred amount is not includible in the Executive’s gross
income in a taxable year beginning before 2018, such deferred amount, as
adjusted for any earnings and losses attributable thereto, shall be paid to the
Executive in the later of (1) the last taxable year beginning before 2018,
or (2) the taxable year in which there is no “substantial risk of
forfeiture” of the Executive’s rights to such Ineligible Compensation, within
the meaning of Code Section 457A.

 

NOW, THEREFORE, be it further provided that, except as
set forth above, the Agreement shall continue to read in its current state.

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the parties have executed this Second
Amendment effective as of the Effective Date above.

 

 

	
   

  	
  HELEN OF TROY
  LIMITED

  
	
   

  	
  a
  Bermuda company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Gary B. Abromovitz

  
	
   

  	
  Name:

  	
  Gary
  B. Abromovitz

  
	
   

  	
  Its:

  	
  Deputy
  Chairman of the Board

  
	
   

  	
   

  	
  Chair,
  Compensation Committee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Gerald J. Rubin

  
	
   

  	
   

  	
  Gerald
  J. RubinExhibit
10.1

 

SEPARATION AND GENERAL RELEASE AGREEMENT

 

Caution: Read Carefully

This Is A Release Of All Claims

 

THIS
SEPARATION AND GENERAL RELEASE AGREEMENT (“Agreement”) is voluntarily entered
into as of the date(s) set forth below by and between the undersigned
individual, August A. Cijan and Haynes International, Inc. (“Company”).

 

WHEREAS, Cijan
and the Company previously entered into a Termination Benefits Agreement (the “Termination
Benefits Agreement”) dated August 31, 2004, whereby the rights and obligations
of Cijan and the Company in the event of a termination of employment under
certain circumstances were set forth; and

 

WHEREAS, Cijan
and the Company desire to supersede and make such Termination Benefits
Agreement null and void and of no force or effect and to set forth the rights
and obligations of the parties with respect to a termination of Cijan’s
employment with the Company under the terms set forth in this Agreement; and

 

WHEREAS, Cijan and the Company have reached
mutual agreement on the termination of Employee’s employment effective as of December 31,
2008 (“Separation Date”);

 

NOW,
THEREFORE, in consideration of the mutual understandings, covenants, and the
release contained in this Agreement, Company and Cijan hereby voluntarily agree
as follows:

 

1.                                       Definitions.  Specific terms used in this Agreement have
the following meanings: (a) words such as “I,” “me,” and “my” include both
the undersigned and anyone who has or obtains any legal right or claims through
me; and (b) “Company” means Haynes International, Inc., all of its
past and present officers, directors, employees, trustees, parent corporations,
agents, members, affiliates, insurers, any and all employee benefit plans (and
any fiduciary of such plans) sponsored by such entities, and such each entity’s
subsidiaries, predecessors, successors, and assigns, and all other entities,
persons, firms, or corporations liable or who might be claimed to be liable,
none of whom admit any liability to me, but all of whom expressly deny any such
liability.

 

2.                                       My Claims.  The claims I am releasing (“My Claims”)
include all of my rights to any relief of any kind from the Company, including
without limitation, all claims I have now, whether or not I now know about the
claims.  These claims, which I hereby
release, include, but are not limited to the following:

 

(a) all claims relating to my employment with Company, or the
termination of that employment, including, but not limited to, any claims
arising under the Fair Labor Standards Act; Title VII of the Civil Rights Act
of 1964; the Civil Rights Act of 1866; the Age Discrimination in Employment Act
(“ADEA”); the Older Worker Benefits Protection Act (“OWBPA”); the Employee
Retirement Income Security Act; the Family and Medical Leave Act (“FMLA”); the
Americans with Disabilities Act; the applicable state civil rights laws; and/or
any other federal, state or local law;

 

 

(b) all claims under any principle of common law or equity,
including but not limited to, claims for alleged unpaid compensation or any
other monies; commissions; any tort; breach of contract; and any other
allegedly wrongful employment practices; and

 

(c) all claims for any type of relief from the Company, including
but not limited to, claims for damages, costs and attorney’s fees.

 

In addition to these claims being released, I acknowledge that I have
not suffered any physical or mental injuries arising out of my employment with
Company or the termination of that employment.

 

3.                                         Termination Benefits Agreement and Any Other
Agreement Superseded; All Claims Released.  I understand and agree that this Agreement
constitutes the entire agreement between me and the Company with regard to the
subject matter covered and that any rights, benefits and obligations upon
termination of my employment shall be governed solely and exclusively by this
Agreement and that any rights, benefits or obligations of any kind under the
Termination Benefits Agreements or any other agreement of any kind which
purports to set forth terms or conditions regarding my separation from
employment or providing any payment, benefits or rights in connection with a
termination of my employment are null and void and are of no force or
effect.  This Agreement is intended to
and will completely replace and supersede the Termination Benefits Agreement
and any other termination, separation or severance agreement and all prior
understandings or arrangements, oral or written, previously entered into or
agreed between me and the Company.  By
signing this document I release and discharge the Company from any and all
claims, causes of action, demands, lawsuits or other matters of any kind
whatsoever, known or unknown, directly or indirectly related to the Termination
Benefits Agreement.

 

4.                                         Severance Plan Not Applicable; All Claims Released.  I understand and agree that any rights,
benefits and obligations upon termination of my employment shall be governed
solely and exclusively by this Agreement and that any rights, benefits or
obligations of any kind that are or could have been available to me under the
Company’s Severance Plan are superseded by this Agreement and that I shall have
no right, interest or ability to receive any payment, benefit or other
consideration of any kind under the Severance Plan.  By signing this document I release and
discharge the Company from any and all claims, causes of action, demands,
lawsuits or other matters of any kind whatsoever, known or unknown, directly or
indirectly related to the Severance Plan.

 

5.                                         Exclusions From Release.  I understand that My Claims released
under this Agreement do not include any rights or claims that may arise after
the Effective Date of this Agreement (which is that date occurring on the
eighth (8th) day after I sign this Agreement, provided that I do not
revoke this Agreement as described below).  
I understand I do not waive future claims. Also, I further understand
that nothing in this Agreement shall in
any way adversely affect whatever vested rights I may have to benefits under
any retirement or other employee benefit 

 

2

 

plan or adversely affect my ability to
exercise vested stock options as described in paragraph 6, below.  In addition, I acknowledge that this
Agreement is not intended to (a) prevent me from filing a charge or
complaint including a challenge to the validity of this Agreement, with the
EEOC; (b) prevent me from participating in any investigation or proceeding
conducted by the EEOC; or (c) establish a condition precedent or other
barrier to exercising these rights. 
While I have the right to participate in an investigation, I understand
that I am waiving my right to any monetary recovery arising from any
investigation or pursuit of claim on my behalf. 
I acknowledge that I have the right to file a charge alleging a
violation of the ADEA with any administrative agency and/or to challenge the
validity of the waiver and release of any claim I might have under the ADEA
without either: (a) repaying to the Company the amounts paid by it to me
or on my behalf under this Agreement; or (b) paying to the Company any
other monetary amounts (such as attorney’s fees and/or damages).

 

6.                                       Company’s Agreement to Make Payment to Me .  In exchange for my release and other promises
made by me in this Agreement, the Company agrees that it shall make a
separation payment to me in the amount of One Hundred Seventy Thousand Dollars
($170,000), less taxes and other required deductions and withholdings (“Separation
Payment”).  I understand that the
Separation Payment described above shall be paid to me in a lump sum on the
Company’s regular payroll date as soon as practical after all of the following
have occurred: (i) the Separation Date has passed; (ii) I have signed
and returned the Agreement, and (iii) the seven (7) day revocation
period described in this Agreement expires. 
In addition, I acknowledge that any unvested Company stock options held
by me as of the Separation Date will terminate and be forfeited as of such
Separation Date and that any outstanding vested Company stock options held by
me as of the Separation Date shall continue to be exercisable by me or my
estate for six (6) months
following my Separation Date, but in no event later than the expiration date of
the stock options as specified in the applicable grant letter.  I acknowledge that the payment described above
and the continued limited exercisability of my vested Company stock options
constitute full and fair consideration for the release of My Claims, that the
Company is not otherwise obligated to make these payments to me, and that they
are in addition to any other sums to which I am otherwise due.  I also acknowledge that I have received all
other forms of compensation, of whatever kind, that may be due to me by the
Company, including, without limitation, amounts earned by me prior to the
Separation Date and that I am not entitled to any other payments under any
other agreement with the Company, including but not limited to any Stock Option
Agreement and the Termination Benefit Agreement.

 

7.                                       Return of Company Property.  I hereby represent and warrant that I have
returned to the Company all of its property that was ever in my possession or
control.  This property includes, but is
not limited to, financial and other business records, personnel records, office
and other keys, directories, computer hardware and software, books, documents,
memoranda, and all other records, and copies of all such items.

 

8.                                       Termination of Relationship.  I acknowledge that my employment has been
separated as of the date referenced in the introductory paragraphs to this
Agreement.  I further agree not to apply
for future employment with the Company, or any of its affiliates or
successors.  I acknowledge that neither the
Company nor its successors have any obligation, contractual or 

 

3

 

otherwise, to
rehire, reemploy, recall, or hire me in the future.  I understand that this Agreement does not
constitute an admission of wrongdoing by any party.

 

9.                                       Consultation with Attorney.  I acknowledge that the Company has advised me
that it is up to me as to whether I consult an attorney prior to signing this
Agreement, and that the Company has advised that I should do so.

 

10.                                 Non-Defamation and Confidentiality.
In further consideration of the payments and benefits set forth above, I  agree, consistent with applicable law,  to protect the Company from intrusion into
its business by not disclosing to any third-party any confidential information
or trade secrets of the Company. Such information includes, but not limited to,
confidential information regarding the credit and collection activities of the
Company, and information regarding the Company’s employees, services, marketing
strategies, business plans,  operations,
costs, research and development efforts, technical data and know-how, financial
information, internal procedures, forecasts, methods, trade secrets, software
programs, project requirements, inventions, trademarks, trade names, and
similar information regarding the Company’s business (collectively referred to
as “Confidential Information”).  I agree
that all such Confidential Information is and shall remain the sole and
exclusive property of the Company. 
Except as may be expressly authorized by the Company in writing, or as
may be required by law after providing due notice thereof to the Company, I
agree not to disclose, or cause any other person or entity to disclose, any
Confidential Information to any third party as long as such information remains
confidential (or as limited by applicable law) and I agree not to make use of
any such Confidential Information for my own purpose or for the benefit of any
other entity or person.   I agree to
refrain from making any defamatory comments to anyone (including, but not
limited to, the Company’s customers) concerning the Company, its employees,
agents, operations, or plans.   I agree
that any inquiries concerning the Company shall be directed to the Personnel
Department of Company for response.  In
further protection of the interests of the Company, I agree that, as to any
matters currently pending, or which arise relating to my employment with the
Company, I will cooperate with the Company and its attorneys in connection with
any proceeding involving the Company before a court, an administrative agency,
governmental organization, or an arbitrator. I further understand that it is an
essential and material condition of this Agreement that the existence and terms
of this Agreement are to remain strictly confidential and shall not be
disclosed by me to any person other than to my attorney, my accountant or my
spouse, if any, or as required by law.

 

11.                                 Violation of Agreement.  If any legal action or other proceeding is
brought for the enforcement of this Agreement, the non-breaching party shall be
able to recover from the breaching party its reasonable attorney’s fees, court
costs and all expenses (including, without limitation, all such fees, costs and
expenses incident to appeals), incurred in that action or proceeding, in
addition to any other relief to which such party or parties may be
entitled.  In addition, in the event of a
violation of the provisions of paragraphs 10 and 16-17 of this Agreement, it is
understood that precise calculation of damages may be difficult, but that the
Company will suffer significant harm in the event a violation occurs.  Consequently, not as a penalty, but as
reasonable approximation of the actual harm incurred, the parties agree to 

 

4

 

liquidated
damages of five thousand dollars ($5,000.00) per violation by me, in addition
to any other remedies otherwise available in law or equity.

 

12.                                 Miscellaneous.  I understand and agree that no provision of
this Agreement may be modified, waived or discharged unless a waiver,
modification or discharge is agreed to in writing and is signed by the Company
and by me.  I understand and agree that
no waiver by either party at any time of any breach by the other party of, or
compliance with, any condition or provision of this Agreement, to be performed
by the other party shall be deemed a wavier of similar or dissimilar provision
or condition at the same or an any prior or subsequent time.  I understand and agree that this is the
entire agreement between me and the Company with regard to the subject matter
covered in this Agreement and no agreement or representation, oral or
otherwise, express or implied, with respect to the subject matter of this
Agreement may be made by either party which are not expressly set for this in
this Agreement.

 

13.                                 Severability.  I understand, and it is my intent, that in
the event this Agreement is ever held to be invalid or unenforceable (in whole
or in part) as to any particular type of claim or charge or as to any
particular circumstances, it shall remain fully valid and enforceable as to all
other claims, charges, and circumstances.

 

14.                                 Applicable Law.  I agree that this Agreement has been made and
entered into in the State of Indiana and that it will be governed by and
construed in accordance with the laws of the State of Indiana.  I agree that any action in law or in equity
brought by either party arising from or in connection with this Agreement or
arising from or in connection with the performance by either party of its
obligations under this Agreement shall be brought only in the United States
District Court for the Southern District of Indiana, Indianapolis Division or
the Circuit Court of Howard County, Indiana, and that I consent to the
jurisdiction of those courts.

 

15.                                 Internal Revenue Code Section 409A.

 

(a)                          All
payments to be made to me as a result of my termination of employment under
this Agreement may only be made upon a “separation from service” under section
409A of the Internal Revenue Code (“Code”). 
In no event may I, directly or indirectly, designate the calendar year
of a payment.

 

(b)                         Separation/severance
benefits under this Agreement are intended to be exempt from section 409A of
the Code under the “separation pay exception,” to the maximum extent
applicable.  Any payments hereunder that
qualify for the “short-term deferral” exception or another exception under
section 409A of the Code shall be paid under the applicable exception.

 

(c)                          Notwithstanding
the foregoing or anything to the contrary contained in any other provision of
this Agreement, if I am a “specified employee” at the time of my “separation
from service” within the meaning of section 409A of the Code, then any payment 

 

5

 

hereunder designated as being subject to section 409A shall not be made
until the first business day after (i) the expiration of six (6) months
from the date of my separation from service, or (ii) if earlier, the date
of my death (the “Delayed Payment Date”). 
On the Delayed Payment Date, there shall be paid to me or, if I have
died, to my estate, in a single cash lump sum, an amount equal to aggregate
amount of the payments delayed pursuant to the preceding sentence.

 

(d)                         The
term “specified employee” shall mean any individual who, at any time during the
twelve (12) month period ending on the identification date (as determined by
the Company or its delegate), is a specified employee under section 409A of the
Code, as determined by the Company (or its delegate).  The determination of “specified employees,”
including the number and identity of persons considered “specified employees”
and identification date, shall be made by the Company (or its delegate) in
accordance with the provisions of sections 416(i) and 409A of the Code.

 

16.                                 Period to Consider Agreement and Expiration of Offer.  As required by the ADEA and the OWBPA, I
understand that I have twenty-one (21) calendar days from the day that I
receive this Agreement, not counting the day upon which I received it, to
consider whether I wish to sign it.  If I
sign this Agreement before the end of the twenty-one (21) calendar day period,
it will be my personal and voluntary decision to do so.  I also understand that if I fail to deliver
this Agreement to the Company within said period of time, it shall expire and
be deemed withdrawn by the Company.

 

17.                                 Right to Revoke Agreement.  I understand that I may revoke this Agreement
at any time within seven (7) calendar days after I sign it, not counting
the day upon which I sign it. This Agreement will not become effective or
enforceable unless and until the seven (7) calendar day revocation period
has expired without my revoking it, i.e. on the eighth (8th)
calendar day after I sign this Agreement.

 

18.                                 Procedure to Accept or Revoke.  To accept this Agreement, I must deliver the
Agreement, after it has been signed and dated by me, to the Company, by hand or
by reliable overnight delivery, and it must be received by the Company within
the twenty-one (21) calendar day period that I have to consider this Agreement.  To revoke my acceptance, I must deliver a
written, signed statement that I revoke my acceptance to the Company by hand or
by reliable overnight delivery and any such notice of revocation must be
received by the Company within seven (7) calendar days after I signed the
Agreement.  All deliveries shall be made
to the Company at the following address, marked “Personal and Confidential”:
Jean C. Neel, 1020 West Park Ave., P.O. Box 9013, Kokomo, IN
46904-9013.  If I choose to deliver my
acceptance or revocation notice by reliable overnight delivery, it must be
received by the above-named individual at the Company within the applicable
period stated above.

 

19.                                 My Representations.  I HAVE READ THIS AGREEMENT CAREFULLY, I HAVE
HAD AN ADEQUATE OPPORTUNITY TO CONSULT AN ATTORNEY, AND I UNDERSTAND ALL OF ITS
TERMS. IN AGREEING TO SIGN THIS AGREEMENT, I HAVE NOT RELIED ON ANY STATEMENTS
OR EXPLANATIONS MADE BY THE COMPANY, EXCEPT AS SPECIFICALLY SET FORTH IN THIS
AGREEMENT.  I ALSO 

 

6

 

UNDERSTAND AND AGREE THAT THIS AGREEMENT CONTAINS ALL OF THE AGREEMENTS
BETWEEN THE COMPANY AND ME RELATING TO THE MATTERS INCLUDED IN THIS
AGREEMENT.  I ALSO AGREE THAT THIS
AGREEMENT MAY BE EXECUTED IN ONE OR MORE COUNTERPARTS, ALL OF WHICH, TAKEN
TOGETHER, SHALL CONSTITUTE ONE AND THE SAME AGREEMENT.

 

	
   

  	
  Date: January 5, 2009

  
	
   

  	
   

  
	
   

  	
  Printed Name: August A. Cijan

  
	
   

  	
   

  
	
   

  	
  Signature:

  	
  /s/ AUGUST A. CIJAN

  
	
   

  	
   

  
	
   

  	
  Witness:

  
	
   

  	
  /s/ JEAN
  NEEL

  
	
   

  	
  Signature

  
	
   

  	
  Jean Neel

  
	
   

  	
  Printed Name

  
	
   

  	
   

  
	
   

  	
  Received and agreed to by Haynes International, Inc. on behalf
  of itself and all other persons and entities released herein:

  
	
   

  	
   

  
	
   

  	
  By: Jean Neel

  
	
   

  	
   

  
	
   

  	
  /s/ JEAN NEEL

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
  Date: January 5, 2009

  

 

7

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