Document:

exv10w20

Exhibit
10.20

ARIZONA CHEMICAL COMPANY, LLC

U.S. SALARIED EMPLOYEE SEVERANCE PLAN

AND

SUMMARY PLAN DESCRIPTION

Amended and Restated

Effective May 1, 2010

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	THE SEVERANCE PLAN

	 	 	4	 
	Who is Eligible

	 	 	4	 
	Who is Not Eligible

	 	 	4	 
	Termination Events for Which Termination Allowance is Payable

	 	 	5	 
	Termination Events for Which Termination Allowance is Not Payable

	 	 	6	 
	Special Rules for Asset Sales and Outsourcing

	 	 	7	 
	HOW THE PLAN WORKS

	 	 	8	 
	Termination Allowance Calculations

	 	 	8	 
	Plant Closing or State-Mandated Benefits

	 	 	8	 
	Other Benefit Coverage

	 	 	8	 
	HOW THE TERMINATION ALLOWANCE IS PAID

	 	 	9	 
	Time and Form of Payment

	 	 	9	 
	Termination Agreement and Release

	 	 	9	 
	Taxes and Withholdings

	 	 	9	 
	GENERAL ADMINISTRATION OF THE PLAN

	 	 	9	 
	Plan Sponsor & Administrator

	 	 	10	 
	Administrative Information

	 	 	10	 
	Employer Identification Number

	 	 	11	 
	Plan Description

	 	 	11	 
	AMENDMENT AND TERMINATION

	 	 	11	 
	CLAIMS REVIEW

	 	 	11	 
	Right to File Claim

	 	 	11	 
	Time for Decision on the Claim

	 	 	12	 
	Notification of Denial

	 	 	12	 
	Right to Review

	 	 	13	 
	Review Procedure

	 	 	13	 
	Time for Decision on Review

	 	 	14	 
	Notification of Determination on Review

	 	 	14	 

 

 

	 	 	 	 	 
	YOUR ERISA RIGHTS

	 	 	14	 
	Receive Information About Your Plan and Benefits

	 	 	14	 
	Prudent Actions by Plan Fiduciaries

	 	 	15	 
	Enforce Your Rights

	 	 	15	 
	Assistance with Your Questions

	 	 	15	 
	MISCELLANEOUS

	 	 	16	 
	Exclusive Benefit

	 	 	16	 
	Non-Alienation of Benefits

	 	 	16	 
	No Contract of Employment

	 	 	16	 
	Governing Laws

	 	 	16	 
	Severability

	 	 	16	 
	Construction

	 	 	16	 
	Funding

	 	 	17	 
	Code Section 409A

	 	 	17	 

 

 

	 	 	The Severance Plan

     Arizona Chemical Company, LLC (the “Company”) has established this U.S. Salaried Employee
Severance Plan (the “Plan”) to provide a termination allowance for eligible employees. This booklet
combines the Plan document as well as the summary plan description for the Plan in a single
document. Throughout this Plan, the term “Plan Administrator” is used to refer to the Company in
its limited fiduciary role of interpreting the Plan and determining eligibility for benefits. If
you have any questions about the Plan, you should contact the Company’s Human Resources department
at the phone numbers listed on page 9 of this booklet. The Plan supersedes any other existing
severance pay plans, programs or practices for eligible employees of the Company.

Who is Eligible

     You are eligible to participate in the Plan if you are employed within the United States or
on an expatriate assignment and are a regular, full-time salaried employee of the Company.

     You will not become a participant in the Plan unless you are specifically designated to
participate in the Plan through written notice of your participation provided by the Plan
Administrator.

Who is Not Eligible

     You will not be eligible to participate in the Plan if, at the time your employment with the
Company terminates, you are any of the following:

	 	•	 	Employees in cooperative studies and intern programs and employees
regularly scheduled to work twenty (20) hours per week or less;
	 
	 	•	 	Independent contractors and individuals hired through third-party
payroll services, even if later reclassified as employees as a result of an audit
by a government agency;
	 
	 	•	 	Individuals performing services for the Company who are paid through
accounts payable, as distinguished from the payroll system;
	 
	 	•	 	Employees of the Company who have not been specifically designated to
participate in the Plan through written notice provided by the Plan Administrator;
	 
	 	•	 	Individuals who are leased employees within the meaning of Section
414(n) of the Internal Revenue Code of 1986, as amended (the “Code”);

 

 

	 	•	 	Employees who have an employment agreement whose terms expressly supersede those
of the Plan or other severance plans, programs, or practices of the Company in
general;
	 
	 	•	 	Employees who have terminated employment with the Company prior to
the effective date of the Plan;
	 
	 	•	 	Employees on extended (more than 30 days) unpaid leave of absence,
other than legally-protected family, medical or military-related leaves of
absence, except to the extent eligibility is required by applicable law;
	 
	 	•	 	Employees who waive participation in the Plan in writing; and
	 
	 	•	 	Anyone else whom the Plan Administrator, in its discretion,
determines is ineligible to participate in the Plan.

Termination Events for Which Termination Allowance is Payable

     You are eligible for a termination allowance under the Plan if your employment is
involuntarily terminated by the Company under any of the following circumstances, provided you
continue working until the management-determined job completion date and sign a termination
agreement acceptable to the Company:

	 	•	 	Elimination of your job, including a permanent reduction in the work
force for an indefinite period of time;
	 
	 	•	 	Closing, relocation or sale of a facility that does not result in an
offer of a position as of the date of closing, relocation or sale that the Plan
Administrator deems suitable, either with the Company, the purchaser of the
facility in question or a contractor engaged by the purchaser of the facility in
question to manage any facility operation;
	 
	 	•	 	Closing, relocation or sale of a facility that results in an offer of
a position as of the date of the closing, relocation or sale that the Plan
Administrator deems suitable, either with the Company, the purchaser of the
facility in question or a contractor engaged by the purchaser of the facility in
question to manage any facility operation which requires relocation and which you
do not accept;
	 
	 	•	 	Your failure or inability to perform your job in an acceptable manner
as determined by the Company provided you have made reasonable efforts to achieve
the required level of performance; or
	 
	 	•	 	You are released to return to work by your attending physician
following a period of disability for which you were entitled to benefits under the

 

 

	 	 	 	Company’s Salary Continuance Plan (including offsets for state-mandated disability
benefits and workers’ compensation benefits) and your employment is terminated
under any of the above circumstances.
	 
	 	•	 	Any other event that the Plan Administrator deems suitable for
eligibility for Termination Allowance hereunder.

Termination Events for Which Termination Allowance is Not Payable

     You are not eligible for a termination allowance if your employment is terminated under any of
the following circumstances:

	 	•	 	Voluntary resignation, including resignation prior to the management-determined job completion date;
	 
	 	•	 	Voluntary retirement under a Company-sponsored retirement plan;
	 
	 	•	 	Your death;
	 
	 	•	 	You are determined to be eligible for and commence benefits under the
Company’s long-term disability plan, regardless of how long such benefits
continue;
	 
	 	•	 	You are released to return to work by your attending physician
following a period of disability for which you were entitled to benefits under the
Company’s Salary Continuance Plan (including offsets for state-mandated disability
benefits and workers’ compensation benefits) and do not return to work;
	 
	 	•	 	Discharge for cause such as, but not limited to, misconduct or other
activity detrimental to the business interest or reputation of the Company or
continued unsatisfactory job performance without making reasonable efforts to
improve. Examples of misconduct are insubordination, protracted or repeated
absence from work without permission, illegal activity, disorderly conduct, etc.
Determinations of “cause” will be made by the Plan Administrator in its
discretion;
	 
	 	•	 	Closing, relocation or sale of a facility that results in an offer of
a position as of the date of closing, relocation or sale that the Plan
Administrator deems suitable, either with the Company, the purchaser of the
facility in question or a contractor engaged by the purchaser of the facility in
question to manage any facility operation which does not require relocation or
which requires relocation and which you accept;

 

 

	 	•	 	Termination because, when facing involuntary termination, you fail to accept a
job deemed suitable by the Plan Administrator at a location which does not require
relocation; and
	 
	 	•	 	Any other termination event that the Plan Administrator, in its
discretion, determines is not a covered termination for purposes of the Plan.

     Suitable — An offer of a position is deemed suitable by the Plan Administrator if it is a
position for which you are qualified based on your background, training or education and does not
involve a material reduction in base pay. Your acceptance of a position is conclusive evidence of
suitability. Determinations of suitability will be made by the Plan Administrator in its
discretion.

     Relocation — A new job qualifies as a relocation if the new principal place of work is at
least 50 miles farther from your residence than your current place of work.

Special Rules for Asset Sales and Outsourcing

     When a sale of assets or outsourcing of a business or function occurs, an employee who is not
offered a job by the buyer or outsourced vendor that the Plan Administrator deems suitable is
eligible for a termination allowance provided the employee has complied with the following
conditions:

	 	•	 	The employee must participate in any hiring process established by
the buyer or outsourced vendor and must sign a release:
	 
	 	•	 	Allowing the Company to provide any employee records or other
information required by the buyer or outsourced vendor; and
	 
	 	•	 	Allowing the buyer or outsourced vendor to notify the Company if the
buyer or outsourced vendor does not extend a job offer to the employee as the
result of the employee’s failure to pass a required drug or alcohol test.
	 
	 	•	 	The employee may not take any measures directly or indirectly, to
discourage or inhibit the buyer or outsourced vendor from extending a job offer.
	 
	 	•	 	The employee must remain employed by the Company until the
management-determined job completion date.

     If the employee is not made an offer by the buyer or outsourced vendor as the result of the
employee’s failure to pass the required drug or alcohol test, the employee must participate in a
drug or alcohol treatment program, complete the recommended course of treatment and provide the
Company with evidence from the drug or alcohol

 

 

	 	 	treatment program provider of the employee’s participation in and completion of the recommended
drug or alcohol treatment program.

How the Plan Works

Termination Allowance Calculations

     If you are eligible for a termination allowance, the Plan Administrator shall determine the
amount of your termination allowance in its sole and absolute discretion. The amount of the
termination allowance may be reduced by any amounts which you owe the Company (such as cash
advances, outstanding loans, applicable relocation and education assistance reimbursements, etc.).
In addition, if you are on an expatriate assignment at the time of your termination of employment,
the amount of the termination allowance may be reduced by the amount of any statutory severance to
which you are entitled under the laws of the country of assignment due to your termination of
employment.

     Except as otherwise determined, in the Plan Administrator’s sole and absolute discretion, the
termination allowance under the Plan shall not exceed the employee’s gross annual base salary at
the time of termination of employment.

Plant Closing or State-Mandated Benefits

     To the extent that any federal, state or local laws, including, without limitation, so-called
“plant closing” laws, require the Company to make a payment of any kind to you because of your
involuntary termination due to a layoff, reduction in force, plant or facility closing, sale of
business, change of control, or any other similar event or reason, the benefits that would
otherwise be provided under this Plan may be offset, in whole or in part, by the amount that the
Company is required to pay you pursuant to such law. Accordingly, you may not receive both the
required payments under such laws and full benefits under this Plan. To the extent any federal,
state or local laws require that the Company give advance notice that your employment will be
terminated, the written notice of your participation in the Plan provided by the Plan
Administrator will be applied towards any such notice requirement imposed by applicable law.

Other Benefit Coverage

     Unless and to the extent otherwise provided in your termination agreement, your and your
dependents’ participation in all other employee benefit plans sponsored by the Company shall cease
as of the date on which you terminate employment. These plans may include, but are not limited to:
company paid and optional life insurance, accidental death and dismemberment, short term
disability, long term disability, dependent care reimbursement and any other voluntary benefits in
which you and your dependents may participate. Contributions to and/or benefit accruals under the
Company’s 401(k) plan

 

shall also cease as of the date of your termination of employment in accordance with the terms of
the plan.

How the Termination Allowance is Paid

Time and Form of Payment

     If you are eligible for a termination allowance, it will be paid to you in a single cash lump
sum on the scheduled pay date for the payroll period in which the later of the following occurs:
(i) your last day of employment; or (ii) you sign the required termination agreement and any
revocation period required by law with respect to a release contained in the agreement has
expired.

     If you die after becoming entitled to a termination allowance under the Plan but before the
termination allowance has been paid to you, the termination allowance will be paid to your estate.

Termination Agreement and Release

     As a condition for receiving a termination allowance under the Plan, you must sign a
termination agreement in a form provided by the Company, containing a waiver and general release of
claims against the Company, and the release must become effective in accordance with its terms. If
you fail or refuse to sign the termination agreement or revoke the release in accordance with its
terms, you will not be entitled to receive a termination allowance under the Plan. If you violate
any of the provisions of the termination agreement or file a lawsuit or other claim asserting any
claim or demand within the scope of the release (whether or not such claim is valid), the Company
and other beneficiaries of the release will retain all rights and benefits of the release and, in
addition and to the extent permitted by law, will be entitled to cancel any and all future
obligations of the Company under the Plan and recoup the value of all payments and benefits paid
under the Plan, together with its costs and attorneys’ fees.

Taxes and Withholdings

     The termination allowance is subject to all applicable federal and state withholding taxes,
including employment and income taxes, and any other deductions or withholdings required by law,
including, but not limited to, wage attachments for child support and bankruptcy payments.

General Administration of the Plan

     This booklet is the combined plan document and summary plan description constituting the
Company’s U.S. Salaried Employee Severance Plan. The Plan is subject to and intended to comply with
the requirements of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

 

 

     If you have any questions about any of the information in this booklet, please contact the
Company’s Human Resources department at the following phone number: (904) 928-8928.

     The following sections will explain more about how the Plan is administered and your legal
rights under ERISA:

Plan Sponsor & Administrator

     The benefit plan described in this booklet is sponsored by the Company. The Company’s address
and phone number are:

4600 Touchton Road East

Building 100—Suite 1500

Jacksonville, FL 32246

(904) 928-8928

     The Company is also the “Plan Administrator” of the Plan. Service of legal process may be
made upon the Plan Administrator at the address shown above.

     The Plan Administrator has the authority, responsibility and discretion to determine all
questions of eligibility and status and has the right to interpret the provisions of the Plan. The
Plan Administrator may delegate all or any portion of its authority with respect to the
administration of the Plan to a committee or to any officer or officers of the Company in its
discretion.

     The Plan Administrator’s powers and responsibilities include, but are not limited to, the
following:

	 	•	 	adopting and enforcing such rules and regulations that it deems
necessary or appropriate for the administration of the Plan in accordance with
applicable law;
	 
	 	•	 	interpreting the Plan, in its sole discretion, its interpretation to
be finally and conclusively binding on any employee, participant or other party
claiming an interest in or under the Plan;
	 
	 	•	 	deciding all questions of fact or law concerning the Plan, in its
sole discretion, including without limitation the eligibility of any person to
participate in the Plan and the type and amount of benefits payable under the
Plan; and
	 
	 	•	 	appointing such agents, counsel, accountants and consultants as may
be required to assist in administering the Plan.

Administrative Information

 

 

     The Plan is a welfare plan that provides severance benefits. The Plan has been assigned the
number 501 and its official name is the Arizona Chemical Company, LLC U.S. Salaried Employee
Severance Plan. The plan year ends on December 31 each year.

	 	 	All benefits payable under the Plan are paid from the Company’s general assets.

Employer Identification Number

     The IRS has assigned the employer identification number 13-0445587 to Arizona Chemical
Company, LLC. If you need to correspond with a governmental agency about the Plan, use this number
along with the Plan name and the Company’s name.

Plan Description

     The Company is responsible for providing, upon request, this summary plan description to the
U.S. Department of Labor in Washington, D.C.

Amendment and Termination

     The Company, as sponsor of the Plan, reserves the right to modify, amend, suspend or
terminate the Plan in any respect, in whole or in part, at any time. You will be notified of any
material changes.

Claims Review

Right to File Claim

     You (or any other person claiming an interest in or under the Plan) (a “claimant”) are
entitled to file a claim for benefits under the Plan. Unless otherwise provided by the Plan
Administrator, the claim is required to be in writing and submitted to the Company’s Vice
President of Human Resources. The Vice President of Human Resources may delegate his or her
authority to hear and render a decision on your claim to any other person or committee of persons
of his or her choosing. Except as otherwise provided under “Review Procedure” below, the Vice
President of Human Resources, or such person or committee of persons to whom the Vice President of
Human Resources has delegated his or her authority in accordance with this section, shall be the
Plan Administrator for purposes of the remainder of this section. For purposes of this section,
any action required or authorized to be taken by a claimant may be taken by the claimant’s
authorized representative.

     A claimant or his or her representative must submit a claim for benefits within a reasonable
period of time after the date such benefit was, or was purported to be, available to the claimant.
The Plan Administrator has the discretion to determine whether a claim for benefits was submitted
within a reasonable period of time. All claims must adequately state the basis for the claim
including a statement of all pertinent facts, except to the extent expressly waived by the Plan
Administrator. The Plan Administrator may prescribe additional procedural requirements for claims,
not inconsistent with the above.

 

 

In the event a request for benefits fails to comply with the Plan’s procedures for making a claim,
the Plan Administrator will notify the claimant and the claimant’s representative, if any, of this
failure and of the Plan’s procedures for properly making a claim for benefits. Failure to follow
the requirements of this section will result in the denial of the claim submitted. If the claimant
submits a deficient claim, the claimant will not be deemed to have exhausted his or her
administrative remedies under the Plan.

Time for Decision on the Claim

     A claimant’s benefit claims will be entitled to consideration and review as provided in
Section 503 of ERISA and in this section. Upon receipt of any properly submitted, written claim for
benefits, the Plan Administrator will give due consideration to the claim presented. The Plan
Administrator will notify the claimant and the claimant’s representative, if any, of the Plan’s
benefit determination within a reasonable period of time after receipt of the claim, but not later
than ninety (90) days after receipt of the claim by the Plan, unless additional time is needed as
provided in the next paragraph.

     If special circumstances require an additional extension of time for processing the claim,
the Plan Administrator will provide the claimant and the claimant’s representative, if any, with a
written notice of extension prior to the termination of the initial ninety (90) day review period
described above. In no event will such an extension exceed a period of ninety (90) days from the
end of the initial ninety (90) day period. The extension notice will indicate the special
circumstances requiring an extension of time and the date by which the Plan Administrator expects
to render the benefit determination. The notice shall also explain the standards on which
entitlement to a benefit is based, any unresolved issues that prevent a decision on the claim, and
any additional information needed to resolve these issues.

Notification of Denial

     If there is any adverse benefit determination with respect to a claim, the Plan Administrator
will furnish the claimant and the claimant’s representative, if any, with a written or electronic
notice setting forth in a manner calculated to be understood by the claimant:

	 	•	 	the specific reason(s) for the adverse benefit determination;
	 
	 	•	 	reference to the specific Plan provision(s) on which the
determination is based;
	 
	 	•	 	a description of any additional material or information necessary for
the claimant to perfect the claim and an explanation of why such material or
information is necessary; and
	 
	 	•	 	a description of the Plan’s review procedures and the time limits
applicable to such procedures, including a statement of the claimant’s

 

 

	 	 	 	right to bring a civil action under Section 502(a) of ERISA following an adverse
benefit determination on review.

     Any electronic notification given by the Plan Administrator to a claimant under this section
shall comply with the standards imposed by applicable Department of Labor regulations.

     The term “adverse benefit determination” means any of the following: a denial, reduction, or
termination of, or a failure to provide or make payment (in whole or in part) for, a benefit,
including any such denial, reduction, termination, or failure to provide or make payment that is
based on a determination of a claimant’s eligibility to participate in the Plan.

Right to Review

     If a claimant receives an adverse benefit determination under this section, the claimant or
the claimant’s representative may appeal the determination, for a full and fair review of the
claim and the adverse benefit determination. An appeal under this section must be filed with the
Plan Administrator by written notice within sixty (60) days after the claimant’s receipt of the
notice of the adverse benefit determination under this section. The claimant should state his or
her name and address, the fact the he or she is disputing the adverse benefit determination, the
date of the initial notice of the adverse benefit determination, the reason(s) for disputing the
adverse benefit determination, and any other information reasonably required in order to make a
determination upon review. A claimant’s failure to file a request for review within 60 days shall
constitute his or her waiver of the right to have the denial of the claim reviewed.

Review Procedure

     If the adverse benefit determination was rendered by a person or committee of persons to whom
the Vice President of Human Resources delegated his or her authority pursuant to this section, then
the review will be conducted by the Vice President of Human Resources. If the initial benefit
determination was rendered by the Vice President of Human Resources, then the review will be
conducted by a claims review committee appointed by the Company. The Vice President of Human
Resources, or the claims review committee appointed by the Company, as the case may be, shall be
the Plan Administrator for purposes of the remainder of this section. The claims review committee
will be composed of one or more officers of the Company, not including the Vice President of Human
Resources or any officer subordinate to the Vice President of Human Resources.

     The claimant or the claimant’s representative may submit written comments, documents, records,
and other information relating to the claim for benefits. The claimant and the claimant’s
representative, if any, will be provided, upon request and free of charge, reasonable access to,
and copies of, all documents, records, and other information relevant to the claimant’s claim for
benefits. The review on appeal shall take into account all comments, documents, records, and other
information submitted by the claimant or

 

 

the claimant’s representative relating to the claim, without regard to whether such information
was submitted or considered in the initial benefit determination.

Time for Decision on Review

     Except as provided below, the Plan Administrator will notify the claimant of the Plan’s
decision on the appeal within a reasonable period of time, but not later than sixty (60) days
after the Plan’s receipt of the claimant’s request for review of an adverse benefit determination,
unless special circumstances require an extension of time for processing, in which case the
claimant will be notified in writing before the end of the initial 60 day period. The extension
notice will indicate the special circumstances requiring an extension of time and the date by
which the Plan expects to render the determination on review. The Plan’s decision on the appeal
will be rendered no later than one hundred twenty (120) days after receipt of a request for
review.

Notification of Determination on Review

     The Plan Administrator will provide the claimant and the claimant’s representative, if any,
with written or electronic notification of the Plan’s determination on the appeal. Any electronic
notification will comply with the applicable Department of Labor regulations. In the case of an
adverse benefit determination on appeal, the notification shall set forth, in a manner calculated
to be understood by the claimant:

	 	•	 	the specific reason or reasons for the adverse benefit determination;
	 
	 	•	 	reference to specific Plan provisions on which the benefit
determination is based;
	 
	 	•	 	a statement that the claimant and the claimant’s representative, if
any, are entitled to receive, upon request and free of charge, reasonable access
to, and copies of, all documents, records and other information relevant to the
claimant’s claim for benefits; and
	 
	 	•	 	a statement of the claimant’s right to bring an action under Section
502(a) of ERISA.

     The Plan Administrator’s decision shall be final, conclusive and binding on the Plan, the
Company, the participants and any other person claiming an interest in the Plan.

Your ERISA Rights

     As a participant in the Plan, you are entitled to certain rights and protections under
ERISA. ERISA provides that all Plan participants shall be entitled to:

Receive Information About Your Plan and Benefits

 

 

	 	•	 	Examine, without charge, at the Plan Administrator’s office and at other specified
locations, such as work sites, all documents governing the Plan, including a copy
of the latest annual report (Form 5500 series) filed by the Plan with the U.S.
Department of Labor and available at the Public Disclosure Room of the Employee
Benefits Security Administration.
	 
	 	•	 	Obtain, upon written request to the Plan Administrator, copies of documents
governing the operation of the Plan, including copies of the latest annual report
(Form 5500 series) and an updated summary plan description. The Plan Administrator
may make a reasonable charge for the copies.

Prudent Actions by Plan Fiduciaries

     In addition to creating rights for Plan participants, ERISA imposes duties upon the people who
are responsible for the operation of the Plan. The people who operate the Plan, called
“fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan
participants. No one, including your employer or any other person, may fire you or otherwise
discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising
your rights under ERISA.

Enforce Your Rights

     If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a
right to know why this was done, to obtain copies of documents relating to the decision without
charge, and to appeal any denial, all within certain time schedules.

     Under ERISA, there are steps you can take to enforce the above rights. For instance, if you
request a copy of the Plan document from the Plan Administrator and do not receive it within 30
days, you may file suit in a Federal court. In such a case, the court may require the Plan
Administrator to provide the materials and pay you up to $110 a day until you receive the
materials, unless the materials were not sent because of reasons beyond the control of the Plan
Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part,
you may file suit in a state or Federal court. If it should happen that you are discriminated
against for asserting your rights, you may seek assistance form the U.S. Department of Labor, or
you may file suit in a Federal court. The court will decide who should pay court costs and legal
fees. If you are successful, the court may order the person you have sued to pay these costs and
fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds
your claim is frivolous.

Assistance with Your Questions

     If you have any questions about the Plan, you should contact the Plan Administrator. If you
have any questions about this statement or about your rights under ERISA, or if you need
assistance in obtaining documents from the Plan Administrator,

 

 

you should contact the nearest office of the Employee Benefits Security Administration, U.S.
Department of Labor, listed in your telephone directory or the Division of Technical Assistance
and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200
Constitution Ave., N.W., Washington, D.C. 20210. You may also obtain certain publications about
your rights and responsibilities under ERISA by calling the publications hotline of the Employee
Benefits Security Administration.

Miscellaneous

Exclusive Benefit

     This Plan has been established and is maintained for the exclusive benefit of Plan
participants.

Non-Alienation of Benefits

     No benefit, right or interest of any Plan participant shall be subject to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge, seizure, attachment or
legal, equitable or other obligations of such person, except as otherwise required by law.

No Contract of Employment

     Neither the establishment nor the existence of the Plan, nor any modification thereof, shall
operate or be construed so as to create a contract of employment with any employee, obligate the
Company to continue the service of any employee, or affect or modify the terms of an employee’s
employment in any way.

Governing Laws

     The Plan shall be enforced according to the laws of the State of Florida, to the extent not
preempted by federal law, which shall otherwise control.

Severability

     If any provision of the Plan is held invalid or unenforceable, its invalidity or
unenforceability shall not affect any other provision of the Plan, and the Plan shall be construed
and enforced as if such invalid or unenforceable provision had not been included herein.

Construction

     The captions contained herein are inserted only as a matter of convenience and for reference,
and in no way define, limit, enlarge or describe the scope or intent of the Plan, nor in any way
shall affect the Plan or the construction of any provision thereof. Any

 

 

terms expressed in the singular form shall be construed as though they also include the plural,
where applicable, and the masculine gender shall include the feminine and vice versa.

Funding

     Benefits payable under the Plan will be paid from the general assets of the Company. Nothing
herein requires the Company or any subsidiary to maintain any trust, fund or segregated amounts for
any individual’s benefit.

Code Section 409A

     The Plan is intended to qualify under an exemption to Section 409A of the Code.
Notwithstanding any provision of the Plan to the contrary, the total termination allowance payable
to a participant under this Plan (i) shall be paid no later than the end of the second calendar
year following the calendar year in which the termination of employment occurs and (ii) shall not
exceed two times the lesser of (1) the participant’s annual compensation for the calendar year
preceding the calendar year in which the termination of employment occurs; or (2) the limit on
compensation defined under Code Section 401(a)(17) for the calendar year in which the termination
of employment occurs. For the purpose of applying the limitation stated in (ii), the total amount
of the termination allowance payable to a participant under this Plan shall be aggregated with and
include the total amounts payable to the participant under any other plan or arrangement that would
be required to be aggregated with the Plan in accordance with Section 409A and the regulations
issued thereunder. To the extent this aggregated amount exceeds the limitation stated in (ii), the
termination allowance payable to an participant under this Plan shall be reduced until the
limitation is no longer exceeded.

     The Company has adopted this amended and restated U.S. Salaried Employee Severance Plan
effective as of May 1, 2010.

	 	 	 	 	 
	 	ARIZONA CHEMICAL COMPANY, LLC

 	 
	 	By:  	 	 
	 	Name:  	David B. Cowfer 	 
	 	Its:  	Vice-President, Human Resources & Communicationsexv10w1

Exhibit 10.1

RETIREMENT AGREEMENT

June 25, 2010

			
	To:	 	James E. O’Connor

			
	Re:	 	Retirement

 

Your employment with the Company1 will end on January 1, 2011 as a result of your
retirement pursuant to Section 25 of your May 14, 2009 Amended and Restated Employment Agreement
(“Employment Agreement”). To make sure that your retirement occurs on mutually acceptable terms,
the Company is prepared to make certain commitments to you in exchange for certain promises you
will make to the Company. By signing this Retirement Agreement (“Agreement”) you will be accepting
the Company’s offer and entering into a legally binding agreement on the terms stated below
effective on the date the Company signs this Agreement.

Retirement Date

You acknowledge and agree that, on January 1, 2011, you will retire as Chief Executive
Officer and your employment with the Company will end (your “Retirement Date”). You will remain
Chairman of the Board of Directors of Republic Services, Inc. (“Republic”) until the conclusion of
your current Board term at the completion of Republic’s annual stockholders’ meeting currently
scheduled for May 2011. You also agree that on January 1, 2011, you will resign as officer and
director of all Republic subsidiaries and affiliates for which you are then serving as officer or
director. All of the terms and conditions of your Employment Agreement remain in full force and
effect until January 1, 2011 at which time your Employment Agreement will expire and your rights
and obligations will be determined solely under this Agreement, except as set forth below. If you
have a termination of employment for any reason prior to January 1, 2011, this Agreement shall have
no effect.

Benefits

Following your Retirement Date, the Company will provide you the following:

	 	•	 	The Company shall pay to you any accrued but unpaid Base Salary that you have earned
through your Retirement Date including all accrued but unused vacation days;
	 
	 	•	 	For purposes of the Company’s Synergy Incentive Plan (“SIP”), you will remain eligible
to receive your Synergy Bonus in the maximum amount of $15,000,000 in accordance with and
subject to the terms and conditions set forth in the SIP;
	 
	 	•	 	The Company shall continue to pay for and provide all health benefits in which you and
your family were entitled to participate at any time during the 12-month period prior to

 

			
	1	 	In this Agreement, the “Company” means
Republic Services, Inc., its subsidiary, affiliated, predecessor and successor
corporations and entities, and its and their past and present officers,
directors, agents and employees.

 

 

Agreement regarding retirement

Page 2 of 6

	 	 	 	your Retirement Date, until the earliest to occur of (a) your 65th birthday, (b)
your death, or (c) the date on which you become covered by a comparable health benefit plan
by a subsequent employer. The Company will not continue any other group insurance
coverage, such as long-term disability or accident coverage, beyond your Retirement Date
because these plans are not considered health plans;
	 
	 	•	 	No sooner than the sixth month anniversary of your Retirement Date and no later than
December 31, 2011, the Company shall pay to you, in a lump sum cash payment, $4,800,000;
	 
	 	•	 	The balance of all amounts credited or eligible to be credited to your deferred
compensation account (the “Deferred Compensation Account”) under the Deferred Compensation
Plan (including all Company contributions, whether or not vested), will be payable to you
in accordance with the Deferred Compensation Plan and any elections thereunder;
	 
	 	•	 	No sooner than the sixth month anniversary of your Retirement Date and no later than
December 31, 2011, the Company shall pay to you a lump sum cash gross-up payment equal to
the amount of $5,200,000 to reimburse you for all income and other taxes imposed with
respect to the payment of your deferred compensation that was credited or eligible to be
credited to your Deferred Compensation Account on or before December 31, 2006 and all
income and other taxes arising as a result of said gross up payment;
	 
	 	•	 	All of your stock option, restricted stock and restricted stock unit awards that are
outstanding as of your Retirement Date shall fully vest upon your Retirement Date and your
termination shall be treated as retirement for purposes of such awards;
	 
	 	•	 	The Company shall pay you the amount of your 2010 annual bonus that the Compensation
Committee determines is payable to you based upon actual results for 2010 within 60 days
after the end of 2010;
	 
	 	•	 	No sooner than the sixth month anniversary of your Retirement Date and no later than
December 31, 2011, the Company shall pay you the amount of your target long term incentive
award for 2009-2011;
	 
	 	•	 	The Company shall pay you one-third of the amount of your long term incentive award for
2010-2013 that the Compensation Committee determines would be payable to you had you
remained employed through the end of 2013 based upon actual results within 60 days after
the end of 2013;
	 
	 	•	 	Within 60 days after your Retirement Date, the Company shall pay or reimburse you, in a
lump sum cash payment, for any out-of-pocket expenses reasonably incurred by you pursuant
to Section 2(k) of your Employment Agreement prior to your Retirement Date, which would
have been payable if you had not retired, provided that you provide proper documentation to
the Company within 30 days following your Retirement Date;

- 2 -

 

Agreement regarding retirement

Page 3 of 6

	 	•	 	No sooner than the sixth month anniversary of your Retirement Date and no later than
December 31, 2011, the Company shall pay to you a lump sum cash retirement payment of
$1,800,000 to reward you for your long service to the Company; and
	 
	 	•	 	Pursuant to the Company’s practices, you will be reimbursed for the reasonable expenses
you incur to continue to attend Board meetings from January 1, 2011 through the end of your
current term.

For purposes of this Agreement, all of the benefits described above collectively shall be referred
to as the “Severance Benefits”. All payments under this Agreement will be reduced by all
applicable withholding and employment taxes. If you die before receiving any payments due to you
under this Agreement, the remaining payments will be paid to your beneficiary.

Release of Claims Against The Company 

You agree to deliver to the Company a signed and enforceable general release of all claims against
the Company other than with respect to employee pension, health or medical benefit plans, rights to
indemnification under the director and officer liability insurance policy, or under the bylaws or
certificate of incorporation of the Company (“General Release”). You agree to execute the General
Release in a form provided by the Company no earlier than your Retirement Date and no later than 30
days following your Retirement Date.

The General Release does not apply to any claims that cannot be released as a matter of law, such
as those that: (1) arise after the date you sign the General Release, (2) are for ERISA plan
benefits, or (3) may be asserted in an administrative charge filed with a governmental law or
regulatory enforcement agency (although you do release any right to monetary recovery or
reinstatement right in connection with any such charge). The General Release also does not apply to
any claim for breach of this Agreement or any provisions of your Employment Agreement that survive
as described in the following section.

The General Release will contain the following language:

“I knowingly and willingly release the Company from any kind of claim I have arising out of or
related to my employment and/or the termination of my employment with the Company. This general and
complete release applies to all claims for relief, whether I know about them or not, that I may
have against the Company as of the date of execution of this document. This Release of claims
includes, but is not limited to any claims under: federal, state or local employment, labor, civil
rights, equal pay, or anti-discrimination laws, statutes, case law, regulations, and ordinances;
federal or state Constitutions; any public policy, contract, tort or common law theory; any
statutory or common law principle allowing for the recovery of fees or other expenses, including
attorneys’ fees. The claims that I am releasing include, but are not limited to, claims under: the
Age Discrimination in Employment Act; Family Medical Leave Act; Title VII of the Civil Rights Act
of 1964, as amended; the Civil Rights Act of 1991; Sections 1981 through 1988 of Title 42 of the
United States Code, as amended; the Sarbanes-Oxley Act (18 U.S.C. Section 1514A), as amended; the
Employee Retirement Income Security Act of 1974, as amended; the Americans with Disabilities Act of
1990, as amended. This Release does not apply to any claims that cannot be released as a matter of
law, such as those that (1) arise after the date I sign this Release, (2) are for ERISA plan
benefits, or (3) may be asserted in an administrative charge filed

- 3 -

 

Agreement regarding retirement

Page 4 of 6

with a governmental law or regulatory enforcement agency (although I do release any right to
monetary recovery or reinstatement right in connection with any such charge). This Release also
does not apply to any claim for breach of my June 25, 2010 Retirement Agreement (“Retirement
Agreement”) or any provisions of my May 14, 2009 Amended and Restated Employment Agreement that
survive as described in the Retirement Agreement.”

Integration of Employment Agreement; Survival of Certain Provisions 

Unless you have a termination of employment for any reason prior to January 1, 2011, effective on
such date this Agreement shall supersede and replace all benefits, rights and obligations under
your Employment Agreement, other than Sections 5 (“Gross-Up Payment”) 7 (“Restrictive Covenants”),
8 (“Confidentiality”), 9 (“Specific Performance; Injunction”), 10 (“Nondisparagement”), 11 (“Future
Cooperation”), 15 (“Assignment; Third Party Beneficiary”), 16 (“Severability; Survival”), 17
(“Indemnification”), and 26 (“Code Section 409A”), all of which shall remain in full force and
effect.

Severability; Entire Agreement; Governing Law; No Oral Modifications; No Waivers

If a court of competent jurisdiction determines that any of the provisions of this Agreement are
invalid or legally unenforceable, all other provisions of this Agreement shall not be affected and
are still enforceable. This Agreement and the General Release together constitute a single
integrated contract expressing our entire understanding regarding the subjects it addresses. As
such, it supersedes all oral and written agreements and discussions that occurred before the time
you sign it except as to any obligations you may owe to the Company or the Company may owe you, as
described in the “Integration of Employment Agreement; Survival of Certain Provisions” section
above that remain in effect. This Agreement may be amended or modified only by an agreement in
writing signed by an executive officer of the Company. The failure by the Company to declare a
breach, or to otherwise assert its rights under this Agreement, shall not be construed as a waiver
of any of its rights under this Agreement. The laws of the State of Arizona shall govern the
interpretation, validity, and effect of this Agreement.

Code Section 409A

The 409A provisions of Section 26 of your Employment Agreement are incorporated herein by reference
and apply to the payments under this Agreement and, any reimbursement, to the extent it constitutes
a deferral of compensation within the meaning of 409A, will be subject to the rules that apply to
your continued health benefits.

Acknowledgements And Certifications

You acknowledge and certify that:

	•	 	you have read and you understand all of the terms of this Agreement and are not
relying on any representation or statement, written or oral, not set forth in this Agreement;

	•	 	you are signing this Agreement knowingly and voluntarily;

	•	 	you have consulted with an attorney before signing this Agreement; and

- 4 -

 

Agreement regarding retirement

Page 5 of 6

	•	 	you and the Company agree that there is good and sufficient mutual consideration for each of
the terms and conditions in this Agreement.

IF YOU SIGN THIS DOCUMENT BELOW, IT BECOMES A LEGALLY ENFORCEABLE AGREEMENT EFFECTIVE ON THE DATE
SIGNED BY THE COMPANY.

 

	 	 	 	 	 

	June 25, 2010	 	/s/ James E. O’Connor
	 	 	 
	Date	 	James E. O’Connor
	 
	 	 	 	 
	June 25, 2010	 	REPUBLIC SERVICES, INC.
	 

Date

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	/s/ Michael P. Rissman
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:	 	Executive Vice President and
General Counsel
	 

	 	 	 	 

- 5 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]