Document:

MTRN-EX10.1_2013.05.29

Exhibit 10.1

Materion Corporation
MANAGEMENT INCENTIVE PLAN
SECTION 1.OBJECTIVE:  The purpose of the Plan is to (i) attract, retain and motivate employees by providing incentives to key employees dependent upon the financial success of Materion Corporation (the “Company”); and (ii) make the Company's compensation program competitive with those of other major employers.  The Company intends that certain compensation payable under the Plan will constitute “qualified performance-based compensation” under section 162(m) of the Code.  The Plan shall be administratively interpreted and construed in a manner consistent with such intent. 

SECTION 2.PHILOSOPHY:  Management and the Board of Directors believe the Plan should encourage the attraction and retention of key employees, and promote the achievement of financial objectives that support the profitability and long-term growth of the Company.  The Plan promotes the focus of its participants on the achievement of pre-established financial objectives,   approved annually by the Compensation Committee of the Board of Directors.   

SECTION 3.DEFINITIONS:  As used in this Plan, unless the context otherwise required, each of the following terms shall have the meaning set forth below.

		
	a)
	“Award” shall mean, for any Plan Year, a payment made to a Participant under the terms of this Plan.

		
	b)
	“Board of Directors” or “Board” shall mean the Board of Directors of the Company.

		
	c)
	“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

		
	d)
	“Committee” shall mean the Compensation Committee or such other Committee of the Board of Directors, which shall consist solely of two or more “outside directors” within the meaning of section 162(m) of the Code.

		
	e)
	“Company” shall mean Materion Corporation, an Ohio corporation and its successors.

		
	f)
	“Covered Employee” shall mean a Participant who is, or is determined by the Committee to be likely to become, a “covered employee” within the meaning of section 162(m) of the Code (or any successor provision).

		
	g)
	“Eligible Employee” shall mean all officers and other key employees of the Company and any of its Subsidiaries.

		
	h)
	“Maximum Amount” shall mean $3,000,000 for any Participant.

		
	i)
	“Participant” shall mean an Eligible Employee selected by the Committee to participate in the Plan pursuant to section 5.

		
	j)
	“Performance Objectives” shall mean the measurable performance objective or objectives established pursuant to this Plan for Participants pursuant to section 6,  Performance Objectives may be described in terms of Company-wide objectives or objectives that are related to the performance of the individual Participant or of the Subsidiary, division, department, region or function within the Company or Subsidiary in which the Participant is employed.  The Performance Objectives may be relative to the performance of one or more other companies or subsidiaries, divisions, departments, regions or functions within such other companies, and may be made relative to an index of one or more of the performance criteria themselves.   Awards may be granted subject to Performance Objectives that are either Qualified Performance-Based Awards or are not Qualified Performance-Based Awards. The Performance Objectives applicable to any Qualified Performance-Based Awards shall be based on one or more, or a combination, of the following criteria:

		
	i.
	Profits (e.g., operating profit or income, EBIT, EBT, net income, earnings per share, residual or economic earnings, economic value added);

		
	ii.
	Cash Flow (e.g., EBITDA, operating cash flow, total cash flow, free cash flow, residual cash flow or cash flow return on investment);

		
	iii.
	Returns (e.g., profits or cash flow returns on:  assets, invested capital, net capital employed, and equity);

		
	iv.
	Working Capital (e.g., working capital divided by sales, days' sales outstanding, days' sales inventory, and days' sales in payables, or any combination thereof);

		
	v.
	Profit Margins (e.g., operating profit or gross profit divided by revenues or Value- added Sales);

		
	vi.
	Liquidity Measures (e.g., debt-to-debt-plus-equity, debt-to-capital, debt-to-EBITDA, total debt ratio, EBITDA multiple);

		
	vii.
	Sales, Value-added Sales, Sales Growth, Cost Initiative and Stock Price Metrics (e.g., revenues, revenue growth, new product sales growth, Value-added Sales, growth in Value-added Sales, stock price appreciation, total return to shareholders, sales and administrative costs divided by sales, sales per employee, cost targets, expense or debt reduction levels); and

		
	viii.
	Strategic Initiative Key Deliverable Metrics (e.g., product development, strategic partnering, research and development, market penetration, geographic business expansion goals, cost targets, customer satisfaction, employee satisfaction, management of employment practices and employee benefits, supervision of litigation and information technology, increase in yield and productivity and goals relating to acquisitions or divestitures of subsidiaries, affiliates and joint ventures).

With respect to Qualified Performance-Based Awards, each such Performance Objective shall define in an objective manner the extent to which the Performance Objective for a Plan Year has been achieved.  With respect to Qualified Performance-Based Awards, the Committee may provide that any Performance Objective may include or exclude objectivity determinable adjustments, including for any one or more of the following that occur during the Plan Year:  the effects of extraordinary, unusual or non-recurring items as defined in accounting principles; changes in applicable accounting principles, tax laws or regulations;  currency fluctuations or significant movement in metal prices; asset write-downs, inventory losses or impairment charges; litigation or claim judgments or settlements; environmental remedial costs; discontinued operations; non-cash items, such as amortization, depreciation, or reserves; crimes against the Company to the extent not covered by insurance, correction of errors or other charges that relate to a prior year; costs associated with derivatives; civil penalties or other fines; costs associated with the Company's pension or other retirement plans; or the effects of any recapitalization, restructuring, reorganization, merger, acquisition, divestiture, consolidation, spin-off, split-up, combination, liquidation, facility shutdown, dissolution, sale of assets, stock or debt refinancing or other similar corporate transaction.  With respect to Qualified Performance-Based Awards, to the extent such adjustments apply to a Performance Objective, they shall be prescribed in a form and at a time that meets the requirements of section 162(m) of the Code.
If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Company, or the manner in which it conducts its business, or other events or circumstances render the Performance Objectives unsuitable, the Committee may in its discretion modify such Performance Objectives or any related minimum acceptable level of achievement, in whole or in part, as the Committee deems appropriate and equitable, except in the case of a Qualified Performance-Based Award (other than in connection with a change in control) where such action would result in the loss of the otherwise available exemption of the award under section 162(m) of the Code.
		
	k)
	“Plan” shall mean the Materion Corporation Management Incentive Plan, as amended and restated from time to time.

		
	l)
	“Plan Year” shall mean a fiscal year or such shorter period as determined by the Committee in its sole discretion.

		
	m)
	“Qualified Performance-Based Award” shall mean any Award to a Covered Employee that is intended to satisfy the requirements for “qualified performance-based compensation” under section 162(m) of the Code.

		
	n)
	“Subsidiary” means a corporation, partnership, joint venture, unincorporated association or other entity in which the Company has a direct or indirect ownership or other equity interest.

SECTION 4.ADMINISTRATION:  The Plan shall be administered by the Committee, which shall have full power and authority to construe, interpret and administer the Plan and shall have the exclusive right to establish and administer Qualified Performance-Based Awards.  In the case of Awards that are not Qualified Performance-Based Awards, the Committee may delegate to an appropriate officer, officers or person part or all of its authority to establish 

and administer such Awards, subject to such rules and conditions as may be established by such officer, officers or person.

SECTION 5.ELIGIBILITY:   The Committee (or its designee pursuant to section 4) shall designate which Eligible Employees will be Participants in the Plan for a particular Plan Year and shall take into account such factors as it deems relevant in connection with accomplishing the purposes of the Plan.

SECTION 6.AWARDS:    
		
	a)
	The Committee (or its designee pursuant to section 4) may make Awards to Participants with respect to each Plan Year, subject to the terms and conditions set forth in the Plan.  Awards may be either Qualified Performance-Based Awards or Awards which are not Qualified Performance-Based Awards.

		
	b)
	With respect to Qualified Performance-Based Awards, the Committee shall determine for each such Plan Year the following (within 90 days after the commencement of each Plan Year, or such other date as required by section 162(m) of the Code and the regulations promulgated thereunder).

		
	i.
	The Award applicable to each Participant for the Plan Year based on one or more Performance Objectives; and 

		
	ii.
	The payout detailing the total amount which may be available for payout to each Participant based upon the relative level of attainment of the Performance Objective or Performance Objectives.

		
	c)
	With respect to Qualified Performance-Based Awards, upon completion of a Plan Year, the Committee shall:

		
	i.
	Certify in writing, prior to payment of any Award, whether and to what extent the Performance Objective or Performance Objectives for the Plan Year were satisfied, and the amount available for each Participant's Award pursuant to the payout schedule established in section 6(b)(ii);

		
	ii.
	Authorize payment subject to section 7 of such amounts determined under section 6(c)(i).

		
	d)
	With respect to Qualified Performance-Based Awards, the Committee may not modify any terms of Awards established pursuant to this section, except to the extent that after such modification, the Award would continue to constitute qualified “performance-based compensation” for purposes of section 162(m) of the Code.

		
	e)
	The Committee retains the discretion to reduce the amount of any Award that would be otherwise payable to a Participant (including a reduction in such amount to zero).

		
	f)
	Notwithstanding any other provision of this Plan, in no event shall the Award earned by any Participant for a Plan Year exceed the Maximum Amount.

SECTION 7.PAYMENT OF AWARDS:  Awards under this Plan, shall be made in a lump sum payment in cash on or before March 15 of the year following the end of the Plan Year to which the payment applies. Payment may be made to a deferred plan established by the Company for such purposes.  The Company shall deduct from any payment such amounts as may be required to be withheld under any federal, state, or local tax laws.

SECTION 8.RECOUPMENT OF AWARDS:  Awards under the Plan shall be subject to the Company's Amended and Restated 2011 Clawback Policy as in effect from time to time (or any recoupment policy successor thereto).

SECTION 9.NO CONTRACT:  This Plan is not and shall not be construed as an employment contract or as a promise or contract to pay Awards to Participants or their beneficiaries.

SECTION 10.NONASSIGNABILITY:  No participant or beneficiary may sell, assign, transfer, discount or pledge as collateral for a loan, or otherwise anticipate any right to payment under this Plan.

SECTION 11.TERMINATION AND AMENDMENT:  Subject to section 6(d) of the Plan and the approval of the Board, where required, the Committee may at any time and from time to time alter, amend, suspend, or terminate the Plan in whole or in part; provided, however, that no amendment which requires shareholder approval in order for the Plan to continue to comply with section 162(m) of the Code shall be effective unless such amendment is approved 

by the shareholders of the Company.  Notwithstanding the foregoing but subject to section 13 of this Plan, no termination or amendment of the Plan may, without the consent of the Participant to whom an Award has been determined for a completed Plan Year but not yet paid, adversely affect the rights of such Participant in such Award.

SECTION 12.INTERPRETATION:  It is the intent of the Company that Qualified Performance-Based Awards made to Participants shall constitute “qualified performance-based compensation” satisfying the requirements of section 162(m) of the Code.  Accordingly, with respect to Qualified Performance-Based Awards, the provisions of the Plan shall be interpreted in a manner consistent with section 162(m) of the Code.  With respect to a Qualified Performance-Based Award, if any other provision of the Plan or Award is intended to but does not comply or is inconsistent with the requirements of section 162(m) of the Code, such provision shall be construed or deemed amended to the extent necessary to conform to and comply with such requirements.

SECTION 13.APPLICATION OF SECTION 409A OF THE CODE:  To the extent applicable, it is intended that this Plan and its administration comply with the provisions of section 409A of the Code.  To the extent that section 409A applies to Awards, payments are intended to qualify as short-term deferrals under the regulations adopted under section 409A.  Accordingly, the Plan will be interpreted, applied and, to the minimum extent necessary to comply with section 409A of the Code, amended, so that the Plan does not fail to meet, and is operated in accordance with, the requirements of section 409A of the Code and the intended benefits of the Plan are preserved.  Reference to section 409A of the Code will also include any proposed, temporary or final regulations, or any other guidance, promulgated with respect to such section by the U.S. Department of the Treasury or the Internal Revenue Service.

SECTION 14.UNFUNDED STATUS:  Awards shall be made from the general funds of the Company, and no special or separate fund shall be established or other segregation of assets made to assure payment.  No participant or other person shall have under any circumstances any interest in any particular property or assets of the Company.  

SECTION 15.SEVERABILITY:  If any provision of the Plan or any Award is, becomes, or is deemed to be invalid, illegal, or unenforceable in any jurisdiction or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Committee, materially altering the purpose of intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction or Award, and the remainder of the Plan or such Award shall remain in full force and effect.

SECTION 16.INDEMNIFICATION:  In addition to such other rights of indemnification as members of the Board or the Committee or officers or employees of the Company or a Subsidiary to whom authority to act for the Board or Committee is delegated may have, such individuals shall be indemnified by the Company to the maximum extent permitted by law and the Company's code of regulations, in connection with the defense of any action, suit, or proceeding, or in connection with any appeal thereof, to which any such individual may be a party by reason of any action taken or failure to act under or in connection with the Plan or any right granted hereunder.

SECTION 17.HEADINGS: Headings are given to the sections of the Plan solely as a convenience to facilitate reference.  Such headings shall not be deemed in any way material or relevant to the construction or interpretation of the Plan or any provisions thereof.

SECTION 18.APPLICABLE LAW:  This plan shall be governed by and construed in accordance with the laws of the State of Ohio, without regard to its principles of conflict of laws.

SECTION 19.EFECTIVE DATE:  This Plan will become effective January 1, 2014, provided its prior approval and adoption by the Board and prior approval of the Plan by the shareholders of the Company.Exhibit 10.1

 

May 28,  2013

 

Andrea Holtzman Drucker

1528 Aidenn Lair Road

Maple Glen, PA 19002

 

Dear Andrea:

 

This letter agreement (“Agreement”) confirms our mutual agreement regarding the terms and conditions of your separation from employment with Insmed, Inc. (“Insmed” or the “Company”).  You and the Company agree as follows:

 

1.                                      Cessation of Employment.  You hereby resign from employment with the Company, from service as an officer of the Company and from service with the Company and its affiliates in any other capacity, effective as of June 3, 2013 (the “Last Day of Employment”).  Promptly following such date, you will receive payment for (i) base salary earned in the payroll period that includes your Last Day of Employment, and (ii) vacation days that were accrued and unused as of your Last Day of Employment.

 

2.                                      Consulting Period.

 

a)                                     You and the Company agree that for a period of three (3) months following the Last Day of Employment (the “Consulting Period”), you will serve as a consultant to Company, subject to the terms and conditions of this Agreement.  During the Consulting Period, you will render those services reasonably requested by the Chief Executive Officer of the Company on an as-needed basis during normal business hours.  The services described in this paragraph shall be performed at such locations, dates, and times as you and the Company mutually agree.  You and the Company agree and understand that the services performed by you under this Paragraph 2 shall be periodic and limited in nature.  During the Consulting Period, you will be entitled to accept other employment and pursue other activities and interests, so long as such employment, activities and interests do not otherwise breach your covenants and obligations under this Agreement and/or any other agreement between you and the Company.

 

b)                                     During the Consulting Period you shall be entitled to receive consulting fees in the amount of $26,798.17 per month, payable in accordance with the Company’s normal payroll practices.  The amounts described in this Paragraph 2(b) shall be the sole remuneration owed to you by the Company in respect of the provision of the consulting services described in Paragraph 2(a).  During the Consulting Period, you will perform the services requested by the Company under this Agreement as an independent contractor and shall not be deemed an employee of the Company or any of its affiliates for any purpose.  Accordingly, the Company will not withhold federal or state income, social security, or other taxes from the payments described in this Paragraph 2(b) and you shall not be entitled to any other compensation or to participate in any of the Company’s employee benefit

 

 

plans, except to the extent otherwise provided in this Agreement.  You agree that you will be fully and solely responsible for any income or other tax liability imposed on you in your capacity as an independent contractor.

 

c)                                      During the Consulting Period you will be entitled to indemnification from the Company with respect to the services you provide to the Company in the same manner and to the same extent as if you had remained an executive officer of the Company during that period.

 

3.                                      Severance Benefits.  Provided that Paragraph 4 of this Agreement is not revoked during the seven day period following your execution of this Agreement, the Company will provide you with the rights, payment and benefits described in the attached Exhibit A (the “Severance Benefits”).  If you die before any of the Severance Benefits are paid, the Company will pay those benefits to your estate, heirs or beneficiaries.  If Paragraph 4 of this Agreement is revoked, no severance benefits will be owed to you under this Paragraph 3 or under your Employment Agreement with the Company dated June 7, 2011 (the “Employment Agreement”), but the remainder of this Agreement will remain in full force and effect.

 

4.                                      Release.

 

a)                                     In consideration of the Severance Benefits, you (for yourself and your family, heirs executors, administrators, legal representatives and their respective successors and assigns) hereby waive, release and forever discharge the Company and each of its past and current parents, subsidiaries, affiliates and each of its and their respective past and current directors, officers, trustees, employees, representatives, shareholders, agents, employee benefit plans and such plans’ administrators, fiduciaries, trustees, record-keepers and service providers, and each of its and their respective successors and assigns, each and all of them in their personal and representative capacities (collectively the “Company Releasees”) from any and all claims legally capable of being waived, grievances, injuries, controversies, agreements, covenants, promises, debts, accounts, actions, causes of action, suits, arbitrations, sums of money, attorneys’ fees, costs, damages, demands or any right to any monetary recovery or any other personal relief, whatsoever, for or by reason of any matter, cause or thing whatsoever, whether known or unknown, in law or in equity, by contract, tort, law of trust or pursuant to federal, state or local statute, regulation, ordinance or common law, which you now have, ever have had, or may hereafter have, based upon or arising from any fact or set of facts, whether known or unknown to you, from the beginning of time until the date of execution of this Agreement, arising out of or relating in any way to your employment relationship with the Company or the Company Releasees or other associations with the Company or the Company Releasees or any termination thereof.  Without limiting the generality of the foregoing, this waiver, release, and discharge includes any claim or right based upon or arising under any federal, state or local fair employment practices or equal opportunity laws, including, but not limited to, the New Jersey Law Against Discrimination (N.J. Stat. Ann. §10:5-1 et seq.), the New Jersey Conscientious Employee Protection Act (N.J. Stat. Ann. §34:19-3 et seq.), the Age Discrimination in Employment Act (29 U.S.C. Section 621, et seq.) (“ADEA”),

 

 

the Older Workers’ Benefits Protection Act, the Rehabilitation Act of 1973, the Worker Adjustment and Retraining Notification Act, 42 U.S.C. Section 1981, Title VII of the Civil Rights Act of 1964, the Equal Pay Act, the Employee Retirement Income Security Act (“ERISA”) (including, but not limited to, claims for breach of fiduciary duty under ERISA), the Americans With Disabilities Act, and the Family and Medical Leave Act of 1993, including all amendments thereto.

 

b)                                     Notwithstanding the generality of the foregoing, nothing herein constitutes a release or waiver by you of, or prevents you from making or asserting:  (i) any claim or right you may have for unemployment insurance or workers’ compensation benefits; (ii) any rights to receive any payments or benefits to which you are entitled under any other compensation or employee benefit plans in which you are eligible to participate at the time of execution of this Agreement; (iii) any indemnification and advancement rights Executive may have as a former employee, officer or director of the Company or its subsidiaries or affiliated companies, (iv) any claims for benefits under any directors’ and officers’ liability policy maintained by the Company or its subsidiaries or affiliated companies in accordance with the terms of such policy, and (v) any rights as a holder of equity securities of the Company (vi) any claim or right that may arise after the execution of this Agreement; or (vii) any claim or right you may have under this Agreement.  In addition, nothing herein shall prevent you from filing a charge or complaint with the Equal Employment Opportunity Commission (“EEOC”) or similar federal or state agency or your ability to participate in any investigation or proceeding conducted by such agency; provided, however, that pursuant to Paragraph 4(a), you are waiving any right to recover monetary damages or any other form of personal relief in connection with any such charge, complaint, investigation or proceeding.

 

5.                                      Violations of Any Law or of the Company’s Code of Conduct.  You hereby represent and warrant that during your employment with the Company, you did not violate any federal, state or local law, statute or regulation while acting within the scope of your employment with the Company, nor did you violate the Company’s Code of Conduct.  You acknowledge and understand that if the Company should discover any such violation after your execution of this Agreement, it will be considered a material breach of this Agreement.

 

6.                                      No Additional Entitlements.  You agree that you have received all entitlements due from the Company relating to your employment with the Company, other than the payments, rights and benefits specifically enumerated in this Agreement.

 

7.                                      Employment Agreement.  You and the Company acknowledge and agree that Sections 6(l), 6(m), 7 through 13, and 15 through 26 of your Employment Agreement survive the cessation of your employment with the Company.  You further acknowledge and agree that the other sections of your Employment Agreement do not survive the cessation of your employment and that you have no further rights in respect thereof.

 

8.                                      Protection of Confidential Information.

 

a)                                     You acknowledge and agree that you received adequate consideration in exchange for agreeing to the covenants contained in Section 7 of your Employment

 

 

Agreement, that such covenants remain reasonable and necessary to protect the Company’s legitimate business interests and that you will continue to comply with those covenants.

 

b)                                     In addition, you hereby acknowledge your existing obligation to maintain the confidentiality of the Company’s information as contained in the Company’s Code of Conduct.  You affirm that you agreed to be bound by the Company’s Code of Conduct (which is hereby incorporated by this reference) when you signed that Code of Conduct in January 2012;

 

c)                                      Without limiting the generality of the foregoing obligations set forth in Paragraph 8(a) and (b), you agree that, except as expressly permitted in Paragraph 10 of this Agreement or if otherwise required by law, you will not at any time, directly or indirectly, disclose any trade secret, confidential or proprietary information you have learned by reason of your association with the Company (the “Confidential Information”) or use any such Confidential Information to the detriment of the Company, its parents, affiliates or subsidiaries, or to the benefit of any business or enterprise that competes with the Company, its parents, affiliates or subsidiaries.  Confidential Information is deemed to include, but is not limited to, information pertaining to Company strategic plans, advertising and marketing plans, sales plans, formulae, processes, methods, machines, ideas, concepts, new product developments, proposed launches, discontinuance of existing products, product and consumer testing data, sales and market research, technology research and development, budgets, profit and loss data, raw material costs, identity of suppliers, customer lists, customer information, employee information, improvements, inventions, and associations with other organizations that the Company has not previously made public.  Confidential Information does not include information that can be shown by written evidence to be in the public domain at the time of disclosure by you or that is publicized or otherwise becomes part of the public domain through no fault of your own.

 

9.                                      Non-Disparagement.

 

a)                                     You agree that you shall not at any time make any written or verbal comments or statements of a defamatory or disparaging nature regarding the Company and/or the Company Releasees or their personnel or products and you shall not take any action that would cause the Company and/or the Company Releasees or their personnel or products any embarrassment or humiliation or otherwise cause or contribute to their being held in disrepute.

 

b)                                     The Company agrees that it will use its best efforts to ensure that none of its representatives makes any written or verbal comments or statements of a defamatory or disparaging nature regarding you or takes any action that would cause you any embarrassment or humiliation or otherwise cause or contribute to your being held in disrepute while they are employed by the Company and acting in their capacity as Company representatives.

 

10.                               Permitted Conduct.  Nothing in this Agreement shall prohibit or restrict you, the Company, or our respective attorneys from: (i) making any disclosure of relevant and necessary information or documents in any action, investigation, or proceeding relating to this Agreement, including all exhibits, or as required by law or legal process; or (ii)

 

 

participating, cooperating, or testifying in any action, investigation, or proceeding with, or providing information to, any governmental agency or legislative body, including, but not limited to, the Company’s Legal Department, the Securities & Exchange Commission, and/or pursuant to the Dodd-Frank Act or Sarbanes-Oxley Act; provided that, to the extent permitted by law, upon receipt of any subpoena, court order or other legal process compelling the disclosure of any such information or documents, the disclosing party gives prompt written notice to the other party so as to permit such other party to protect such party’s interests in confidentiality to the fullest extent possible.

 

11.                               Non-Admission.  It is understood and agreed that neither the execution of this Agreement, nor the terms of the Agreement, constitute an admission of liability to you by the Company or the Company Releasees, and such liability is expressly denied.  It is further understood and agreed that no person shall use the Agreement, or the consideration paid pursuant thereto, as evidence of an admission of liability, inasmuch as such liability is expressly denied.

 

12.                               Acknowledgments.  You hereby acknowledge that:

 

a)                                     The Company hereby advises you to consult with an attorney before signing this Agreement;

 

b)                                     You have obtained independent legal advice from an attorney of your own choice with respect to this Agreement and all exhibits or you have knowingly and voluntarily chosen not to do so;

 

c)                                      You freely, voluntarily and knowingly entered into this Agreement after due consideration;

 

d)                                     You have been provided with at least 21 days to review and consider this Agreement;

 

e)                                      You have a right to revoke Paragraph 4 of this Agreement by notifying the undersigned Company representative in writing, via hand delivery, facsimile or electronic mail, within seven days of your execution of this Agreement;

 

f)                                       In exchange for your waivers, releases and commitments set forth herein, including your waiver and release of all claims arising under the Age Discrimination in Employment Act, the payments, benefits and other considerations that you are receiving pursuant to this Agreement exceed any payment, benefit or other thing of value to which you would otherwise be entitled, and are just and sufficient consideration for the waivers, releases and commitments set forth herein; and

 

g)                                      No promise or inducement has been offered to you, except as expressly set forth herein, and you are not relying upon any such promise or inducement in entering into this Agreement.

 

13.                               Miscellaneous.

 

a)                                     Entire Agreement.  This Agreement sets forth the entire agreement between you and the Company and replaces any other oral or written agreement between you and the Company relating to the subject matter of this Agreement.

 

 

b)                                     Governing Law.  This Agreement, shall be construed, performed, enforced and in all respects governed in accordance with the laws of the State of New Jersey, without giving effect to the principles of conflicts of law thereof.  Additionally, all disputes arising from or related to this Agreement and/or exhibits shall be brought in a state or federal court situated in the State of New Jersey, Mercer County and the parties hereby expressly consent to the jurisdiction of such courts for all purposes related to resolving such disputes.

 

c)                                      Severability.  Should any provision of this Agreement, including any exhibit, be held to be void or unenforceable, the remaining provisions shall remain in full force and effect, to be read and construed as if the void or unenforceable provisions were originally deleted.

 

d)                                     Taxation.  All payments to you from the Company are subject to withholding for applicable taxes.  Both you and the Company intend for payments and benefits under this Agreement to be exempt from, or compliant with, the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”).  You acknowledge and agree, however, that the Company does not guarantee the tax treatment or tax consequences associated with any payment or benefit, including, without limitation, tax consequences related to Section 409A.

 

e)                                      Amendments.  This Agreement may not be modified or amended, except upon the express written consent of both you and the Company.

 

f)                                       Waiver.  A waiver by either party hereto of a breach of any term or provision of the Agreement, including all exhibits, shall not be construed as a waiver of any subsequent breach.

 

g)                                      Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same agreement.

 

 

If the above accurately states our agreement, including the separation, waiver and release, kindly sign below and return this original Agreement to me.

 

	
 
    	
Sincerely,
    
	
 
    	
 
    
	
 
    	
INSMED   INCORPORATED
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/William   H. Lewis
    
	
 
    	
William   H. Lewis
    
	
 
    	
President &   CEO
    
	
 
    	
 
    
	
 
    	
Date:   
    	
May 28,   2013
    
	
 
    	
 
    
	
 
    	
UNDERSTOOD,   AGREED TO
    
	
 
    	
AND   ACCEPTED WITH THE
    
	
 
    	
INTENTION   TO BE LEGALLY BOUND:
    
	
 
    	
 
    
	
 
    	
/s/   Andrea Holtzman Drucker
    
	
 
    	
Andrea Holtzman Drucker
    
	
 
    	
 
    
	
 
    	
Date:   
    	
May 28,   2013
    
				

 

 

EXHIBIT A

 

SEVERANCE BENEFITS

 

(1)                                 SEVERANCE PAY

 

You will receive severance pay as follows:

 

·                                          $26,798, payable in a lump sum within 30 days following your Last Day of Employment.

 

·                                          $112,552, payable in a lump sum within 60 days following your Last Day of Employment.

 

·                                          $56,276, payable in a lump sum at the same time that senior-level executives of the Company receive their annual incentive compensation awards, and in no event later than March 15, 2014.

 

·                                          Payments equal to your current regular rate of pay through June 2, 2014; paid in accordance with the Company’s usual payroll practices.

 

(2)                                 EQUITY AWARDS

 

Equity Awards that have not previously vested that were granted to you will vest in full, effective upon your Last Day of Employment. You will have ninety (90) days from the Last Day of Employment to exercise all of your vested Stock Options.

 

(3)                                 GROUP HEALTH CONTINUATION

 

COBRA continuation of your medical, dental and vision insurance will be subsidized for you and your covered dependents for 18 months following your Last Day of Employment.  The subsidy will be such that the monthly cost of COBRA continuation will be the same as the monthly cost for such coverage applicable to active employees inclusive of complete funding for the HSA for thefull year 2014.  As a condition of continuation of such benefits, you must elect COBRA continuation of this coverage.) These benefits will cease once you have commenced new employment and have thereby become eligible for comparable benefits, subject to your rights under COBRA.  It is understood that the Company will not make any 401(k) deductions or other benefit deductions from Severance.

 

(4)                                 OUTPLACEMENT/LEGAL SERVICES

 

The Company will pay or reimburse you for the cost of outplacement or other costs reasonably related to your transition, including, legal services in connection with the review of separation materials provided by a reputable company on or before June 1, 2014, up to a maximum of $15,000.  As a condition of this benefit, you must submit proper documentation of such expenses within 90 days after you incur them.  The Company will pay or reimburse such expenses within 30 days following the receipt of proper documentation.

 

A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00217-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00217-of-00352.parquet"}]]