Document:

Exhibit 10.1

 

AMENDED AND RESTATED

EMPLOYMENT AGREEMENT

AGREEMENT made the day 17th of February, 2005, effective as of January 1, 2005, by and between KINRO TEXAS LIMITED PARTNERSHIP (the “Company”) and DAVID L. WEBSTER (the “Executive”).

 

WITNESSETH:

WHEREAS, Kinro, Inc. (“Kinro”), the indirect parent of the Company, and the Executive entered into an Employment Agreement, effective as of January 1, 1996 (the “1996 Agreement”), which was approved by the stockholders of Drew Industries Incorporated (“Drew”), the ultimate parent of the Company, and

 

WHEREAS, the 1996 Agreement was amended and restated by an agreement effective as of September 1, 1999 (the “1999 Agreement”) including an amended incentive compensation plan approved by the stockholders of Drew; and

 

WHEREAS, in 2002, the stockholders of Drew approved Drew’s 2002 Equity Award and Incentive Plan that modified the Company’s performance-based incentive compensation program; and

 

WHEREAS, the Executive is and has been Chairman, President, Chief Executive Officer of the Company; and

 

WHEREAS, it is in the best interests of the Company to assure the continued  relationship between the Executive and the Company; and

 

WHEREAS, the Company and the Executive desire to restate and amend the 1999 Agreement as set forth herein.

 

 

 

 

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, it is agreed as follows: 

 

FIRST:  The Company hereby agrees to continue to employ the Executive, and the Executive hereby agrees to continue to serve the Company, as Chairman, President and Chief Executive Officer of the Company or in such other office or capacity with the Company, or any subsidiary or affiliate of the Company, of substantially equivalent responsibility, dignity and function as the Board of Directors of the Company may direct, under the terms and conditions of this Agreement. The Executive agrees to continue to devote substantially all of his time, attention, skills and efforts to the performance of his duties on behalf of the Company, and its subsidiaries and affiliates, at the principal executive offices of the Company in the State of Texas; provided, however, that the Executive shall at no time be required to change his residence without his consent.

 

SECOND:  The term of this Agreement shall commence as of January 1, 2005 and shall terminate on December 31, 2007 (the “Initial Term”); provided, however, that unless this Agreement is terminated by the Executive or the Company by written notice sent not less than one hundred twenty (120) days prior to the expiration of the Initial Term or any Renewal Term, this Agreement shall automatically renew for a term of one (1) year from the immediately preceding expiration date (a “Renewal Term”).

 

THIRD:  During the term of this Agreement, the Executive shall exert his best efforts, and, subject to the terms and provisions hereof, shall devote substantially all of his business time and attention to the business and affairs of the Company, and its subsidiaries and affiliates, and will use his best efforts to promote the interests thereof. Consistent with the foregoing, the Executive shall  not be precluded from giving appropriate attention to his personal 

 

 

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and financial affairs. The Executive shall act in accordance with the policies of the Company as determined from time to time by the Board of Directors and the shareholder of the Company, and shall perform such services as the Board of Directors may from time to time direct consistent with this Agreement. 

 

FOURTH:  The Company agrees to pay the Executive for his services to the Company a salary at the rate of not less than Four Hundred Thousand ($400,000) Dollars per annum, payable according to the customary payroll practice of the Company.

 

FIFTH:  Subject to the Drew Industries Incorporated 2002 Equity Award and Incentive Plan, in addition to the salary provided for in paragraph FOURTH hereof, the Executive shall be entitled to receive for the years ending December 31, 2005, 2006 and 2007, performance-based incentive compensation (the “Bonus”) equal to five (5%) percent of the amount by which the annual consolidated Operating Profit (as herein defined) of Kinro, including the Better Bath division, exceeds Seven Million Five Hundred Twenty Two Thousand ($7,522,000) Dollars.  For purposes of this Agreement “Operating Profit” means the consolidated earnings of Kinro, before interest and taxes (without deduction for costs of parent-company administration or amortization of goodwill, provided, however, that if, after the date hereof, Kinro or the Company acquire additional business operations, the performance goals
pursuant to which any Bonus is paid for the Initial Term or any Renewal Term may be modified upon agreement between the Executive and the Company).

 

SIXTH:  Nothing in this Agreement, nor any fixing of compensation in the form of salary, deferred compensation, securities or otherwise, shall prevent the Compensation Committee of the Board of Directors of Drew from granting to the Executive (i) payments 

 

 

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pursuant to Drew’s discretionary retirement bonus program, and (ii) additional compensation in the form of cash, salary increases, deferred compensation, securities or otherwise. 

 

SEVENTH:  The Executive and his family shall continue to receive medical coverage at least equivalent, in nature and extent, to the medical coverage presently in effect, and such other reasonable benefits which he has received from the Company prior to the date hereof.

 

The Executive agrees to have an annual comprehensive physical examination at the expense of the Company.

 

The Executive shall be eligible to participate in any pension, retirement or profit-sharing plan adopted by the Company for the benefit of its executives. The Executive shall also be entitled to a vacation in each year during the term hereof of not less than three weeks. 

 

The Company agrees to maintain disability insurance providing for periodic payments (not less frequently than monthly) to the Executive, in the event the Executive shall fail or be unable to perform his obligations hereunder, in the amount of not less than $120,000 per year, and up to $240,000 per year if available at reasonable cost to the Company. The Executive shall have the right to elect payment of premiums for such insurance to be made either by the Company on behalf of the Executive, or directly by the Executive. Such disability payments shall commence ninety (90) days after the commencement of disability and shall continue for the maximum available term after the commencement of disability. 

 

During the period of employment hereunder, the Company, at its expense, will make available to the Executive an automobile, together with gasoline credit cards, to be used in connection with the business of the Company. The Company will pay for all maintenance and parking of such automobile. 

 

 

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EIGHTH:  All travel and other expenses incident to the rendering of services by the Executive hereunder will be paid by the Company. If any such expenses are paid in the first instance by the Executive, the Company will reimburse him therefor on presentation of expense vouchers. 

 

NINTH:  If, on account of physical or mental disability, the Executive shall fail or be unable to fully perform this Agreement for a continuous period of six (6) months during the Initial Term or any Renewal Term, the Company may, at its option, at any time thereafter, upon thirty (30) days written notice to the Executive, terminate this Agreement and this Agreement shall come to an end at the end of said notice period as if such date were the termination date of this Agreement. Notwithstanding termination of employment as aforesaid, the Company shall (i) continue to make salary payments to the Executive in an amount equal to the difference between the salary provided for in Paragraph FOURTH of this Agreement and the disability payments received by the Executive pursuant to paragraph SEVENTH of this Agreement for a period ending on the first to occur of (A) six (6) months from
said date of termination or (B) the expiration of the Initial Tern or any Renewal Term; and (ii) pay the Bonus to the Executive proportionately with respect to the period prior to the date of termination. 

 

In the event of the death of the Executive during the term hereof, the term of this Agreement shall terminate on the date of death. In such case, the Company shall continue to pay to the heir or designee of the Executive (i) the salary payments provided for in Paragraph FOURTH hereof which the Executive would have been entitled to receive for a period ending on the first to occur of (A) six (6) months from the date of death of the Executive, or (B) the expiration of the Initial Term or any Renewal Term, (ii) the Bonus, proportionately, with respect to the period prior to the date of termination. 

 

 

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The Company agrees to maintain, at no cost to the Executive, a term life or whole life insurance policy or policies on the life of the Executive during the period of employment hereunder providing death benefits of at least $500,000, the proceeds of which  insurance shall be payable to beneficiaries designated by the Executive. 

 

The Company shall have the right to terminate this Agreement at any time upon ten (10) days written notice to the Executive in the event that (i) the Executive has committed a willful material breach of the terms of this Agreement, or (ii) the Executive is convicted of any crime involving moral turpitude. In such event, this Agreement shall come to an end as of the end of such notice period as if such date were the termination date of this Agreement.

 

TENTH:   During the Initial Term and any Renewal Term, and for a period of eighteen (18) months thereafter, the Executive shall not (i) directly or indirectly, undertake or perform any services in or for any other enterprises that may or would interfere with the due performance of his duties hereunder, nor (ii) divulge to any person, firm, company or other entity any information with respect to the business of the Company or its affiliates or subsidiaries that he may acquire in connection with the performance of his duties hereunder or may have acquired prior hereto, including, but not limited to, production methods, manufacturing methods, arrangements or processes, sales methods or arrangements, customer’s lists, technical data, know-how and other information, whether or not commonly regarded as proprietary information or trade secrets. For the purposes hereof, a business
shall be deemed competitive if it is conducted in any geographic market area in which the Company or its affiliates or subsidiaries is engaged in business and involves the sale or distribution of any products or services sold or offered by the Company or its affiliates or subsidiaries or any products or services similar to, or derived from, the products or services sold or offered by the Company or its affiliates or subsidiaries. 

 

 

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The Executive agrees that during the Initial Term and any Renewal Term, and for a period of eighteen (18) months thereafter, he shall not directly or indirectly engage in any business which is competitive with the business of the Company or its affiliates or subsidiaries. For the purposes hereof, a business shall be deemed competitive if it is conducted in any geographic market area in which the Company or its affiliates or subsidiaries is engaged in business and involves the sale or distribution of any products or service sold or offered by the Company or its affiliates or subsidiaries, or any products or services similar to, or derived from, the products or services sold or offered by the Company or its affiliates or subsidiaries on the date of such termination; and the Executive shall be deemed directly or indirectly to engage in such business if he participates in such
business, or in any entity engaged in or which owns such business, as an officer, director, employee, consultant, partner, individual proprietor, manager or as an investor who has made any loans, contributed to capital stock or purchased any stock. The foregoing, however, shall not be deemed to prevent the Executive from investing in securities if such class of securities in which the investment is so made is listed on a national securities exchange or is of a company registered under Section 12(g) of the Securities Exchange Act of 1934, and does not represent in excess of one (1%) per cent of the outstanding securities of said class. 

 

ELEVENTH:  :  All notices and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, telegram, facsimile or other standard form of telecommunication, or by registered or certified post-paid mail, return receipt requested, and addressed as follows, or to such other address as any party may notify the other in accordance with provision hereof:

 

	
            To the Company:
 	
            Kinro Texas Limited Partnership
 

c/o Drew Industries Incorporated 

200 Mamaroneck Avenue 

White Plains, New York 10601

 

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            To the Executive:
 	
            David L. Webster
 

3112 Collard Road 

Arlington, Texas 76017 

 

TWELFTH:  This Agreement constitutes the whole Agreement between the parties, and there are no terms other than those contained herein. No variation hereof shall be deemed valid unless in writing and signed by the parties hereto, and no discharge of the terms hereof shall be deemed valid unless by full performance by the parties hereto, or by a writing signed by the parties hereto. This Agreement shall supersede all other Employment Agreements between the Executive and the Company. 

 

THIRTEENTH:  This Agreement shall inure to the benefit of and be binding upon the Company, its successors and assigns, and the Executive, his heirs, executors, administrators and legal representatives. 

 

FOURTEENTH:  This Agreement shall not be terminated, voluntarily or involuntarily, by the liquidation or dissolution of the Company or by the merger or consolidation of the Company with or into another Company. 

 

IN WITNESS WHEREOF, the Company has caused these presents to be signed by its duly authorized officer, and its corporate seal to be hereunto affixed, and the Executive has hereunto set his hand the day and year first above written. 

 

	
            ATTEST:
 	
            KINRO TEXAS LIMITED PARTNERSHIP
 

 

 

	
            /s/ Fredric M. Zinn                              
 	
            By:  /s/ Leigh J Abrams                              
 

 

 

WITNESS:

 

 

	
            /s/ Stephanie W. Todd                        
 	
               /s/ David L. Webster                              
 
	
             
	
                              David L. Webster
 	
             

				

 

 

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Guarantee

Each of the undersigned entities hereby jointly and severally guarantees the full and prompt payment and performance by Kinro Texas Limited Partnership of the foregoing Amended and Restated Employment Agreement.

	
            Dated:
 	
            February  17, 2005
 

 

Kinro, Inc.

Kinro Manufacturing, Inc.

Kinro Tennessee Limited Partnership

 

By:   /s/ Leigh J. Abrams, VP                

 

 

9OWENS CORNING

OWENS CORNING

KEY EMPLOYEE RETENTION INCENTIVE PLAN

 

	Purpose.  This Owens Corning Key Employee Retention Incentive Plan has been established by Owens Corning for designated key employees of the Company.  The purpose of the Plan is to provide an incentive to Participants to remain in the employ of the Company through the date of the Company's emergence from Chapter 11 bankruptcy.

	Definitions.  For purposes of this Plan:

	"Board" shall mean the Board of Directors of Owens Corning.

	"Cause" shall mean acts of gross misconduct, gross insubordination, embezzlement, fraud, misappropriation of funds, property or trade secrets (in each case as determined by the Committee), or the commission of any felony under state or federal law.

	"Committee" shall mean the Compensation Committee of the Board.

	"Company" shall mean Owens Corning, a Delaware Corporation, and each of its subsidiaries and affiliates.

	"Disability" shall mean the Participant's entitlement to benefits under any long term disability plan or program of the Company.

	"Effective Date" means January 1, 2005.

	"Emergence" shall mean the effective date of a Plan of Reorganization confirmed in the Chapter 11 proceedings. 

	"Retention Amount" shall mean, with respect to each Participant, the amount payable under the Plan in accordance with Section 5(a) hereof.

	"Emergence Date" shall mean the date of Emergence, as defined.

	"Nonqualifying Severance" shall mean any termination of a Participant's employment with the Company after the Effective Date and before the earlier of the Emergence Date or December 31, 2005, in other than a Qualifying Severance.

	"Participant" shall mean an employee of the Company who participates in the Plan in accordance with Section 4 hereof.

	"Plan" shall mean this Owens Corning Key Employee Retention Incentive Plan, as amended from time to time.

 

	"Qualifying Severance" shall mean the termination of a Participant's employment with the Company after the Effective Date and before the earlier of the Emergence Date or December 31, 2005: (i) by the Company other than for Cause, or (ii) by reason of death or Disability.

	Administration.

	The Plan shall be administered by the Committee, which shall have complete authority to determine who shall participate herein and the Retention Amount applicable to each Participant, to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to it, and to make all other determinations necessary or advisable for the administration of the Plan.

	The Committee is authorized, on behalf of the Plan, to engage accountants, legal counsel and such other personnel as it deems necessary or advisable to assist it in the performance of its duties under the Plan.  All reasonable expenses thereof shall be borne by the Company.

	All decisions made by the Committee pursuant to the provisions of the Plan shall be final, conclusive and binding on all persons, including the Company and the Participants.  No member of the Board or the Committee, nor any officer or employee of the Company acting on behalf of the Board or the Committee, shall be personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board or the Committee and each and any officer or employee of the Company acting on their behalf shall, to the extent permitted by law, be fully indemnified and protected in respect of any such action, determination or interpretation.

	   The Committee may delegate any of its duties hereunder to such person or persons as it may designate from time to time.

	Participation.  The Committee shall, in its sole discretion, select the employees of the Company who shall participate in the Plan.  As a condition to participation in the Plan, each such employee shall execute a document, in such form as the Committee may require, acknowledging his or her participation in the Plan and his or her intent to remain employed by the Company through the Emergence Date.  

	Payments.

	In General.  Each Participant who remains employed by the Company through December 31, 2005 shall receive a cash payment from the Company equal to the Retention Amount established by the Committee for the Participant, as set forth in the letter informing the Participant of his or her participation in the Key Employee Retention Incentive Plan.  There shall be no requirement of uniformity of Retention Amount among Participants. 

 

	Qualifying Severance.  Each Participant who terminates employment with the Company under a Qualifying Severance shall receive a cash payment from the Company equal to his or her Retention Amount multiplied by a fraction, the numerator of which is the number of calendar months (including fractional months) from the Effective Date until the date of the Qualifying Severance, and the denominator of which is 12.  

	Nonqualifying Severance.  No payment shall be made under the Plan in respect of a Participant who incurs a Nonqualifying Severance.

	Payment Upon Emergence.  If the Company Emerges prior to December 31, 2005, each participant shall receive a cash payment from the Company equal to his or her Retention Amount multiplied by a fraction, the numerator of which is the number of calendar months (including fractional months) from the Effective Date until the date of Emergence, and the denominator of which is 12.   

	Form and Timing of Payment.  In general, payments under this Section 5 shall be made in a lump sum.  Such payment shall be made as soon as practicable following the earlier of the Emergence Date or December 31, 2005, but in no case later than March 15, 2006 and in the case of a payment pursuant to subsection (b) above, such payment shall be made as soon as practicable following the date of the Qualifying Severance but in no case later than 2.5 months thereafter.  Retention amounts are expressed in US dollars, and any payments under this Plan in other currency will be based on the exchange rate in effect at the time of payout.

	General Provisions.

	Compliance with Legal Requirements.  The Plan, the payment of amounts hereunder, and the other obligations of the Company under the Plan shall be subject to all applicable federal and state laws, rules and regulations, and to such approvals by any regulatory or governmental agency as may be required.

	Nontransferability.  No Participant shall have the right to alienate, anticipate, commute, pledge, encumber or assign any of the benefits or payments which he or she may expect to receive, contingently or otherwise, under this Plan.

	No Right To Continued Employment.  Nothing in the Plan shall confer upon any Participant the right to continue in the employ of the Company or to be entitled to any remuneration or benefits not set forth in the Plan or to interfere with or limit in any way the right of the Company to terminate such Participant's employment, which remains "at will."

	Effect on Other Benefits.  Amounts paid or payable hereunder shall not be treated as compensation for purposes of determining benefit amounts or accruals under any employee pension or benefit plan, program or arrangement maintained by the Company.  

	Severability.  If any provision of this Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and this Plan shall be construed and enforced as if such provisions had not been included.

	Successors.  This Plan shall be binding upon the heirs, executors, administrators, successors and assigns of the parties, including each Participant and any successor to the Company.

	Construction.  The headings and captions herein are provided for reference and convenience only, shall not be considered part of the Plan, and shall not be used in the construction of the Plan.

	Withholding Taxes.  All amounts to be paid hereunder to Participants shall be paid net of any taxes that the Company may be required to withhold therefrom in respect of any federal, state, local or other taxes. 

	Amendment, Termination and Duration of the Plan.  The Committee may at any time and from time to time alter, amend, suspend, or terminate the Plan in whole or in part.  The Plan shall terminate on the earlier of the Emergence Date or December 31, 2005, provided that all amounts not yet paid on the Emergence Date shall be paid thereafter in accordance with the terms hereof.  

	Unfunded Plan.  The Plan is intended to constitute an "unfunded" plan for incentive compensation.  With respect to any payments not yet made to a Participant hereunder, nothing contained in the Plan shall give any such Participant any rights in any assets of the Company that are greater than those of a general creditor of the Company.

	Beneficiary.  A Participant may file with the Committee a written designation of a beneficiary on such form as may be prescribed by the Committee and may, from time to time, amend or revoke such designation.  If no designated beneficiary survives the Participant, the executor or administrator of the Participant's estate shall be deemed to be the Participant's beneficiary.

	Governing Law.  The Plan and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of Delaware without giving effect to the conflict of laws principles thereof.

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