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EXHIBIT 10.24
EMPLOYMENT AGREEMENT
THIS AGREEMENT (the "Agreement"), made and entered into this 25th day
of January, 2000 (the "Effective Date"), by and among ▇▇▇▇ ▇. ▇▇▇▇▇▇▇ (the
"Executive") and United States Can Company, having its principal offices at ▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ (the "Company"), and U.S. Can
Corporation, a Delaware corporation, having its principal offices at ▇▇▇
▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ("U.S. Can");
WITNESSETH THAT:
WHEREAS, the parties desire to enter into this Agreement concerning the
terms of Executive's employment by the Company;
WHEREAS, by letter dated July 7, 1998, the Company made certain
commitments to the Executive concerning certain terms of Executive's employment
with the Company and this Agreement will serve to formally memorialize such
commitments and reflect certain other terms of employment;
WHEREAS, this Agreement provides that, under certain circumstances, the
Executive is to be granted awards based on the common stock of U.S. Can ("U.S.
Can Stock") under one or more plans maintained by U.S. Can;
NOW, THEREFORE, in consideration of the premises and mutual covenants
set forth herein, IT IS HEREBY COVENANTED AND AGREED by the Executive, the
Company, and U.S. Can as follows:
1. Definitions. Terms used in this Agreement shall be defined as
set forth below:
(a) For purposes of this Agreement, the term "Affiliate" shall mean the
Company and any of its "affiliates" as that term is defined in the
Securities Exchange Act of 1934, as amended.
(b) The term "Agreement Term" shall have the meaning ascribed to it in
paragraph 2(f).
(c) The Executive shall be considered "Disabled" during any period in which
he has a physical or mental disability which renders him incapable,
after reasonable accommodation, of performing his duties under this
Agreement. The Executive shall be considered "Permanently Disabled"
during any period in which (i) he has a physical or mental disability
which renders him incapable, after reasonable accommodation, of
performing his duties under this Agreement; (ii) such disability is
determined by the Executive's Supervisor to be of a long-term nature;
and (iii) the Executive is eligible for income replacement benefits
under the Company's long-term disability plan during such period of
disability. In the event of a dispute as to whether the Executive is
Disabled or Permanently Disabled, the Company may refer the same to a
licensed practicing physician of the Company's choice, and the
Executive agrees to submit to such tests and examinations as such
physician shall deem appropriate.
(c) The term "Cause" shall have the meaning ascribed to it in paragraph
4(c).
(d) "Date of Termination" means the last day the Executive is employed by
the Company, provided that the Executive's employment is terminated in
accordance with the provisions of paragraph 4.
(e) The term "Good Reason" shall have the meaning ascribed to it in
paragraph 4(d).
(f) The Executive's "Supervisor" shall be ▇▇▇▇ ▇. ▇▇▇▇▇, Chairman & CEO or
his successor.
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(g) "U.S. Can Stock" is common stock of U.S. Can or a successor to U.S.
Can.
2. Performance of Services. The Executive's employment with the Company
shall be subject to the following:
(a) Subject to the terms of this Agreement, the Company hereby agrees to
employ the Executive during the Agreement Term, and the Executive
hereby agrees to remain in the employ of the Company during the
Agreement Term.
(b) During the Agreement Term, while the Executive is employed by the
Company, the Executive shall devote his full time, energies and talents
to serving as its Executive Vice President and Chief Financial Officer,
or in such other position to which the Executive may be appointed by
the Executive's Supervisor from time to time; provided that in no event
shall the Executive be appointed to a position having a rank of less
than the rank he holds as of the date hereof. To the extent the Company
determines to be necessary or appropriate, the Company may change the
Executive's Supervisor, and the Executive's reporting relationships.
(c) The Executive agrees that he shall perform his duties faithfully and
efficiently subject to the directions of the Executive's Supervisor.
The Executive's duties may include providing services for both the
Company and the Affiliates, as determined by the Executive's
Supervisor; provided that the Executive shall not, without his consent,
be assigned duties that would be inconsistent with those of a Executive
Vice President and Chief Financial Officer. The Executive shall have
such authority, power, responsibilities and duties as are inherent in
his position(s) (and the undertakings applicable to his position(s))
and necessary to carry out his responsibilities and the duties required
of him hereunder.
(d) Notwithstanding the foregoing provisions of this paragraph 2, during
the Agreement Term, the Executive may devote reasonable time to
activities other than those required under this Agreement, including
the supervision of his personal investments, and activities involving
professional, charitable, community, educational, religious and similar
types of organizations, speaking engagements, and similar types of
activities, to the extent that such other activities do not, in the
judgment of his Supervisor, inhibit or prohibit the performance of the
Executive's duties under this Agreement, or conflict in any material
way with the business of the Company or any Affiliate. The Executive
shall not serve on the board of any business, or hold any other
significant position with any business, without the consent of his
Supervisor.
(e) Subject to the terms of this Agreement, the Executive shall not be
required to perform services under this Agreement during any period
that he is Disabled. During the period in which the Executive is
Disabled, the Company may appoint a temporary replacement to assume the
Executive's responsibilities.
(f) The "Agreement Term" shall be the period beginning on the Effective
Date and ending on the day two years after the Effective Date. This
Agreement shall be inapplicable to periods of employment after the end
of the Agreement Term. Thereafter, and subject to the provisions of
paragraph 2(g), and subject to the Executive then becoming eligible to
participate in the Executive Severance Plan (as in effect from time to
time), the Executive's continuing employment with the Company shall be
at-will.
(g) As of the Effective Date of this Agreement, the Executive and the
Company are entering into an agreement relating to certain terms of
employment in the event of a change in control of U.S. Can Corporation
(the "Change in Control Agreement"). If a Change in Control (as that
term is defined in the Change in Control Agreement) occurs during the
Agreement Term, the Agreement Term will end on the date of such Change
in Control. Immediately following such expiration, the terms of the
Executive's employment shall be governed by the Change in Control
Agreement.
3. Compensation. Subject to the terms of this Agreement, during the
Agreement Term, while the Executive is employed by the Company, the Company
shall compensate him for his services as follows:
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(a) Salary. The Executive shall receive, for each twelve (12) consecutive
month period beginning on the Effective Date and each anniversary
thereof, in substantially equal monthly or more frequent installments,
an annual base salary of not less than Three Hundred Seventy Five
Thousand U.S. Dollars ($375,000) (the "Salary"). The Executive's Salary
rate shall be reviewed annually by the Compensation Committee of the
Board of Directors, if the Executive's Supervisor is the Chief
Executive Officer ("CEO") or, if the Executive's Supervisor is not the
CEO, by the Executive's Supervisor. In no event shall the Salary rate
of the Executive be reduced to an amount that is less than the amount
specified in this paragraph (a).
(b) Incentive Compensation. The Executive shall participate in the
Company's Management Incentive Plan ("MIP") on terms that are
comparable to the terms applicable to the Company's other senior
executives from time to time; provided that, for each performance
period under the MIP in which any portion of the Agreement Term occurs,
the Executive shall be provided with an opportunity for an incentive
payment of at least 50% of the Executive's annual Salary rate (with
such Salary rate determined as provided in the -- MIP). The amount of
the payment shall be reduced on a pro rata basis to reflect the portion
of the performance period prior to the first date of employment. For
the performance period in which the Executive's termination of
employment occurs, the Executive's eligibility for an incentive
compensation award shall be subject to the provisions of paragraph 5 of
this Agreement.
(c) Options.
(i) If and to the extent the Executive is eligible for matching stock
options, the terms and conditions of those options shall be governed by
such Executive's offer letter and option award letter or agreement.
(ii) For fiscal years after 1999, the Executive may, in the discretion
of the Board of Directors of U.S. Can (or a committee thereof) (the
"Compensation Committee") be granted options to purchase U.S. Can Stock
at such times as options are granted to the Company's other senior
executives. Subject to the foregoing provisions of this paragraph (c),
options to purchase U.S. Can Stock shall be subject to such terms, and
shall cover a number of shares, as are determined by the Compensation
Committee.
(d) Life Insurance. The Company shall obtain term life insurance coverage
on the Executive's life providing not less than two times the
Executive's base salary in death benefits, subject to the Executive's
satisfactory completion of a physical examination and other aspects of
the application process. Death benefits under such coverage shall be
payable to the beneficiary named by the Executive. During the period of
the Executive's employment with the Company, the Company shall pay the
premiums with respect to such policy.
(e) Disability Income. The Executive shall receive from the Company
disability income replacement coverage which will provide for
replacement of income according to the Company's plans and arrangements
in effect at the time of the disability during any period in which the
Executive is Disabled if the disability arose during the Agreement Term
and prior to the Executive's Date of Termination. During any period
while the Executive is Disabled and is otherwise entitled to receive
Salary and other amounts under this Agreement (including payment in
lieu of Salary or other amounts pursuant to paragraph 5(b) or 5(c)),
any such Salary and other amounts (or such payments in lieu of Salary
and other amounts) to the Executive shall be reduced by the amount of
any benefits paid for the same period of time under the
Company-provided disability income replacement coverage.
(f) Expenses. Subject to the Company's rules and procedures as in effect
from time to time, the Executive is authorized to incur reasonable
expenses for entertainment, traveling, meals, lodging and similar items
in the course of his employment. The Company will reimburse the
Executive for all reasonable expenses so incurred in accordance with
the Company's policies.
(g) Vacation and Holidays. During each year of the Agreement Term, the
Executive shall be entitled to four (4) weeks of paid vacation plus the
paid holidays observed by the Company.
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(h) Car Allowance. During the Agreement Term, the Executive shall be
entitled to a net after-tax car allowance of $900 per month.
(i) Benefits. Except as otherwise specifically provided to the contrary in
this Agreement, the Executive shall be provided with the health,
welfare, retirement and other fringe benefits to the same extent and on
substantially the same terms as those benefits are provided by the
Company from time to time to the Company's other senior management
employees. However, the Company shall not be required to provide a
benefit under this paragraph (i) if such benefit would duplicate (or
otherwise be of the same type as) a benefit specifically required to be
provided under another provision of this Agreement. The Executive shall
complete all forms and physical examinations, and otherwise take all
other similar actions to secure coverage and benefits described in this
paragraph 3, to the extent reasonably determined to be necessary or
appropriate by the Company.
4. Termination. The Executive's employment with the Company during the
Agreement Term may be terminated by the Company or the Executive without any
breach of this Agreement only under the circumstances described in paragraphs
4(a) through 4(f):
(a) Death. The Executive's employment hereunder will terminate upon his
death.
(b) Permanent Disability. The Company may terminate the Executive's
employment during any period in which he is Permanently Disabled. In
the event of a dispute as to whether the Executive is Permanently
Disabled, the Company may refer the same to a licensed practicing
physician selected by the Company and reasonably acceptable to the
Executive, and the Executive agrees to submit to such tests and
examination as such physician shall deem appropriate.
(c) Cause. The Company may terminate the Executive's employment hereunder
at any time for Cause. For purposes of this Agreement, the term "Cause"
shall mean:
(i) the willful and continued failure by the Executive to
substantially perform his duties with the Company after notice
and failure to cure; or
(ii) willful gross misconduct that is materially and demonstrably
injurious to the Company or the Affiliates.
(d) Constructive Discharge. If:
(i) the Executive provides written notice to the Company of the
occurrence of Good Reason within a reasonable time after the
Executive has knowledge of the circumstances constituting Good
Reason, which notice shall identify in reasonable detail the
circumstances which the Executive believes constitute Good
Reason;
(ii) the Company fails to notify the Executive of the Company's
intended method of correction within 14 days after the Company
receives the notice, or the Company fails to reasonably
correct the circumstances within 14 days after such notice;
and
(iii) the Executive resigns within a reasonable time after receiving
the Company's response, if such notice does not indicate an
intention to correct such circumstances; or within a
reasonable time after the Company fails to reasonably correct
such circumstances;
then the Executive shall be considered to have been subject to a
Constructive Discharge by the Company. For purposes of this Agreement,
"Good Reason" shall mean, without the Executive's express written
consent (and except in consequence of a prior termination of the
Executive's employment), the occurrence of any of the following
circumstances:
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(I) Assignment of duties inconsistent in any material respect with
the Executive's position, authority or duties specified in the
Agreement (provided that a change in the Executive's reporting
relationship shall not constitute "Good Reason").
(II) A reduction in the Executive's Salary rate to an amount that
is less than what is required by the Agreement.
(III) The proposed or actual relocation of the Executive's base
office on terms that would impose an unreasonable financial or
personal hardship on the Executive.
(IV) The failure of a successor to assume this Agreement in
accordance with paragraph 16.
(V) Any attempt by the Company or a successor to terminate the
Executive's employment that is not materially in accordance
with this Agreement.
(e) Termination by Executive. The Executive may terminate his employment
hereunder at any time for any reason by giving the Company thirty (30)
days prior written Notice of Termination, provided that nothing in this
Agreement shall require the Executive to specify a reason for any such
termination. However, to the extent that the procedures specified in
paragraph 4(d) are required, the procedures of this paragraph 4(e) may
not be used in lieu of the procedures required under paragraph 4(d).
(f) Termination by Company. The Company may terminate the Executive's
employment hereunder at any time for any reason, by giving the
Executive prior written Notice of Termination, which Notice of
Termination shall be effective immediately, or such later time as is
specified in such notice. The Company shall not be required to specify
a reason for the termination under this paragraph 4(f), provided that
termination of the Executive's employment by the Company shall be
deemed to have occurred under this paragraph 4(f) only if it is not for
reasons described in paragraph 4(b), 4(c), 4(d), or 4(e).
Notwithstanding the foregoing provisions of this paragraph (f), if the
Executive's employment is terminated by the Company in accordance with
this paragraph (f), and within a reasonable time period thereafter, it
is determined by the Executive's Supervisor in good faith that
circumstances existed which would have constituted a basis for
termination of the Executive's employment for Cause (disregarding
circumstances which could have been remedied if notice had been given
in accordance with paragraph 4(c)(i)), the Executive's employment will
be deemed to have been terminated for Cause in accordance with
paragraph 4(c).
(g) Notice of Termination. Any termination of the Executive's employment by
the Company or the Executive must be communicated by a written Notice
of Termination to the other party hereto. A "Notice of Termination"
shall be dated, indicate the Date of Termination (not earlier than the
date on which the notice is provided), indicate the specific
termination provision in this Agreement relied on, and set forth in
reasonable detail the facts and circumstances, if any, claimed to
provide a basis for termination of the Executive's employment.
(h) Effect of Termination. If, on the Date of Termination, the Executive is
a member of the Board of Directors of the Company or any of the
Affiliates, or holds any other position with the Company or any of the
Affiliates, the Executive shall resign from all such positions as of
the Date of Termination.
5. Rights Upon Termination. The Executive's rights to payments and
benefits under this Agreement for periods after his Date of Termination shall be
determined in accordance with the following provisions of this paragraph 5:
(a) If the Executive's Date of Termination occurs during the Agreement Term
for any reason, then:
(i) The Executive shall receive his Salary from the Company for
the period ending on the Date of Termination.
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(ii) The Executive shall receive any required payment for accrued
but unused vacation days from the Company.
(iii) If the Date of Termination occurs after the end of a
performance period and prior to the payment of the incentive
compensation award (as described in paragraph 3(b)) for the
period, the Executive shall be paid any incentive compensation
award at the regularly scheduled time.
(iv) Any other required payments or benefits to be provided to the
Executive by the Company pursuant to any employee benefit
plans or arrangements adopted by the Company.
Except as may otherwise be expressly provided to the contrary in this
Agreement, nothing in this Agreement shall be construed as requiring
the Executive to be treated as employed by the Company for purposes of
any employee benefit plan or arrangement following the date of the
Executive's Date of Termination.
(b) If the Executive's Date of Termination occurs during the Agreement Term
under circumstances described in paragraph 4(a) (relating to the
Executive's death) or paragraph 4(b) (relating to the Executive's being
Permanently Disabled), then, in addition to the amounts payable in
accordance with paragraph 5(a):
(i) The Executive (or his estate) shall receive from the Company
periodic payments of an amount equal to not less than twelve
(12) months of Salary (based on the Salary rate in effect on
the Date of Termination); provided, however, that such
payments shall be offset by the amount of any life or
disability insurance benefits provided by the Company or any
of its Affiliates as a result of the Executive's death or
Permanent Disability.
(ii) The Executive (or his estate) shall receive from the Company
payment of the award under the Company's Management Incentive
Plan for the performance period in which the Date of
Termination occurs, based on actual performance for the entire
period; provided, however, that such award shall be subject to
a pro-rata reduction to reflect the portion of the performance
period following the Date of Termination. Payment under this
paragraph (ii) of any amount shall be made at the regularly
scheduled time for payment of such amounts to active employees
and on a non-discriminatory basis.
(c) If the Executive's Date of Termination occurs during the Agreement Term
under circumstances described in paragraph 4(d) (relating to
Constructive Discharge) or paragraph 4(f) (relating to termination by
the Company without Cause), then:
(i) The Executive shall receive from the Company, for the
Severance Period, continuing Salary payments at the Salary
rate in effect on the Date of Termination, in monthly or more
frequent installments. The "Severance Period" shall be the
period beginning on the Date of Termination and continuing
through the earliest to occur of:
(A) the 18-month anniversary of the Date of Termination;
(B) the date of the Executive's death; or
(C) the date, if any, of the breach by the Executive of the
provisions of the Employee Agreement described in paragraph 9.
(ii) Provided that the Executive is not in actual or threatened
breach of any of the covenants contained in the Employee
Agreement described in paragraph 9, the Executive shall
receive from the Company payment of the award under the
Company's Management Incentive Plan for the performance period
in which the Date of Termination occurs, based on actual
performance for the entire period; provided, however, that
such award shall be subject to a pro-rata reduction to reflect
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the portion of the performance period following the Date of
Termination. Payment, if any, under this paragraph (ii) of any
amount shall be made at the regularly scheduled time for
payment of such amounts to active employees, and on a
non-discriminatory basis.
(iii) If the Executive holds any options to purchase U.S. Can Stock
on the Date of Termination that are not then exercisable, then
during the Severance Period the options shall become
exercisable as though the Executive continued to be employed
for the duration of the Severance Period, provided that any
such options that remain outstanding immediately after the
last day of the Severance Period (regardless of whether they
are then exercisable) shall expire at that time.
Notwithstanding the foregoing provisions of this paragraph 5, no
payment will be made or benefit provided under this paragraph 5(c)
unless (i) the Executive first executes a release in the form attached
as Supplement A to this Agreement, and (ii) to the extent any portion
of such release is subject to the seven-day revocation period
prescribed by the Age Discrimination in Employment Act, as amended, or
to any similar revocation period in effect on the date of termination
of the Executive's employment, such revocation period has expired.
(d) If the Executive's Date of Termination occurs during the Agreement Term
under circumstances described in paragraphs 4(c) (relating to Cause) or
4(e) (relating to voluntary resignation), the Company shall have no
obligation to make payments of Salary or any incentive compensation
award or provide benefits under the Agreement for periods after the
Executive's Date of Termination.
6. Other Benefits. Except as may be otherwise specifically
provided in an amendment of this Agreement adopted in accordance with paragraph
12, in the event of a termination of employment during the Agreement Term, the
Executive shall not be eligible to receive any benefits that may be otherwise
payable to or on behalf of the Executive pursuant to the terms of any severance
pay arrangement of the Company (or any Affiliate), including without limitation,
the Executive Severance Plan, or any other arrangement of the Company (or any
Affiliate), providing benefits upon involuntary termination of employment.
However, this paragraph shall not affect the Executive's right to receive any
benefits with respect to termination of employment outside of the Agreement
Term.
7. Duties on Termination.
(a) Subject to the terms and conditions of this Agreement, during the
period beginning on the date of delivery of a Notice of Termination,
and ending on the Date of Termination, the Executive shall continue to
perform his duties as set forth in this Agreement, and shall also
perform such services for the Company as are reasonably necessary for a
transition to the Executive's successor, if any. Notwithstanding the
foregoing provisions of this paragraph 7, the Company may suspend the
Executive from performing his duties under this Agreement following the
delivery of a Notice of Termination providing for the Executive's
resignation, or delivery by the Company of a Notice of Termination
providing for the Executive's termination of employment for any reason;
provided, however, that during the period of suspension (which shall
end on the Date of Termination), the Executive shall continue to be
treated as employed by the Company for other purposes, and his rights
to compensation or benefits shall not be reduced by reason of the
suspension.
(b) Following the Date of Termination, the Executive agrees to return to
the Company any keys, credit cards, passes, confidential documents or
material, or other property belonging to the Company or its Affiliates,
and to return all writings, files, records, correspondence, notebooks,
notes and other documents and things (including any copies thereof)
containing any trade secrets of the Company or its Affiliates. For
purposes of the preceding sentence, the term "trade secrets" shall have
the meaning ascribed to it under the Illinois Trade Secrets Act or, if
such act is repealed, the Uniform Trade Secrets Act.
8. Mitigation and Set-Off. The Executive shall not be required to
mitigate the amount of any payment provided for in this Agreement by seeking
other employment or otherwise. Except as otherwise specifically provided in this
Agreement, the Company shall not be entitled to set off against the amounts
payable to
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the Executive under this Agreement any amounts earned by the Executive in other
employment after termination of his employment with the Company, or any amounts
which might have been earned by the Executive in other employment had he sought
such other employment.
9. Covenants. As a condition of entering into this Agreement, the
Executive is required to enter into the Company' standard form of Employee
Agreement, as of the date hereof, which relates to non-competition,
confidentiality, inventions, and certain other matters.
10. Assistance with Claims. The Executive agrees that, for the
period beginning on the Effective Date, and continuing for a reasonable period
after the Executive's Date of Termination, the Executive will assist the Company
and the Affiliates in defense or prosecution of any claims that may be made by
or against the Company and the Affiliates, to the extent that such claims may
relate to services performed by the Executive for the Company or the Affiliates.
The Company agrees to provide legal counsel to the Executive in connection with
such assistance (to the extent legally permitted), and to reimburse the
Executive for all of the Executive's reasonable out-of-pocket expenses
associated with such assistance. The Executive also agrees to promptly inform
the Company if he is asked to assist in any investigation of the Company or the
Affiliates (or their actions) that may relate to services performed by the
Executive for the Company or the Affiliates, regardless of whether a lawsuit has
then been filed against the Company or the Affiliates with respect to such
investigation.
11. Nonalienation. The interests of the Executive under this
Agreement are not subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, attachment, or garnishment by
creditors of the Executive or the Executive's beneficiary.
12. Amendment. This Agreement may be amended or canceled only by
mutual agreement of the parties in writing, provided that any such agreement by
the Company that includes a substantive amendment must be authorized in writing
by the Chief Executive Officer of U.S. Can. So long as the Executive lives, no
person, other than the parties hereto, shall have any rights under or interest
in this Agreement or the subject matter hereof.
13. Applicable Law. The provisions of this Agreement shall be
construed in accordance with the laws of the State of Illinois, without regard
to the conflict of law provisions of any state.
14. Severability. The invalidity or unenforceability of any
provision of this Agreement will not affect the validity or enforceability of
any other provision of this Agreement, and this Agreement will be construed as
if such invalid or unenforceable provision were omitted (but only to the extent
that such provision cannot be appropriately reformed or modified).
15. Waiver of Breach. No waiver by any party hereto of a breach of
any provision of this Agreement by any other party, or of compliance with any
condition or provision of this Agreement to be performed by such other party (i)
will be effective unless in writing signed by such party; and (ii) will operate
or be construed as a waiver of any subsequent breach by such other party of any
similar or dissimilar provisions and conditions at the same or any prior or
subsequent time. The failure of any party hereto to take any action by reason of
such breach will not deprive such party of the right to take action at any time
while such breach continues.
16. Successors, Assumption of Contract. This Agreement is personal
to the Executive and may not be assigned by the Executive without the written
consent of the Company. However, to the extent that rights or benefits under
this Agreement otherwise survive the Executive's death, the Executive's heirs
and estate shall succeed to such rights and benefits pursuant to the Executive's
will or the laws of descent and distribution; provided that the Executive shall
have the right at any time and from time to time, by notice delivered to the
Company, to designate or to change the beneficiary(ies) with respect to such
benefits. This Agreement shall be binding upon and inure to the benefit of the
Company and U.S. Can, as applicable, and any successor of the Company or U.S.
Can, as applicable, subject to the following:
(a) The Company and U.S. Can, as applicable, will require any successor
(whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business or assets of the
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Company or U.S. Can, as applicable, to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that
the Company or U.S. Can, as applicable, would be required to perform it
if no such succession had taken place.
(b) If the Executive is transferred to employment with an Affiliate
(including a successor to the Company), such transfer shall not
constitute a termination of employment for purposes of this Agreement,
provided that the Affiliate agrees to assume this Agreement and be
substituted for the Company under this Agreement.
(c) After a successor assumes this Agreement in accordance with this
paragraph 16, only such successor shall be liable for amounts payable
after such assumption, and no other companies shall have liability for
amounts payable after such assumption.
17. Notices. Notices and all other communications provided for in this
Agreement shall be in writing and shall be (i) delivered personally,
effective immediately, (ii) sent by certified U.S. mail, postage
prepaid, effective three days after deposit, (iii) sent by facsimile
transmission, effective upon confirmation of transmission and deposit
of a hard copy by regular mail, or (iv) sent by prepaid overnight or
international courier service, effective two days after deposit, to the
parties at the addresses set forth below (or such other addresses as
shall be specified by the parties by like notice);
provided, however, that in no event shall any such communications be deemed to
be given later than the date they are actually received. Communications that are
to be delivered by the U.S. mail or by overnight service are to be delivered to
the addresses set forth below:
to the Company by mail:
U.S. Can Corporation
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: General Counsel
to the Company by facsimile:
630/572-0822
To Executive:
at the address of the Executive as set forth in the payroll records at
the Company
18. Arbitration of All Disputes. Any dispute as to any claim under
this Agreement (including, without limitation, disputes arising under Title VII
of the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, and
the Age Discrimination in Employment Act) shall be settled by arbitration in
Chicago, Illinois by an arbitrator, who shall be appointed pursuant to the rules
of the American Arbitration Association. The arbitration shall be conducted
promptly and expeditiously in accordance with the National Rules for Resolution
of Employment Disputes of American Arbitration Association. Any award issued as
a result of such arbitration shall be final and binding on the parties, and
judgment upon the award rendered by the arbitrators may be entered in any court
having jurisdiction thereof; provided, however, that any award issued as a
result of arbitration shall be reviewable de novo by a court of competent
jurisdiction for errors of law. Notwithstanding the foregoing, the parties
hereto shall not be entitled to, and no award shall include in whole or in part,
punitive damages or exemplary damages.
19. Legal and Enforcement Costs. The provisions of this paragraph
19 shall apply if it becomes reasonably necessary for the Executive to retain
legal counsel or incur other costs and expenses in connection with
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either enforcing any right(s) under this Agreement or defending against any
allegations of breach of this Agreement by the Company or U.S. Can:
(a) The Executive shall be entitled to recover from the Company reasonable
attorneys' fees, costs and expenses incurred by him in connection with
such enforcement or defense.
(b) Payments required under this paragraph 19 shall be made by the Company
to the Executive (or directly to the Executive's attorney) promptly
following submission to the Company of appropriate documentation
evidencing the incurrence of such attorneys' fees, costs, and expenses.
(c) The Executive shall be entitled to select his legal counsel; provided,
however, that such right of selection shall not affect the requirement
that any costs and expenses reimbursable under this paragraph 19 be
reasonable.
(d) The Executive's rights to payments under this paragraph 19 shall not be
affected by the final outcome of any dispute with the Company or U.S.
Can; provided, however, that to the extent that the arbitrators shall
determine that under the circumstances recovery by the Executive of all
or a part of any such fees and costs and expenses would be unjust, the
Executive shall not be entitled to such recovery; and to the extent
that such amount have been recovered by the Executive previously, the
Executive shall promptly repay such amounts to the Company.
20. Survival of Agreement. Except as otherwise expressly provided in
this Agreement, the rights and obligations of the parties to this Agreement
shall survive the termination of the Executive's employment with the Company.
21. Entire Agreement. Except as otherwise provided herein, this
Agreement constitutes the entire agreement between the parties concerning the
subject matter hereof and supersedes all prior or contemporaneous agreements, if
any, between the parties relating to the subject matter hereof; provided,
however, that nothing in this Agreement shall be construed to limit any Company
policy or agreement that is otherwise applicable relating to compliance with
laws or the Employee Agreement described in paragraph 9.
22. Counterparts. This Agreement may be executed in two or more
counterparts, any one of which shall be deemed the original without reference to
the others.
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IN WITNESS THEREOF, the Executive has hereunto set his hand, and the
Company and U.S. Can have caused these presents to be executed in their names
and on their behalf, all as of the Effective Date.
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Executive
U.S. Can Corporation
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇
Its: Chairman and CEO
United States Can Company
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇
Its: Chairman and CEO
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Supplement A
Release of Claims
1. This document is attached to, is incorporated into, and forms
a part of, an agreement (the "Agreement") by and between United States Can
Company (the "Company") and ▇▇▇▇ ▇. ▇▇▇▇▇▇▇ (the "Executive"). The Executive, on
behalf of himself and the other Executive Releasors, releases and forever
discharges the Company and the other Company Releasees from any and all Claims
which the Executive now has or claims, or might hereafter have or claim (or the
other Executive Releasors may have, to the extent that it is derived from a
Claim which the Executive may have), against the Company Releasees based upon or
arising out of any matter or thing whatsoever, occurring or arising on or before
the date of this Release of Claims, to the extent that the Claim arises out of
or relates to the Executive's employment by the Company and its Affiliates
(including his service as a director of the Company and its Affiliates) and/or
the Executive's termination or resignation therefrom, and shall include, without
limitation, Claims arising out of or related to the Agreement, and Claims
arising under any local, state, or federal law dealing with employment
discrimination, including the Age Discrimination in Employment Act as amended by
the Older Workers Benefit Protection Act.
For purposes of this Release of Claims, the terms set forth below shall
have the following meanings:
(a) The term "Agreement" shall include the Agreement and this Supplement,
and including the plans and arrangements under which the Executive is
entitled to benefits in accordance with the Agreement.
(b) The term "Claims" shall include any and all rights, claims, demands,
debts, dues, sums of money, accounts, attorneys' fees, complaints,
judgments, executions, actions and causes of action of any nature
whatsoever, cognizable at law or equity.
(c) The term "Company Releasees" shall include the Company and its
Affiliates (as defined in the Agreement), and their officers,
directors, trustees, members, representatives, agents, employees,
shareholders, partners, attorneys, and insurers, and their predecessors
and successors.
(d) The term "Executive Releasors" shall include the Executive, and his
heirs, representatives, agents, insurers, and any other person claiming
through the Executive.
2. The following provisions are applicable to and made a part of this
Release of Claims:
(a) By this Release of Claims, the Executive Releasors do not release or
waive any right or claim which they may have under the Age
Discrimination in Employment Act, as amended by the Older Workers
Benefit Protection Act, which arises after the date of execution of
this Release of Claims.
(b) In exchange for this Release of Claims, the Executive hereby
acknowledges that he has received separate consideration beyond that to
which he is otherwise entitled under the Company's policy or applicable
law.
(c) The Company hereby expressly advises the Executive to consult with an
attorney of his choosing prior to executing this Release of Claims.
(d) The Executive has twenty-one (21) days from the date of presentment to
consider whether or not to execute this Release of Claims. In the event
of such execution, the Executive has a further period of seven (7) days
from the date of said execution in which to revoke said execution. This
Release of Claims will not become effective until expiration of such
revocation period.
(e) This Release of Claims and the commitments and obligations of all
parties thereunder:
(i) shall become final and binding immediately following the expiration
of the Executive's right to revoke the execution of this release in
accordance with paragraph 2(d) of this Release of Claims;
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(ii) shall not become final and binding until the expiration of such
right to revoke; and
(iii) shall not become final and binding if the Executive revokes such
execution.
3. The Executive hereby acknowledges that he has carefully read and
understands the terms this Release of Claims and each of his rights as set forth
therein.
---------------------------------
EXECUTIVE
Date:
State of
County of
Subscribed Before Me This
Day of , .
---- --------- -------
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Notary Public
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