Exhibit 10(q)
AMENDED AND
RESTATED
EMPLOYMENT
AGREEMENT
THIS AMENDED AND RESTATED AGREEMENT
is made and entered into as of this 1st day of October, 2002, by
and between BLOUNT, INC., a Delaware cor p oration (the “Company”), and
James Lee VanderZanden (“Executive”).
WITNESSETH:
WHEREAS, the Company and Executive
entered into an Employment Agreement, dated as of June 1,
1999, which Agreement became effective on August 19, 1999
(“Prior Employment Agreement”); and
WHEREAS, the parties now desire to
modify the Prior Employment Agreement in a number of respects and
to restate such agreement as hereinafter provided; and
WHEREAS, Executive desires to
continue his employment with the Company on the terms and
conditions provided herein;
NOW, THEREFORE, in consideration of
the premises and the mutual covenants and agreements contained
herein, the parties hereby agree as follows:
1.
Employment and
Term .
(a)
Subject to the
terms and conditions of this Agreement, the Company hereby employs
Executive, and Executive hereby accepts employment, as President of
the ICS Group of the Company and shall have such responsibilities,
duties and authority as may from time to time be assigned to
Executive by the Chief Executive Officer or the Board. Executive
hereby agrees that during the Term of this Agreement he will devote
substantially all his working time, attention and energies to the
diligent performance of his duties for the Company.
(b)
Unless earlier
terminated as provided herein, Executive’s employment under
this Agreement shall be for a rolling, two-year term (the
“Term”) commencing on the Effective Time (as defined in
subsection (c) below), and shall be deemed to extend
automatically, without further action by either the Company or
Executive, each day for an additional day, such that the remaining
term of the Agreement shall continue to be two years; provided,
however, that either party may, by written notice to the other,
cause this Agreement to cease to extend automatically and, upon
such notice, the “Term” of this Agreement shall be the
two years following the date of such notice and this Agreement
shall terminate upon the expiration of such Term.
(c)
This amended and
restated Agreement is effective October 1, 2002
(“Effective Time”) and supersedes the Prior Employment
Agreement in its entirety and any rights under the Prior Employment
Agreement are terminated on the Effective Time.
2.
Compensation
and Benefits . As compensation for
Executive’s services during the Term of this Agreement,
Executive shall be paid and receive the compensation and benefits
set forth in subsections (a) through
(e) below:
(a)
An annual base
salary (“Base Salary”) of One Hundred Fifty Thousand
and No/100 Dollars ($150,000.00), prorated for any partial year of
employment. Executive’s Base Salary shall be subject to
annual review at such time as the Company conducts salary reviews
for its Executives generally. Executive’s Base Salary shall
be payable in accordance with the Company’s regular payroll
practices in effect from time to time.
(b)
Executive shall
be eligible to participate in the Executive Management Annual
Incentive Program (“Incentive Program”) and such other
annual incentive plans as may be established by the Company from
time to time for individuals at Executive’s level.
The
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Company will establish
individual and financial performance goals each year under the
Incentive Program, and Executive’s annual Target Bonus shall
be fifty percent (50%) of Base Salary. The annual incentive
bonus payable under this subsection (b) shall be payable as a
lump sum at the same time bonuses are paid to other executives,
unless Executive elects to defer all or a portion of such bonus
pursuant to any deferral plan established by the Company for such
purpose.
(c)
Executive shall
be entitled to participate in, or receive benefits under, any
“employee benefit plan” (as defined in
Section 3(3) of ERISA) or employee benefit arrangement
made generally available by the Company to its Executives,
including plans providing retirement, 401 (k) benefits, health
care (including Exec-U-Care), life insurance, disability and
similar benefits.
(d)
Executive is
eligible for vacation in accordance with the Company’s
standard vacation policy. Executive will be provided a
vehicle in accordance with the Company’s automobile
policy. Executive will be promptly reimbursed by the Company
for all reasonable business expenses Executive incurs and properly
reports in carrying out Executive’s duties and
responsibilities under this Agreement.
3.
Termination
.
3.1
Termination
. The
Company shall have the right to terminate Executive’s
employment under this Agreement at any time during the Term by
notice to Executive. Executive shall have the right to terminate
his employment at any time during the Term by notice to the
Company. If the Company terminates Executive’s employment
under this Agreement for Cause (as defined in Section 5.2),
disability (as determined by the Company), or upon
Executive’s death, or if Executive terminates his employment,
the Company’s obligations under this Agreement shall cease as
of the date of termination; provided, however, that Executive
will
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be entitled to whatever
benefits are payable to Executive pursuant to the terms of any
health, life insurance, disability, welfare, retirement or other
plan or program maintained by the Company in which Executive
participates. If the Company terminates Executive during the
Term of this Agreement other than for Cause (and such termination
does not result from Executive’s disability or death),
Executive shall be entitled to receive the compensation and
benefits provided in subsections (a) through (c) below.
Unless specified otherwise, the time periods in subsections
(a) through (c) below shall be the lesser of (i) the
12-month period (the twenty-four (24) month period if
Executive’s date of termination of employment is on or after
the date of a Change in Control, as defined in Section 5.3)
commencing on the date of Executive’s termination of
employment, or (ii) the time period remaining from the date of
Executive’s termination until he attains age 65 (such time
period under (i) or (ii) is hereinafter referred to as
the “Severance Period”). Except as otherwise provided
herein, the Company agrees that if Executive terminates employment
and is entitled to compensation and benefits under this
Section 3.1, he shall not be required to mitigate damages by
seeking other employment, nor shall any amount he earns reduce the
amount payable by the Company hereunder. Executive agrees that the
compensation and benefits provided pursuant to this
Section 3.1 shall be the only severance benefits payable to
Executive by the Company and its affiliates as a result of
Executive’s termination of employment and Executive hereby
waives his rights (if any) to any severance benefits under any
other plan or program of the Company and its affiliates. The
compensation and benefits payable or to be provided under
subsections (a) through (c) below shall cease in the
event of Executive’s death after termination of
employment.
(a)
Base
Salary - Executive will continue to
receive his Base Salary as then in effect (subject to withholding
of all applicable taxes) for the Severance Period in the
same
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manner as it was being paid
as of the date of termination; p rovided , however ,
that the salary payments provided for hereunder shall be paid in a
single lump sum payment, to be paid not later than 30 days after
his termination of employment; provided , further ,
that the amount of such lump sum payment shall be determined by
taking the salary payments to be made and discounting them to their
Present Value (as defined in Section 5.11) on the date
Executive’s employment under this Agreement is
terminated.
(b)
Bonuses and
Incentives - Executive shall receive
bonus payments from the Company for each month of the Severance
Period in an amount for each such month equal to one-twelfth of the
average of the bonuses earned by him for the two fiscal years in
which bonuses were paid immediately preceding the fiscal year in
which such termination occurs. Any bonus amounts that Executive had
previously earned from the Company but which may not yet have been
paid as of the date of termination shall be payable on the date
such amounts are payable to other executives and Executive’s
termination shall not affect the payment of such bonus. Executive
shall also receive a prorated bonus for any uncompleted fiscal year
at the date of termination (assuming the Target Award level has
been achieved for such year), based upon the number of days that he
was employed during such fiscal year. The bonus amounts
determined herein shall be paid in a single lump sum payment, to be
paid not later than 30 days after termination of employment;
provided , that the amount of such lump sum payment
representing the monthly bonus payments shall be determined by
taking the monthly bonus payments to be made and discounting them
to their Present Value on the date Executive’s employment
under this Agreement is terminated.
(c)
Health and
Life Insurance Coverage - The health care (including
Exec-U-Care) and group term life insurance benefits coverage
provided to Executive at his date of
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termination shall be
continued for the Severance Period at the same level and in the
same manner as then provided to actively employed executive
participants as if his employment under this Agreement had not
terminated. Any additional coverages Executive had at termination,
including dependent coverage, will also be continued for such
period on the same terms, to the extent permitted by the applicable
policies or contracts. Any costs Executive was paying for such
coverages at the time of termination shall be paid by Executive by
separate check payable to the Company each month in advance. If the
terms of any benefit plan referred to in this Section, or the laws
applicable to such plan, do not permit continued participation by
Executive, then the Company will arrange for other coverage at its
expense providing substantially similar benefits (including the
same deductible and co-payment levels provided under the
Company’s policy). The benefits provided in this subsection
(c) shall cease if Executive obtains other employment and, as
a result of such other employment, health care and life insurance
benefits are available to Executive.
(d)
Effect of Lump
Sum Payment . The lump sum payments
under subsections (a) and (b) above shall not alter the
amounts Executive is entitled to receive under the benefit plans
described in subsections (c) and (d). Benefits under such
plans shall be determined as if Executive had received such
payments monthly over the Severance Period.
(e)
Stock
Options . As of
Executive’s date of termination, the vesting and
exercisability of all outstanding Time Options and Performance
Options held by Executive (and any other outstanding stock options
granted to Executive by the Company) shall be determined in
accordance with the stock option agreements for such
options.
3.2
Release of
Claims - To be entitled to any of
the compensation and benefits described above in Section 3.1,
Executive shall sign a release of claims in the form required
by
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the Company. No payments
shall be made under Section 3.1 until such release has been
properly executed and delivered to the Company and until the
expiration of the revocation period, if any, provided under the
release. If the release is not properly executed by the Executive
and delivered to the Company within the reasonable time periods
specified in the release,
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