NON-COMPETITION AND RELEASE
AGREEMENT
This
Non-Competition and Release Agreement (the “Agreement”)
by and between UST Inc., a Delaware corporation (“UST”
or the “Company”), and Robert T. D’Alessandro
(the “Executive”), is entered into effective as of
April 6, 2007, (the “Effective Date”).
WHEREAS,
the Executive has been employed by the Company as its Senior Vice
President and Chief Financial Officer; and
WHEREAS,
the Executive and the Company are parties to an Employment
Agreement entered into as of June 23, 2006 (the
“Employment Agreement”); and
WHEREAS,
appropriate notice pursuant to Section 3(f) of the Employment
Agreement has been provided, dated March 14, 2007;
and
WHEREAS,
the parties wish to enter into this Agreement to set forth their
mutual agreement as to the rights and obligations of the parties in
connection with the Executive’s separation from the Company,
as contemplated by, among others, Sections 3(h), 4(b) and 6 of
the Employment Agreement, as modified by this Agreement;
and
NOW,
THEREFORE, the Company and the Executive hereby agree as
follows:
Unless
otherwise defined herein, capitalized terms used herein shall have
the meanings ascribed to such terms in the Employment
Agreement.
(a) In
consideration of the compensation and benefits to be provided
hereunder, the Executive agrees and covenants that he will not seek
or be entitled to any recovery against the Company, its parents,
subsidiaries and affiliates, together with their respective past
and present officers, directors, employees, stockholders, agents or
representatives (“the Releasees”) for any cause or
reason related to or arising from his employment with the Company
or the termination thereof (including, without limitation, seeking
any recovery against the Releasees in any forum, including without
limitation any court, administrative agency or otherwise), other
than a failure or refusal of the Company to pay the Executive the
benefits to be provided pursuant to this Agreement and the benefits
to which he is entitled pursuant to the terms of one or more of the
Company’s employee benefit and equity plans in which he has a
vested interest as of the date of this Agreement. This paragraph
shall not preclude the Executive from filing an
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administrative
charge of discrimination, provided the Executive does not seek any
relief for himself in connection with such proceeding.
(b) In
further consideration of the compensation and benefits to be
provided hereunder, the Executive voluntarily, knowingly and
willingly releases and forever discharges UST, its parents,
subsidiaries and affiliates, together with their respective past
and present employees, officers, directors, stockholders,
executives and agents, and each of their predecessors, successors
and assigns (collectively, the “Releasees”), from any
and all charges, complaints, claims, promises, agreements,
controversies, causes of action and demands of any nature
whatsoever which against them the Executive or his executors,
administrators, successors or assigns ever had, now have or
hereafter can, shall or may have by reason of any matter, cause or
thing whatsoever arising prior to the time the Executive signs this
Agreement including, but not limited to, any rights or claims
relating in any way to the Executive’s employment
relationship with UST, or the termination thereof, or under any
statute, including but not limited to the federal Age
Discrimination in Employment Act, Title VII of the Civil Rights
Act, the Americans with Disabilities Act, the Connecticut Human
Rights and Opportunities Law or any other federal, state or local
laws, regulations or judicial decisions, except that the foregoing
shall not preclude the Executive from pursuing his rights, nor
shall it release any of the Releasees from any obligations, under
this Agreement or under any indemnification arrangements to which
the Executive may be entitled.
3.
Employment Agreement .
Effective
as of the Effective Date, the Employment Agreement shall terminate
and shall thereafter be of no force and effect, except that
Sections 3(h), 7 and 8 of the Employment Agreement (which are
incorporated herein by reference) shall survive such termination
and shall remain in full force and effect in accordance with their
terms. The Executive hereby reaffirms his obligations under said
sections and acknowledges that they shall be construed under and
governed by the laws of the State of Connecticut in accordance with
the governing law provisions set forth in Paragraph 14,
below.
4.
Compensation and Benefits .
Subject
to the Executive’s compliance with the provisions of this
Agreement, including those incorporated herein by reference, and
provided the Executive does not revoke his acceptance of this
Agreement within the time provided for such revocation, then the
Executive shall be entitled to receive from the Company the
payments and benefits set forth in Section 4(b)(i)-(vii) of
the Employment Agreement as more fully described in Appendix A
hereto, along with other payments and benefits also described in
Appendix A hereto. The Executive expressly and irrevocably
agrees that the compensation and benefits set forth in
Appendix A hereto fully reflect the Executive’s rights
under the Employment Agreement, as modified by this Agreement, and
the employee benefits plans referred to in
Appendix A.
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5.
Mutual Non-disparagement.
(a) The
Executive shall not make, participate in the making of, or
encourage any other person to make any statements, written or oral,
which criticize, disparage or defame the goodwill or reputation of
the Company, any of its subsidiaries or affiliates or any of their
respective past or present directors, officers, executives or
employees.
(b) Likewise,
neither the Company’s executive officers, nor the executive
officers of its subsidiaries and affiliates, shall make,
participate in the making of, or encourage any other person to make
any statements which disparage or defame the reputation of the
Executive.
(c) Notwithstanding
the foregoing, nothing in this Section 5 shall prohibit any
person from making truthful statements when required by order of a
court or other body having jurisdiction, or as otherwise may be
required by law or legal process. In such and only event, the other
party may respond to such truthful statements.
The
Executive further agrees that he shall not voluntarily testify in
any proceeding before any court, tribunal, administrative agency or
panel regarding anything having to do with the Company. Moreover,
in the event that the Executive is subpoenaed to provide such
testimony, he will immediately notify a managerial representative
of either the Company’s Legal Department or its Chief
Executive Officer of the issuance of such subpoena. The Executive
further agrees that he will reasonably cooperate with the Company
in all respects in connection with any and all litigation or
proceedings commenced in which the Executive is involved by virtue
of his prior employment with the Company; any transaction or matter
that involved or involves or may involve facts or circumstances
with which the Executive was involved or acquainted as a director,
officer, employee or advisor of the Company or any of its
affiliates; or as to which the Executive has or could reasonably be
expected to have knowledge gained during his employment with the
Company.
(a) In
consideration of the benefits provided hereunder, which benefits
(including the Company’s agreement to deem the Executive as
having satisfied certain prerequisites for purposes of certain of
such benefits) the Executive acknowledges he would not be entitled
to receive but for the Company’s grant of the same in
consideration of the following covenant not to compete, the
Executive hereby covenants and agrees that, effective as of the
Effective Date, and for a period of two (2) years thereafter,
he:
(i) shall not
either directly or indirectly engage or participate in any business
or industry which is then in direct or
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indirect
competition with any businesses in which the Company participates
wherever located in the world; and
(ii) shall not
knowingly solicit, request, advise or induce any agent, client,
supplier or other business contact of the Company to cancel,
curtail or otherwise adversely change its relationship with the
Company.
(b) For
purposes of this covenant not to compete, the phrase
“directly or indirectly engage or participate in” shall
include: (a) being employed by, associated with, providing
professional services for or consulting with or on behalf of any
company, corporation, joint venture, limited liability company,
business, sole proprietorship, partnership, association,
organization or individual(s) (hereinafter
“Competitors”), directly or indirectly involved in,
actually contemplating involvement in, conducting business in or
operating in the tobacco industry, smokeless or otherwise, or the
wines/distilled spirits industry and, (b) any direct or
indirect ownership, holding, acquisition or profit participation
interest in any Competitors, whether as an owner, stockholder,
partner, joint venturer or otherwise. Notwithstanding the
foregoing, the Executive’s mere ownership of up to five
percent (5%) of the outstanding securities in any Competitors shall
not be construed as a violation of this covenant not to
compete.
(c) The
Executive acknowledges and agrees that the duration and scope
provisions of this covenant not to compete are drafted expressly in
acknowledgement of the nature, type, and geographical scope of the
business(es) of the Company, and in recognition of the
Executive’s prior status, title, responsibilities and high
level of access to a variety of proprietary and otherwise highly
classified, confidential and sensitive information of the Company,
and of its operations, processes, financial status, officers,
directors, employees, contractors, methods of doing business,
strategies, business plans and the like. The Executive further
acknowledges and agrees that the restrictions contained in this
Paragraph 7 are necessary for the protection of the business
and goodwill of the Company and are considered by the Executive to
be reasonable for this purpose.
(d) The
Executive agrees that any breach of this Paragraph 7 will
cause the Company substantial and irrevocable damage and,
therefore, in the event of any such breach, in addition to such
other remedies which may be available, the Company will have the
right to seek specific performance and injunctive relief,
attorney’s fees, costs and disbursements to enforce its
rights hereunder.
(e) The
Executive further acknowledges that the provisions relating to the
covenant not to compete shall be construed under and governed by
the laws of the State of Connecticut in accordance wi
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