|
Exhibit A
CORE MOLDING TECHNOLOGIES, INC.
SECOND AMENDED AND RESTATED EXECUTIVE SEVERANCE AGREEMENT
This Second Amended and Restated Executive
Severance Agreement ("Agreement") is made as of the
day of December, 2008, by and
between Core Molding Technologies, Inc., a Delaware corporation,
with its principal office at 800 Manor Park Drive, Columbus, Ohio
43228-0183 (the "Company"), and
, an individual, residing at
(the "Executive").
W I T N E S S E T H
WHEREAS, in order to assure the Company of
stability and continuity of senior management, the Company and the
Executive entered into an Executive Severance Agreement as of
May 16, 2006, as thereby amended from time to time (as
amended, the "Prior Agreement");
WHEREAS the Executive remains employed by the
Company in the capacity of President and Chief Executive Officer
and the Executive is one of the key executives of the Company;
and
WHEREAS, the Company and the Executive now desire
to amend and restate the Prior Agreement in order to ensure
compliance with certain provisions of the Internal Revenue Code and
to make certain other changes to the Prior Agreement as set forth
herein.
NOW, THEREFORE, in consideration of the premises
and mutual covenants contained herein, and other good and valuable
consideration, the receipt of which is hereby acknowledged, the
parties hereby agree as follows:
|
1.
|
|
Term of This Agreement .
|
The Term of this Agreement shall commence on the
date hereof and continue until December 31, 2008; provided,
however, that commencing on January 1, 2009 and each January
1st thereafter, the above-referenced date and the Term of this
Agreement shall automatically be extended for one additional year
unless at least thirty days prior to such January 1st date, the
Company or the Executive shall have given notice that it or he does
not wish to extend this Agreement. The phrase "Term of this
Agreement" shall refer to the period commencing on the date hereof
and ending on December 31, 2008 (or any extension thereof
pursuant to the preceding sentence).
Nothing contained in this Agreement shall prevent
the Company at any time from terminating the Executive’s
right and obligation to perform service for the Company or prevent
the Company from removing the Executive from any position which the
Executive holds in the Company, subject to the obligation of the
Company to make payments and provide benefits if and to the extent
required under this Agreement, which payments and benefits shall be
full and complete liquidated damages, insofar as the obligations of
the Company pursuant to this Agreement are concerned, for any such
action taken by the Company. The Executive specifically
acknowledges that, except for this Agreement, his employment by the
Company is employment-at-will, subject to termination by the
Executive, or by the Company, at any time with or without cause.
The Executive acknowledges that such employment-at-will status
cannot be modified except in a specific writing which has been
authorized or ratified by the Company’s Board of Directors
(the "Board").
Notwithstanding the other provisions of this
Agreement, no benefit shall be payable under this Agreement unless
a Change in Control (as defined below) of the Company shall be
deemed to have occurred and the Executive’s employment by the
Company shall have been terminated (by the Executive or by the
Company) within two (2) years thereafter. For purposes of this
Agreement, a "Change in Control of the Company" shall be deemed to
have occurred if any one of the following takes place:
(a) The Company is merged, consolidated or
reorganized into or with another corporation, partnership, limited
liability company, trust, or other legal person (collectively
referred herein as a "Business Entity"), and immediately after such
merger, consolidation, or reorganization less than fifty percent
(50%) of the combined voting power of the then-outstanding
securities of such Business Entity immediately after such
transaction are held in the aggregate by the holders of voting
stock of the Company immediately prior to such transaction;
(b) The Company sells all or substantially all
of its assets to any other Business Entity, and less than fifty
percent (50%) of the combined voting power of the then-outstanding
securities of such Business Entity immediately after such sale are
held in the aggregate by the holders of voting stock of the Company
immediately prior to such sale;
(c) There is a report filed on
Schedule 13D or Schedule 14D-1 (or any successor
schedule, form or report), each as promulgated pursuant to the
Securities Exchange Act of 1934 ("Exchange Act"), disclosing that
any person (as the term "person" is used in Section 13(d)(3)
or Section 14(d)(2) of the Exchange Act) has become the
beneficial owner (as the term "beneficial owner" is defined under
Rule 13d-3 or any successor rule or regulation promulgated
under the Exchange Act) of securities representing 50% or more of
the voting stock of the Company;
(d) The Company files a report or proxy
statement with the Securities and Exchange Commission pursuant to
the Exchange Act disclosing in response to Form 8-K or
Schedule 14A (or any successor schedule, form or report or
item therein) that a change in control of the Company has occurred
; or
(e) If during any period of two consecutive
years, individuals who at the beginning of any such period
constitute the directors of the Company cease for any reason to
constitute at least a majority thereof, provided, however, that for
purposes of this Section 2(e), each director who is first
elected, or first nominated for election by the Company’s
stockholders, by a vote of at least two thirds of the directors of
the Company (or a committee thereof) then still in office who were
directors of the Company at the beginning of any such period will
be deemed to have been a director of the Company at the beginning
of such period.
|
3.
|
|
Notice of Termination; Date of Termination .
|
(a) Any termination of the Executive’s
employment by the Company or by the Executive shall be communicated
by written Notice of Termination to the other party thereto. For
purposes of this Agreement, a "Notice of Termination" shall mean a
notice that shall indicate the specific termination provision in
this Agreement relied upon and shall set forth in reasonable detail
the facts and circumstances claimed to provide a basis for
termination of employment under the provision so indicated.
Furthermore, either the Executive or the Company may give a Notice
of Termination to the other party for the purpose of terminating
this Agreement, as such, without terminating the Executive’s
Employment with the Company, which Notice of Termination shall have
the effect of terminating this Agreement at the expiration of the
Term of this Agreement as in effect on the date of giving such
Notice of Termination.
(b) "Date of Termination" shall mean:
|
|
(i)
|
|
If the Agreement is terminated for Disability (as defined in
Section 7 below), thirty (30) days after Notice of
Termination is given (provided that the Executive shall not have
returned to the performance of his duties on a full-time basis
during such thirty (30) day period),
|
|
|
(ii)
|
|
If the Executive terminates his employment voluntarily, the date
specified in the Notice of Termination,
|
|
|
(iii)
|
|
The expiration or termination of the Term of this Agreement,
and
|
|
|
(iv)
|
|
If the Executive’s employment is terminated for any other
reason, the date on which a Notice of Termination is given;
provided that if within thirty days after any Notice of Termination
is given the party receiving such Notice of Termination notifies
the other party that a dispute exists concerning the termination,
the Date of Termination shall be the date on which the dispute is
finally determined, either by mutual written agreement of the
parties, by a binding and final arbitration award or by a final
judgment, order or decree of a court of competent jurisdiction (the
time for appeal therefrom having expired and no appeal having been
perfected).
|
|
4.
|
|
Compensation After Change in Control.
|
Immediately after any Change in Control of the
Company shall be deemed to have occurred, the Executive shall be
entitled to receive for the remainder of the Term of this Agreement
(as extended from time to time) an annual base salary (the "Base
Salary"), payable in installments in accordance with the current
practice of the Company, at an annual rate at least equal to the
aggregate annual base salary payable to the Executive as of the
date hereof. The Base Salary may be increased (but may not be
decreased) at any time and from time to time by action of the Board
of Directors of the Company, any committee thereof, or any
individual having authority to take such action, in accordance with
the Company’s regular practices, and, if so increased, such
increased Base Salary shall thereafter be the Base Salary for the
purposes of this Agreement. Any increase in the Base Salary shall
not serve to limit or reduce any other obligation of the Company
hereunder.
After a Change in Control of the Company shall be
deemed to have occurred,
(a) The Company agrees to continue in effect
any perquisite, benefit or compensation plan (including without
limitation the Company’s annual cash profit sharing plan,
long-term equity incentive plan, stock purchase plan, section
401(k) plan, dental plan, life insurance plan, health and accident
plan, disability plan, or deferred compensation plan) in which the
Executive currently participates (collectively referred to as the
"Benefit Plans"); or to maintain plans providing substantially
similar benefits, unless the continuation of any such plan (or
similar plan) would not, in the good faith discretion of the
Company, be an economically reasonable decision, taking into
account all facts and circumstances;
(b) Other than as provided in paragraph (a),
the Company agrees not to take any action that would adversely
affect the Executive’s participation in, or materially reduce
the benefits under, any of the Benefit Plans or deprive the
Executive of any material fringe benefit currently enjoyed; and
(c) The Company agrees to provide the
Executive with the number of paid vacation days to which he is
entitled in accordance with the Company’s normal vacation
policy in effect on the date hereof.
|
6.
|
|
Termination for Cause .
|
(a) The Company may terminate the
Executive’s employment for Cause. For the purposes of this
Agreement, the Company shall have "Cause" to terminate employment
hereunder only (i) if termination shall have been the result
of an act or acts of dishonesty by the Executive constituting a
felony and resulting or intended to result directly or indirectly
in substantial gain or personal enrichment to the Executive at the
expense of the Company; or (ii) upon the willful and continued
failure by the Executive substantially to perform his duties with
the Company (other than any such failure resulting from incapacity
due to mental or physical illness) after a demand in writing for
substantial performance is delivered by the Board, which demand
specifically identifies the manner in which the Board believes that
the Executive has not substantially performed his duties, and such
failure results in demonstrably material injury to the Company. The
Executive’s employment shall in no event be considered to
have been terminated by the Company for Cause if such termination
took place as the result of (i) bad judgment or negligence, or
(ii) any act or omission without intent of gaining therefrom
directly or indirectly a profit to which the Executive was not
legally entitled, or (iii) any act or omission believed in
good faith to have been in or not opposed to the interest of the
Company, or (iv) any act or omission in respect of which a
determination is made that the Executive met the applicable
standard of conduc
|