SEVERANCE AGREEMENT
Exhibit 10.2
SEVERANCE AGREEMENT
THIS SEVERANCE AGREEMENT (the Agreement) is made this day of , 2008 (the Effective Date), by and between H.B. Fuller Company, a Minnesota corporation (the Company), and (the Executive).
W I T N E S S E T H:
WHEREAS, the Company desires to continue to employ the Executive in accordance with the terms and conditions stated in this Agreement;
WHEREAS, the Executive is a key member of the management of the Company and is expected to devote substantial skill and effort to the affairs of the Company, and the Company desires to recognize the significant personal contribution that the Executive makes, and is expected to continue to make, to further the best interests of the Company and its shareholders;
WHEREAS, it is desirable and in the best interests of the Company and its shareholders to continue to obtain the benefits of the Executives services and attention to the affairs of the Company;
WHEREAS, the Company and the Executive are parties to a Change in Control Agreement dated as of , and as may be amended from time to time (the Change in Control Agreement), which provides the Executive the opportunity to receive certain benefits upon termination of the Executives employment under certain conditions during a limited period following a change in control;
WHEREAS, the Company desires to provide the Executive the opportunity to receive certain benefits when, in the absence of a Change in Control, Executives employment is terminated by the Company without Cause or by the Executive for Good Reason, according to the terms, conditions and obligations set forth below;
WHEREAS, the Executive understands that the Executives receipt of the benefits provided for in this Agreement depends on, among other things, the Executives willingness to agree to and abide by the non-disclosure, non-competition, non-solicitation, and other covenants contained in Exhibit A attached to this Agreement (the Non-Disclosure Agreement) and Executives execution of a release of claims in favor of the Company upon termination;
WHEREAS, it is desirable and in the best interests of the Company and its shareholders to protect confidential, proprietary and trade secret information of the Company, to prevent unfair competition by former Executives of the Company following separation of their employment with the Company and to secure cooperation from former Executives with respect to matters related to their employment with the Company; and
WHEREAS, the Executive understands that nothing in this Agreement limits the Companys right to terminate the Executives employment at any time and for any reason,
NOW, THEREFORE, in consideration of the Executives employment with the Company, the compensation and benefits payable in connection with such employment, and the foregoing premises and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Executive and the Company agree as follows:
1. Definitions. The capitalized terms used in this Agreement have the following meanings:
(a) Affiliated Organization means a business entity that is treated as a single employer with the Company under the rules of section 414(b) and (c) of the Code, including the eighty percent (80%) standard therein.
(b) Annual Cash Compensation means an amount equal to the sum of: (A) the Executives annual base salary in effect as of the Date of Termination plus (B) the amount of the annual target bonus opportunity of the Executive, pursuant to the bonus plan described in Section 3(b) below, for the fiscal year of the Company in which the Date of Termination occurs.
(c) Board means the Board of Directors of the Company, including any authorized committee of the Board.
(d) Cause means:
(i) any act by the Executive that is materially inimical to the best interests of the Company and that constitutes common law fraud, a felony or other gross malfeasance of duty on the part of the Executive;
(ii) any material disloyalty or dishonesty by the Executive related to or connected with the Executives employment by the Company or otherwise likely to cause material harm to the Company or its reputation;
(iii) a willful and material violation by the Executive of the Companys written policies or codes of conduct;
(iv) wrongful appropriation by the Executive of Company funds or property or other material breach of the Executives fiduciary duties to the Company; or
(v) the willful and material breach by the Executive of this Agreement, the Non-Disclosure Agreement, or any other written agreement between the Company and the Executive.
(e) Change in Control has the meaning prescribed for such term in the Change in Control Agreement.
(f) Code means the Internal Revenue Code of 1986, as amended. Any reference to a specific provision of the Code will include a reference to such provision as it may be amended from time to time and to any successor provision.
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(g) Company means the Company as defined in the first sentence of this Agreement and any successor to its business and/or assets which assumes or agrees to perform this Agreement by operation of law, assignment or otherwise. If at any time during the Term of this Agreement the Executive is employed by an Affiliated Organization, the term Company as used in this Agreement shall in addition include such Affiliated Organization. In such event, the Company agrees that it shall pay or provide, or shall cause such Affiliated Organization to pay or provide, any amounts or benefits due the Executive pursuant to this Agreement.
(h) Date of Termination means the date of the Executives separation from service with the Company (including all Affiliated Organizations, as applicable), within the meaning of section 409A(a)(2)(A)(i) of the Code.
(i) Disability or Disabled means leaving active employment and qualifying for and receiving disability benefits under the Companys long-term disability plan as in effect from time to time.
(j) Good Reason means the occurrence of any of the following without the Executives consent:
(i) A material reduction of the Executives base salary (unless such reduction is part of an across-the-board uniformly applied reduction affecting all senior executives of the Company);
(ii) A material diminution in the Executives authority and duties; provided, however, that a change of the individual or officer to whom the Executive reports, in and of itself, would not constitute diminution; or
(iii) a required change of the Executives principal work location of fifty (50) or more miles.
Notwithstanding the above, the occurrence of any of the events described above will not constitute Good Reason unless (A) the Executive gives the Company written notice within ninety (90) days after the initial occurrence of any of such event that the Executive believes that such event constitutes Good Reason and describing the details of such event, (B) the Company thereafter fails to cure any such event within thirty (30) days after receipt of such notice, and (C) the Executives Date of Termination as a result of such event occurs within 180 days after the initial occurrence of such event.
(k) Protected Period has the meaning prescribed for such term in the Change in Control Agreement.
(l) Term means the period commencing on the Effective Date and ending on the last business day of the Companys fiscal year ending in 2009, provided that such period will be automatically extended for successive one-year periods ending on the last business day of each subsequent fiscal year, unless either party gives written notice of non-renewal to the other party at least six (6) months prior to the last business day of the Companys fiscal year 2009, or the last business day of each subsequent fiscal year, as the case may be, that such party elects not to extend the Term under this Agreement.
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2. Position and Duties. During employment with the Company, the Executive will perform such duties and responsibilities as the Company may assign from time to time. Executive will serve the Company faithfully and to the best of the Executives ability and will devote full working time, attention, and efforts to the business and affairs of the Company. Executive will follow and comply with applicable policies and procedures adopted by the Company from time to time, including without limitation policies relating to business ethics, conflict of interest, non-discrimination, confidentiality and protection of trade secrets, and insider trading. Executive will not engage in other employment or other material business activity, except as approved in writing by the Board. It shall not be a violation of this Agreement for the Executive to (i) serve on corporate, civic or charitable boards or committees or (ii) manage personal investments, so long as such activities do not materially interfere with the performance of the Executives responsibilities to the Company. Executive hereby represents and confirms that the Executive is under no contractual or legal commitments that would prevent the Executive from fulfilling Executives duties and responsibilities as set forth in this Agreement.
3. Compensation. During employment with the Company, the Executive will be provided with the following compensation and benefits:
(a) Base Salary. The Company will pay to the Executive for services provided hereunder a base salary at a rate determined from time to time by the Board, which base salary will be paid in accordance with the Companys normal payroll policies and procedures.
(b) Incentive Compensation. Executive will be eligible to participate in an annual cash bonus plan of the Company as designated by the Board, in accordance with the terms and conditions of such plan as may be in effect from time to time.
(c) Employee Benefits. Executive will be entitled to participate in all employee benefit plans and programs generally available to executive employees of the Company, as determined by the Company and to the extent that the Executive meets the eligibility requirements for each individual plan or program. Executives participation in any plan or program will be subject to the provisions, rules, and regulations of, or applicable to, the plan or program. The Company provides no assurance as to the adoption or continuation of any particular employee benefit plan or program.
(d) Expenses. The Company will reimburse the Executive for all reasonable and necessary out-of-pocket business, travel, and entertainment expenses incurred by the Executive in the performance of duties and responsibilities to the Company during the Executives employment. Such reimbursement shall be subject to the Companys normal policies and procedures for expense verification, documentation, and reimbursement.
4. Termination of Employment. Executive shall at all times be an employee at will, and either the Company or the Executive may terminate Executives employment with or without Cause at any time, with or without advance notice, subject to the obligations of the parties under this Agreement.
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5. Payments Upon Involuntary Termination. If the Executives Date of Termination occurs during the Term, and if such separation from service (A) is involuntary at the initiative of the Company for any reason other than Cause or Disability or at the initiative of the Executive for Good Reason, and (B) does not occur during a Protected Period, then, in addition to such compensation that has been earned but not paid to the Executive as of the Date of Termination, the Company will provide to the Executive the severance benefits set forth in this Section 5, subject to the conditions in Section 6.
(a) Separation Pay.
(i) The Company will pay to the Executive an amount equal to [for CEO add: two times] the Executives Annual Cash Compensation, payable to the Executive in equal installments in accordance with the Companys regular payroll practices and schedule over the [twelve (12)] [for CEO: twenty-four (24)] month period following the Date of Termination, but in no event shall such amount paid under this Section 5(a)(i) exceed the lesser of (A) $460,000.00 or (B) two (2) times the Executives annualized compensation based upon the annual rate of pay for services to the Company for the calendar year prior to the calendar year in which the Date of Termination occurs (adjusted for any increase during that year that was expected to continue indefinitely if the Executive had not separated from service). The separation pay under this Section 5(a)(i) is intended to constitute a separation pay plan due to involuntary separation from service under Treas. Reg. § 1.409A-1(b)(9)(iii).
(ii) In the event that the amount payable to the Executive under Section 5(a)(i) is limited by Section 5(a)(i)(A) or (B) above, then the Company will also pay to the Executive a lump sum payment equal to the difference between (A) [for CEO add: two times] the Executives Annual Cash Compensation and (B) the amount payable under Section 5(a)(i). Such payment will be paid to the Executive in a lump sum on the earlier of: (x) the date that is six (6) months after the Date of Termination, or (y) the date of Executives death.
(b) Continued Benefits. If the Executive (and/or the Executives covered dependents) is eligible and properly elects to continue group medical and/or dental insurance coverage, as in place immediately prior to the Date of Termination, the Company will continue to pay the Companys portion of any such premiums or costs of coverage until the earlier of (A) [twelve (12)] [for CEO: eighteen (18)] months after the Date of Termination, or (B) the date the Executive (and the Executives covered dependents) is provided such form of coverage by a subsequent employer. All such Company-provided medical and/or dental insurance premiums, or costs of coverage, will be paid directly to the insurance carrier or other provider by the Company and the Executive shall make arrangements with the Company to pay the Executives portion of such coverage in an amount equal to such portion that the Executive would pay if actively employed by the Company.
(c) Outplacement Services. For a period of up to one year following the Date of Termination, the Company will provide to the Executive executive-level outplacement services from a provider selected by the Company, with a total cost not to exceed
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$20,000.00. The Company shall pay (or, at its option, reimburse the Executive) for such services within ten days after its receipt of a statement from the service provider; provided that in no event shall reimbursements be paid to the Executive after the last day of the Executives third taxable year following the taxable year in which the Date of Termination occurs. The Executive shall not be eligible to receive cash in lieu of outplacement services.
6. Termination Payment Conditions. Notwithstanding anything above to the contrary, the Company will not be obligated to provide any benefits to the Executive under Section 5 hereof unless: (a) the Executive has signed a release of claims in favor of the Company and its affiliates and related entities, and their directors, officers, insurers, employees and agents, in a form prescribed by the Company (which release will not include any claims the Executive may have to indemnification or advancement of expenses with respect to the Executives actions as an officer or director of the Company); (b) all applicable rescission periods provided by law for releases of claims have expired and the Executive has not rescinded the release of claims; and (c) the Executive is in strict compliance with the terms of this Agreement, the Non-Disclosure Agreement and any other written agreements between the Company and the Executive as of the dates of such payments.
7. Other Terminations. If Executives Date of Termination occurs:
(a) by reason of Executives abandonment of employment or resignation from employment for any reason other than Good Reason;
(b) by reason of termination of Executives employment by the Company for Cause;
(c) because of Executives death or Disability;
(d) upon or following expiration of the Term; or
(e) during a Protected Period,
then the Company will pay to Executive, or Executives beneficiary or Executives estate, as the case may be, such compensation that has been earned but not paid to Executive as of the Date of Termination, payable pursuant to the Companys normal payroll practices and procedures, and the Executive shall not be entitled to any additional compensation or benefits provided under this Agreement. In no event shall the Executive be entitled to payments in connection with any separation from service under both this Agreement and under the Change in Control Agreement.
8. Restrictive Covenants. At the same time as the Executive signs this Agreement, the Executive will sign the Non-Disclosure Agreement attached hereto as Exhibit A, among other things in consideration of the payments and benefits provided to the Executive pursuant to this Agreement.
9. Successors. This Agreement shall not be assignable, in whole or in party, by either party without the written consent of the other party, except that the Company may, without the consent of the Executive, assign or delegate all or any portion of its rights and obligations
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under this Agreement to any corporation or other business entity (i) with which the Company may merge or consolidate, (ii) to which the Company may sell or transfer all or substantially all of its assets or capital stock, or (iii) that is or becomes an Affiliated Organization. Any such current or future successor to which any right or obligation has been assigned or delegated shall be deemed to be the Company for purposes of such rights or obligations of this Agreement. In the event of the Executives death after the Executive has become eligible for any payments under Section 5 of this Agreement, all amounts payable to the Executive thereunder shall be paid to a beneficiary designated by the Executive in the form established by the Company or, if no such beneficiary is designated, then to the Executives estate, heirs or representatives.
10. Miscellaneous.
(a) Tax Withholding. The Company may withhold from any amounts payable under this Agreement such federal, state and local income and employment taxes as the Company shall determine are required or authorized to be withheld pursuant to any applicable law or regulation.
(b) Section 409A. This Agreement is intended to satisfy the requirements of sections 409A(a)(2), (3) and (4) of the Code, including current and future guidance and regulations interpreting such provisions, and should be interpreted accordingly.
(c) Governing Law. All matters relating to the interpretation, construction, application, validity, and enforcement of this Agreement will be governed by the laws of the State of Minnesota without giving effect to any choice or conflict of law provision or rule, whether of the State of Minnesota or any other jurisdiction, that would cause the application of laws of any jurisdiction other than the State of Minnesota.
(d) Jurisdiction and Venue. The Executive and the Company consent to jurisdiction of the courts of the State of Minnesota and/or the United States District Court, District of Minnesota, for the purpose of resolving all issues of law, equity, or fact arising out of or in connection with this Agreement. Any action involving claims of a breach of this Agreement must be brought in such courts. Each party consents to personal jurisdiction over such party in the state and/or federal courts of Minnesota and hereby waives any defense of lack of personal jurisdiction. Venue, for the purpose of all such suits, will be in Ramsey County, State of Minnesota.
(e) Waiver of Jury Trial. To the extent permitted by law, the Executive and the Company waive any and all rights to a jury trial with respect to any dispute arising out of or relating to this Agreement.
(f) Notice. Notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when personally delivered, sent by reliable overnight courier or mailed by United States registered mail (or its equivalent for overseas delivery), return receipt requested, postage prepaid, and addressed as follows:
If to the Company:
H.B. Fuller Company
P.O. Box 64683
St. Paul, MN 55164-0683
Attention: General Counsel
If to the Executive, to the Executives most recent address on file with the Company
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or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.
(g) Modifications; Waiver. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by the Executive and the Company. No waiver by either party hereto at any time of any breach by the other party of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.
(h) Entire Agreement. This Agreement, the Change in Control Agreement, and the Non-Disclosure Agreement constitute the entire understandings and agreements between the Company and the Executive with regard to payments and benefits upon a termination of the Executives employment or other separation from service with the Company. This Agreement supersedes and renders null and void all prior agreements, offer letters, plans, programs or other undertakings between the parties with regard to such subject matter (other than those specifically referenced herein), whether written or oral.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
H.B. FULLER COMPANY | ||
By: |
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As its: | ||
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[The Executive] |
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EXHIBIT A
TO SEVERANCE AGREEMENT
NON-DISCLOSURE AND NON-COMPETITION
H.B. Fuller Company
H.B. Fullers continuing growth offers opportunity and security to all employees. This growth is dependent on specialized knowledge not generally known to other companies in the areas of research, technical service, production, marketing and management.
H.B. Fuller spends great amounts of money to obtain and use this specialized knowledge in the form of equipment, study and personnel. By far the largest contribution to this knowledge comes from our people.
This knowledge is only useful, obviously, when it remains with H.B. Fuller. Once the specialized information is generally known it eliminates any advantage to the company or to H.B. Fuller employees.
In other words, all H.B. Fuller employees have a common interest and responsibility in seeing that no one single employee uses this specialized information outside of the company to the detriment of the rest of the employees.
To help protect you and other employees, this Non-Disclosure and Non-Competition Agreement points out our common responsibility.
We ask that you read it very carefully before signing.
By: |
| |
President and Chief Executive Officer |
H.B. Fuller Company
NON-DISCLOSURE AND NON-COMPETITION AGREEMENT
I am employed by or desire to be employed by H.B. Fuller in a capacity in which I may receive or contribute Confidential Information. To protect such Confidential Information, as well as H.B. Fullers other legitimate business interests, and in consideration of such employment or continued employment, the wages and benefits provided to me, being given access to Confidential Information, my rights under the Severance Agreement dated , 2008, and the other consideration set forth in this Agreement, H.B. Fuller and I agree as follows:
A. | DEFINITIONS |
In this Agreement the following definitions shall apply:
1. | H.B. Fuller means H.B. Fuller Company and any of its existing or future subsidiaries, partnerships, joint ventures and affiliates. |
2. | CONFIDENTIAL INFORMATION means all confidential information of H.B. Fuller including, but not limited to, the following: |
| Product formulas, designs and specifications |
| Product and production know how, technologies and concepts |
| new Product ideas |
| testing methods, know how, techniques, concepts and results |
| customer lists including identities of existing and potential customers, identities of contacts or possible contacts at customers and prospective customers regardless of who at H.B. Fuller compiled such information |
| customer purchasing histories, pricing and other contract terms, product preferences, buying habits, business plans, Product plans and expectations |
| other information disclosed by customers and prospective customers to H.B. Fuller a) where disclosure of such information may be harmful to a customer or prospective customer; b) that the customer or prospective customer has informed H.B. Fuller is not to be disclosed to third parties; or c) where there is an expectation created through any means that H.B. Fuller will keep such information confidential |
| marketing studies, methods, plans and strategies |
| business relationships, contracts, methods, models, analyses, plans and strategies |
| new business ideas |
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| financial and accounting information including budgets, forecasts, projections, costs, prices, margins, profits and sales |
| supplier and potential supplier identity, sales history, pricing and other contract terms, business plans, and production plans |
| other information disclosed by suppliers and prospective suppliers to H.B. Fuller a) where disclosure of such information may be harmful to a supplier or prospective supplier; b) that the supplier or prospective supplier has informed H.B. Fuller is not to be disclosed to third parties; or c) where there is an expectation of confidentiality created through any means that H.B. Fuller will keep such information confidential |
| software ideas and programs |
| computer user identifiers, access codes and passwords and the like |
| personnel files and other information specific to individual H.B. Fuller employees |
| any other information which H.B. Fuller has an obligation to keep confidential |
Information shall be considered Confidential Information regardless of the means, media or format in which it is maintained or communicated. Confidential Information shall not include information the entirety of which is now or subsequently becomes generally and publicly known, other than as a direct or indirect result of the breach of this Agreement by me or a breach of a confidentiality obligation owed to H.B. Fuller by any third party.
3. | INVENTIONS means all formulas, processes, practices, methods, discoveries, improvements, ideas, devices, designs, apparatuses and works of authorship, whether or not patentable or copyrightable. |
4. | PRODUCT means any product, process, equipment, concept or service (in existence or under development). |
5. | CONFLICTING PRODUCT means any Product of any person or organization (other than H.B. Fuller), that resembles or competes with an H.B. Fuller Product. |
B. | EMPLOYEES OBLIGATIONS TO H.B. FULLER |
1. | FULL-TIME COMMITMENT. I will devote my full-time and energy to furthering H.B. Fullers business. I will not pursue any other business activity without H.B. Fullers written consent if such business activity would otherwise violate this Agreement or any of H.B. Fullers policies on conflicts of interest or outside employment including H.B. Fullers Code of Ethics. |
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2. | WORK PRODUCT AND INVENTIONS. |
(a) I agree that H.B. Fuller owns and shall continue to be the sole proprietor, in all countries, of all Inventions that I may learn of, have access to, have a part in developing, first conceive, or first reduce to practice (alone or jointly with others) (i) during my work with H.B. Fuller, whether or not during normal work time or at H.B. Fullers premises; (ii) at any time after termination of my employment with H.B. Fuller that relate directly to H.B. Fullers business or actual or anticipated research about which I became aware at anytime; (iii) at any time after termination of my H.B. Fuller employment if based on Confidential Information; and/or (iv) at any time after termination of my H.B. Fuller employment that result from any of my work for H.B. Fuller. I agree to promptly disclose such Inventions to H.B. Fuller, and I hereby assign all right, title, and interest I may have in such Inventions to H.B. Fuller without charge to H.B. Fuller. In the absence of clear and convincing proof to the contrary, all Inventions conceived by me or first reduced to practice within one year after termination of H.B. Fuller employment that directly relate to H.B. Fuller business or demonstrably anticipated research will be considered to be Inventions to be disclosed to and owned by H.B. Fuller.
(b) I agree to deliver to H.B. Fuller accounts and records of all such Inventions set forth above in Section 2(a), and to execute all documents and oaths and to do such other acts as may be necessary or desirable in H.B. Fullers opinion to obtain, maintain, reissue, extend, or enforce patents or copyrights (including without limitation design patents or other applicable registrations) and to vest, perfect, affirm, and record the entire right, title, and interest in H.B. Fuller to such patents, copyrights and Inventions in all countries. I agree to assist in these regards without any obligation by H.B. Fuller to provide me with further compensation, royalties or payments (without charge but at no expense to myself).
(c) This Agreement does not obligate me to assign to H.B. Fuller any Invention developed entirely on my own time without the use of any H.B. Fuller equipment, supplies, facility or Confidential Information and (1) which does not relate (i) directly to H.B. Fuller business or (ii) to H.B. Fullers actual or demonstrably anticipated research or development; or (2) which does not result from any work performed by me for H.B. Fuller.
(d) I will promptly document all research according to H.B. Fuller policy, including H.B. Fullers policy in the laboratory notebooks assigned to me.
3. | CONFIDENTIAL INFORMATION. |
All Confidential Information disclosed to me or to which I have access during the period of my employment, which I have a reasonable basis to believe is Confidential Information, or which is treated or designated by H.B. Fuller as being Confidential Information, shall be presumed to be Confidential Information.
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(a) I acknowledge that H.B. Fuller has taken reasonable measures to preserve the secrecy of its Confidential Information, including, but not limited to, requiring me to execute this Agreement.
(b) I acknowledge that all of the items comprising Confidential Information are confidential, whether or not H.B. Fuller specifically labels such information as confidential or internally restricts access to such information. I acknowledge that H.B. Fuller may have separate policies in effect from time to time regarding protection of its Confidential Information. I agree to abide by these policies even if they more broadly define Confidential Information than this Agreement otherwise does or provide additional instructions on my use or disclosure of Confidential Information.
(c) I agree that Confidential Information, even though it may have been or may be developed or otherwise acquired by me, is the exclusive property of H.B. Fuller to be held by me in fiduciary capacity and solely for H.B. Fullers benefit. I agree that I will not at any time, either during or after my employment with H.B. Fuller, reveal, report, publish, transfer or otherwise disclose to any person or entity, or use, any Confidential Information, without the written consent of H.B. Fuller, except for the benefit of H.B. Fuller in connection with my employment consistent with H.B. Fullers policies. I agree to stop using any Confidential Information after the termination of my H.B. Fuller employment. I also agree to refrain from any acts or omissions that would reduce the value of any Confidential Information, and to take and comply with reasonable security measures to prevent any accidental or intentional disclosure or misappropriation.
4. | NON-COMPETITION AND NON-SOLICITATION |
In consideration of my employment (including future employment) by H.B. Fuller and the payments and benefits provided to me in compensation for my services, all increases in payments and benefits and promotions over the course of my employment by H.B. Fuller, my rights under the Severance Agreement, and in further consideration of my being given access to Confidential Information and H.B. Fullers other obligations as set forth in this Agreement, I agree that:
(a) During the term of my employment and for twenty-four (24) months after termination (for any reason and by either party) of my employment with H.B. Fuller:
(1) Before accepting employment with a potential employer or beginning work as a consultant or independent contractor (i) in an industry in which H.B. Fuller competes, (ii) with an entity that uses H.B. Fuller Products, or (iii) with an entity that supplies Products to H.B. Fuller, I will provide the potential employer or party engaging my services with a copy of this Agreement and will promptly notify H.B. Fuller in writing of my intention to accept work with such party;
(2) I will not directly or indirectly identify, contact, make sales calls on, make introductions to, accept business from, provide services, assistance or
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consulting to, with respect to any Conflicting Product, any entity or person who at any time within the two (2) year period prior to my employment termination (i) was a customer of H.B. Fuller with whom I had direct or indirect contact; (ii) was identified as a prospective customer of H.B. Fuller by me, at my direction or by another H.B. Fuller employee or contractor; (iii) was a customer or prospective customer to whom I directly or indirectly rendered assistance of any kind; or (iv) was a customer whose account I supervised or serviced for H.B. Fuller;
(3) I will not encourage any H.B. Fuller customer or prospective customer to divert, terminate, limit, adversely modify, or fail to enter into any actual or potential business with H.B. Fuller;
(4) I will not make statements, publicly or otherwise, that disparage H.B. Fuller, its Products or its conduct or that are otherwise adverse to H.B. Fullers interests;
(5) I will not serve in any capacity with, provide services to or have any interest in, whether as an owner, employee, consultant, or otherwise, any entity, organization or person engaged in the development, production or sale of any Conflicting Product, provided that ownership by me as a passive investment of less than 2% of the outstanding shares of capital stock of any corporation listed on a national securities exchange or publicly traded in the over-the-counter market shall not constitute a breach of this paragraph.
(b) During the term of my employment and for twenty-four (24) months after termination (for any reason and by either party) of my employment with H.B. Fuller I will not hire or induce, attempt to induce, or in any way assist or act in concert with any other person or organization in hiring, inducing or attempting to induce any employee, agent or consultant of H.B. Fuller to terminate such employees, agents or consultants relationship with H.B. Fuller.
5. | RETURN OF H.B. FULLER PROPERTY |
I agree that no later than termination of my H.B. Fuller employment, I will return all Confidential Information, any other information related to H.B. Fullers business or my H.B. Fuller work and all other H.B. Fuller property to H.B. Fuller that is in my possession or control, regardless of the format or location of such information. This includes all documents, computers and electronic storage devices such as flash drives, pdas, cds, dvds, floppy discs, keys, credit cards and software that belong to H.B. Fuller. Prior to the termination of my employment, I will advise H.B. Fuller as to whether I have used any computers or other electronic storage device in my possession or control (other than those belonging to H.B. Fuller) to access, store or transmit Confidential Information or H.B. Fuller property and will make such computers or other electronic storage devices available to H.B. Fuller to allow H.B. Fuller to search for and permanently delete any such Confidential Information and other H.B. Fuller property that may still exist on such devices.
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I further agree that I will cooperate with H.B. Fuller in the transition of my duties and responsibilities for H.B. Fuller, and will participate in interviews or other meetings or proceedings without subpoena, at the request of H.B. Fuller, with any investigations or litigation relating to matters about which I have knowledge by virture of my employment by or service to H.B. Fuller.
C. | OTHER PROVISIONS |
1. | I understand that I am free at any time to leave the employment of H.B. Fuller and, subject to the limitations set forth in this Agreement, to accept any job that utilizes my general education and skills. |
2. | I understand that these covenants are not intended to limit my post-termination employment in any industry or for any employer producing a product or providing a service different from H.B. Fullers. I acknowledge and represent that I have substantial experience and knowledge such that I can readily obtain employment that does not violate these covenants. |
3. | I represent and agree that I am aware of my right to discuss any and all aspects of this Agreement with my own attorney, that I have carefully read and fully understand all the provisions of this Agreement, and that I am voluntarily entering into this Agreement. |
4. | I acknowledge that H.B. Fuller has not asked or required me to, and I agree that I will not, violate the terms of any prior employment, confidentiality, non-competition or similar agreements to which I have been a party. The only such agreements to which I have been a party are as follows (copies of which I agree to provide H.B. Fuller as available): |
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(If none, please specify)
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5. | I agree not to disclose to H.B. Fuller, directly or indirectly, confidential information I have obtained from a third party under an obligation of secrecy, except with the specific consent of that third party. |
6. | My obligations under this Agreement shall be binding on my heirs, executors, administrators and assigns. |
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7. | If any dispute arises under this Agreement, I agree that this Agreement will be interpreted and construed under the laws of Minnesota. I also agree that all disputes arising out of or relating to this Agreement shall be brought, if at all, in a court located in Minnesota to the exclusion of the courts of any other state or jurisdiction. I agree that any court located in the Minnesota has jurisdiction over me in connection with any such disputes, regardless whether H.B. Fuller or I bring the claim or action. |
8. | I acknowledge and agree that the scope of Sections B and C is reasonable as to both time and extent of customer and other restrictions, that the provisions of the Agreement are reasonable and necessary for the protection of H.B. Fuller in its employment of me and its furnishing to me Confidential Information, and that my violation of this Agreement may subject me to discipline under H.B. Fullers discipline policies and will cause H.B. Fuller irreparable harm for which it will be entitled to (a) temporary and permanent injunctive relief without the necessity of proving actual damages, (b) money damages insofar as they can be determined, and (c) all related costs and reasonable attorneys fees. |
9. | The parties agree that if any provision of this Agreement is void or unenforceable for any reason, the remaining provisions will remain in full force and effect. If any particular provision of this Agreement adjudicated to be invalid or unenforceable, the parties specifically authorize the court making such determination to edit the invalid or unenforceable provision to allow this Agreement, and its provisions, to be valid and enforceable to the fullest extent allowed by law or public policy. I expressly stipulate that this Agreement shall be construed in a manner that renders its provisions valid and enforceable to the maximum extent (not exceeding its express terms) possible under applicable law. |
10. | The terms of this Agreement that relate to periods, activities, obligations, rights or remedies will survive termination of my employment with H.B. Fuller and will govern all rights, disputes, claims or causes of action arising out of or in any way related to this Agreement. |
11. | This Agreement, the Severance Agreement to which it is an exhibit, and the other documents referenced and incorporated in the Severance Agreement (including without limitation the Change in Control Agreement) (a) replace any prior agreement between H.B. Fuller and me relating to these subjects; (b) is the entire agreement between us concerning these subjects; (c) applies during my entire tenure with H.B. Fuller regardless of subsequent changes in position or compensation; and (d) cannot be amended or altered, nor any portion waived, except in writing signed by both parties. This Agreement is ancillary to my employment with H.B. Fuller and is not intended to govern aspects of that employment relationship not covered herein. The obligations in this Agreement are unconditional and do not depend on the performance or non-performance by H.B. Fuller of any terms, duties or obligations not specifically set forth in this Agreement. Nothing in this Agreement changes the fact that I am an at will employee of H.B. Fuller and that my employment with H.B. Fuller may be terminated at any time with or without cause and with or without notice. I further understand that any employment policies or other such materials that may be distributed to me during the course of my employment shall not be construed as a contract. |
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12. | I understand that my rights and obligations under this Agreement are not assignable or delegable by me. I agree that this Agreement is fully assignable by H.B. Fuller. |
13. | I will assert no patent or other rights against H.B. Fuller based on Inventions made by me prior to the date of this Agreement, except for rights under those Inventions described at the top of the next page: |
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DO NOT WRITE ANYTHING CONFIDENTIAL
(Provide only a general description of such Inventions. If this will require disclosure of information you believe is confidential, consult the H.B. Fuller Human Resources Department before completing.)
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ACCEPTED at Vadnais Heights, Minnesota by H.B. Fuller Company. | ||||||||
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Employee Name (please print) | ||||||||
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Employee Signature | ||||||||
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