SEVERANCE BENEFITS AGREEMENT
THIS AGREEMENT, entered into as of the ____ day of ___________, 199_, by
and between ______________________, a __________________________ ('Employer'),
and _______________________________ ('Executive').
WHEREAS, Employer desires to continue to attract and retain skilled and
dedicated management employees;
WHEREAS, Executive is currently employed by Employer in an executive
capacity and has unique skills and abilities that are of benefit to Employer;
WHEREAS, Employer desires to provide Executive certain assurances regarding
severance pay and other benefits in the event of a Covered Termination (as
NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the parties hereby agree as follows:
1. Not an Employment Agreement. This Agreement is not an employment
agreement and shall not change the employment relationship between Employer and
Executive. Except as expressly provided herein, this Agreement shall not amend
or alter the terms of, or limit the benefits to Executive under, any existing or
future employment, transition, change of control or other agreement between
Executive and Employer. This Agreement shall not be amended by any such future
agreement unless such future agreement specifically provides that the terms of
this Agreement shall be amended. Anything in this Agreement to the contrary
notwithstanding and subject to any existing or future employment or other
agreement between Employer and Executive, (a) Executive may terminate
Executive's employment with Employer at any time and for any reason and (b)
Employer may terminate Executive's employment with Employer at any time and for
a. Affiliate. 'Affiliate' shall mean any parent, subsidiary or other
affiliate of Employer.
b. Base Salary Amount. 'Base Salary Amount' shall mean (1) the
amount of Executive's average monthly base salary during either (i) if
Executive has been employed by Employer for twelve (12) or more consecutive
months immediately prior to the Termination Date, the twelve (12)
consecutive months immediately prior to the Termination Date or (ii) if
Executive has been employed by Employer for less than twelve (12)
consecutive months immediately prior to the Termination Date, the
consecutive months of Executive's employment with Employer immediately
prior to the Termination Date, multiplied by (2) either (i) if Executive
has been employed by Employer for twenty four (24) or more consecutive
months immediately prior to the Termination Date, twelve (12) or (ii) if
Executive has been employed by Employer for less than twenty four (24)
consecutive months immediately prior to the Termination Date, six (6).
c. Benefit Period. 'Benefit Period' shall mean (1) if Executive has
been employed by Employer for twenty four (24) or more consecutive months
immediately prior to the Termination Date, the twelve (12) consecutive
months immediately following the Termination Date or (2) if Executive has
been employed by Employer for less than twenty four (24) consecutive months
immediately prior to the Termination Date, the six (6) consecutive months
immediately following the Termination date.
d. Cause. 'Cause' shall mean:
(1) the conviction of Executive of a felony or a crime involving
moral turpitude, theft or fraud; or
(2) Executive's refusal to perform duties as directed in good
faith by Executive's supervisor, which failure is not cured within 10
days after written notice thereof from Employer to Executive; or
(3) Executive's engaging in sexual harassment or any act
involving theft or fraud with respect to Employer or any of its
parents, subsidiaries or other affiliates, as determined by the Chief
Executive Officer of Employer; or
(4) Executive's reckless conduct or willful misconduct which
results in substantial harm (in relation to Executive's annual
compensation), as determined by the Chief Executive Officer of
Employer, whether financial, reputational or otherwise, to Employer or
any of its parents, subsidiaries or other affiliates.
e. Covered Termination. 'Covered Termination' shall mean Employer's
termination of Executive's employment with Employer other than (1) for
Cause or (2) in connection with the death or Disability of Executive.
Notwithstanding the foregoing, the transfer of Executive's employment to
any Affiliate shall not be a Covered Termination.
f. Disability. 'Disability' shall have the meaning assigned to it in
the long-term disability insurance policy then provided or made available
to Executive by or through Employer. If there is then no such policy or
such term is not defined therein, then 'Disability' shall mean Executive's
incapacity due to physical or mental illness causing Executive to be absent
from the full-time performance of Executive's duties with Employer for
sixty (60) consecutive days.
g. Stock Plans. 'Stock Plans' shall mean Employer's 1986 Stock
Option Plan, Employer's 1988 Stock Option Plan, Employer's 1990 Stock
Option Plan, Employer's Long Term Incentive Plan, Employer's Long Term
Incentive Plan II and any other existing or future employee benefit plans
of Employer providing for the issuance of stock options, stock appreciation
rights or restricted stock.
h. Termination Date. 'Termination Date' shall mean the date on which
a Covered Termination is effective, which date shall not be less than
twenty-five (25) days after the date the Termination Notice is delivered to
i. Termination Notice Date. 'Termination Notice Date' shall mean the
date on which written notice is delivered by Employer to Executive stating
that the Executive's employment is being terminated pursuant to a Covered
Termination and setting forth the Termination Date.
3. Severance Benefits. In the event of a Covered Termination and in lieu
of any benefits or other amounts that would otherwise be payable by Employer to
Executive as a result of, arising out of or following such Covered Termination,
Executive shall be entitled to all of the following:
a. a lump sum payment, payable within thirty (30) days following the
Termination Date, equal to the Base Salary Amount.
b. during the Benefit Period or the period beginning on the
Termination Date and ending on the date Executive becomes employed on a
substantially full-time basis, whichever is shorter, Employer shall make
available to Executive coverage under Employer's medical, dental and life
insurance plans on the same terms as such plans are made available to
Employer's salaried employees generally.
c. during the Benefit Period or the period beginning on the
Termination Date and ending on the date Executive becomes employed on a
substantially full-time basis, whichever is shorter, Employer shall
maintain any split-dollar life insurance on Executive's life owned by
Employer and shall pay the premiums (for such period) due on any split-
dollar life insurance on Executive's life owned by Executive.
d. any other benefits payable pursuant to the terms of the Stock
Plans (and applicable agreements thereunder) and any incentive
compensation, pension, 401(k), retirement, savings or deferred compensation
e. reimbursement of any expenses incurred by Executive in the
ordinary course of employment prior to the Termination Date consistent with
Employer's then existing expense reimbursement policy.
4. No Mitigation. Executive shall not be required to mitigate the amount
of any payment or benefit provided for in Section 3 hereof by seeking other
employment or otherwise, nor will the amount provided for in Section 3(a) hereof
be reduced by any compensation earned by Executive as a result of employment by
another employer after the Termination Date.
a. The benefits provided for herein are intended to constitute a
minimum, but noncumulative, benefit package for Executive in the event of a
Covered Termination. If Executive has or claims to have any Claims (as
defined below), Executive may elect to assert such Claims. If, however,
Executive does formally assert one or more Claims in a writing submitted to
Employer, or an appropriate body to determine such Claims, for the legal
enforcement of such Claims, such writing shall constitute an irrevocable
waiver and disclaimer of Executive's benefits and rights under this
b. As a condition of receiving the benefits provided for herein,
Executive shall be required to execute, prior to receiving any benefits
hereunder, a release of all other claims against Employer arising out of
such Covered Termination (the 'Claims'), including but not limited to any
and all claims arising out of contract (written, oral, or implied in law or
in fact), tort (including negligent and intentional acts), or state,
federal or local law (including discrimination on any basis whatsoever), in
a form reasonably satisfactory to Employer.
c. If Executive has received benefits under this Agreement for a
Covered Termination and thereafter asserts any Claims, Executive shall,
notwithstanding any other agreement to the contrary, return to Employer all
benefits received hereunder as a condition of being allowed to assert any
such Claims. If for any reason Executive cannot legally be compelled to
return such benefits, Employer shall be given, to the extent allowed by
law, credit for all amounts received by Executive under this Agreement
against any other amounts otherwise due to Executive arising out of any
such Claims. Notwithstanding the foregoing, this Section 5(c) shall not be
construed to limit or otherwise modify the terms of any release executed by
Executive pursuant to Section 5(b) hereof or otherwise.
6. Other Termination. In the event Executive's employment with Employer
terminates other than pursuant to a Covered Termination, including without
limitation, a termination for Cause, termination by reason of Executive's death,
Disability or retirement or a voluntary termination by Executive, Executive
shall be entitled to no benefits or rights under this Agreement.
7. Amendment, Termination and Assignment. This Agreement may be amended,
terminated or superseded only by a written instrument signed by Executive and
Employer. This Agreement may not be assigned by Executive.
8. Transfer of Employment. If Executive's employment is transferred to
any Affiliate, such Affiliate shall assume Employer's obligations hereunder and
following such transfer such Affiliate shall be deemed the 'Employer' for
purposes of this Agreement.
9. Headings. Headings used herein are for convenience only and shall not
constitute a part of or affect the meaning or interpretation of this Agreement.
10. Governing Law; Venue. This Agreement shall be deemed to have been
made and executed in the State of Wisconsin and the validity, interpretation and
enforcement hereof shall be governed by the internal laws of the State of
Wisconsin. In the event of any dispute arising from or in connection with this
Agreement, Executive consents and agrees to in personam jurisdiction and to
venue exclusively in either the Circuit Court for Milwaukee County, Wisconsin,
or the United States District Court for the Eastern District of Wisconsin,
located in Milwaukee, Wisconsin.
IN WITNESS WHEREOF, the parties have executed this Agreement at
Milwaukee, Wisconsin as of the date first above written.
____________________________________ By: ______________________________