Employment Agreement

Amendment to Employment Agreement

Severance Agreement

 

 

EX-10.18 2 dex1018.htm LETTER AGREEMENT - PIERRE BRONDEAU

Exhibit 10.18

 

FMC Corporation

1735 Market Street

Philadelphia, PA, 19103

 

 

October 23, 2009

Mr. Pierre Brondeau

1515 Mt. Pleasant Road

Villanova, PA. 19085

Dear Pierre:

On behalf of the Board of Directors and in accordance with the terms and conditions outlined in this letter and the attached term sheet, I am pleased to offer you the position of President and Chief Executive Officer (CEO) of FMC Corporation (“the Company”), effective January 1, 2010. This position is located at the Corporate Headquarters in Philadelphia, PA.

In your role as President and CEO you will report to the Board of Directors and serve as an elected board member. It is the Board’s intention, subject to then acceptable governance practices, to elect you Chairman of the Board upon the retirement of the current Chairman, but not later than October 2010.

As President and CEO you will be responsible for supervision and control of all business affairs of the Company, subject to direction from the Board. It is understood and agreed that your employment is not for any specific duration and may be terminated, at will, by either you or the Company. If you are terminated by the Company and such termination is not for cause, you would receive severance consisting of 24 months of base salary and 12 months benefits continuation at the active employee rates.

This employment offer and the attached term sheet are intended to comply with the requirements of Section 409A of the Internal Revenue Code (Code) or an exemption or exclusions therefrom, and with respect to amounts that are subject to Section 409A of the Code, shall in all respects be administered in accordance with Section 409A of the Code. Each payment under this employment offer and the attached term sheet shall be treated as a separate payment for purposes of Section 409A of the Code. All amounts and benefits that constitute “deferred compensation” that are payable or provided upon your termination of employment shall only be paid or provided if such termination is a “separation from service” within the meaning of Section 409A. In the event that you are a “specified employee” within the meaning of Section 409A of the Code (as determined in accordance with the methodology established by the Company as in effect on the date of termination), amounts and benefits that constitute “nonqualified deferred compensation” within the meaning of Section 409A of the Code that would otherwise be payable and benefits that would otherwise be provided under this Agreement during the six-month period immediately following the date of termination of employment shall instead be paid or provided on the first business day after the date that is six months following your “separation from service” within the meaning of Section 409A. All reimbursements and in-kind benefits provided under this Agreement that constitute deferred compensation within the meaning of Section 409A of the Code shall be made or provided in accordance with the requirements of Section 409A of the Code, including, without limitation, that (i) in no event shall reimbursements by the Company under this Agreement be made later than the end of the calendar year next following the calendar year in which the applicable fees and expenses were incurred, provided, that you have submitted documentation for such fees and expenses at least 30 days before the end of the calendar year next following the calendar year in which such fees and expenses were incurred; (ii) the amount of in-kind benefits that the Company is obligated to pay or provide in any given calendar year (other than medical reimbursements described in Treas. Reg. § 1.409A-3(i)(1)(iv)(B)) shall not affect the in-kind benefits that the Company is


obligated to pay or provide in any other calendar year; (iii) your right to have the Company pay or provide such reimbursements and in-kind benefits may not be liquidated or exchanged for any other benefit; and (iv) in no event shall the Company’s obligations to make such reimbursements or to provide such in-kind benefits apply later than your remaining lifetime.

As a new hire, you will be eligible to participate in Company’s medical plans on the first of the month following a full month of employment. All other benefits begin immediately. Company provided benefits include: medical, dental, life insurance, short and long-term disability, an executive long-term disability plan, Savings and Investment plans, paid vacation and holidays.

This employment offer is contingent on the following:

 

 

 

Satisfactory completion of reference and background checks, which have been verified as of this date.

 

 

 

Satisfactorily passing a substance abuse test and a post-offer employment physical. Please contact Karen Smith at 609-963-6600 to make arrangements for this work. This assessment and drug screening should take place a minimum of seven working days prior to the anticipated start date of your employment.

 

 

 

Providing proof that you have a legal right to work in the United States. Please read the enclosed List of Acceptable Documents for employment Eligibility Verification and bring the appropriate documentation on your first day of employment.

 

 

 

Signing Business Conduct Guidelines/Code of Ethics and Proprietary Information Agreements.

There may be other employment-related issues not specifically addressed here, and I would ask you to work with Ken Garrett, the Company’s Vice President of Human Resources, (215) 299-6021 or me at (970) 799-1630 to address any outstanding issues.

On behalf of the Board, we are excited that you have agreed to lead this great Company and look forward to working with you. Please sign in the space provided below to formally accept this offer and return the original to Mr. Garrett in the self-addressed envelope provided.

Sincerely,

Edward J. Mooney

 

cc:

Kenneth R. Garrett

 

 

William G. Walter

I accept the position as offered under the terms and conditions outlined here and in the attached documents.

 

/s/    Pierre R. Brondeau

Name

  

  

November 4, 2010

Date


Employment Offer and Term Sheet for Mr. Pierre Brondeau

President and Chief Executive Officer, FMC Corporation October 23, 2009

 

 

 

Compensation Elements

  

Terms

 

I. Annual Cash Compensation

 

•   Base Salary

  

 

•   $900,000, reviewed annually beginning
February 2011

•   Target Annual Incentive

  

•   Target: 100% of salary ($900,000)

•   Maximum: 200% of salary

•   Two part plan based on Corporate financial measures and individual annual objectives TBD by the Compensation Committee

Target Annual Cash Compensation

  

•   $1,800,000

II. Long-Term Incentives

  

•   Award size based on performance and market data

•   February 2010 grant date value approximately $2,500.000

•   33.3% stock options

•   33.3% restricted stock units

•   33.3% performance—based cash

•   Stock Options

  

•   2010 option grant based on Black-Scholes value at date of grant

•   3-year cliff vesting

•   Restricted Stock Units

  

•   3-year cliff vesting

•   Performance-Based Cash

  

•   Based on a relative measure of Total Shareholder Return (TSR) versus established peer group of Chemical companies

•   Three-year overlapping performance period

•   Payout determined on point to point measure of TSR

Annualized Value of Long-Term

Incentives at target

  

•   $2,500,000

Annualized target total compensation (excluding benefits and perquisites)

  

•   $4,300,000

 

 

FMC Corporation Confidential - October 23, 2009

  

Page 1


III. Benefits and Perquisites - Current Policy for Senior Executives

 

 

•   Savings and Investment Plan (Qualified 401(k) Plan)

  

•   Pretax and after tax contributions allowed up to IRC earnings and deferral limits

•   Company matches 80% on first 5% of employee contributions

•   Company contributions vest ratably over five year period or at age 55

•   Fidelity Investments serves as the plan administrator—26 investment choices

•   Core Company contributions of an additional 5% of eligible earnings for employees hired after July 1, 2007

 

 

•   Savings and Investment Plan (Nonqualified Defined Contribution Plan)

  

•   Core Company contributions of eligible earnings above IRC earnings limits

•   Salary and Annual Incentive Pay Deferral option (non-matching feature)

•   Voluntary salary deferral in excess of IRC earnings limits—eligible for company match

 

 

•   Financial counseling and tax preparation

  

•   $25,000 annually

 

 

•   Vacation and paid Holidays

  

•   Vacation allowance of 25 days

•   Company observes 11 paid holidays

 

 

•   Use of corporate aircraft

  

•   Available for business use as required

•   Available for person use at employee expense

 

 

•   Country Club Membership

  

•   Company paid membership provided

 

 

IV. Sign-On Compensation Elements

 

•   Restricted Stock Units

  

 

•   $3,000,000 value at date of grant, January 1, 2010 (expected start date)

•   Three-year cliff vesting

 

 

V. Other Considerations

 

•   General Severance and Change-in-Control (CIC) Severance Protection

  

 

•   Severance as described in the offer letter, paid a as lump sum within 30 days of termination

•   Termination, not for cause, occurring after the first year paid as 12 month’s base salary, 12 months annual incentive, at target and continuation of benefits for 12 months

•   Severance upon involuntary or constructive termination within 2 years of a CIC: Terms same as others executive

•   Upon retirement, if age 62 or older and ten years of service, unvested options will vest.

 

 

•   Other Provisions

  

•   Confidentiality, noncompete, and nonsolicitation provisions for one year, as required

 

 

FMC Corporation Confidential - October 23, 2009

  

Page 2


 

Other Items

•   Stock ownership requirements:

•   Current four times base salary

•   Five years to achieve target

•   Restricted shares/units and shares purchased/owned outright or within the Savings and Investment Plan count toward the guideline

 

Annual Incentive

Below are the CEOs performance measures and weightings for the current year.

 

60%

  

40%

 

Net Income from Continuing Operations before Special Charges

  

 

Individual Objectives

Below is a performance and payout matrix of the cash component of the 2009-2011 Long-term Incentive Award.

 

Relative Total Shareholder

Return

Percentile

Ranking

  

% of Target

Earned

> 80th

  

200

 

 

50th

  

100

 

 

>35th

  

50

 

 

FMC Corporation Confidential - October 23, 2009

  

Page 3

 

 

 

EX-10.1 2 d436485dex101.htm AMENDMENT TO OCTOBER 23, 2009 LETTER AGREEMENT

Exhibit 10.1

 

  

FMC Corporation

  

1735 Market Street

  

Philadelphia, PA 19103

  

 

215.299.6000 phone

  

 

www.fmc.com

November 6, 2012

Mr. Pierre Brondeau

[address omitted]

 

Re:

Amendment to Employment Offer Letter

Dear Pierre:

Reference is hereby made to that certain employment offer letter between FMC Corporation (the “Company”) and you dated October 23, 2009 (the “Offer Letter”). The purpose of this letter is to clarify your severance rights under the Offer Letter and to specify the treatment of outstanding long-term incentive awards held by you if your employment ceases under specified circumstances.

The third sentence of the third paragraph of the Offer Letter is hereby replaced with the following:

If you are terminated by the Company without cause, you deliver to the Company a general release of claims against the Company and its affiliates in a form reasonably prescribed by the Company and such release becomes irrevocable within 30 days following such termination: (i) on the first regularly scheduled salaried employee payroll date that occurs at least five days after such release becomes irrevocable, you will receive a lump sum severance payment equal to 24 months of your base salary (at the rate in effect immediately prior to your termination), and (ii) your group medical, dental and life insurance benefits will be continued for 12 months at active employee rates.

The portion of Part V of the exhibit to the Offer Letter entitled “General Severance and Change-in-Control (CIC) Severance Protection” is hereby replaced with the following:

 

V. Other Considerations

 

•          General Severance and Change-in-Control (CIC) Severance Protection

 

•          Severance rights other than in connection with a change-in-control: as described in the offer letter.

 

•          Change in control severance rights to the extent provided in the Executive Severance Agreement between you and the Company .

 

•          Upon resignation after attainment of age 62 with 10 or more years of service, or upon any cessation of employment (other than a termination for cause or resignation at a time when a cause basis for termination exists) after both December 31, 2015 and the approval by the Board of a Definitive Succession Plan:

 

•          outstanding options will vest;

 

•          the post-termination exercise period of your vested options will be extended until the earliest of (i) five

 

 


 

years following your cessation of employment, (ii) the expiration of the full option term, or (iii) any accelerated expiration date contemplated by the applicable equity plan or award agreement (such as in connection with a change in control of the Company or in the event of serious misconduct or prohibited competition);

 

•        outstanding time-vested restricted stock and restricted stock unit awards will vest; and

 

•        provided that you continue to comply with your non-competition and non-solicitation covenants through the end of the applicable performance periods (even if such covenants would not otherwise remain in effect through that time), you will remain eligible to earn a pro-rata portion of outstanding performance-based cash awards based on actual corporate performance through the end of the applicable performance periods.

•       Definitive Succession Plan

 

For this purpose, a Definitive Succession Plan will include the identity of the proposed successor, the timing of succession, any related and material changes in titles, duties or reporting lines for other key personnel and an integration plan for the transition of duties. For avoidance of doubt, while the Board will not delay its approval of a proposed succession plan for the purpose of depriving you of rights otherwise available hereunder, the Board will have sole and absolute discretion regarding whether and when to approve any succession plan.

To confirm your agreement with the foregoing, please execute this letter in the space provided below and return the original to me.

Sincerely,

/s/ Edward J. Mooney

Edward J. Mooney

Lead Director

 

Agreed on this 6th day of November, 2012:

/s/ Pierre R. Brondeau

Pierre R. Brondeau

 

Page 2

 

 

 

EX-10.2 3 d436485dex102.htm AMENDED AND RESTATED EXECUTIVE SEVERANCE AGREEMENT

Exhibit 10.2

FMC Corporation

Amended and Restated

Executive Severance Agreement

THIS AMENDED AND RESTATED EXECUTIVE SEVERANCE AGREEMENT is made and entered into as of the 6th day of November, 2012 (the “Effective Date”) by and between FMC Corporation (hereinafter referred to as the “Company”) andPierre Brondeau (hereinafter referred to as the “Executive”) (the “Agreement”).

WHEREAS, the Executive is currently a party to an Executive Severance Agreement with the Company dated January 1, 2010 (the “Prior Agreement”); and

WHEREAS, the Executive and the Company desire that this Agreement replace and supersede the Prior Agreement and all other prior executive severance agreements with the Company.

NOW THEREFORE, to assure the Company that it will have the continued dedication of the Executive and the availability of the Executive’s service notwithstanding the possibility, threat, or occurrence of a Change in Control of the Company, and to induce the Executive to remain in the employ of the Company, and for other good and valuable consideration, the Company and the Executive agree to the amendment and restatement of the Prior Agreement as follows:

Article 1. Establishment, Term, and Purpose

This Agreement is effective from the Effective Date and will continue in effect until December 31, 2015. On that date, and on each subsequent December 31st, the term of this Agreement will be extended automatically for one (1) additional year, unless the Committee delivers written notice six (6) months prior to such date to the Executive that this Agreement will not be extended. If timely notice not to extend is given, this Agreement will terminate at the end of the term, or extended term, then in progress.

However, in the event a Change in Control occurs during the original or any extended term, this Agreement will remain in effect for the longer of: (i) twenty-four (24) months beyond the end of the month in which such Change in Control occurred; and (ii) until all obligations of the Company hereunder have been fulfilled, and until all benefits required hereunder have been paid to the Executive.

Article 2. Definitions

Whenever used in this Agreement, the following terms will have the meanings set forth below and, when the meaning is intended, the initial letter of the word is capitalized.

2.1. Affiliate means a corporation or other entity controlled by, controlling or under common control with the Company, including, without limitation, any corporation partnership, joint venture or other entity during any period in which at least a fifty percent (50%) voting or profits interest is owned, directly or indirectly, by the Company or any successor to the Company.


2.2. Base Salary means the salary of record paid to an Executive as annual salary, excluding amounts received under incentive or other bonus plans, whether or not deferred.

2.3. Beneficiary means the persons or entities designated or deemed designated by the Executive pursuant to Section 11.2 herein.

2.4. Board means the Board of Directors of the Company.

2.5. Cause means:

(a) the Executive’s Willful and continued failure to substantially perform the Executive’s employment duties in any material respect (other than any such failure resulting from physical or mental incapacity or occurring after issuance by the Executive of a Notice of Termination for Good Reason), after a written demand for substantial performance is delivered to the Executive that specifically identifies the manner in which the Company believes the Executive has failed to perform the Executive’s duties, and after the Executive has failed to resume substantial performance of the Executive’s duties on a continuous basis within thirty (30) calendar days of receiving such demand;

(b) the Executive’s Willfully engaging in conduct (other than conduct covered under (a) above) which is demonstrably and materially injurious to the Company or an Affiliate; or

(c) the Executive’s having been convicted of, or pleading guilty or nolo contendere to, a felony under federal or state law on or prior to a Change in Control.

2.6. Change in Control means the happening of any of the following events:

(a) An acquisition by any Person of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or more of either (i) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); excluding, however, the following: (A) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted was itself acquired directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company, or (D) any acquisition pursuant to a transaction which complies with Subsections (i), (ii) and (iii) of Subsection (c) of this Section 2.6;

(b) A change in the composition of the Board such that the individuals who, as of the Effective Date, constitute the Board (such Board will be hereinafter referred to as the “Incumbent Board”) cease for any reason to constitute at least a majority of the

 

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Board; provided, however, for purposes of this Section 2.6, that any individual who becomes a member of the Board subsequent to the Effective Date, whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) will be considered as though such individual were a member of the Incumbent Board; but, provided further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board will not be so considered as a member of the Incumbent Board;

(c) Consummation of a reorganization, merger or consolidation, sale or other disposition of all or substantially all of the assets of the Company, or acquisition by the Company of the assets or stock of another entity (“Corporate Transaction”); excluding, however, such a Corporate Transaction pursuant to which (i) all or substantially all of the individuals and entities who are the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Corporate Transaction will beneficially own, directly or indirectly, more than sixty percent (60%) of, respectively, the outstanding shares of common stock, and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Corporate Transaction (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (ii) no Person (other than the Company, any employee benefit plan (or related trust) of the Company or such corporation resulting from such Corporate Transaction) will beneficially own, directly or indirectly, twenty percent (20%) or more of, respectively, the outstanding shares of common stock of the corporation resulting from such Corporate Transaction or the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors except to the extent that such ownership existed prior to the Corporate Transaction, and (iii) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of directors of the corporation resulting from such Corporate Transaction; or

(d) The approval by the stockholders of the Company of a complete liquidation or dissolution of the Company.

2.7. Code means the Internal Revenue Code of 1986, as amended from time to time, and any successor thereto.

2.8. Committee means the Compensation and Organization Committee of the Board or any other committee of the Board appointed to perform the functions of the Compensation and Organization Committee.

 

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2.9. Company means FMC Corporation, a Delaware corporation, or any successor thereto as provided in Article 10 herein.

2.10. Date of Separation from Service means the date on which a Qualifying Termination occurs.

2.11. Disability means complete and permanent inability by reason of illness or accident to perform the duties of the occupation at which the Executive was employed when such disability commenced.

2.12. Exchange Act means the Securities Exchange Act of 1934, as amended from time to time, and any successor thereto.

2.13. Good Reason means, without the Executive’s express written consent, the occurrence of any one or more of the following:

(a) The assignment of the Executive to duties materially inconsistent with the Executive’s authorities, duties, responsibilities and status (including, without limitation, offices, titles and reporting requirements) as an employee of the Company (including, without limitation, any material change in duties or status as a result of the stock of the Company ceasing to be publicly traded or of the Company becoming a subsidiary of another entity), or a reduction or alteration in the nature or status of the Executive’s authorities, duties, or responsibilities from the greatest of those in effect (i) immediately preceding the Company’s entry into any definitive agreement to conduct the Change in Control, or (ii) immediately preceding the Change in Control;

(b) The Company’s requiring the Executive to be based at a location which is at least fifty (50) miles further from the Executive’s then current primary residence than such residence is from the office where the Executive is located at the time of the Change in Control, except for required travel on the Company’s business to an extent substantially consistent with the Executive’s business obligations;

(c) A reduction by the Company in the Executive’s Base Salary;

(d) A material reduction in the Executive’s level of participation in any of the Company’s short- and/or long-term incentive compensation plans, or employee benefit or retirement plans, policies, practices, or arrangements in which the Executive participates from the greatest of the levels in place: (i) immediately preceding the Company’s entry into any definitive agreement to conduct the Change in Control, or (ii) immediately preceding the Change in Control;

(e) The failure of the Company to obtain a satisfactory agreement from any successor to the Company to assume and agree to perform this Agreement, as contemplated in Article 10 herein.

provided that any such event shall constitute Good Reason only if Executive notifies the Company in writing of such event within 90 days following the initial occurrence thereof, the Company fails to cure such event within 30 days after receipt from Executive of written notice thereof, and Executive resigns his employment within two years following the initial occurrence of such event.

 

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The existence of Good Reason will not be affected by the Executive’s temporary incapacity due to physical or mental illness not constituting a Disability.

2.14. Notice of Termination means a written notice which indicates the specific termination provision in this Agreement relied upon, and sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated.

2.15. Person has the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as provided in Section 13(d).

2.16. Qualifying Termination means any of the events described in Section 3.2 herein, the occurrence of which triggers the payment of Severance Benefits hereunder.

2.17. Separation from Service means the Executive’s termination of employment with the Company, its Affiliates and with each member of the controlled group (within the meaning of Sections 414(b) or (c) of the Code) of which the Company is a member. An Executive will not be treated as having a Separation from Service during any period the Executive’s employment relationship continues, such as a result of a leave of absence, and whether a Separation from Service has occurred shall be determined by the Committee (on a basis consistent with rules under Section 409A) after consideration of all the facts and circumstances, including whether either no further services are to be performed or there is a reasonably anticipated permanent and substantial decrease (e.g., 80% or more) in the level of services to be performed (and the related amount of compensation to be received for such services) below the level of services previously performed (and compensation previously received).

2.18. Severance Benefits means the payment of severance compensation as provided in Section 3.3 herein.

2.19. Trust means the Company grantor trust described in Article 6 of this Agreement.

2.20. Willful means any act or omission by the Executive that was in good faith and with a reasonable belief that the action or omission was in the best interests of the Company or its affiliates. Any act or omission based upon authority given pursuant to a duly adopted Board resolution, or, upon the instructions of any senior officer of the Company, or based upon the advice of counsel for the Company will be conclusively presumed to be taken or omitted by the Executive in good faith and in the best interests of the Company and/or its affiliates.

Article 3. Severance Benefits

3.1. Right to Severance Benefits. The Executive will be entitled to receive the Severance Benefits from the Company if a Qualifying Termination occurs after a Change in Control and before the end of the twenty-fourth (24th) calendar month following the end of the month in which the Change in Control occurs.

 

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The Executive will not be entitled to receive Severance Benefits if the Executive’s employment is terminated (i) for Cause, (ii) due to a voluntary termination without Good Reason, or (iii) due to death or Disability.

3.2. Qualifying Termination. A Qualifying Termination shall occur if:

(a) The Executive incurs a Separation from Service because of an involuntary termination of the Executive’s employment by the Company for reasons other than Cause, Disability or death; or

(b) The Executive incurs a Separation from Service because of a voluntary termination by the Executive for Good Reason pursuant to a Notice of Termination delivered to the Company by the Executive.

3.3. Description of Severance Benefits. In the event the Executive becomes entitled to receive Severance Benefits, as provided in Sections 3.1 and 3.2 herein, the Company will pay to the Executive (or in the event of the Executive’s death, the Executive’s Beneficiary) and provide him with the following at the time or times provided in Section 4.1 herein:

(a) An amount equal to three (3) times the highest rate of the Executive’s annualized Base Salary in effect at any time up to and including the Date of Separation from Service.

(b) An amount equal to three (3) times the Executive’s highest annualized target Management Incentive Award granted under the FMC Corporation Incentive Compensation and Stock Plan for any plan year up to and including the plan year in which the Executive’s Date of Separation from Service occurs.

(c) An amount equal to the Executive’s unpaid Base Salary, and unused and accrued vacation pay, earned or accrued through the Date of Separation from Service.

(d) Any Management Incentive Award otherwise payable (but for Executive’s separation) for the plan year in which the Executive’s Date of Separation from Service occurred, prorated through the Date of Separation from Service.

(e) A continuation of the Company’s welfare benefits of life and accidental death and dismemberment, and disability insurance coverage for three (3) full years after the Date of Separation from Service. These benefits will be provided to the Executive (and to the Executive’s covered spouse and dependents) at the same premium cost, and at the same coverage level, as in effect as of the date of the Change in Control. The continuation of these welfare benefits will be discontinued prior to the end of the three (3) year period if the Executive has available substantially similar benefits at a comparable cost from a subsequent employer, as determined by the Committee.

(f) For a period of three (3) full years following the Date of Separation from Service, the Company shall provide medical insurance for the Executive (and the Executive’s covered spouse and dependents) at the same premium cost, and at the same coverage level, as in effect as of the date of the Change in Control. The continuation of

 

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this medical insurance will be discontinued prior to the end of the three (3) year period if the Executive has available substantially similar medical insurance at a comparable cost from a subsequent employer, as determined by the Committee. The date that medical benefits provided in this paragraph cease to be provided under this paragraph will be the date of the Executive’s qualifying event for continuation coverage purposes under Code Section 4980B(f)(3)(B).

Awards granted under the FMC Corporation Incentive Compensation and Stock Plan, and other incentive arrangements adopted by the Company will be treated pursuant to the terms of the applicable plan.

The aggregate benefits accrued by the Executive as of the Date of Separation from Service under the FMC Corporation Salaried Employees’ Retirement Program, the FMC Corporation Savings and Investment Plan, the FMC Corporation Salaried Employees’ Equivalent Retirement Plan, the FMC Corporation Non-Qualified Savings and Investment Plan and other savings and retirement plans sponsored by the Company will be distributed pursuant to the terms of the applicable plan.

In addition, for purposes of benefit calculation only under the Company’s nonqualified retirement plans with respect to benefits that have not been paid prior to such Change in Control, it will be assumed that the Executive’s employment continued following the Date of Separation from Service for three (3) full years (i.e., three (3) additional years of age and service credits will be added); provided, however, that for purposes of determining “final average pay” under such programs, the Executive’s actual pay history as of the Date of Separation from Service will be used.

3.4. Termination for Disability. If the Executive’s employment is terminated due to Disability, the Executive will receive the Executive’s Base Salary through the Date of Separation from Service, and the Executive’s benefits will be determined in accordance with the Company’s disability, retirement, survivor’s benefits, insurance and other applicable plans and programs then in effect. If the Executive’s employment is terminated due to Disability, he will not be entitled to the Severance Benefits described in Section 3.3.

3.5. Termination upon Death. If the Executive’s employment is terminated due to death, the Executive’s benefits will be determined in accordance with the Company’s retirement, survivor’s benefits, insurance and other applicable programs of the Company then in effect. If the Executive’s employment is terminated due to death, neither the Executive’s estate nor the Executive’s Beneficiary will be entitled to the Severance Benefits described in Section 3.3.

3.6. Termination for Cause, or Other Than for Good Reason. Following a Change in Control of the Company, if the Executive’s employment is terminated either: (a) by the Company for Cause; or (b) by the Executive (other than for Good Reason), the Company will pay the Executive an amount equal to the Executive’s Base Salary and accrued vacation through the Date of Separation from Service, at the rate then in effect, plus all other amounts to which the Executive is entitled under any plans of the Company, at the time such payments are due and the Company will have no further obligations to the Executive under this Agreement.

 

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3.7. Notice of Termination. Any termination of employment by the Company or by the Executive for Good Reason will be communicated by a Notice of Termination.

Article 4. Form and Timing of Severance Benefits

4.1. Form and Timing. Subject to Section 4.2 and 5.3:

(a) the amounts payable under Sections 3.3(a), (b) and (c) will be paid in a lump sum on the 31st day following the Termination Date;

(b) the amount payable under Section 3.3(d) will be paid in a lump sum at the same time that Management Incentive Awards are paid to employees generally for the year in which the Executive’s Separation from Service occurs, but in no event later than 2  1/2 months following the end of that year; and

(c) the benefits due under Sections 3.3(e) and 3.3(f) will continue uninterrupted following the Executive’s Separation from Service (but will be discontinued if the requirements of Section 4.2 are not timely satisfied).

4.2. Release. All rights, payments and benefits due to the Executive under Section 3.3 (other than Section 3.3(c)) shall be conditioned on the Executive’s execution of a general release of claims against the Company and its affiliates in a form reasonably prescribed by the Company and on that release becoming irrevocable within 30 days following the Termination Date.

Article 5. Taxes and Tax Compliance

5.1. Withholding of Taxes. The Company will be entitled to withhold from any amounts payable under this Agreement all taxes as it may believe are reasonably required to be withheld (including, without limitation, any United States federal taxes and any other state, city, or local taxes).

5.2. Section 409A Compliance. Notwithstanding any other provision of this Agreement to the contrary, any payment that constitutes the deferral of compensation (within the meaning of Treas. Reg. § 1.409A-1(b)) that is otherwise required to be made to the Executive prior to the day after the date that is six months from the Date of Separation from Service shall be accumulated, deferred and paid in a lump sum to the Executive (with interest on the amount deferred from the Date of Separation from Service until the day prior to the actual payment at the federal short-term rate on the Date of Separation from Service) on the day after the date that is six months from the Date of Separation from Service; provided, however, if Executive dies prior to the expiration of such six month period, payment to the Executive’s Beneficiary shall be made as soon as practicable following the Executive’s death. Any reimbursements or in-kind benefits that constitute a deferral of compensation (within the meaning of Treas. Reg. § 1.409A-1(b)) will be provided subject to the requirements of Treas. Reg. §§ 1.409A-3(i)(1)(iv)(A)(3), (4) and (5).

 

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Article 6. Establishment of Trust

The Company has created a domestic Trust (which will be a grantor trust within the meaning of Sections 671-678 of the Code) for the benefit of the Executive and Beneficiaries. The Trust has a Trustee selected by the Company, and has certain restrictions as to the Company’s ability to amend the Trust or cancel benefits provided thereunder. Any assets contained in the Trust will, at all times, be specifically subject to the claims of the Company’s general creditors in the event of bankruptcy or insolvency.

At any time following the Effective Date hereof, the Company may, but is not obligated to, deposit assets in the Trust in an amount equal to or less than the aggregate Severance Benefits which may become due to the Executive under Sections 3.3 (a), (b), (c) and (d) of this Agreement.

As soon as practicable after the Company has knowledge that a Change in Control is imminent, but no later than the day immediately preceding the date of the Change in Control, the Company will deposit assets in such Trust in an amount equal to the estimated aggregate Severance Benefits which may become due to the Executive under Sections 3.3 (a), (b), (c) and (d) of this Agreement. Such deposited amounts will be reviewed and increased, if necessary, every six (6) months following a Change in Control to reflect the Executive’s estimated aggregate Severance Benefits at such time.

Article 7. The Company’s Payment Obligation

The Company’s obligation to make the payments and the arrangements provided for herein will be absolute and unconditional, and will not be affected by any circumstances, including, without limitation, any offset, counterclaim, recoupment, defense, or other right which the Company may have against the Executive or anyone else. All amounts payable by the Company hereunder will be paid without notice or demand. Each and every payment made hereunder by the Company will be final, and the Company will not seek to recover all or any part of such payment from the Executive or from whomsoever may be entitled thereto, for any reasons whatsoever.

The Executive will not be obligated to seek other employment in mitigation of the amounts payable or arrangements made under any provision of this Agreement, and the obtaining of any such other employment will in no event effect any reduction of the Company’s obligations to make the payments and arrangements required to be made under this Agreement, except to the extent provided in Sections 3.3(e) and (f) herein. Notwithstanding anything in this Agreement to the contrary, if Severance Benefits are paid under this Agreement, no severance benefits under any program of the Company, other than benefits described in this Agreement, will be paid to the Executive.

Article 8. Fees and Expenses

To the extent permitted by law, the Company will pay as incurred (within ten (10) days following receipt of an invoice from the Executive) all legal fees, costs of litigation, prejudgment interest, and other expenses incurred in good faith by the Executive as a result of the Company’s refusal to provide the Severance Benefits to which the Executive becomes entitled under this Agreement, or as a result of the Company’s contesting the validity, enforceability, or

 

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interpretation of this Agreement, or as a result of any conflict between the parties pertaining to this Agreement; provided, however, that the Company will reimburse the Executive only for such expenses arising out of litigation commenced within three years following the Executive’s Separation from Service. Notwithstanding any other provision in this Article 8, the Company will reimburse the Executive only for expenses incurred prior to the end of the fifth year following the Executive’s Separation from Service.

Article 9. Outplacement Assistance

Following a Qualifying Termination (as described in Section 3.2 herein), the Executive will be reimbursed by the Company for the costs of all reasonable outplacement services obtained by the Executive within the two (2) year period after the Date of Separation from Service; provided, however, that reimbursements must be made by the end of the third year following the Date of Separation from Service and the total reimbursement for such outplacement services will be limited to an amount equal to fifteen percent (15%) of the Executive’s Base Salary as of the Date of Separation from Service.

Article 10. Successors and Assignment

10.1. Successors to the Company. The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) of all or substantially all of the business and/or assets of the Company or of any division or subsidiary thereof to expressly assume and agree to perform the Company’s obligations under this Agreement in the same manner and to the same extent that the Company would be required to perform them if no such succession had taken place.

10.2. Assignment by the Executive. This Agreement will inure to the benefit of and be enforceable by the Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees, and legatees. If the Executive dies while any amount would still be payable to him hereunder had he continued to live, all such amounts, unless otherwise provided herein, will be paid in accordance with the terms of this Agreement to the Executive’s Beneficiary. If the Executive has not named a Beneficiary, then such amounts will be paid to the Executive’s devisee, legatee, or other designee, or if there is no such designee, to the Executive’s estate, and such designee, or the Executive’s estate will be treated as the Beneficiary hereunder.

Article 11. Miscellaneous

11.1. Employment Status. Except as may be provided under any other agreement between the Executive and the Company, the employment of the Executive by the Company is “at will,” and may be terminated by either the Executive or the Company at any time, subject to applicable law.

11.2. Beneficiaries. The Executive may designate one or more persons or entities as the primary and/or contingent Beneficiaries of any Severance Benefits owing to the Executive under this Agreement. Such designation must be in the form of a signed writing acceptable to the Committee. The Executive may make or change such designations at any time.

 

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11.3. Severability. In the event any provision of this Agreement will be held illegal or invalid for any reason, the illegality or invalidity will not affect the remaining parts of the Agreement, and the Agreement will be construed and enforced as if the illegal or invalid provision had not been included. Further, the captions of this Agreement are not part of the provisions hereof and will have no force and effect.

11.4. Modification. No provision of this Agreement may be modified, waived, or discharged unless such modification, waiver, or discharge is agreed to in writing and signed by the Executive and by an authorized member of the Committee, or by the respective parties’ legal representatives and successors.

11.5. Applicable Law. To the extent not preempted by the laws of the United States, the laws of the state of Delaware will be the controlling law in all matters relating to this Agreement.

11.6. Indemnification. To the full extent permitted by law, the Company will, both during and after the period of the Executive’s employment, indemnify the Executive (including by advancing him expenses) for any judgments, fines, amounts paid in settlement and reasonable expenses, including any attorneys’ fees, incurred by the Executive in connection with the defense of any lawsuit or other claim to which he is made a party by reason of being (or having been) an officer, director or employee of the Company or any of its subsidiaries. The Executive will be covered by director and officer liability insurance to the maximum extent that that insurance covers any officer or director (or former officer or director) of the Company.

IN WITNESS WHEREOF, the parties have executed this amended and restated Agreement on this 6th day of November, 2012.

 

FMC Corporation

 

 

Executive:

By:

 

/s/ Kenneth R. Garrett

 

 

/s/ Pierre Brondeau

 

Kenneth R. Garrett

 

 

Its:

 

Executive Vice President

 

 

 

Human Resources

 

 

 

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