EMPLOYMENT AGREEMENT
AGREEMENT, dated as of December 18,1996, by and between Wells Aluminum
Corporation, a Maryland corporation (the "Corporation"), and David J. Raymonda
(the "Executive"), residing at 1106 Glastonbury Way, Bel Air, Maryland 21014.
WITNESSETH:
WHEREAS, the Corporation desires to employ the Executive and the Executive
is willing to accept such employment with the Corporation, on the terms and
conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the parties hereto do hereby agree as follows:
1. Title and Duties of Executive. (a) During the term of his employment as
provided in Section 3 below, the Executive will be employed as Controller and
Treasurer of the Corporation, and the Executive agrees to be employed in such
capacities. In these capacities, the Executive will be subject to the overall
supervision of the Senior Vice Vice President and Chief Financial Officer of the
Corporation. In no event shall the Executive be assigned duties inconsistent
with his status as an executive officer of the Corporation.
(b) The Executive agrees to devote his full business time and his best
efforts to the performance of his duties
hereunder and to the promotion of the best interests of the Corporation. The
Executive further agrees to normal and reasonable business travel related to the
performance of his duties hereunder.
2. Place of Employment. The permanent place of the Executive's employment
shall be the Baltimore, Maryland area. If at any time the Board of Directors
shall determine it to be in the best interests of the Corporation for the
Executive to be relocated and the Executive, in the exercise of his sole
discretion, shall so elect, he may be relocated, provided that the Corporation
shall reimburse the Executive's reasonable expenses incurred in moving himself
and his immediate family.
3. Term of Agreement. The Employment of the Executive hereunder shall
commence on December 18, 1996 and shall continue through December 31, 1998,
unless a Change in Ownership has occurred in which case the term of this
Agreement shall extend two (2) years from the date of notification of a Change
in Ownership to the Executive, unless sooner terminated by the Executive's death
or as hereinafter provided in Section 6 below.
4. Compensation. (a) The Corporation agrees to pay the Executive a salary,
payable semi-monthly, at the rate of $80,880 per annum, which salary shall be
subject to increase pursuant to review at least annually.
(b) The Executive shall also be entitled to participate in any
executive incentive compensation or bonus
programs of the Corporation each year he is employed by the
Corporation.
5. Benefits and Expenses. (a) During the term of the Executive's employment
hereunder, the Executive shall, subject to the terms thereof and the eligibility
requirements therefor, be eligible to participate in any insurance, pension,
retirement or other benefit program maintained by the Corporation for executive
employees.
(b) In order to facilitate the Executive's carrying out his duties
hereunder, the Corporation shall promptly reimburse the Executive for all
reasonable expenses paid or incurred by him in promoting the business of the
Corporation, upon presentation by the Executive of an itemized accounting
therefor.
6. Termination. (a) In the event of the Executive's willful misconduct (not
including negligence) in any material respect or his material breach of, or
material failure to perform, his duties or responsibilities hereunder, the
Corporation may terminate the Executive's employment hereunder at any time for
cause by giving written notice to the Executive stating the cause of such
termination. In no event shall the Executive's exercise of his rights under
Section 2 not to relocate be deemed to permit the Corporation to terminate his
employment under this Subsection 6(a).
(b) If the Executive is unable to perform his duties hereunder by
reason of mental or physical illness or other
incapacity continuing for a period of six (6) consecutive months, the
Corporation may, at any time after the expiration of such six month period and
prior to his recovery from such illness or incapacity, elect to terminate the
Executive's employment hereunder by giving written notice of such election to
the Executive. During such period of incapacity, the Executive's salary
hereunder shall be reduced by the amount of any disability payments made to him
under programs maintained by the Corporation.
(c) If the Executive's employment is terminated by the Corporation for
any reason other than as provided in Subsection 6(a) or 6(b), the Executive's
salary shall continue through the term of this Agreement. The obligation of the
Corporation to continue salary pursuant hereto is subject to offset for the
Executive's earnings from other full-time employment.
(d) If the Executive's employment is terminated by the Corporation for
any reason other than as provided in Subsections 6(a) or 6(b), the Corporation
shall also maintain in force the benefits referred to in Subsection 5(a) for six
(6) months after termination, to the extent allowed by the then existing benefit
plans of the Corporation.
(e) The Executive may terminate his employment hereunder at any time
by giving the Corporation ninety (90) days written notice.
7. Change in Ownership. In the event that the Corporation shall at any time
be merged or consolidated with or into any corporation or corporations (other
than a subsidiary of the Corporation), or in the event that all or substantially
all of the assets or all or substantially all of the stock of the Corporation
shall be sold or otherwise transferred, or in the event that The Fulcrum III
Limited Partnerships (or, upon distribution, their partners) shall sell,
transfer or otherwise dispose of an aggregate of 80% or more of the shares of
common stock of the Corporation acquired by Fulcrum pursuant to that certain
Stock Subscription Agreement dated as of June 30, 1987 (any of the foregoing
events, a "Change in Ownership"), the Corporation shall give the Executive
prompt written notice of such event, and the term of this Agreement shall be
automatically extended for the period two (2) years after the date of such
notification.
(b) In the event of a Change in Ownership, the provisions of this
Agreement shall inure to the benefit of the successor of the Corporation
resulting from such merger or consolidation or the purchaser in such sale of
assets.
8. Confidential Information. (a) The Executive agrees that, during his
employment by the Corporation and at all times thereafter, he will not disclose
to others, directly
or indirectly, any unpublished confidential information, which is in the nature
of trade secrets, relating to the business, prospects or plans of the
Corporation. Upon termination of his employment with the Corporation, the
Executive shall surrender to the Corporation any and all work papers, reports,
manuals, documents and the like (including all originals and copies thereof in
his possession which contain any such unpublished confidential information.
(b) The Executive agrees that, provided he is still employed by the
Corporation or is receiving payments pursuant to Subsection 6(c) above, he will
not directly or indirectly be engaged in the operation or management of, or be
interested as owner, holder of 5% or more of the outstanding equity, creditor,
partner, officer, employee or otherwise in, any business competing with the
business of the Corporation; provided, however, that nothing contained herein
shall prevent the Executive from working for a business or entity which has a
subsidiary, division or separate branch which is competitive with the business
of the Corporation, but only if the Executive does not work for, participate in
or otherwise render services to such competitive subsidiary, division or branch;
and provided, further, that the Executive may elect to terminate his obligations
under this Subsection 8(b) by
waiving, irrevocably and in writing, any right to further compensation, benefits
or any other claim under this Agreement against the Corporation and the
directors, officers and employees of the Corporation.
(c) The Executive agrees that he will not, for a three (3) year period
following the date of the termination of his employment under this Agreement,
solicit or encourage any employee of the Corporation to work for the Executive
or any company, partnership or other organization in which the Executive then
works or with which the Executive then has a relationship or from which the
Executive then receives compensation.
(d) In the event of a breach or threatened breach of the terms of this
Section 6 by the Executive, the Corporation shall, in addition to all other
remedies, be entitled to a temporary or permanent injunction and/or a decree for
specific performance, in accordance with the provisions hereof, without showing
any actual damage or that monetary damagers would not provide an adequate remedy
and without any bond or other security being required.
9. Notices. Any and all notices or consents required or permitted to be
given under any of the provisions
of this Agreement shall be in writing and shall be deemed to have been duly
given and received when delivered personally or three (3) days after mailing, if
mailed by registered or certified mail, return receipt requested, as to the
Executive, at his address appearing above, and as to the Corporation, at its
principal office at that time. The Executive may change his mailing address for
the purposes of this Agreement by notice to the Corporation as herein provided.
10. Authority. This Agreement has been duly authorized on behalf of the
Corporation by its Board of Directors. The Executive represents that he is free
to enter into this Agreement and that his entering into this Agreement does not
violate any obligation that he has to any other person, firm or corporation.
11. Separability. In the event that any provision of this Agreement would
be held invalid or unenforceable for any reason unless narrowed by construction,
this Agreement shall be construed as if such invalid or unenforceable provision
had been more narrowly drawn so as not to be invalid or unenforceable. If,
notwithstanding the foregoing, any provision of this Agreement shall be held to
be invalid or unenforceable for any reason, such invalidity or unenforceability
shall attach only to such provision and shall
not affect or render invalid or unenforceable any other provision of this
Agreement.
12. Miscellaneous. (a) This Agreement sets forth the entire understanding
of the Corporation and the Executive with respect to the subject matter hereof
and cannot be amended or modified except by a writing signed by both parties.
(b) Except as otherwise expressly provided herein, this Agreement
shall be binding upon and inure to the benefit of the parties hereto, and their
respective successors and assigns, heirs and personal representatives.
(c) The Section headings contained herein are for purposes of
convenience only and are not intended to define or limit the contents of said
Sections.
(d) This Agreement shall be deemed to be a contract under the laws of
the State of Maryland and shall be construed and enforced in accordance with
such laws.
(e) This Agreement may be executed in two counterparts which, taken
together, shall constitute a single original document.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.
WELLS ALUMINUM CORPORATION:
By: /s/
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EXECUTIVE:
/s/ David J. Raymonda
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David J. Raymonda