Pennsylvania | 1-5318 | 25-0900168 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||
600 Grant Street Suite 5100 Pittsburgh, Pennsylvania | 15219-2706 | |||
(Address of Principal Executive Offices) | (Zip Code) |
• | Annual base salary of $850,000 |
• | Cash signing bonus of $500,000, to be repaid in full if Mr. Rossi voluntarily resigns or is terminated for cause from the Company on or before August 1, 2018. |
• | Participation in the Company’s Annual Incentive Plan with a target bonus for fiscal year 2018 of 120% of annual base salary. |
• | On August 1, 2017, subject to Board approval, Mr. Rossi will be eligible to receive a long-term incentive grant of $2,700,000, consisting of 60% Performance Stock Units (PSU’s) and 40% Time Vesting Restricted Stock Units (RSU’s). PSU’s cliff vest after 3 years and are subject to achievement of company performance goals in each of the 3 fiscal years in the term, and RSU’s vest over a three-year period, with one-third vesting on each anniversary date of the grant. Long term incentive grants will be made under the terms of the Kennametal Inc. 2016 Stock and Incentive Plan. |
• | Relocation assistance under the Company's relocation policy. |
• | Participation in all general employee benefit plans and programs as well as participation in any plans and programs for executives. |
• | While Mr. Rossi serves as President and Chief Executive Officer, he will not sit on any Board committees or receive any additional compensation for his Board service. |
• | General. Mr. Rossi will be required to devote his entire time and attention to the business and affairs of Kennametal while he is employed. |
• | Term. There is no predetermined term. |
• | Non-competition/non-disclosure. Unless Kennametal provides prior consent in writing, if Mr. Rossi voluntarily terminates his employment or if Kennametal terminates his employment for cause, then for two years after the date of termination, Mr. Rossi cannot, in any geographic area in which Kennametal is offering its services and products: (a) directly or indirectly engage in; or (b) assist or have an active interest in; or (c) enter the employ of, or act as agent for, or advisor or consultant to, any entity which is or is about to become directly or indirectly engaged in any business that is competitive with any business of the Company or any of its subsidiaries or affiliates in which the executive is or was engaged. The non-competition provisions do not apply if Kennametal terminates Mr. Rossi without cause. However, in case of termination for any reason, Mr. Rossi cannot disclose any of Kennametal’s confidential or trade secret information. |
• | Assignment of Inventions. Mr. Rossi must assign to Kennametal all inventions conceived or made during his employment with Kennametal. |
• | Termination. Mr. Rossi’s employment may be terminated by either party at any time, for any reason or no reason at all; provided, that the Company may only terminate Mr. Rossi’s employment with the approval and authorization of the Board. |
• | Severance. If, with Board authorization, Kennametal involuntarily terminates Mr. Rossi’s employment prior to a change in control and not for cause, he will be entitled to 24 months of severance in the form of salary continuation. |
• | Change in Control. The agreement provides for payments to Mr. Rossi if he resigns for good reason or if he is terminated by the Company without cause within six months prior to a change in control of the Company, or within 24 months following a change in control of the Company. In this event, he will receive a payment equal to two times his base salary and two times his target bonus. |
• | Annual base salary of $700,000, to be prorated based on actual days served in his new position. |
• | Participation in the Company’s Annual Incentive Plan with a target bonus of 140% of annual base salary, to be prorated based on time in position. |
• | Upon his termination, vesting of all grants awarded as to him for his service as President and Chief Executive Officer. |
• | Upon his retirement from the board, vesting of all equity awarded to him for his service as a Director. |
10.1 | Form of Letter Agreement with Mr. De Feo dated August 1, 2017 | Filed herewith. | ||
99.1 | Press Release dated June 29, 2017 | Filed herewith. |
KENNAMETAL INC. | ||||||||
Date: June 29, 2017 | By: | /s/ Michelle R. Keating | ||||||
Michelle R. Keating | ||||||||
Vice President, Secretary and General Counsel |
Very truly yours, | ||||
Kennametal Inc. | ||||
By: | ||||
Title: | Lead Independent Director | |||
ACCEPTED AND AGREED: | ||||
By: | Ronald M. DeFeo | |||
Date: |
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