SEQUA CORP /DE/
EMPLOYMENT AGREEMENT BETWEEN JOANNE M. O'SULLIVAN AND SEQUA
<DOCUMENT>
<TYPE>EX-10.35
<SEQUENCE>4
<FILENAME>exh10-35.htm
<DESCRIPTION>EMPLOYMENT AGREEMENT BETWEEN JOANNE M. O'SULLIVAN AND SEQUA
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<TITLE>As of March 1, 2003</TITLE>
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<FONT SIZE=3><P ALIGN="JUSTIFY">As of March 1, 2003</FONT></TD>
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<FONT SIZE=3><P>Ms. Joanne M. O'Sullivan</FONT></TD>
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<FONT SIZE=3><P>228 Howland Avenue</FONT></TD>
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<FONT SIZE=3><P>River Edge, NJ 07661</FONT></TD>
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<FONT SIZE=3><P>Dear Joanne:</FONT></TD>
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<FONT SIZE=3><P ALIGN="JUSTIFY">This letter, when signed by both of us, sets forth the terms and conditions upon which you </FONT></TD>
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<FONT SIZE=3><P ALIGN="JUSTIFY">will continue to be employed by Sequa Corporation (the "Company"), as follows:</FONT></TD>
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<FONT SIZE=3><P ALIGN="JUSTIFY">1.</FONT></TD>
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<FONT SIZE=3><P ALIGN="JUSTIFY">During the term of your employment hereunder, you will work for the Company in an executive</FONT></TD>
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<FONT SIZE=3><P ALIGN="JUSTIFY">capacity.  You will report to the Senior Vice President, Finance of the Company and/or to any other individuals designated from time to time by the Company's Board of Directors (the "Board") or by the management executive committee of the Company and perform such duties as the person to whom you report may assign to you from time to time.  Your title initially shall be Vice President and Controller of the Company and may be changed from time to time as may be determined by the Board in its sole discretion.  You will devote your full attention and expend your best efforts, energies and skills on an exclusive and full-time basis, to the business of the Company.  The place of employment is Hackensack, New Jersey, or any other location of the principal office of the Company.</FONT></TD>
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<FONT SIZE=3><P ALIGN="JUSTIFY">2.</FONT></TD>
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<FONT SIZE=3><P ALIGN="JUSTIFY">In full consideration for all of the services to be rendered by you under this Agreement, the</FONT></TD>
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<FONT SIZE=3><P ALIGN="JUSTIFY">Company will pay to you a minimum base salary at the rate of $160,082 per year during the term of your employment hereunder, payable in equal bi-weekly installments. Your base salary may be increased on an annual basis during the term of your employment hereunder, at the sole discretion of the Board, taking into account, among other things, individual performance and general business conditions.  Based upon your performance and at the sole discretion of the Board, you will also be entitled to share in any incentive bonus which the Board decides to pay its executive officers.</FONT></TD>
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<FONT SIZE=3><P ALIGN="JUSTIFY">3.</FONT></TD>
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<FONT SIZE=3><P ALIGN="JUSTIFY">In addition to the foregoing compensation, you shall be entitled, during the term of your</FONT></TD>
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<FONT SIZE=3><P ALIGN="JUSTIFY">employment hereunder, to the following:</FONT></TD>
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<FONT SIZE=3><P>(a)</FONT></TD>
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<FONT SIZE=3><P>the use of a Company-leased car in accordance with Company policy generally applicable</FONT></TD>
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<FONT SIZE=3><P>to its executive officers;</FONT></TD>
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<FONT SIZE=3><P>(b)</FONT></TD>
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<FONT SIZE=3><P>to participate in the same retirement, medical, dental, insurance and other similar plans </FONT></TD>
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<FONT SIZE=3><P>and programs that are generally provided by the Company to its employees, in each case in accordance with the terms and subject to the conditions of such plans and programs as in effect from time to time hereafter (including deduction by the Company from your compensation of such amounts as may be necessary for the maintenance of such coverage);</FONT></TD>
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<FONT SIZE=3><P>(c)</FONT></TD>
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<FONT SIZE=3><P>paid vacation and holidays in accordance with Company policy generally applicable </FONT></TD>
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<FONT SIZE=3><P>to its executive officers; and</FONT></TD>
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<FONT SIZE=3><P>(d)</FONT></TD>
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<FONT SIZE=3><P>reimbursement for all authorized and reasonable travel, entertainment and other </FONT></TD>
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<FONT SIZE=3><P>expenses paid or incurred by you in the performance of your business obligations hereunder, upon presentation of receipts or other appropriate evidence of such expenses as the Company may request from time to time.</FONT></TD>
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<FONT SIZE=3><P>4.</FONT></TD>
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<FONT SIZE=3><P>All of the foregoing compensation and benefits shall be subject to the payment by you of </FONT></TD>
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<FONT SIZE=3><P>applicable federal, state and local taxes and the withholding of such taxes by the Company as may be required by applicable laws.</FONT></TD>
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<FONT SIZE=3><P>5.</FONT></TD>
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<FONT SIZE=3><P>(a)</FONT></TD>
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<FONT SIZE=3><P>The term of your employment hereunder is for a period of two (2) years from March 1, </FONT></TD>
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<FONT SIZE=3><P>2003 to February 28, 2005, subject, however, to earlier termination pursuant to the provisions of subparagraphs 6(b) or (c) below.</FONT></TD>
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<FONT SIZE=3><P>(b)</FONT></TD>
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<FONT SIZE=3><P>In the event of your death at any time during the term hereof, your employment by</FONT></TD>
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<FONT SIZE=3><P>the Company shall be deemed to have ceased as of the date of your death without notice to your estate.  If, during any twelve (12) month period (not limited to a calendar year), you are absent from your employment or substantially unable to perform such duties as are required of you pursuant to the provisions hereof by reason of illness or other incapacity, or any other cause of whatsoever nature, for more than ninety (90) days in the aggregate, the Company may, upon at least ten (10) days prior written notice to you (which notice shall fix the date of termination) terminate the term of your employment hereunder.  Upon the termination of the term of your employment hereunder as aforesaid, the Company shall be relieved of any and all further obligations to you arising out of this Agreement, except for benefits available to you under the Company's retirement plan, savings plan, disability program (if applicable), and any accrued and unpaid salary and vacation benefits, and authorized but unreimbursed expenses.</FONT></TD>
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<FONT SIZE=3><P> </FONT></TD>
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<FONT SIZE=3><P>(c)</FONT></TD>
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<FONT SIZE=3><P>The Company shall have the right at any time to terminate your employment hereunder</FONT></TD>
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<FONT SIZE=3><P>for Due Cause (as hereinafter defined), which termination shall be effective immediately upon the issuance by the Company of written notice to you.  For the purposes of this Agreement, "Due Cause" shall mean (i)&nbsp;the intentional refusal (except by reason of incapacity due to physical or mental illness or disability) by you to devote your entire business time to the performance of your duties hereunder as referred to  in Section 1 above, (ii)&nbsp;a breach by you of the provisions of Exhibit&nbsp;A annexed hereto, (iii)&nbsp;your conviction (including a conviction on <I>a nolo contendere</I> plea) of a felony, (iv)&nbsp;your theft or misappropriation of Company assets, (v)&nbsp;any willful, intentional or grossly negligent act by you having the effect of injuring the reputation or business of the Company (including without limitation, a violation of the Company's Code of Ethical Conduct), (vi)&nbsp;your repeated or continued failure, neglect or refusal, to perform your duties as an employee of the Company, or (vii)&nbsp;any other event or act, which under the common or statutory laws of the State of New York, would be considered "due cause" for termination of employment.</FONT></TD>
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<FONT SIZE=3><P>6.</FONT></TD>
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<FONT SIZE=3><P>Concurrently with the execution of this Agreement, you are executing the Company's Trade</FONT></TD>
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<FONT SIZE=3><P>Secret Agreement (a copy of which is annexed hereto as Exhibit&nbsp;A) and hereby agree to be bound by the terms thereof, all of which are incorporated into and made a part of this Agreement.</FONT></TD>
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<FONT SIZE=3><P> </FONT></TD>
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<FONT SIZE=3><P>7.</FONT></TD>
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<FONT SIZE=3><P>You have represented that you have no agreement with or obligations to others in conflict with</FONT></TD>
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<FONT SIZE=3><P>this Agreement.  There are no covenants, representations, warranties, provisions or undertakings other than those contained in this Agreement (including the annexed Exhibit A).  This Agreement (including Exhibit A) constitutes the entire agreement between you and the Company regarding your employment by the Company. This Agreement cannot be changed or modified except in writing duly signed by each of us.  This Agreement and your rights and obligations hereunder may not be assigned or otherwise transferred by you.</FONT></TD>
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<FONT SIZE=3><P>8.</FONT></TD>
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<FONT SIZE=3><P>This Agreement shall be governed by, construed and enforced in accordance with the internal</FONT></TD>
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<FONT SIZE=3><P>laws of the State of New Jersey applicable to contracts made and to be performed entirely in such State.</FONT></TD>
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<FONT SIZE=3><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the foregoing is in accordance with your understanding of the terms of your employment by the Company, please sign and return to the undersigned the enclosed duplicate of this letter.  Upon our receipt of such fully executed copy, this shall become a binding agreement between us.</FONT></TD>
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<FONT SIZE=3><P>Very truly yours,</FONT></TD>
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<FONT SIZE=3><P>SEQUA CORPORATION</FONT></TD>
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<FONT SIZE=3><P>By:</FONT></TD>
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<TD WIDTH="40%" VALIGN="TOP" BGCOLOR="#000000" HEIGHT=1><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP" HEIGHT=1><P></P></TD>
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<FONT SIZE=3><P>Norman E. Alexander</FONT></TD>
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<FONT SIZE=3><P>Chairman and Chief Executive Officer</FONT></TD>
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<FONT SIZE=3><P>ACCEPTED AND AGREED TO:</FONT></TD>
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<TD WIDTH="66%" VALIGN="TOP" COLSPAN=4 HEIGHT=1><P></P></TD>
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<FONT SIZE=3><P>Joanne M. O'Sullivan</FONT></TD>
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<FONT SIZE=3><P>Date:</FONT></TD>
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<FONT SIZE=3><P>Exhibit A</FONT></TD>
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<FONT SIZE=3><P ALIGN="CENTER">SEQUA CORPORATION</FONT></TD>
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<FONT SIZE=3><P ALIGN="CENTER">TRADE SECRET AGREEMENT</FONT></TD>
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<FONT SIZE=3><P>Joanne M. O'Sullivan&#9;</FONT></TD>
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<FONT SIZE=3><P>Executive Offices</FONT></TD>
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<FONT SIZE=3><P>As of March 1, 2003</FONT></TD>
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<FONT SIZE=3><P>Employee Name</FONT></TD>
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<FONT SIZE=3><P>Division/Unit</FONT></TD>
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<FONT SIZE=3><P>Date</FONT></TD>
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<FONT SIZE=3><P>During the course of your employment by SEQUA CORPORATION, a Delaware corporation ("SEQUA") you may acquire information regarding one or more of the trade secrets belonging to SEQUA.  These trade secrets include business and technical information, whatever its nature and form and whether obtained orally, by observations, from written materials or otherwise, as for example: devices, formulas and compositions of matter and processes relating to the manufacture of SEQUA's products; designs, drawings, specifications and blueprints of machinery and equipment; lists of SEQUA'S customers, suppliers, employees and their salaries; compositions of matter and methods of manufacture of products under investigation in the laboratories, pilot plants or plants of SEQUA; information on markets, end uses and applications; and business procedures, costs, contracts, proposals and other information relating to SEQUA's business.  SEQUA has acquired these trade secrets at great expense and for commercial advantage and, therefore, takes every reasonable precaution to prevent the use or disclosure of any part of it by or to unauthorized persons.</FONT></TD>
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<FONT SIZE=3><P>This letter, when accepted by you, will evidence your agreement in consideration and as a condition of your employment or continued employment by SEQUA and the wages or salary to be paid to you by SEQUA:</FONT></TD>
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<FONT SIZE=3><P>1. </FONT></TD>
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<FONT SIZE=3><P>That you will not, in any manner, either during your employment or at any time after termination of</FONT></TD>
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<FONT SIZE=3><P>your employment with SEQUA, duplicate, remove, transfer, disclose or utilize, or knowingly allow any other persons to duplicate, remove, transfer, disclose or utilize information, property, assets, trade secrets or other things of value of SEQUA which have not been subject to public disclosure, except as required in the course of your employment at SEQUA.  Further, upon such termination of your employment with SEQUA you will immediately return to SEQUA all property of SEQUA including any samples, notes, records, technical reports, electronic records, market research reports, files, correspondence, plans, research notebooks, drawings, customer lists, supplier lists, employee lists and planning documents, as well as all copies thereof.</FONT></TD>
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<FONT SIZE=3><P>2. </FONT></TD>
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<FONT SIZE=3><P>That any and all inventions, discoveries, improvements, writings (including computer software), or</FONT></TD>
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<FONT SIZE=3><P>compilations which you may conceive or make, either alone or jointly with others during your employment by SEQUA which relate to or are useful in the business of SEQUA, will be the exclusive property of SEQUA and will be regarded as SEQUA's trade secrets and you will promptly and fully disclose all such inventions, discoveries, improvements, writings or compilations to SEQUA.</FONT></TD>
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<FONT SIZE=3><P>3. </FONT></TD>
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<FONT SIZE=3><P>That, irrespective of whether your employment by SEQUA may have terminated, you will assist</FONT></TD>
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<FONT SIZE=3><P>SEQUA, at SEQUA's expense, and sign any and all documents necessary or appropriate to assign to SEQUA your entire right, title and interest in and to any and all inventions, discoveries, improvements, writings or compilations specified in Paragraph&nbsp;"2", and to prepare and execute such documents as shall be necessary or appropriate to permit the expeditious preparation, filing or prosecution of such applications for patents or copyrights, or the issuance of patents or copyrights thereon in the name of SEQUA in any countries and to protect the same against infringement by others.</FONT></TD>
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<FONT SIZE=3><P>4. </FONT></TD>
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<FONT SIZE=3><P>That you will not, anywhere in the United States or any other country where SEQUA competes for</FONT></TD>
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<FONT SIZE=3><P>business, during your employment by SEQUA and for a period of one (1) year from the date of any termination of your employment, render services directly or indirectly for employment or render services directly or indirectly for your own account or to any person, firm or corporation competitive with SEQUA, except that you may accept employment with a diversified company so long as your employment pertains solely to that part of its business which is not competitive with SEQUA and provided that, prior to accepting such employment, SEQUA receives written assurances satisfactory to it from the prospective employer that you shall not be required to render services in that part of its business which does compete with SEQUA.  If you are unable to obtain employment consistent with your training and education solely because of the provisions of this paragraph, such provision shall bind you as long as SEQUA, in its sole discretion, makes payments to you of an amount equal to your monthly base pay at termination (exclusive of extra compensation or employee benefits) on or before the fifteenth day of each month; however, the total sum to be paid by SEQUA shall in no event be any amount greater than the equivalent of twelve (12) such monthly payments.  You will, during each month for which you claim payments, give SEQUA a detailed written account of your efforts to obtain employment and such account will include a statement by you that, although you conscientiously sought employment, you were unable to obtain it solely because of the provisions of this paragraph.  It is understood that SEQUA need not make a monthly payment to you for any month during which you have failed to account to SEQUA as provided for herein, but that the restriction on employment provided in this paragraph shall still apply.</FONT></TD>
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<FONT SIZE=3><P>You shall be relieved of your agreement as in this paragraph set forth if an officer of SEQUA gives you written permission to accept available employment, or gives you a written release from the obligations of this paragraph, or fails to make the monthly payment required in the above paragraph even though you have fully complied with your obligation to provide detailed written accounts.  Upon your obtaining employment, you will promptly give written notice of such employment to SEQUA.  It is understood that SEQUA may discontinue the aforesaid monthly payments at any time.</FONT></TD>
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<FONT SIZE=3><P>For the purpose hereof, a company will be deemed to be in competition with SEQUA, if it is engaged in or intends to be engaged in, research or development, production, marketing or selling any product or process which resembles or competes with a product being made or sold by SEQUA or a process being employed by SEQUA or a product or process upon which you were working during your employment by SEQUA, or about which you acquire confidential information through your work with SEQUA.</FONT></TD>
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<FONT SIZE=3><P>5. </FONT></TD>
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<FONT SIZE=3><P>That you have represented that you have no agreement with or obligations to others in conflict with</FONT></TD>
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<FONT SIZE=3><P>this Agreement; that should this Agreement be adjudicated illegal in any respect by a court of competent jurisdiction, then only such part of the particular provision so adjudicated shall be abrogated and the remainder of such provision and all other provisions of this Agreement shall remain in full force and effect.</FONT></TD>
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<FONT SIZE=3><P>6. </FONT></TD>
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<FONT SIZE=3><P>That this Agreement shall bind your heirs, executors, administrators and legal representatives and</FONT></TD>
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<FONT SIZE=3><P>your rights and obligations hereunder may not be assigned or otherwise transferred by you.  SEQUA may assign its rights, together with its obligations hereunder, in connection with any sale, transfer or other disposition of all or substantially all of its interest in the business or activity in connection with which you are employed.</FONT></TD>
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<FONT SIZE=3><P>7.</FONT></TD>
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<FONT SIZE=3><P>That you understand and agree that in the event of your violation or breach of your obligations</FONT></TD>
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<FONT SIZE=3><P>under this Agreement, SEQUA shall be authorized and entitled to obtain from any court of competent jurisdiction, preliminary and permanent injunctive relief, in addition to any other rights or remedies to which SEQUA may be entitled.</FONT></TD>
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<FONT SIZE=3><P>8. </FONT></TD>
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<FONT SIZE=3><P>That the obligations hereunder shall remain in effect during your employment by SEQUA and</FONT></TD>
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<FONT SIZE=3><P>thereafter whatever the reason for termination of such employment.</FONT></TD>
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<FONT SIZE=3><P>It is understood that the agreement evidenced by this letter, together with your Employment Agreement dated as of March 1, 2003, constitutes the entire agreement between you and SEQUA, and cannot be changed or modified except in writing signed by an officer of SEQUA.</FONT></TD>
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<FONT SIZE=3><P>SEQUA CORPORATION</FONT></TD>
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<TR><TD VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
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<TR><TD VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
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<FONT SIZE=3><P>By:</FONT></TD>
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<TD WIDTH="53%" VALIGN="TOP" HEIGHT=1><P></P></TD>
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<FONT SIZE=3><P>Norman E. Alexander</FONT></TD>
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<FONT SIZE=3><P>Chairman and Chief Executive Officer</FONT></TD>
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<TR><TD VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
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<FONT SIZE=3><P>The undersigned hereby acknowledges</FONT></TD>
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<FONT SIZE=3><P>receipt of a copy of this Agreement </FONT></TD>
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<FONT SIZE=3><P>and acceptance of its terms.</FONT></TD>
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<TR><TD VALIGN="TOP" COLSPAN=4>&nbsp;</TD>
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<TD WIDTH="53%" VALIGN="TOP" HEIGHT=1><P></P></TD>
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<FONT SIZE=3><P>Joanne M. O'Sullivan</FONT></TD>
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<FONT SIZE=3><P>Date:</FONT></TD>
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