Severance Agreement - Collins & AIkman Corp. and Dean Gaskins
[COLLINS & AIKMAN LETTERHEAD]
July 10, 2000
Mr. Dean Gaskins
108 Red Bud Lane
Chapel Hill, NC 27514
Re: SEVERANCE FROM THE COMPANY
Dear Dean:
This letter agreement confirms our recent conversations about your severance
from the Company and the compensation and benefits the Company has agreed to
provide to you pursuant to your employment with the Company.
Your active employment with the Company will terminate effective as of July 31,
2000, at which time the Company will pay to you a single sum payment equal to
your accrued but unused vacation as of July 31, 2000. From August 1, 2000 until
November 1, 2000 (the "Consulting Period"), you will be available on reasonable
notice and at reasonable times during normal business hours to furnish such
transition, advisory and consulting services to the Company as the Company may
call upon you to furnish. In consideration of your service to the Company during
the Consulting Period, we have agreed that you will receive a payment of $155.00
per hour for each hour of consulting services you provide to the Company during
the Consulting Period pursuant to the terms of this paragraph and continue
participation in the Company's employee benefit and perquisite plans and
programs other than the Vacation and Long-term Disability Plans.
During the period commencing August 1, 2000 and ending March 9, 2002, you; will
(i) receive a salary payment of $282,000 in total (ii) continue participation in
all employee benefit plans and programs (excluding executive perquisites) of the
Company from time to time generally in effect for employees of the Company,
other than the Company's Vacation and Long-term Disability Plans. You will have
the option, exercisable by written notice to the Company by July 31, 2000 to
purchase the automobile furnished to you by the Company at its net book value as
of your Severance Date.
All options granted to you under the Collins & Aikman Corporation 1994 Employee
Stock Option Plan will become fully vested no later than July 31, 2000. The
period during which you may exercise the options will expire October 31, 2000.
Generally, you are not subject to any restrictions on your subsequent
employment; however, for the good and valuable consideration set forth in this
letter agreement, the sufficiency of which is hereby acknowledged by you,
including the consulting services during the Consulting Period and the provision
of benefits from August 1, 2000 until March 9, 2002, if you propose to commence
employment with a significant direct competitor of the Company within the United
States regarding automotive fabrics prior to March 9, 2002, you acknowledge that
you may not do so without the prior written consent of the Chairman and Chief
Executive Officer of the Company
<PAGE> 2
Mr. Dean Gaskins
July 10, 2000
Page 2
You also covenant and agree that at any time prior to March 9, 2002, you will
not (a) solicit, employ or otherwise engage as a consultant, independent
contractor or otherwise, any person who is an employee of the Company or any of
its subsidiaries, or (b) induce or attempt to induce any employee of the Company
or any of its subsidiaries to terminate such employment. In addition, you agree
that at all times herefrom you will keep confidential all confidential
information and trade secrets of the Company and any of its subsidiaries or
affiliates and will not disclose any such information to any person without the
prior approval of the Chairman and Chief Executive Officer of the Company or use
such information for any purpose other than in the course of fulfilling your
duties under this letter agreement. It is understood that for purposes of this
letter the term "confidential information" is to be construed broadly to include
all material nonpublic or proprietary information.
If this letter accurately sets forth our understanding on these matters, please
so indicate by signing and returning to me the enclosed copy of this letter.
Very truly yours,
/s/ Greg Tinnell
Greg Tinnell
Senior Vice President - Human Resources
AGREED AND ACCEPTED:
/s/ Dean Gaskins 8/14/00
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Dean Gaskins Date