UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 10, 2019

 

 

NORDSON CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Ohio   0-7977   34-0590250

(State or Other Jurisdiction

of Incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification Number)

28601 Clemens Road Westlake, Ohio 44145

(Address of Principal Executive Offices, including Zip Code)

Registrant’s Telephone Number, including Area Code: 440-892-1580

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of exchange

on which registered

Common Shares, without par value   NDSN   The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 5.02.

Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Chief Executive Officer Retirement

As reported in a Current Report on Form 8-K that Nordson Corporation (the “Company”) filed on February 28, 2019, Michael F. Hilton provided notice to the Company of his intent to retire as the Company’s President and Chief Executive Officer at a date to be determined.

In connection with Mr. Hilton’s proposed retirement, the Company and Mr. Hilton entered into an amendment (the “Hilton Amendment”) on June 10, 2019 to his Employment Agreement with the Company, dated December 9, 2009. Pursuant to the Hilton Amendment, Mr. Hilton will retire as President and Chief Executive Officer on August 1, 2019, after which he will remain employed as Senior Advisor to the Company and continue to serve as a member of the Company’s Board of Directors (the “Board”) until his retirement from the Company effective December 31, 2019. The Hilton Amendment also provides that Mr. Hilton will cease participating in the Company’s long-term incentive program beginning November 1, 2019. These changes will not trigger a “good reason” event for Mr. Hilton under any of the Company’s compensation and benefit plans and agreements. Upon his retirement from the Company on December 31, 2019, Mr. Hilton will receive the retirement payments and benefits provided for under his existing Employment Agreement and the compensation and benefit plans of the Company in which Mr. Hilton already participates. The Company will reimburse Mr. Hilton for reasonable legal expenses and attorneys’ fees incurred by him in connection with the Hilton Amendment, up to a maximum of $10,000.

The description of the terms of the Hilton Amendment is qualified in its entirety by reference to the Hilton Amendment, which is attached as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Chief Executive Officer and Director Appointment

On June 14, 2019, the Company issued a press release announcing that Sundaram Nagarajan will be appointed as President and Chief Executive Officer of the Company reporting directly to the Board, succeeding Mr. Hilton. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Mr. Nagarajan, age 56, will assume his new position with the Company effective August 1, 2019, and will be appointed as a member of the Board effective August 1, 2019. Mr. Nagarajan was most recently Executive Vice President Automotive OEM Segment, with Illinois Tool Works Inc., a global manufacturer of a diversified range of industrial products and equipment, since 2015. Prior to that, Mr. Nagarajan served as Executive Vice President, Welding Segment, with Illinois Tool Works since 2010. Mr. Nagarajan has served as a member of the Board of Directors of Sonoco Products Company since 2015. Upon his appointment to the Board, Mr. Nagarajan is expected to be appointed as a member of the Board’s Executive Committee.

There is no arrangement or understanding between Mr. Nagarajan and any other person pursuant to which Mr. Nagarajan will be appointed as President and Chief Executive Officer of the Company or as a member of the Board. Mr. Nagarajan has no family relationship with any director or executive officer of the Company, and there are no transactions in which Mr. Nagarajan has an interest requiring disclosure under Item 404(a) of Regulation S-K.

Chief Executive Officer Compensation Arrangements

Upon the recommendation of the Compensation Committee and subsequent approval by the Board, on June 10, 2019, we entered into an Employment Agreement (the “Employment Agreement”) and a Change-in-Control Retention Agreement (the “Retention Agreement”) with Mr. Nagarajan.

Employment Agreement

Below is a description of the material terms of Mr. Nagarajan’s Employment Agreement:

Commencement of Employment Date (“Effective Date”): August 1, 2019

Base Salary . An annual base salary of not less than $850,000.

Annual Cash Bonus . An opportunity to participate in our annual cash incentive program with a target bonus opportunity of 100% of base salary and maximum bonus opportunity of 200% of base salary. For the remainder of fiscal year 2019 following the Effective Date, Mr. Nagarajan will receive a pro-rated incentive payment of not less than $212,500.


Initial Equity Grant . On the Effective Date, for the fiscal year 2017–2019, fiscal year 2018–2020, and fiscal year 2019–2021 performance periods under the Company’s long-term incentive program, Mr. Nagarajan will receive performance share units with a number of target shares equal to $300,000, $540,000 and $760,000, respectively. Payout under the awards is based on the achievement of performance objectives established previously by the Compensation Committee for the applicable performance period.

The Company has agreed to provide additional one-time awards to Mr. Nagarajan on the Effective Date if Mr. Nagarajan’s most recent employer prior to the Effective Date does not treat his termination of employment with that employer as a retirement, resulting in a forfeiture of Mr. Nagarajan’s equity-based awards issued by that employer. In that event, in addition to the performance share units described above, Mr. Nagarajan will receive: (a) for the fiscal year 2017–2019, fiscal year 2018–2020, and fiscal year 2019–2021 performance periods under the Company’s long-term incentive program, additional performance share units with a number of target shares equal to $75,000, $150,000, and $175,000, respectively; (b) nonqualified stock options with a grant date value of $500,000, which become exercisable after three years of employment; and (c) restricted shares equal to $500,000, which become vested and transferrable after three years of employment.

Long-Term Incentives . Mr. Nagarajan will be entitled to participate in the long-term incentive program of the Company at a level that is competitive with market practices, as determined by the Compensation Committee. In November 2019, in connection with the Compensation Committee’s approval of annual awards for executives generally, Mr. Nagarajan will receive: (a) performance share units for the Company’s fiscal year 2020–2022 performance period with a number of target shares having a grant date value equal to $1,280,000; (b) nonqualified stock options with a grant date value of $1,280,000; and (c) restricted shares with a grant date value of $640,000.

The initial and future equity awards described above will each be subject to the terms of Company’s Amended and Restated 2012 Stock Incentive and Award Plan (the “Stock Incentive and Award Plan”) and the applicable award agreement to be approved by the Compensation Committee. In general, the number of target shares subject to performance share units and the number of restricted shares for the awards described above is determined by dividing the grant date value by the most recent fiscal quarter closing average share price, and the number of shares subject to nonqualified stock option awards described above is based on a Black-Scholes valuation methodology.

Other Benefits . Other benefits include paid-time off, participation in our health and welfare plans, life insurance, 401(k) retirement investment plan, supplemental retirement benefits, disability benefit plans, professional club and airline club memberships, relocation benefits in accordance with our standard relocation assistance program, and, to the extent we provide them to other named executive officers generally, financial, tax and estate planning services (up to a maximum of $5,000/year) and annual physical exams.

Legal Expenses . We will reimburse Mr. Nagarajan for reasonable legal expenses and attorneys’ fees incurred by him in connection with the review of the Employment Agreement, up to a maximum of $15,000.

Supplemental Pension Benefit . The Company will establish and provide to Mr. Nagarajan an individual nonqualified pension benefit that will treat Mr. Nagarajan as if he were fully vested in the Nordson Corporation Salaried Employees Pension Plan, solely in the event that Mr. Nagarajan experiences a termination due to death, “disability,” or without “cause,” or resignation with “good reason” (whether or not in connection with a “change in control”), as those terms are defined in the Employment Agreement, prior to becoming one hundred percent (100%) vested in the Nordson Corporation Salaried Employees Pension Plan. Once Mr. Nagarajan has accrued sufficient service to be fully vested in the Nordson Corporation Salaried Employees Pension Plan, we will have no obligation to provide the Supplemental Individual Pension Benefit.

Post-Termination Payments . Upon a termination by us without cause or by Mr. Nagarajan for good reason, excluding a termination within two years following a change in control of the Company, then, in addition to payment of any accrued and unpaid compensation and benefits, Mr. Nagarajan is entitled to post-termination payments and benefits as follows, subject to his execution of a customary release of claims in favor of the Company:

 

  (a)

an amount equal to two times (i) his annual base salary rate as of the termination date, plus (ii) his target bonus amount for the fiscal year in which a termination occurs;

 

  (b)

a prorated amount of his annual bonus for the fiscal year in which a termination occurs, based on actual performance in the applicable performance period;

 

  (c)

a pro-rata payout of his incentive-based equity awards for any performance period(s) not completed on the termination date, based on actual performance in the applicable performance period;

 

  (d)

full, immediate vesting of his service-based restricted share awards;

 

  (e)

continued vesting of his service-based stock options;


  (f)

full vesting in his benefit under the Supplemental Individual Pension Benefit; and

 

  (g)

continuation of health care benefits until the earlier of 24 months following the termination date or his eligibility for health care benefits at his new employer.

In addition, upon a termination due to Mr. Nagarajan’s death, disability or early or normal retirement, in addition to payment of any accrued and unpaid compensation and benefits, Mr. Nagarajan is entitled to: (a) a pro-rata payout of his incentive-based equity awards for any performance period(s) not completed on the termination date, based on actual performance in the applicable performance period; (b) full vesting (pro-rata in the case of early retirement) of his service-based restricted share awards; and (c) for his service-based stock options, full, immediate vesting (in the case of death or disability), continued vesting for the remainder of the term (in the case of normal retirement), or continued vesting for the shorter of five years from retirement and the remainder of the term (in the case of early retirement), except that service-based restricted share awards and stock options granted less than 12 months prior to retirement are forfeited upon early or normal retirement.

Tax Gross-Up . The Employment Agreement does not provide for tax gross-ups of any payment received by Mr. Nagarajan under the Employment Agreement.

This description of the terms of the Employment Agreement with Mr. Nagarajan is qualified in its entirety by reference to the Employment Agreement, which is attached as Exhibit 10.2 to this Current Report on Form 8-K and is incorporated herein by reference.

Change-in-Control Retention Agreement

Under the Retention Agreement, Mr. Nagarajan is entitled to receive certain payments and benefits if his employment is terminated within 24 months after the date of a change in control either by us or the acquirer without cause or by Mr. Nagarajan for good reason (“good reason” includes such actions as a reduction in annual base salary, a reduction in overall compensation, benefit and perquisite opportunity, a material adverse change in authorities, functions or duties, a significant increase in business travel, or a requirement that Mr. Nagarajan relocate beyond a radius of 50 miles). In such event, Mr. Nagarajan will be entitled to receive:

 

  (a)

an amount equal to two times (i) his annual base salary rate as of the termination date, plus (ii) his target bonus amount for the fiscal year in which a termination occurs;

 

  (b)

a prorated amount of his annual bonus for the fiscal year in which a termination occurs, based on actual performance in the applicable performance period;

 

  (c)

a pro-rata payout of his incentive-based equity awards for any performance period(s) not completed on the termination date, based on actual performance in the applicable performance period;

 

  (d)

full, immediate vesting of his service-based restricted share awards and stock options;

 

  (e)

a pension enhancement of two years’ service credit and two years’ age credit paid as an immediate lump sum;

 

  (f)

full vesting and an additional two years’ service credit and two years’ age credit for his benefit under the Supplemental Individual Pension Benefit, and full vesting in his benefit under the Company’s 2005 Deferred Compensation Plan;

 

  (g)

continuation of health care, welfare and other benefits until the earlier of 24 months following the termination date or his eligibility for comparable benefits at his new employer; and

 

  (h)

individual outplacement services up to $50,000.

In addition, upon a termination due to Mr. Nagarajan’s death, total disability or retirement within 24 months after the date of a change in control, in addition to payments and benefits under the Employment Agreement, Mr. Nagarajan is entitled to a prorated amount of his annual bonus for the fiscal year in which the termination occurs, based on actual performance in the applicable performance period.

Under the Retention Agreement, Mr. Nagarajan is entitled under certain circumstances to reimbursement of legal fees and expenses incurred in relation to enforcement of the Retention Agreement, including a tax gross up on any such reimbursements.

This description of the terms of the Retention Agreement is qualified in its entirety by reference the Retention Agreement, which is attached as Exhibit 10.3 to this Current Report on Form 8-K and is incorporated herein by reference.


Item 9.01

Financial Statements and Exhibits.

(d) Exhibits

 

10.1    Amendment, dated June 10, 2019, to Employment Agreement between Nordson Corporation and Michael F. Hilton.
10.2    Employment Agreement between Nordson Corporation and Sundaram Nagarajan.
10.3    Change-in-Control Retention Agreement between Nordson Corporation and Sundaram Nagarajan.
99.1    The Company’s press release dated June 14, 2019 announcing the appointment of Sundaram Nagarajan.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

 

    NORDSON CORPORATION
Date: June 14, 2019     By:  

/s/ Gregory A. Thaxton

      Gregory A. Thaxton
     

Executive Vice President

Chief Financial Officer

Exhibit 10.1

AMENDMENT TO

EMPLOYMENT AGREEMENT

Nordson Corporation, an Ohio corporation (the “ Company ”), and Michael F. Hilton (“ Executive ”) hereby enter into this agreement to amend the Employment Agreement, dated December 9, 2009, by and between the Company and Executive (the “ Employment Agreement ”), effective as of August 1, 2019. Words and phrases used herein with initial capital letters that are defined in the Employment Agreement are used herein as so defined.

1.            Sections 1 and 2 of the Employment Agreement are hereby amended by replacing the phrase “President and Chief Executive Officer” with the phrase “Senior Advisor to the Company” where it appears therein.

2.            The last sentence of Section 2 of the Employment Agreement is hereby amended in its entirety to read as follows:

“Executive’s workplace may be located at the Company’s principal office in Westlake, Ohio or at another location chosen by Executive.”

3.            Section 4(p) of the Employment Agreement is hereby amended in its entirety to read as follows:

“ ‘Long-Term Performance Plan’ shall mean the Amended and Restated Nordson Corporation 2004 Long-Term Performance Plan or any successor plan thereto, including the Amended and Restated Nordson Corporation 2012 Stock Incentive and Award Plan.”

4.            Section 4(q) of the Employment Agreement is hereby amended in its entirety to read as follows:

“ ‘Management Incentive Plan’ shall mean the Amended and Restated Nordson Corporation 2004 Management Incentive Plan or any successor plan thereto, including the cash incentive award program under the Amended and Restated Nordson Corporation 2012 Stock Incentive and Award Plan.”

5.            Section 5(d) of the Employment Agreement is hereby amended in its entirety to read as follows:

Long-Term Incentive Compensation . During the Term prior to the Company fiscal year beginning November 1, 2019 (“the 2020 Fiscal Year”), Executive shall be entitled to participate in the Long-Term Performance Plan or any successor plan thereto, or any other long-term incentive plan implemented by the Company, at a level that is competitive with market practices, as determined by the Compensation Committee. Notwithstanding any provision of this Agreement to the contrary, effective as of November 1, 2019, Executive shall not be eligible to participate in the Long-Term Performance Plan or any successor plan thereto, or any other long-term incentive plan implemented by the Company, except with


respect to existing awards granted to Executive prior to November 1, 2019. Nothing in this Agreement shall preclude the Company from amending or terminating the Management Incentive Plan and such amendments or termination shall otherwise apply to Executive as long as such amendments or termination are of general and uniform application to all Named Executive Officers of the Company.”

6.            Section 5(j) of the Employment Agreement is hereby amended by inserting a new sentence at the end thereof to read as follows:

“For the avoidance of doubt, Executive and the Company acknowledge and agree that the provisions of this Section 5(j) are no longer effective.”

7.            Section 5(k) of the Employment Agreement is hereby amended by replacing the phrase “During the Term,” with the phrase “During the Term, except as otherwise provided herein,” wherever it appears therein.

8.            Section 5(l) of the Employment Agreement is hereby amended in its entirety to read as follows:

Expenses . Pursuant to the Company’s customary policies in force at the time of payment, Executive shall be reimbursed for all expenses properly incurred by Executive on the Company’s behalf in the performance of Executive’s duties hereunder. In addition, during calendar year 2019, the Company will reimburse Executive for reasonable legal expenses and attorneys’ fees incurred by Executive in connection with the amendment of this Employment Agreement, up to a maximum of $10,000.”

9.            Section 6(a) of the Employment Agreement is hereby amended by inserting a new sentence at the end thereof to read as follows:

“Executive and the Company agree that, unless earlier terminated in accordance with this Section 6(a), Executive’s employment hereunder, and this Agreement, will be terminated effective as of December 31, 2019, by a reason of a termination by Executive due to Retirement pursuant to Section 6(a)(vii), and Executive will be deemed to have given Notice of Termination in accordance with Section 6(b) specifying a Date of Termination of December 31, 2019 for such Retirement. Executive hereby resigns from his position as President and Chief Executive Officer of the Company on August 1, 2019 and hereby resigns from all other positions and offices that he holds with the Company or any entity that is a subsidiary of, or is otherwise related to or affiliated with, the Company, including as a director of the Company, effective as of December 31, 2019. Executive also agrees to resign from any positions and offices he holds with any subsidiary or affiliate of the Company prior December 31, 2019 if requested by the Company.”

 

2


10.          For the avoidance of doubt, Executive and the Company acknowledge and agree that the changes in Executive’s title, duties and responsibilities as of August 1, 2019, the changes in Executive’s bonus and long-term incentive compensation as of November 1, 2019, and the other changes in Executive’s employment terms set forth in this agreement (including any resignations required by this agreement) have been consented to by Executive and do not and will not constitute “Good Reason” for purposes of the Employment Agreement, the Change-in-Control Retention Agreement, or any other employee benefit or incentive compensation plan or agreement.

11.          This agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

12.          Except as otherwise provided herein, the Employment Agreement shall continue in full force and effect in accordance with its terms.

IN WITNESS WHEREOF, the Company has caused this agreement to be executed on its behalf by its duly authorized officer and Executive has executed this agreement, as of the date first written above.

 

NORDSON CORPORATION

By:

   

Name: Gina A. Beredo

Title: Executive Vice President, General Counsel & Secretary

 

Michael F. Hilton

 

3

Exhibit 10.2

EMPLOYMENT AGREEMENT

THIS AGREEMENT, dated as of June 11, 2019, is made by and between Nordson Corporation, an Ohio corporation (the “ Company ”), and Sundaram Nagarajan (the “ Executive ”), and is effective as of August 1 , 2019 (the “ Hire Date ”).

RECITALS:

WHEREAS, the Company desires to employ Executive on the terms set forth in this Agreement, and Executive desires to accept such employment under such terms.

NOW, THEREFORE, in consideration of the foregoing intentions and of the respective covenants and agreements set forth below, the parties hereto agree as follows:

1.  Employment . The Company hereby employs Executive as its President and Chief Executive Officer upon the other terms and conditions provided herein. Executive hereby accepts such employment. The term of employment under this Agreement shall be for the period beginning upon the Hire Date and ending upon the Date of Termination under Sections 6 and 7 of this Agreement (the “ Term ”). Executive will report to the Company’s Board of Directors (the “ Board ”).

2.  Duties . During the Term, Executive will have the customary duties, responsibilities and authorities of an executive serving in the position of President and Chief Executive Officer, subject in all cases to the power of the Board to expand or limit such duties, responsibilities and authorities, either generally or in specific instances. Executive’s workplace shall be located at the Company’s principal office in Westlake, Ohio.

3.  Executive’s Efforts .

(a)   During the Term, Executive shall devote substantially all of his business time (excluding periods of vacation and other approved leaves of absence) to the performance of his duties for the Company, its subsidiaries and affiliates. Executive will perform his duties and responsibilities to the best of his ability in a diligent, trustworthy, and businesslike manner. Executive will at all times abide by and observe the Company’s Code of Business and Ethical Conduct.

(b)   The foregoing shall not prevent Executive from (i) participating in charitable, civic, educational, professional, community or industry affairs or, with prior written approval of the Board, serving on the board of directors or advisory boards of other companies; and (ii) managing his and his family’s personal investments, so long as such activities described under clauses (i) and (ii) do not materially interfere with the performance of his duties hereunder or create a potential business conflict or the appearance thereof. If at any time service on any board of directors or advisory board would, in the good faith judgment of the Board, conflict with Executive’s fiduciary duty to the Company or create any appearance thereof, Executive shall, as soon as reasonably practicable considering any fiduciary duty to the other entity, resign from such other board of directors or advisory board after his receipt of written notice from the Board as to the conflict.

4.  Certain Definitions .

Annual Base Salary ” shall have the meaning set forth in Section 5(a).

 

Page 1 of 17


Board ” shall mean the Board of Directors of the Company.

Cause ” shall mean any of the following: (i) commission of a felony or an act or series of acts that results in material injury to the business or reputation of the Company or any subsidiary; (ii) willful failure to perform duties of employment, if such failure has not been cured in all material respects within thirty (30) days after the Company or any subsidiary, as applicable, gives written notice thereof; or (iii) breach of any material term, provision or condition of employment, which breach has not been cured in all material respects within thirty (30) days after the Company or any subsidiary, as applicable, gives written notice thereof, or (iv) Executive materially fails to comply with the Company’s Code of Business and Ethical Conduct.

Change in Control ” shall have the meaning set forth in the Change-in-Control Retention Agreement between the Company and Executive (the “Change-in-Control Retention Agreement”).

Code ” shall mean the Internal Revenue Code of 1986, as amended. Reference to a Section of the Code includes all rulings, regulations, notices, announcements, decisions, orders and other pronouncements that are issued by the United States Department of the Treasury, the Internal Revenue Service, or any court of competent jurisdiction, that are lawful and pertinent to the interpretation, application or effectiveness of such Section.

Common Stock ” shall mean the common shares of the Company without par value.

Company ” shall mean Nordson Corporation, an Ohio corporation, the principal office of which is in Westlake, Ohio.

Compensation Committee ” shall mean the Compensation Committee of the Board whose members shall be appointed by the Board from time to time.

Date of Termination ” shall mean (i) if Executive’s employment is terminated by reason of his death, the date of his death, and (ii) if Executive’s employment is terminated pursuant to Sections 6(a)(ii) - (vii), the date specified in the Notice of Termination.

Disability ” shall mean the inability of Executive to perform his duties and responsibilities as an officer or employee of the Company or any of its subsidiaries on a full-time basis due to a physical, mental or emotional incapacity resulting from injury, sickness or disease, meeting the standards set forth in the Nordson Corporation Long-Term Disability Plan, and as determined by the Compensation Committee.

Early Retirement ” shall mean retirement any time after Executive reaches age 55 but before age 65 and with 5 or more years of service.

Exchange Act ” shall mean the Securities Exchange Act of 1934, as amended.

Executive ” shall mean Sundaram Nagarajan.

Good Reason ” shall mean the occurrence of any of the following: (i) a material diminution in Executive’s title, duties or responsibilities, without his prior written consent, (ii) subject to Section 5(a) a material diminution of Executive’s Annual Base Salary, without his prior written consent, (iii) material failure by the Company to make available to Executive compensation plans, employee pension plans, and employee welfare plans and other benefits and perquisites that provide opportunities to receive

 

Page 2 of 17


overall compensation and benefits and perquisites at least equal to the opportunities for overall compensation and benefits and perquisites that were available to Executive immediately prior to the action by the Company constituting such failure, (iv) the Company requires Executive, without his prior written consent, to be based at any office or location that requires a relocation greater than 50 miles from Westlake, Ohio, or (v) any material breach of this Agreement by the Company, which breach has not been cured in all material respects within thirty (30) days after Executive gives written notice thereof; provided, however, that for purposes of a Change in Control, “Good Reason” shall have the meaning set forth in the Change-in-Control Retention Agreement.

Hire Date ” shall mean August 1, 2019.

Normal Retirement ” shall mean retirement any time after Executive reaches age 65 and with 5 or more years of service.

Notice of Award ” shall mean the written notice from the Company to Executive pursuant to which Executive is informed of a grant of an option to purchase Common Stock, or other equity-based award made under the Stock Incentive and Award Plan.

Notice of Termination ” shall have the meaning set forth in Section 6(b).

Stock Incentive and Award Plan ” shall mean the Amended and Restated Nordson Corporation 2012 Stock Incentive and Award Plan, and any successor thereto.

Stock Options ” as of any date of determination shall mean options held by Executive as of such date to purchase Common Stock of the Company.

Term ” shall have the meaning set forth in Section 1.

5.  Compensation and Related Matters .

(a)     Annual Base Salary . During the Term, Executive shall receive a base salary at a rate that is no less than $850,000 per annum (the “ Annual Base Salary ”), payable in accordance with the Company’s normal payroll practices. The rate of the Annual Base Salary shall be reviewed by the Compensation Committee periodically, and at least annually, beginning on November 1, 2020, and any increases in Annual Base Salary will be based upon performance and consideration of competitive market practice with any decrease occurring only if such a decrease also applies proportionately to all Named Executive Officers of the Company.

(b)     Bonus . For each fiscal year (“ FY ”) of the Company during the Term, Executive shall be eligible to participate in the Stock Incentive and Award Plan in accordance with terms and provisions thereof (the cash payment in satisfaction of an award under the Stock Incentive and Award Plan, a “Bonus”). Subject to Compensation Committee discretion and based upon the performance measures and objectives established by the Board from time to time, Executive will be paid a respective Bonus amount for the achievement of “threshold,” “target,” and “maximum” level under pre-established performance goals (with no Bonus paid for achievement below threshold level; Bonus paid at one hundred percent (100%) of Annual Base Salary for achievement of target level; and Bonus paid at two hundred percent (200%) of Annual Base Salary for achievement at maximum level or above). Notwithstanding the foregoing to the contrary, for the Company fiscal year beginning on November 1, 2018, and ending on October 31, 2019, Executive is eligible to receive a prorated Bonus, based on actual performance in such fiscal year, and prorated based on the number of days in such fiscal year from the Hire Date to October 31, 2019, with a minimum payout of $212,500. Nothing in this Agreement shall preclude the Company from amending or terminating the Stock Incentive and Award Plan and

 

Page 3 of 17


such amendments or termination shall otherwise apply to Executive as long as such amendments or termination are of general and uniform application to all Named Executive Officers of the Company.

(c)     Long-Term Incentive Compensation . During the Term, Executive shall be entitled to participate in the Stock Incentive and Award Plan or any successor plan thereto, or any other long-term incentive plan implemented by the Company, at a level that is competitive with market practices, as determined by the Compensation Committee. Executive shall receive the following awards during the Term under, and subject to the terms of, the Stock Incentive and Award Plan:

(i.) If Executive’s most recent employer prior to the Hire Date treats his termination of employment with such employer as a retirement for purposes of vesting his equity-based awards granted by such employer, Executive will receive the awards described under this clause (i) instead of the awards described under clause (ii) of this Section 5(c). On the Hire Date, Executive will be granted Performance Share Incentive Awards as follows:

 

  (A)

For the FY 2017-2019 performance period, a grant of target shares having an economic grant date value of $300,000. Such award will be subject to a Notice of Award reflecting its terms and consistent with the terms applicable to grants of Performance Share Incentive Awards made to other employees of the Company for the performance period beginning on November 1, 2016 and ending on October 31, 2019.

 

  (B)

For the FY 2018-2020 performance period, a grant of target shares having an economic grant date value of $540,000. Such award will be subject to a Notice of Award reflecting its terms and consistent with the terms applicable to grants of Performance Share Incentive Awards made to other employees of the Company for the performance period beginning on November 1, 2017 and ending on October 31, 2020.

 

  (C)

For the FY 2019-2021 performance period, a grant of target shares having an economic grant date value of $760,000. Such award will be subject to a Notice of Award reflecting its terms and consistent with the terms applicable to grants of Performance Share Incentive Awards made to other employees of the Company for the performance period beginning on November 1, 2018 and ending on October 31, 2021.

The number of target shares subject to the Performance Share Incentive Awards shall be determined by dividing the specified economic grant date value by the most recent fiscal quarter closing average share price of Common Stock immediately preceding the Hire Date and rounding to the nearest whole share.

(ii.) If Executive’s most recent employer prior to the Hire Date does not treat his termination of employment with such employer as a retirement for purposes of vesting his equity-based awards granted by such employer and, as a result, such equity-based awards are forfeited, Executive will receive the awards described under this clause (ii) instead of the awards described in clause (i) of this Section 5(c).

 

  (A)

On the Hire Date, Executive will be granted Performance Share Incentive Awards as follows:

 

  (1)

For the FY 2017-2019 performance period, a grant of target shares having an economic grant date value of $375,000. Such award will be subject to a Notice of Award reflecting its terms and consistent with the terms applicable to grants of Performance Share Incentive Awards made to

 

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other employees of the Company for the performance period beginning on November 1, 2016 and ending on October 31, 2019.

 

  (2)

For the FY 2018-2020 performance period, a grant of target shares having an economic grant date value of $690,000. Such award will be subject to a Notice of Award reflecting its terms and consistent with the terms applicable to grants of Performance Share Incentive Awards made to other employees of the Company for the performance period beginning on November 1, 2017 and ending on October 31, 2020.

 

  (3)

For the FY 2019-2021 performance period, a grant of target shares having an economic grant date value of $935,000. Such award will be subject to a Notice of Award reflecting its terms and consistent with the terms applicable to grants of Performance Share Incentive Awards made to other employees of the Company for the performance period beginning on November 1, 2018 and ending on October 31, 2021.

The number of target shares subject to the Performance Share Incentive Awards shall be determined by dividing the specified economic grant date value by the average daily closing share price of Common Stock for the most recent fiscal quarter immediately preceding the Hire Date and rounding to the nearest whole share.

 

  (B)

On the Hire Date, Executive will be granted Restricted Shares with an economic grant date value of $500,000. Such grant of Restricted Shares will be subject to a Notice of Award reflecting its terms and may not be transferred, pledged, hypothecated or otherwise alienated until three years after the Hire Date and shall be subject to forfeiture in the event of Executive’s termination of employment prior to the third anniversary of the Hire Date except for the case of death, disability, without Cause, or for Good Reason, as specified below. The number of Restricted Shares subject to the award shall be determined by dividing the economic grant date value by the recent fiscal quarter closing average share price of Common Stock immediately preceding the Hire Date and rounding to the nearest whole share. The forfeitures provisions shall lapse and the Restricted Shares will become vested upon the third anniversary of the Hire Date if Executive remains continuously employed until such date and will be subject to a Notice of Award reflecting its terms consistent with this Agreement and the terms of Restricted Stock granted to other employees of the Company generally.

 

  (C)

On the Hire Date, Executive will be granted a nonqualified Stock Option to purchase shares of Common Stock with a per share exercise price equal to the Fair Market Value (as defined in the Stock Incentive and Award Plan) of a share of Common Stock on the Hire Date and an economic grant date value of $500,000. The number of shares subject to this Stock Option will be determined based on a Black Scholes calculation using the recent fiscal quarter closing average share price of Common Stock immediately preceding the Hire Date, a six year average volatility, and rounding to the nearest whole share. Such Stock Option will become exercisable upon the third anniversary of the Hire Date if Executive remains continuously employed until such date and will be subject to a Notice of Award reflecting its terms consistent with this Agreement.

 

  (iii.)

In November 2019, subject to Compensation Committee action, the Executive will

 

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be granted a long-term incentive award with a grant date value equal to $3,200,000, comprised of (A) a Performance Share Incentive Award with target shares having an economic grant date value of $1,280,000 for the performance period beginning on November 1, 2019 and ending on October 31, 2022, (B) a nonqualified Stock Option with a grant date value of $1,280,000 (as determined under the Black-Scholes valuation methodology), and (C) Restricted Shares with an economic grant date value of $640,000. The number of target shares subject to the Performance Share Incentive Award and the number of Restricted Shares will be determined by dividing the specified economic grant date value by the average daily closing share price of Common Stock for the most recently closed fiscal quarter and the six year average volatility as of that same recently closed fiscal quarter and rounding to the nearest whole share. Such long-term incentive awards will be subject to a Notice of Award reflecting their terms, which will be consistent with the terms applicable to grants of Performance Share Incentive Awards, nonqualified Stock Options, and Restricted Shares made to other employees of the Company in November 2019.

(d)     Supplemental Retirement Benefits . Executive shall be eligible to participate in the Nordson Corporation Amended and Restated 2005 Excess Defined Benefit Pension Plan, the Nordson Corporation Amended and Restated 2005 Excess Defined Contribution Benefit Plan, and the Amended and Restated Nordson Corporation 2005 Deferred Compensation Plan in accordance with the respective terms thereof.

(e)     Special Supplemental Individual Pension Benefit . The Company shall establish and provide to Executive an individual nonqualified pension benefit (the “ Supplemental Individual Pension Benefit ”) that shall treat Executive as if he were fully vested in the Nordson Corporation Salaried Employees Pension Plan, solely in the event that Executive experiences a termination due to Death, termination due to Disability, or subject to the requirements of Section 7(m), termination without Cause or resignation with Good Reason (whether or not in connection with a Change in Control), each in accordance with Section 6, prior to becoming one hundred percent (100%) vested in the Nordson Corporation Salaried Employees Pension Plan. Such Supplemental Individual Pension Benefit shall provide for payment to commence as soon as permissible following the Date of Termination, subject to the requirements described in Section 7(i), (j) and (m). Once Executive has accrued sufficient service to be fully vested in the Nordson Corporation Salaried Employees Pension Plan, the Company shall have no obligation to provide the Supplemental Individual Pension Benefit. Such Supplemental Individual Pension Benefit shall be evidenced by a separate agreement which shall be consistent with the terms of this Agreement.

(f)     Change-in-Control Retention Agreement . Upon the Hire Date, Executive shall be given the opportunity to execute and participate in the benefits conferred under the Company’s present Change-in-Control Retention Agreement. Nothing in this Agreement, however, is to be construed to limit the ability of the Company to change, alter, amend or terminate the Change-in-Control Retention Agreement; provided, however, that in the event the Company takes such action, and the aggregate value of the benefits provided under Section 7(b) are greater than those that would be provided under the Change-in-Control Retention Agreement at such time, then Executive may elect to be paid or conferred benefits under Section 7(b) of this Agreement upon a termination without Cause or resignation for Good Reason following a Change in Control.

(g)     Relocation Benefits . Executive shall be entitled to relocation benefits in accordance with the Nordson Standard Relocation Assistance program in connection with Executive’s relocation to Northeast Ohio on or around the Hire Date.

(h)     Other Employee Benefits . During the Term, Executive shall be entitled to participate in

 

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the other employee benefit plans, programs and arrangements of the Company now (or, to the extent determined by the Board or Compensation Committee, hereafter) in effect which are applicable to the senior officers of the Company generally, subject to and on a basis consistent with the terms, conditions and overall administration thereof (including the right of the Company to amend, modify or terminate such plans).

(i)     Expenses . Pursuant to the Company’s customary policies in force at the time of payment, Executive shall be reimbursed for all expenses properly incurred by Executive on the Company’s behalf in the performance of Executive’s duties hereunder. In addition, the Company will reimburse Executive for reasonable legal expenses and attorneys’ fees incurred by Executive in connection with the review of this Employment Agreement, up to a maximum of $15,000.

(j)     Paid Time Off/Paid Holidays . During the Term and subject to Compensation Committee periodic review and approval, Executive shall be entitled to thirty-five (35) annual paid time off days per calendar year, in accordance with the Company’s Paid Time Off policy as in effect as of the Hire Date, and as may be amended from time to time. Executive also shall be entitled to paid holidays in accordance with the Company’s practices with respect to paid holidays as in effect as of the Hire Date, as may be amended from time to time.

(k)     Club and Airline Membership . During the Term and subject to Compensation Committee periodic review and approval, the Company shall pay on behalf of Executive, or reimburse Executive for, the initiation fee and the monthly membership fee payable in connection with Executive’s membership in The Union Club in Cleveland, Ohio and the reasonable annual or monthly membership fees payable in connection with Executive’s membership in up to two airline clubs.

(l)     Tax and Financial Planning Assistance . During the Term and subject to Compensation Committee periodic review and approval, the Company shall, upon submission of proper documentation, pay on behalf of Executive, or reimburse Executive, for reasonable expenses incurred for professional assistance in planning and preparing his tax returns and managing his financial affairs, including estate planning, provided that such expenses do not exceed $5,000 per calendar year, or such other amount as the Compensation Committee may establish from time to time for the Named Executive Officers.

(m)     Annual Executive Physical . During the Term and subject to Compensation Committee periodic review and approval, the Company will provide Executive with the opportunity to receive an annual physical examination consistent with the benefit provided to the other Named Executive Officers from time to time.

6. Termination .

(a)     Executive’s employment hereunder, and this Agreement, may be terminated by the Company or Executive, as applicable, without any breach of this Agreement under the following circumstances and in accordance with Section 6(b):

(i.)     Death . Executive’s employment hereunder shall terminate upon his death.

(ii.)   Disability . If the Company determines in good faith that Executive has incurred a Disability, the Company may provide Executive written notice of its intention to terminate Executive’s employment. In such event, Executive’s employment with the Company shall terminate effective on the 30th day after receipt of such notice by Executive, provided that within such 30 day period Executive shall not have returned to full-time performance of his duties.

 

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(iii.)   Termination for Cause . The Company may terminate Executive’s employment hereunder for Cause.

(iv.)    Resignation for Good Reason . Executive may resign his employment hereunder for Good Reason.

(v.)     Termination without Cause . The Company may terminate Executive’s employment hereunder without Cause.

(vi.)    Resignation without Good Reason . Executive may resign his employment hereunder without Good Reason.

(vii.)   Termination due to Retirement . Executive may voluntarily resign his employment for Normal Retirement or Early Retirement.

(b)     Notice of Termination . Any termination of Executive’s employment by the Company or by Executive under this Section 6 (other than termination pursuant to Section 6(a)(i)) shall be communicated by a written notice from the Board or Executive to the other, indicating the specific termination provision in this Agreement relied upon, setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated, and specifying a Date of Termination which, except in the case of termination by reason of Disability or termination for Cause pursuant to Section 6(a)(ii) or 6(a)(iii), respectively, shall be no later than 90 days following the date of such notice (a “Notice of Termination”). In the event of termination for Cause pursuant to Section 6(a)(iii), Executive shall have the right, if the basis for such Cause is curable, to cure the same within thirty (30) days following the Notice of Termination for Cause, and Cause shall not be deemed to exist if Executive cures the event giving rise to Cause within such 30-day period. In the event of termination for Cause pursuant to Section 6(a)(iii) where the basis for such Cause is not curable, the Date of Termination shall be no earlier than thirty (30) days following the Notice of Termination; provided, however, in no event shall the giving of such Notice of Termination for Cause and the subsequent actions taken by the Company to reduce the responsibilities of Executive or to remove Executive from office be construed as factors giving to Executive the right declare that he has Good Reason to resign during any such notice period. In the event of termination by Executive for Good Reason pursuant to Section 6(a)(iv), the Company shall have the right, if the basis for such Good Reason is curable, to cure the same within thirty (30) days following the Notice of Termination for Good Reason, and Good Reason shall not be deemed to exist if the Company cures the event giving rise to Good Reason within such 30-day period. In addition, Good Reason shall not be deemed to exist unless Executive’s Date of Termination is within 90 days following the expiration of such 30-day cure period. Executive must provide written notice to the Company of any condition constituting Good Reason within ninety (90) days of the initial existence of such a condition. Executive shall continue to receive his Annual Base Salary, Bonus and all other compensation and perquisites referenced in Section 5 through the Date of Termination.

7.  Payments and Benefits Upon Termination.

(a)     Termination for any Reason . In the event Executive’s employment with the Company is terminated for any reason, the Company shall pay Executive (or his beneficiary in the event of his death) any unpaid Annual Base Salary that has accrued as of the Date of Termination, and any unreimbursed expenses due to Executive. Executive also shall be entitled to accrued, vested benefits under the Company’s benefit plans and programs as provided therein, and the terms of any applicable Notice of Award will govern such benefits to the extent applicable. Executive shall be entitled to the additional payments and benefits described below only as set forth herein.

 

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(b)  Termination Without Cause or Resignation for Good Reason (Not Following Change in Control) . Subject to Section 7(c), (i) and (j) and the restrictions contained in this Agreement, in the event of Executive’s termination without Cause (pursuant to Section 6(a)(v)) or resignation for Good Reason (pursuant to Section 6(a)(iv)), and where such termination without Cause or resignation for Good Reason does not occur within two (2) years following the effective date of a Change in Control, the Company shall pay to Executive the amounts described in Section 7(a). In addition, subject to Section 7(i), (j), and (m) and the restrictions contained in this Agreement, the Company shall do all of the following:

(i.)     The Company shall pay to Executive, in a single cash payment, an amount equal to two (2) times the sum of his Annual Base Salary at the rate in effect on the Date of Termination and his target Bonus payable under Section 5(b).

(ii.)    The Company shall pay to Executive, in a single cash payment, a prorated amount of the Bonus payable under Section 5(b) for such fiscal year based upon actual performance in such fiscal year, as determined at the end of the applicable performance period. Such payment shall be made in a lump sum by the later of (a) 2-1/2 months after the end of the calendar year in which the amount to be paid is no longer subject to a “substantial risk of forfeiture,” or (b) 2-1/2 months after the taxable year of the Company in which the amount to be paid is no longer subject to a “substantial risk of forfeiture.” For this purpose, the term “substantial risk of forfeiture” shall be determined within the meaning of Treasury Regulations Section 1.409A-1(b)(4) and (d).

(iii.)   The Company shall settle on a pro-rata basis any awards with performance-based vesting requirements granted Executive under the Stock Incentive and Award Plan for any performance period(s) not completed on the Date of Termination based upon actual performance in each such applicable performance period, as determined at the end of the applicable performance period and prorated based on the number of days during the applicable performance period that have elapsed prior to the Date of Termination compared to the total number of days in the performance period. Such settlement shall be made in a lump sum after the end of the applicable performance period with respect to which it is to be calculated, and by the later of (a) 2-1/2 months after the end of the calendar year in which the amount to be paid is no longer subject to a “substantial risk of forfeiture,” or (b) 2-1/2 months after the end of the taxable year of the Company in which the amount to be paid is no longer subject to a “substantial risk of forfeiture.”

(iv.)   Unvested Stock Options subject to time-based vesting requirements granted to Executive under the Stock Incentive and Award Plan shall continue to vest in accordance with the normal vesting schedule under the terms of the applicable Notice of Award, and the Company shall permit Executive to exercise all vested but unexercised Stock Options granted to Executive under the Stock Incentive and Award Plan in accordance with the terms of the applicable Notice of Award.

(v.)    Any restrictions on transfer and any time-based vesting requirements on grants of restricted shares of Common Stock granted to Executive under the Stock Incentive and Award Plan shall lapse as of the Date of Termination.

(vi.)   Executive immediately shall become fully vested in his benefits under the Supplemental Individual Pension Benefit.

 

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(vii.)   The Company shall continue certain of Executive’s benefits under this Agreement for a period of twenty four (24) months following the Date of Termination (for purposes of this Section 7(b)(vii), the “Continued Benefits”). The Continued Benefits shall include health care benefits, dental benefits, prescription drug benefits and vision care benefits. Any rights that Executive and/or his qualified beneficiaries may have to continuation of health plan coverage in accordance with the requirements of applicable law (e.g. “ COBRA coverage ” under the Employee Retirement Income Security Act of 1974) shall run concurrently with the continuation of welfare benefits under this Section 7(b)(vii), such that Executive will timely elect such continuation coverage and the Company shall be responsible for necessary premium payments on behalf of Executive. The portion of the premium payments paid by the Company will be taxable to Executive. The Company may require Executive to complete and file any election forms that are generally required of other employees to obtain COBRA coverage; and Executive’s COBRA coverage may be terminable in accordance with applicable law.

(c)   Termination Without Cause or Resignation for Good Reason (Following Change in Control) . In the event of Executive’s termination without Cause (pursuant to Section 6(a)(v)) or resignation for Good Reason (pursuant to Section 6(a)(iv)) during the Term, and where such termination without Cause or resignation for Good Reason occurs within two (2) years following the effective date of a Change in Control, the Company shall pay to Executive the amounts described in Section 7(a) as well as any compensation or benefits to which Executive is entitled under the Change-in-Control Retention Agreement between the Company and Executive, but Executive shall not be entitled to benefits described under Section 7(b) of this Agreement.

(d)   Termination Due to Death . Subject to Section 7(i) and (j) and the restrictions contained in this Agreement, in the event of Executive’s termination due to death during the Term, the Company shall pay to Executive the amounts described in Section 7(a). The Company agrees to also:

(i.)       The Company shall settle on a pro-rata basis any awards with performance-based vesting requirements granted Executive under the Stock Incentive and Award Plan for any performance period(s) not completed on the Date of Termination based upon actual performance in each such applicable performance period, as determined at the end of the applicable performance period and prorated based on the number of days during the applicable performance period that have elapsed prior to the Date of Termination compared to the total number of days in the performance period. Such settlement shall be made in a lump sum after the end of the applicable performance period with respect to which it is to be calculated, and by the later of (a) 2-1/2 months after the end of the calendar year in which the amount to be paid is no longer subject to a “substantial risk of forfeiture,” or (b) 2-1/2 months after the end of the taxable year of the Company in which the amount to be paid is no longer subject to a “substantial risk of forfeiture.”

(ii.)       Executive (and thus, his surviving spouse) shall immediately become fully vested in his benefits under the Supplemental Individual Pension Benefit.

(iii.)     Any restrictions on transfer and any time-based vesting requirements on grants of restricted shares of Common Stock granted to Executive under the Stock Incentive and Award Plan shall immediately lapse.

(iv.)     All outstanding unvested Stock Options subject to time-based vesting requirements granted to Executive under the Stock Incentive and Award Plan shall immediately vest on the Date of Termination and Executive’s estate shall retain the right to exercise vested Stock Options granted to Executive under the Stock Incentive and Award Plan for the remainder of their term.

 

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(e)   Termination Due to Disability . Subject to Section 7(i) and (j) and the restrictions contained in this Agreement, in the event of Executive’s termination due to Disability during the Term, the Company shall pay to Executive the amounts described in Section 7(a), but Executive shall not be entitled to any severance, salary continuation or other termination pay. However, the Company agrees to also:

(i.)       Executive shall receive disability benefits, if any, in accordance with the Nordson Corporation Long Term Disability Plan.

(ii.)     The Company shall settle on a pro-rata basis any awards with performance-based vesting requirements granted Executive under the Stock Incentive and Award Plan for any performance period(s) not completed on the Date of Termination based upon actual performance in each such applicable performance period, as determined at the end of the applicable performance period and prorated based on the number of days during the applicable performance period that have elapsed prior to the Date of Termination compared to the total number of days in the performance period. Such settlement shall be made in a lump sum after the end of the applicable performance period with respect to which it is to be calculated, and by the later of (a) 2-1/2 months after the end of the calendar year in which the amount to be paid is no longer subject to a “substantial risk of forfeiture,” or (b) 2-1/2 months after the end of the taxable year of the Company in which the amount to be paid is no longer subject to a “substantial risk of forfeiture.”

(iii.)     Any restrictions on transfer and any time-based vesting requirements on grants of restricted shares of Common Stock granted to Executive under the Stock Incentive and Award Plan shall immediately lapse.

(iv.)     All outstanding unvested Stock Options subject to time-based vesting requirements granted to Executive under the Stock Incentive and Award Plan shall immediately vest on the Date of Termination and Executive shall retain the right to exercise vested Stock Options granted under the Stock Incentive and Award Plan for the remainder of their term.

(f)   Termination Due to Normal Retirement . Subject to Section 7(i) and (j) and the restrictions contained in this Agreement, in the event of Executive’s termination due to Normal Retirement during the Term, the Company shall pay to Executive the amounts described in Section 7(a), but Executive shall not be entitled to any severance, salary continuation or other termination pay. However, the Company also shall do all of the following:

(i.)       The Company shall settle on a pro-rata basis any awards with performance-based vesting requirements granted Executive under the Stock Award and Incentive Plan for any performance period(s) not completed on the Date of Termination based upon actual performance in each such applicable performance period, as determined at the end of the applicable performance period and prorated based on the number of days during the applicable performance period that have elapsed prior to the Date of Termination compared to the total number of days in the performance period. Such settlement shall be made in a lump sum after the end of the applicable performance period with respect to which it is to be calculated, and by the later of (a) 2-1/2 months after the end of the calendar year in which the amount to be paid is no longer subject to a “substantial risk of forfeiture,” or (b) 2-1/2 months after the end of the taxable year of the Company in which the amount to be paid is no longer subject to a “substantial risk of forfeiture.”

(ii.)     Except for Stock Option awards granted less than 12 months prior to the Date of Termination (which are forfeited), unvested Stock Options subject to time-based vesting requirements granted to Executive under the Stock Incentive and Award Plan shall continue to vest

 

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in accordance with the normal vesting schedule under the terms of the applicable Notice of Award, and the Company shall permit Executive to exercise all vested but unexercised Stock Options granted to Executive under the Stock Incentive and Award Plan in accordance with the terms of the applicable Notice of Award.

(iii.)     Except for restricted share awards granted less than 12 months prior to the Date of Termination (which are forfeited), any restrictions on transfer and any time-based vesting requirements on grants of the restricted shares of Common Stock granted to Executive under the Stock Incentive and Award Plan shall lapse as of the Date of Termination.

(g)     Termination Due to Early Retirement . Subject to Section 7(i) and (j) and the restrictions contained in this Agreement, in the event of Executive’s termination due to Early Retirement during the Term, the Company shall pay to Executive the amounts described in Section 7(a), but Executive shall not be entitled to any severance, salary continuation or other termination pay. However, the Company also shall do all of the following:

(i.)       The Company shall settle on a prorata basis any awards with performance-based vesting requirements granted Executive under the Stock Award and Incentive Plan for any performance period(s) not completed on the Date of Termination based upon actual performance in each such applicable performance period, as determined at the end of the applicable performance period and prorated based on the number of days during the applicable performance period that have elapsed prior to the Date of Termination compared to the total number of days in the performance period. Such settlement shall be made in a lump sum after the end of the applicable performance period with respect to which it is to be calculated, and by the later of (a) 2-1/2 months after the end of the calendar year in which the amount to be paid is no longer subject to a “substantial risk of forfeiture,” or (b) 2-1/2 months after the end of the taxable year of the Company in which the amount to be paid is no longer subject to a “substantial risk of forfeiture.”

(ii.)       Except for Stock Option awards granted less than 12 months prior to Date of Termination (which are forfeited), unvested Stock Options subject to time-based vesting requirements granted to Executive under the Stock Incentive and Award Plan shall continue to vest in accordance with the normal vesting schedule under the terms of the applicable Notice of Award until the earlier of 5 years after the Date of Termination or the end of the term for such Stock Options, and the Company shall permit Executive to exercise all vested but unexercised Stock Options granted to Executive under the Stock Incentive and Award Plan in accordance with the terms of the applicable Notice of Award.

(iii.)     Except for restricted share awards granted less than 12 months prior to the Date of Termination (which are forfeited), any restrictions on transfer and any time-based vesting requirements on grants of restricted shares of Common Stock granted to Executive under the Stock Incentive and Award Plan shall immediately lapse on a prorated portion of such restricted shares, based on the number of months completed during the applicable vesting period prior to the Date of Termination compared to the total number of months in the vesting period.

(h)     Voluntary Termination by Executive Without Good Reason or Termination by the Company for Cause . Subject to Section 7(i) and (j) and the restrictions contained in this Agreement, in the event of Executive’s voluntary termination without Good Reason or termination by the Company for Cause, the Company shall pay to Executive the amounts described in Section 7(a), but Executive shall not be entitled to any severance, salary continuation or other termination pay.

(i)     Benefits Provided Upon Termination of Employment . Unless otherwise indicated under this Section 7 and/or any applicable Notice of Award or benefit plan, any payments to which

 

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Executive is entitled under this Section 7 shall be made within sixty (60) days following Executive’s Date of Termination. Any references in this Agreement to “employment termination,” “termination of employment, “resignation,” and words and phrases of similar import mean a “separation from service” with the Company within the meaning of Code Section 409A.

(j)     Specified Employee Status Under Section  409A . If Executive is a “specified employee” for purposes of Code Section 409A, as determined under the Company’s policy for determining specified employees on his “separation from service” (within the meaning of Code Section 409A), then to the extent necessary to avoid any additional tax or penalty under Code Section 409A, each payment, benefit, or reimbursement paid or provided under this Agreement that constitutes a “deferral of compensation” within the meaning of Code Section 409A, that is to be paid or provided as a result of his separation from service, and that would otherwise be paid or provided at any time (a “Scheduled Time”) that is on or before the date that is exactly six months after Executive’s separation from service (other than payments, benefits, or reimbursements that are treated as separation pay under Section 1.409A-1(b)(9)(v) of the Treasury Regulations) will not be paid or provided at the Scheduled Time but will be accumulated through the date that is exactly six months after Executive’s separation from service and will be paid or provided to Executive during the period of 30 consecutive days that starts exactly six months and one day after Executive’s separation from service, except that if Executive dies before the end of six months after his separation from service, the payments, benefits, or reimbursements will be accumulated only through the date of his death and will be paid or provided not later than 30 days after the date of death.

(k)     Nonduplication of Benefits . To the extent, and only to the extent, a payment or benefit that is paid or provided under this Section 7 would also be paid or provided under the terms of the applicable plan, program, agreement or arrangement, including, without limitation, the Change-in-Control Retention Agreement described in Section 4, such applicable plan, program, agreement or arrangement will be deemed to have been satisfied by the payment made or benefit provided under this Agreement.

(l)     Mitigation . In the event of Executive’s termination of employment by the Company without Cause or by Executive for Good Reason (not in connection with a Change in Control or within two (2) years following a Change in Control), the continuation of health and welfare benefits pursuant to Section 7(b)(vii) shall cease upon Executive’s becoming eligible for health and welfare benefits at his new employer, provided that the new employer offers health and welfare benefits which are equal to or greater than the health and welfare benefits available at the Company, or 24 months after the Date of Termination, whichever is earlier.

(m)     Release . Notwithstanding anything herein to the contrary, the Company shall not be obligated to make any payment or provide any benefit under Section 7(b) hereof, or in the event of a termination without Cause or resignation for Good Reason, under Section 5(e) hereof, unless (i) prior to the 60th day following the Date of Termination for the termination without Cause or resignation for Good Reason, Executive executes a release of all current or future claims, known or unknown, arising on or before the date of the release against the Company and its subsidiaries and the directors, officers, employees and affiliates of any of them, in a form approved by the Company, and (ii) any applicable revocation period has expired during such 60-day period without Executive revoking such release. If the 60-day period during which Executive must sign the release commences in one calendar year and ends in another, then, to the extent necessary to comply with Code Section 409A, any such payments and benefits under Section 7(b) or Section 5(e), as applicable, shall not commence until the second calendar year or such later date that is specified in Section 7(b) or 5(e).

 

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8.  Non-competition; Non-solicitation; Confidential Information . Executive will be a party to and abide by the terms of the standard Nordson Employee Agreement regarding confidentiality, non-competition, trade secret protection, and patent assignment. Executive also agrees not to solicit customers or employees of the Company for 24 months following termination and agrees not to accept employment or consult with a company in direct competition with Company that manufactures or services products that compete with products manufactured or serviced by Nordson for 24 months following termination. Breach of the Nordson Employee Agreement by Executive shall constitute a material breach of this Agreement.

9.  Representations . Executive attests to his degree from India and that he has no knowledge of any past legal or ethical claims, asserted or unasserted, or harassment complaints against him or with respect to his prior employment. Breach of this Section 9 shall constitute a material breach of this Agreement.

10. Clawback Provisions . Any amounts payable under this Agreement are subject to any policy (whether in existence as of the Hire Date or later adopted) established by the Company providing for clawback or recovery of amounts that were paid to Executive. The Company will make any determination for clawback or recovery in its sole discretion and in accordance with any applicable law or regulation.

11. Stock Ownership Requirements . During the Term, the Executive shall be expected to maintain ownership of Company Common Stock having a value equal to approximately 5 times his Annual Base Salary in accordance with guidelines established by the Compensation Committee from time to time. Executive will be required to meet this ownership requirement within 5 years after the Hire Date. Executive will receive credit for earned performance and vested restricted shares toward the “approximately 5 times” threshold.

12. Injunctive Relief . It is recognized and acknowledged by Executive that a breach of the covenants described in Section 8 above will cause irreparable damage to the Company and its goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the remedies at law for any such breach will be inadequate. Accordingly, Executive agrees that in the event of a breach of any of the covenants contained in Section 8 above, in addition to any other remedy which may be available at law or in equity, the Company shall be entitled to specific performance and injunctive relief.

13. Survival . The expiration or termination of the Term shall not impair the rights or obligations of any party hereto which shall have accrued hereunder prior to such expiration and notwithstanding the expiration or termination of the Term, Sections 8, 10, and 12 of this Agreement shall survive and continue in full force in accordance with their terms.

14. Binding on Successors . This Agreement shall be binding upon and inure to the benefit of the Company, Executive and their respective successors, assigns, personnel and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable.

15. Governing Law . This Agreement shall be governed, construed, interpreted and enforced in accordance with the substantive laws of the State of Ohio.

16. Validity . The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement,

 

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which shall remain in full force and effect.

17. Notices . Any notice, request, claim, demand, document or other communication hereunder to any party shall be effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally or sent by fax, or certified or registered mail, postage prepaid, as follows:

If to the Company, to:

Nordson Corporation

28601 Clemens Road

Cleveland, Ohio 44145-1119

Attention: Executive Vice President and General Counsel

with copies to:

Nordson Corporation

28601 Clemens Road

Cleveland, Ohio 44145-1119

Attention: Chair, Compensation Committee

If to Executive, to him at the Executive’s most recent address on file with the Company with a copy to:

David Dubberly, Esquire

Nexsen Pruet, LLC

P.O. Box 2426

Columbia, SC 29202

or at any other address as any party shall have specified by notice in writing to the other party in accordance with this Section 17.

18. Counterparts . This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same agreement.

19. Entire Agreement . The terms of this Agreement, together with the Stock Incentive and Award Plan and any Notice of Award or other award agreement(s) issued thereunder, the Change-in-Control Retention Agreement, and the Nordson Employment Agreement to which Executive is a party are intended by the parties to be the final expression of their agreement with respect to the employment of Executive by the Company and may not be contradicted by evidence of any prior or contemporaneous agreement. The parties further intend that this Agreement, and the aforementioned contemporaneous documents, shall constitute the complete and exclusive statement of its terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement.

20. Amendments; Waivers . This Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by Executive and authorized on behalf of

 

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the Company by the Compensation Committee. By an instrument in writing similarly executed, Executive or the Company may waive compliance by the other party or parties with any provision of this Agreement that such other party was or is obligated to comply with or perform; provided, however, that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent failure. No failure to exercise and no delay in exercising any right, remedy or power hereunder shall preclude any other or further exercise of any other right, remedy or power provided herein or by law or in equity.

21. No Inconsistent Actions . The parties hereto shall not voluntarily undertake or fail to undertake any action or course of action inconsistent with the provisions or essential intent of this Agreement. Furthermore, it is the intent of the parties hereto to act in a fair and reasonable manner with respect to the interpretation and application of the provisions of this Agreement.

22. Arbitration . Any dispute or controversy arising under or in connection with this Agreement or Executive’s employment with the Company, to include without limitation, any employment-related claim regarding Executive’s hiring, terms and conditions of employment, and termination of employment sounding in contract or tort or under federal, state or local statute or other law (to exclude claims for workers’ compensation, unemployment compensation and under the Employee Retirement Income Security Act of 1974) shall be settled exclusively by arbitration, conducted before a panel of three arbitrators in Cleveland, Ohio, in accordance with the Employment Arbitration Rules of the American Arbitration Association then in effect. Judgment may be entered on the arbitrator’s award in any court having jurisdiction; provided, however, that the Company shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of the provisions of Section 8 or 12 of this Agreement and Executive hereby consents that such restraining order or injunction may be granted without the necessity of the Company’s posting any bond; and provided further, that Executive shall be entitled to seek specific performance of his right to be paid until the Date of Termination during the pendency of any dispute or controversy arising under or in connection with this Agreement. The Company will pay the costs of the arbitration. Each of the parties hereto shall bear its own attorney’s fees and expenses in connection with the arbitration.

23. Indemnification and Insurance . The Company shall indemnify Executive to the fullest extent permitted by the laws of the State of Ohio, in effect at the time of the subject act or omission, and shall advance to Executive reasonable attorneys’ fees and expenses as such fees and expenses are incurred subject to an undertaking from Executive to repay such advances if it shall be finally determined by a judicial decision which is not subject to further appeal that Executive was not entitled to the reimbursement of such fees and expenses and he shall be entitled to the protection of any insurance policies the Company shall elect to maintain generally for the benefit of its directors and officers (“ Directors and Officers Insurance ”) against all costs, charges and expenses incurred or sustained by him in connection with any action, suit or proceeding to which he may be made a party by reason of his being or having been a director, officer or employee of the Company or any of its subsidiaries or his serving or having served any other enterprise as a director, officer or employee at the request of the Company (other than any dispute, claim or controversy arising under or relating to this Agreement). The Company covenants to maintain during the Term and for a reasonable period of time thereafter (which period shall not be less than five years) for the benefit of Executive (in his capacity as a current or former officer and director of the Company, as applicable) Directors and Officers Insurance providing customary benefits to Executive with respect to all periods during the Term.

24. Withholding of Taxes . All payments under this Agreement shall be subject to withholding,

 

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deductions and contributions as required by law.

25. Limitation on Payments . In the event that the severance payments provided to the Executive hereunder, when aggregated with any other payments or benefits received by the Executive, would (i) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) would be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Executive’s severance payments provided hereunder shall be reduced by such amount as necessary to ensure that no portion of all such benefits would be subject to the Excise Tax.

26. Code Section  409A Compliance . This Agreement is intended to comply with the requirements of Code Section 409A or an exemption or exclusion therefrom and, with respect to amounts that are subject to Code Section 409A, shall in all respects be administered in accordance with Code Section 409A. Each payment under this Agreement shall be treated as a separate payment for purposes of Code Section 409A. In no event may Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement. If Executive dies following the date of termination and prior to the payment of any amounts delayed on account of Code Section 409A, such amounts shall be paid to the personal representative of Executive’s estate within 30 days after the date of Executive’s death. All reimbursements and in-kind benefits provided under this Agreement that constitute deferred compensation within the meaning of Code Section 409A shall be made or provided in accordance with the requirements of Code Section 409A, 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 Executive shall have submitted an invoice for such fees and expenses at least 10 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 reimbursements or in-kind benefits that the Company is obligated to pay or provide in any given calendar year shall not affect the reimbursements or in-kind benefits that the Company is obligated to pay or provide in any other calendar year; (iii) Executive’s 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 Executive’s remaining lifetime (or, if longer, through the 20th anniversary of Hire Date). The Company may, in consultation with Executive, modify this Agreement, in the least restrictive manner necessary and without any diminution in the value of the payments to Executive, in order to cause the provisions of the Agreement to comply with the requirements of Code Section 409A, so as to avoid the imposition of taxes and penalties on Executive pursuant to Code Section 409A.

IN WITNESS WHEREOF, the parties have executed this Agreement on the date and year first above written.

 

NORDSON CORPORATION

  

EXECUTIVE

By:                                  

  

                                                 

Name:

  

Title:

  
  
  

 

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Exhibit 10.3

CHANGE-IN-CONTROL RETENTION AGREEMENT

This Agreement is entered into as of June     , 2019, by and between Nordson Corporation, an Ohio corporation (“Nordson” or the “Company”), and Sundaram Nagarajan, an individual (“Executive”).

Executive is an executive and key employee of Nordson and is now serving Nordson as its President and Chief Executive Officer. Nordson desires to assure itself of continuity of management in the event of any threatened or actual Change-in-Control, to provide inducements for Executive not to compete with Nordson, and to assure itself, in the event of any threatened or actual Change-in-Control, of the continued performance of services by Executive on an objective and impartial basis and without distraction by concern for Executive’s employment status and security. In order to induce Executive to remain in its employ, Nordson agrees that if Executive’s employment with Nordson is terminated after a Change-in-Control under certain circumstances as described below, Nordson will pay the severance benefits set forth in this Agreement.

Nordson and Executive agree as follows:

1.  Operation of Agreement . This Agreement will be effective and binding immediately upon Executive’s hire date, August 1, 2019 (the “Effective Date”) but will not be operative unless and until there has been a Change-in-Control while Executive is in the employ of Nordson. If a Change-in-Control occurs while Executive is in the employ of Nordson, this Agreement will become operative immediately and (subject only to the possible undoing of the particular Change-in-Control, as provided in Section 14 below) will continue in effect in accordance with its terms.

2.  Retention Period . If and when a Change-in-Control occurs, Nordson will continue to employ Executive and Executive will continue in the employ of Nordson during the period (the “Retention Period”) that begins on the first date on which a Change-in-Control occurs (the “Change in Control Date”) and ends at the close of business on the second anniversary of the Change-in-Control Date, except that Executive’s employment may be terminated during the Retention Period as provided in Section 5 below.

3.  Position, Duties, Responsibilities . At all times during the Retention Period, Executive will:

(a) hold the same position with substantially the same duties and responsibilities as an executive of Nordson as Executive held immediately before the Change-in-Control, as those duties and responsibilities may be extended from time to time during the Retention Period by Nordson’s Board of Directors (the “Board”);

(b) observe all Nordson policies applicable to Nordson executive personnel; and

(c) devote his business time, energy, and talent to the business of and to the furtherance of the purposes and objectives of Nordson to generally the same extent as Executive did so prior to the Change-in-Control.

Nothing in this Agreement will preclude Executive from devoting reasonable periods of time to charitable and community activities or the management of Executive’s investment assets provided those activities do not materially interfere with the performance of Executive’s duties under this Agreement.


4.  Compensation and Benefits During the Retention Period . During the Retention Period, Executive will be entitled to the same base salary and to the same or equivalent other elements of total direct compensation opportunity (consisting of, short and long term incentive compensation, equity grants, and executive perquisites) and employee pension and welfare benefits as that afforded to Executive by Nordson immediately before the Change-in-Control Date.

5.  Termination Following a Change in Control . During the Retention Period, Executive’s employment with Nordson may be terminated only in accordance with one of the subsections of this Section 5. For all purposes of this Agreement, the term “Employment Termination Date” means the last date on which Executive is employed by Nordson.

(a) By Nordson for Cause . Nordson may terminate Executive’s employment under this Agreement for “Cause,” effective immediately upon giving notice of termination, if:

(i) Executive commits a felony or an act or series of acts that results in material injury to the business or reputation of the Company or any subsidiary; or

(ii) Executive willfully fails to perform his duties of employment, if such failure has not been cured in all material respects within thirty (30) days after the Company or any subsidiary, as applicable, gives written notice thereof; or

(iii) Executive breaches any material term, provision, or condition of employment, which breach has not been cured in all material respects within thirty (30) days after the Company or any subsidiary, as applicable, gives written notice thereof; or

(iv) Executive materially fails to comply with the Company’s Code of Business and Ethical Conduct.

(b) By Nordson without Cause . Nordson may terminate Executive’s employment under this Agreement without Cause at any time, effective immediately upon giving notice of that termination.

(c) By Executive for Good Reason . Subject to compliance with the notice and opportunity for cure requirements set forth at the end of this Section 5(c), Executive may terminate his employment under this Agreement for “Good Reason” if any of the following circumstances occurs during the Retention Period without Executive’s express written consent:

(i) a material and adverse change in the authorities, powers, functions, or duties attached to Executive’s position from those authorities, powers, functions, and duties as they existed immediately before the Change-in-Control Date (but a change in the office or officer to whom Executive reports will not, in itself, be deemed to be a material adverse change in Executive’s authorities, powers, functions, or duties for these purposes); or

(ii) a reduction in Executive’s annual base salary from that provided immediately before the Change-in-Control Date, without Executive’s prior consent;

(iii) a material failure by Nordson to make available to Executive compensation plans, employee pension plans, and employee welfare benefit plans (collectively, “Plans”) and

 

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other benefits and perquisites that provide opportunities to receive overall compensation and benefits and perquisites at least equal to the opportunities for overall compensation and benefits and perquisites that were available to Executive immediately before the Change-in-Control Date;

(iv) a change in the location of Executive’s principal place of employment by more than 50 miles from the location where Executive was principally employed immediately before the Change-in-Control Date;

(v) a significant increase in the frequency or duration of Executive’s business travel; or

(vi) any material breach of this Agreement by the Company, which breach has not been cured in all material respects within thirty (30) days after Executive gives written notice thereof.

Executive shall give written notice of termination for Good Reason based on any particular circumstance described in any of (i) through (vi) of this Section 5(c) by giving notice of that intention (and of the particular circumstance on which the notice is based) not later than 90 days after Executive becomes aware of the existence of that particular circumstance. Any notice by Executive of termination for Good Reason must specify a date, not later than 90 days and not less than 30 days after the date on which the notice is given, that Executive proposes as Executive’s Employment Termination Date. If Nordson cures the circumstance identified by Executive in Executive’s notice before the proposed Employment Termination Date, Executive will not be entitled to terminate for Good Reason based upon the cured circumstance and Executive’s notice will be deemed rescinded. If Nordson fails to so cure before the proposed Employment Termination Date, Executive’s employment will terminate for Good Reason effective on that date.

(d) By Executive without Good Reason . Executive may terminate his employment under this Agreement without Good Reason at any time, effective immediately upon giving of notice of that termination.

(e) Upon Death or Retirement . Upon the death or Retirement of Executive, Executive’s employment under this Agreement will terminate without further notice, effective as of the date of death or Retirement. For all purposes of this Agreement, “Retirement” means Executive’s termination of employment under the terms of the applicable Nordson retirement plan as in effect immediately before the Change-in-Control Date.

(f) Upon Total Disability . Nordson may terminate Executive’s employment under this Agreement, effective thirty days after the giving of notice by Nordson, if Executive suffers a Total Disability. For all purposes of this Agreement, “Total Disability” means a physical or mental impairment, due to accident or illness, that renders Executive permanently incapable of performing the duties attached to Executive’s position as those duties existed immediately before the Change-in-Control Date.

 

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6.  Payments upon Termination .

(a) Termination for Cause or without Good Reason . If during the Retention Period Nordson terminates Executive’s employment for Cause or Executive terminates his employment without Good Reason, Executive will not be entitled to any termination, separation, severance, or similar benefits under this Agreement.

(b) Termination Upon Executive s Total Disability, Retirement, or Death. If during the Retention Period Executive’s employment is terminated as a result of Executive’s Total Disability, Retirement, or death, Executive will be entitled to benefits under and in accordance with Nordson’s disability, retirement, and death benefit (including life insurance policies) plans and policies as in effect immediately before the Change-in-Control Date, or benefits equivalent thereto. In addition, Nordson will pay to Executive (or to Executive’s estate in the event of Executive’s death) any Unpaid Prior Year Cash Incentive and a Current Year Pro Rata Cash Incentive. For all purposes of this Agreement, the term “Unpaid Prior Year Cash Incentive” means any cash incentive payment for the fiscal year ended immediately before the fiscal year in which the Employment Termination Date occurs that remains unpaid as of the Employment Termination Date (whether or not, under normal practice, that cash incentive payment would not be paid until a date later than the Employment Termination Date).

For all purposes of this Agreement, the term “Current Year Pro Rata Cash Incentive” means (x) an amount calculated on the same date and in the same manner as Executive’s annual cash incentive payment under the relevant cash incentive plan in effect for the fiscal year in which the Employment Termination Date occurs would have been calculated if Executive’s employment had not been terminated and, to the extent relevant to that calculation, Executive’s performance through the entire fiscal year had been equal to Executive’s performance during the part of the fiscal year ending on the Employment Termination Date, multiplied by (y) a fraction, the numerator of which is the number of days in the partial fiscal year ending on the Employment Termination Date and the denominator of which is 365. Unless any payment under this Section 6(b) must be postponed by reason of Section 409A of the Internal Revenue Code (as provided in Exhibit A to this Agreement): Nordson will pay any Unpaid Prior Year Cash Incentive at the same time that amount would have been paid if Executive’s employment had continued indefinitely but not later than March 15 of the year in which the Employment Termination Date occurs; Nordson will pay any Current Year Pro Rata Cash Incentive at the same time that amount would have been paid if Executive’s employment had continued indefinitely but not later than March 15 of the year immediately after the year in which the Employment Termination Date occurs; and Nordson will pay any other benefits or amounts payable pursuant to this Section 6(b) at the time specified in the applicable plan.

(c) Termination without Cause or for Good Reason . If during the Retention Period Executive’s employment is terminated by Nordson without Cause or by Executive for Good Reason, Nordson will pay and provide to Executive the following compensation and benefits:

 

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(i) Accrued Obligations . Nordson will pay to Executive base salary through the Employment Termination Date (at the rate in effect immediately before the Employment Termination Date), any Unpaid Prior Year Cash Incentive, a Current Year Pro Rata Cash Incentive, and all other amounts to which Executive is entitled under any Nordson compensation plan applicable to Executive that is listed on Exhibit B to this Agreement, or any successor compensation plan to that listed on Exhibit B to this Agreement. Unless any payment under this Section 6(c)(i) must be postponed by reason of Section 409A of the Internal Revenue Code (as provided in Exhibit A to this Agreement), Nordson will pay any base salary within five business days of the Employment Termination Date; Nordson will pay any Unpaid Prior Year Cash Incentive at the same time that amount would have been paid if Executive’s employment had continued indefinitely but not later than March 15 of the year in which the Employment Termination Date occurs; Nordson will pay any Current Year Pro Rata Cash Incentive at the same time that amount would have been paid if Executive’s employment had continued indefinitely but not later than March 15 of the year immediately after the year in which the Employment Termination Date occurs; and Nordson will pay any other amounts payable pursuant to this Section 6(c)(i) at the time specified in the applicable compensation plan.

(ii) Severance Payment . Nordson will pay to Executive a severance payment equal to two times the sum of (x) Executive’s annual base salary (at the rate in effect immediately before the Employment Termination Date) plus (y) Executive’s annual target cash incentive payment in effect on the Employment Termination Date. Unless this payment must be postponed by reason of Section 409A of the Internal Revenue Code (as provided in Exhibit A to this Agreement), Nordson will pay this amount to Executive within five business days of the Employment Termination Date.

(iii) Continuing Plan Coverage . For a period of two years following the Employment Termination Date, Nordson will maintain in full force and continue to provide full benefits to Executive under all life insurance, health (medical, dental and vision), accidental death and dismemberment, pension, disability and tax and financial planning plans and programs in which Executive was entitled to participate immediately before the Employment Termination Date, except that (x) if Executive’s continued participation is not possible under the general terms and provisions of any such plan or program, Nordson will provide Executive with benefits equivalent to those provided by each such plan and program, and (y) Nordson will not be required to maintain any of these plans and programs, or the equivalent thereof, after Executive has either reached the normal retirement date under the retirement or pension plan in effect immediately before the Change-in-Control Date or secured full time employment with another employer that provides benefits to Executive under a comparable plan or program that are at least substantially equal to the benefits provided by Nordson. To assure compliance with Section 409A of the Internal Revenue Code, the timing of the provision of any benefits under this Section 6(c)(iii) will be subject to Exhibit A to this Agreement if and to the extent any part of that section is applicable according to its terms. Any rights that Executive and/or his qualified beneficiaries may have to continuation of health plan coverage in accordance with the requirements of applicable law (e.g. “COBRA coverage” under the Employee Retirement Income Security Act of 1974) will run concurrently with the continuation of welfare benefits under this Section 6(c)(iii), such

 

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that Executive will timely elect such continuation coverage and Nordson will be responsible for necessary premium payments on behalf of Executive. The portion of such premium payments paid by Nordson will be taxable to Executive. Nordson may require Executive to complete and file any election forms that are generally required of other employees to obtain COBRA coverage; and Executive’s COBRA coverage may be terminable in accordance with applicable law.

(iv) Lump Sum Payment Based on Additional Two Years of Age and Service under Pension and Excess Defined Benefit Plans . Nordson will pay to Executive a lump sum amount equal to the amount by which the aggregate actuarial present value, calculated as of the Employment Termination Date, of all amounts payable with respect to Executive under the Nordson Corporation Salaried Employees Pension Plan, the Nordson Corporation 2005 Excess Defined Benefit Pension Plan, and the Nordson Corporation Amended and Restated 2005 Excess Defined Benefit Pension Plan (or equivalent plans) would be increased if Executive had an additional two years of age and an additional two years of service credit under each of these plans. Unless this payment must be postponed by reason of Section 409A of the Internal Revenue Code (as provided in Exhibit A to this Agreement), Nordson will pay this amount to Executive within five business days of the Employment Termination Date.

(v) Career Counseling . Nordson will make available to Executive, at Nordson’s expense, outplacement counseling services. Executive may select the organization that will provide Executive with such services, provided that Nordson will not be required to pay more than $50,000 for any such services. To assure compliance with Section 409A of the Internal Revenue Code, the timing of the provision of any benefits under this Section 6(c)(v) will be subject to Exhibit A to this Agreement if and to the extent any part of that section is applicable according to its terms.

(vi) Vesting and Additional Two Years of Age and Service under Supplemental Individual Pension Benefit . Executive will immediately become fully vested in the Supplemental Individual Pension Benefit (as defined in the Employment Agreement, dated June 10, 2019, by and between Executive and Nordson (the “Employment Agreement”)), and Nordson will credit Executive with an additional two years of service credit and add an additional two years to Executive’s age for purposes of determining the benefit under the Supplemental Individual Pension Benefit.

(vii) Long-Term Incentive Compensation . Nordson will settle on a prorata basis any awards with performance-based vesting requirements granted Executive under the Amended and Restated Nordson Corporation 2012 Stock Incentive and Award Plan, or any successor thereto (the “Stock Incentive and Award Plan”) for any performance period(s) not completed on the Employment Termination Date based upon actual performance in each such applicable performance period, as determined at the end of the applicable performance period and prorated based on the number of days during the applicable performance period that have elapsed prior to the Employment Termination Date compared to the total number of days in the performance period. Such settlement will be made in a lump sum after the end of the applicable performance period with respect to which it is to be calculated, and by the later of (a) 2-1/2 months after the end

 

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of the calendar year in which the amount to be paid is no longer subject to a “substantial risk of forfeiture,” or (b) 2-1/2 months after the end of the taxable year of Nordson in which the amount to be paid is no longer subject to a “substantial risk of forfeiture.” For this purpose, the term “substantial risk of forfeiture” will be determined within the meaning of Treasury Regulations Section 1.409A-1(b)(4) and (d). Executive will immediately become fully vested in all outstanding unvested stock options subject to time-based vesting requirements granted to Executive under the Stock Incentive and Award Plan. Any restrictions on transfer and any time-based vesting requirements on grants of restricted shares of Nordson common stock granted to Executive under the Stock Incentive and Award Plan will immediately and completely lapse.

(viii) Vesting under Deferred Compensation Plan . Executive will immediately become fully vested in any accrued but unvested benefits, if any, under the Amended and Restated Nordson Corporation 2005 Deferred Compensation Plan.

7.  No Set-Off; No Obligation to Seek Other Employment or to Otherwise Mitigate Damages; No Effect Upon Other Agreements . Nordson’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations under this Agreement will not be affected by any set-off, counterclaim, recoupment, defense, or other claim whatsoever that Nordson may have against Executive. Executive will not be required to mitigate damages or the amount of any payment provided for under this Agreement by seeking other employment or otherwise. Except as expressly provided in Section 6(c)(iii) as to continuing coverage of benefit plans, the amount of any payment or benefits provided for under this Agreement will not be reduced by any compensation or benefits earned by Executive as the result of employment by another employer or otherwise after the Executive’s termination date. Except as otherwise provided in the Employment Agreement, the provisions of this Agreement will not affect the validity or enforceability of any other agreement between Nordson and Executive, and the benefits provided under this Agreement will be additive to any other benefits promised to Executive under any such other agreement. Moreover, this Agreement will not operate to negate any other assurances provided to Executive.

8.  Effect of Disability . If Executive becomes disabled and Executive’s disability does not rise to the level of a Total Disability during the Retention Period to such an extent that Executive is prevented permanently from performing his duties under this Agreement by reason of physical or mental incapacity:

(a) Executive will be entitled to disability and other benefits at least equal to those that would have been available to Executive had Nordson continued, throughout the period of Executive’s disability, all of its programs, benefits, and policies with respect to disabled employees that were in effect immediately before the Change-in-Control Date, and

(b) if Executive recovers from his disability before the expiration of the Retention Period, Executive will be reinstated as an active employee for the remainder of the Retention Period under and subject to all of the terms of this Agreement including, without limitation, Nordson’s right to terminate Executive for or without Cause under Sections 5(a) and 5(b), respectively.

 

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9.  Confidential Information . Executive will not, at any time after the Effective Date, either directly or indirectly, disclose or make known to any person, firm, or corporation any confidential information, trade secret, or proprietary information of Nordson that Executive may have acquired before the Effective Date or may acquire after the Effective Date in the performance of Executive’s duties as an Executive of Nordson. Upon the termination of Executive’s employment with Nordson, Executive will deliver forthwith to Nordson any and all literature, documents, correspondence, and other materials and records furnished to or acquired by Executive during the course of Executive’s employment.

10. Noncompetition . During the Retention Period Executive will not act as a proprietor, investor, director, officer, Executive, substantial stockholder, consultant, or partner in any business engaged to a material extent in direct competition with Nordson in any market in any line of business engaged in by Nordson during the Retention Period.

11. Costs of Enforcement . Nordson will pay and be solely responsible for any and all costs and expenses (including attorneys’ fees) incurred by Executive in seeking to enforce Nordson’s obligations under this Agreement unless and to the extent a court of competent jurisdiction determines that Nordson was relieved of those obligations because:

(a) Nordson terminated Executive’s employment for Cause,

(b) Executive voluntarily terminated his employment other than for Good Reason, or

(c) Executive materially and willfully breached his agreement not to compete with Nordson or his agreement with respect to confidential information and that breach directly caused substantial and demonstrable damage to Nordson.

Nordson will forthwith pay directly or reimburse Executive for any and all such costs and expenses upon presentation from time to time by Executive or by counsel selected by Executive of a statement or statements prepared by Executive or by that counsel of the amount of such costs and expenses. If and to the extent a court of competent jurisdiction renders a final binding judgment determining that Nordson was relieved of its obligations for any of the reasons set forth in (a), (b) or (c) above, Executive will repay the amount of those payments or reimbursements to Nordson. In addition to the payment and reimbursement of expenses of enforcement provided for in this Section 11, Nordson will pay to Executive in cash, as and when Nordson makes any payment on behalf of, or reimbursement to, Executive, an additional amount sufficient to pay all federal, state, and local taxes (whether income taxes or other taxes) incurred by Executive as a result of (x) payment of the expense or receipt of the reimbursement, and (y) receipt of the additional cash payment. Nordson will also pay to Executive interest (calculated at the Wall Street Journal Prime Rate from time to time in effect, compounded monthly) on any payments or benefits that are paid or provided to Executive later than the date on which due under the terms of this Agreement. To assure compliance with Section 409A, Nordson will make any payments to or on behalf of Executive that are required under this Section 11 subject to and as provided in Exhibit A to this Agreement.

12.     Compliance with Section 409A . All of the provisions of Exhibit A to this Agreement, captioned “Compliance with Section 409A,” will apply as between Nordson and Executive as fully as if those provisions had been written directly into the body of this Agreement.

 

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13. “Change in Control” Defined . For purposes of this Agreement, a “Change-in-Control” means the occurrence of one of the following events:

(a) a report is filed with the SEC on Schedule 13D or Schedule 14D-1 (or any successor schedule, form, or report), each as promulgated pursuant to the Securities Exchange Act of 1934 (the “Exchange Act”), disclosing that any “person” (as the term “person” is used in Section 13(d) or Section 14(d)(2) of the Exchange Act) is or has become a beneficial owner, directly or indirectly, of securities of Nordson representing 25% or more of the combined voting power of Nordson’s then outstanding securities;

(b) Nordson is merged or consolidated with another corporation and, as a result thereof, securities representing less than 50% of the combined voting power of the surviving or resulting corporation’s securities (or of the securities of a parent corporation in case of a merger in which the surviving or resulting corporation becomes a wholly-owned subsidiary of the parent corporation) are owned in the aggregate by holders of Nordson’s securities immediately before such merger or consolidation;

(c) all or substantially all of the assets of Nordson are sold in a single transaction or a series of related transactions to a single purchaser or a group of affiliated purchasers; or

(d) during any period of 24 consecutive months, individuals who were members of the Board (“Directors”) at the beginning of the period cease to constitute at least a majority of the Board unless the election, or nomination for election by Nordson’s shareholders, of more than one half of any new Directors was approved by a vote of at least two-thirds of the Directors then still in office who were Directors at the beginning of the 24 month period.

14. Possible Undoing of a Change in Control and Its Effect on this Agreement . If a Change-in-Control as defined in Section 13(a) above occurs while Executive is in the employ of Nordson with the result (as provided in Section 1) that this Agreement becomes operative and, thereafter, on any later date, all three of the following conditions are satisfied:

(a) the acquiring person has transferred or otherwise disposed of sufficient securities of Nordson in one or more transactions, to a person or persons other than affiliates of the acquiring person or any persons with whom the acquiring person has agreed to act together for the purpose of acquiring, holding, voting, or disposing of securities of Nordson, so that, after the transfer or other disposition, the acquiring person is no longer the beneficial owner, directly or indirectly, of securities of Nordson representing 10% or more of the combined voting power of Nordson’s then outstanding securities;

(b) no other event constituting a Change-in-Control had occurred; and

(c) Executive’s employment with Nordson has not been terminated by Nordson without Cause or by Executive for Good Reason;

then, for all purposes of this Agreement, the filing of the report constituting a Change-in-Control under Section 13(a) will be treated as if it had not occurred and this Agreement will return to the status it had immediately before the filing of the report constituting a

 

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Change-in-Control under Section 13(a). Accordingly, if and when a subsequent Change-in-Control occurs, this Agreement will again become operative on the date of that subsequent Change in Control.

15. Miscellaneous .

(a) Executive Rights . Nothing expressed or implied in this Agreement creates any right or duty on the part of Nordson or Executive to have Executive remain in the employ of Nordson before any Change-in-Control and Executive will have no rights under this Agreement if Executive’s employment with Nordson is terminated for any reason or for no reason before any Change-in-Control. Nothing expressed or implied in this Agreement creates any duty on the part of Nordson to continue in effect, or continue to provide to Executive, any plan or benefit unless and until a Change-in-Control occurs. If, before a Change-in-Control, Nordson ceases to provide any plan or benefit to Executive, nothing in this Agreement will be construed to require Nordson to reinstitute that plan or benefit to Executive upon the later occurrence of a Change-in-Control. All payments under this Agreement shall be subject to withholding, deductions and contributions as required by law.

(b) Notices . All communications provided for in this Agreement are to be in writing and will be deemed to have been duly given when delivered or when mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed to Nordson (Attention: Executive Vice President, General Counsel and Secretary) at its principal executive office and to Executive at his principal residence, or to such other address as either party may have furnished to the other in writing and in accordance with this Section 15b, except that notices of change of address will be effective only upon receipt.

(c) Assignment, Binding Effect .

(i) This Agreement will be binding upon and will inure to the benefit of Nordson and Nordson’s successors and assigns. Nordson will require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business and/or assets of Nordson, by agreement in form and substance satisfactory to Executive, to expressly assume and agree to perform this Agreement in the same manner and to the same extent that Nordson would be required to perform it if no such succession had taken place.

(ii) This Agreement will succeed and have priority over any prior employment agreement between Nordson and Executive (other than the Employment Agreement) and be binding upon Executive, and this Agreement and all rights of Executive under this Agreement will inure to the benefit of, and be enforceable by, Executive and Executive’s personal or legal representatives, executors, or administrators. No right, benefit, or interest of Executive under this Agreement will be subject to assignment, anticipation, alienation, sale, encumbrance, charge, pledge, hypothecation, or to execution, attachment, levy, or similar process; except that Executive may assign any right, benefit, or interest under this Agreement if that assignment is permitted under the terms of any plan or policy of insurance or annuity contract governing the right, benefit, or interest.

 

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(d) Invalid Provisions . Any provision of this Agreement that is prohibited or unenforceable will be ineffective to the extent, but only to the extent, of the prohibition or unenforceability without invalidating the remaining portions of this Agreement and all remaining portions of this Agreement will continue to be in full force and effect. If any provision of this Agreement is determined to be invalid or unenforceable, the parties will negotiate in good faith to replace that provision with another provision that will be valid and enforceable and that is as close as practicable to the provision held invalid or unenforceable.

(e) Modification . No modification, amendment, or waiver of any of the provisions of this Agreement will be effective unless in writing, specifically referring to this Agreement, and signed by both parties.

(f) Waiver of Breach . The failure at any time of a party to enforce any of the provisions of this Agreement or to require performance by the other party of any of the provisions of this Agreement will not be construed to be a waiver of those provisions or to affect either the validity of this Agreement or any part of this Agreement or the right of either party thereafter to enforce each and every provision of this Agreement in accordance with its terms.

(g) Governing Law . This Agreement has been made in and is to be governed and construed in accordance with the laws of the State of Ohio applicable to contracts made in and to be performed entirely within that state.

(h) Employment by Subsidiary . If the recitals to this Agreement indicate that as of the Effective Date Executive is employed by a subsidiary of Nordson, all references to continued employment of Executive by Nordson are to be construed as references to continued employment of Executive by the subsidiary and any termination of Executive’s employment with the subsidiary are to be construed as termination of Executive’s employment with Nordson. For the avoidance of doubt, all references to a Change in Control are to changes in control of Nordson, not of the subsidiary and all references to the Board are to the Board of Directors of Nordson, not of the subsidiary.

In witness whereof, Nordson and Executive have executed this Agreement as of the day and year first above written.

 

Nordson Corporation

 

By:                                                  

 

      Gina A. Beredo

      Executive Vice President, General

      Counsel and Secretary

  

Executive

 

                                                             

Sundaram Nagarajan

 

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EXHIBIT A

COMPLIANCE WITH SECTION 409A

A.1 Six Month Delay on Certain Payments, Benefits, and Reimbursements . If Executive is a “specified employee” for purposes of Section 409A, as determined under Nordson’s policy for determining specified employees on the Employment Termination Date, each payment, benefit, or reimbursement paid or provided under this Agreement that constitutes a “deferral of compensation” within the meaning of Section 409A, that is to be paid or provided as a result of a “separation from service” within the meaning of Section 409A, and that would otherwise be paid or provided at any time (a “Scheduled Time”) that is on or before the date that is exactly six months after the Employment Termination Date (other than payments, benefits, or reimbursements that are treated as separation pay under Section 1.409A-1(b)(9)(v) of the Treasury Regulations) will not be paid or provided at the Scheduled Time but will be accumulated (together with interest at the applicable federal rate under Section 7872(f)(2)(A) of the Code in effect on the Employment Termination Date) through the date that is exactly six months after the Employment Termination Date and will be paid or provided to Executive during the period of 30 consecutive days that starts exactly six months and one day after the Employment Termination Date, except that if Executive dies before the end of six months after the Employment Termination Date, the payments, benefits, or reimbursements will be accumulated only through the date of Executive’s death and will be paid or provided not later than 30 days after the date of death.

A.2 Additional Limitations on Reimbursements and In-Kind Benefits . The reimbursement of expenses or in-kind benefits provided under any section of this Agreement that are taxable benefits (and that are not disability pay or death benefit plans within the meaning of Section 409A of the Code) are intended to comply, to the maximum extent possible, with the exception to Section 409A set forth in Section 1.409A-1(b)(9)(v) of the Treasury Regulations. To the extent that any reimbursement of expenses or in-kind benefits provided under any section of this Agreement either do not qualify for that exception, or are provided beyond the applicable time periods set forth in Section 1.409A-1(b)(9)(v) of the Treasury Regulations, then they will be subject to the following additional rules: (a) any reimbursement of eligible expenses will be paid within 30 days following Executive’s written request for reimbursement; provided that Executive provides written notice no later than 60 days before the last day of the calendar year following the calendar year in which the expense was incurred so that Nordson can make the reimbursement within the time periods required by Section 409A; (b) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during any calendar year will not affect the amount of expenses eligible for reimbursement, or in-kind benefits to be provided, during any other calendar year; and (c) the right to reimbursement or in-kind benefits will not be subject to liquidation or exchange for any other benefit.

A.3 Compliance Generally . Nordson and Executive intend that the payments and benefits provided under the Agreement to which this Exhibit A is attached will either be exempt from the application of, or comply with, the requirements of Section 409A. The Agreement is to be construed, administered, and governed in a manner that effects that intent and Nordson will not take any action that is inconsistent with that intent. Without limiting the foregoing, the payments

 

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and benefits provided under this Agreement may not be deferred, accelerated, extended, paid out, or modified in a manner that would result in the imposition of an additional tax under Section 409A upon Executive. Each payment under this Agreement will be treated as a separate payment for purposes of Section 409A.

A.4 Termination of Employment to Constitute a Separation from Service . The parties intend that the phrase “termination of employment” and words and phrases of similar import mean a “separation from service” with Nordson within the meaning of Section 409A. Executive and Nordson will take all steps necessary (including taking into account this Section A.4 when considering any further agreement regarding provision of services by Executive to Nordson after the Employment Termination Date) to ensure that (a) any termination of employment under this Agreement constitutes a “separation from service” within the meaning of Section 409A, and (b) the Employment Termination Date is the date on which Executive experiences a “separation from service” within the meaning of Section 409A.

A.5. Section  409A . The term “Section 409A” means that numbered section of the Internal Revenue Code. References in the Agreement to Section 409A are intended to include any proposed, temporary, or final regulations, or any other guidance, promulgated with respect to this specific Section by the U.S. Department of Treasury or the Internal Revenue Service.

 

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EXHIBIT B

COMPENSATION AND EMPLOYMENT BENEFIT PLANS

 

  1.

The Nordson Corporation 2012 Stock Incentive and Award Plan

 

  2.

The Nordson Corporation Salaried Employees Pension Plan

 

  3.

The Nordson Corporation Excess Defined Benefit Pension Plan

 

  4.

The 2005 Nordson Corporation Excess Defined Benefit Pension Plan

 

  5.

The Amended and Restated 2005 Nordson Corporation Excess Defined Benefit Pension Plan

 

  6.

The Nordson Corporation Deferred Compensation Plan

 

  7.

The 2005 Nordson Corporation Deferred Compensation Plan

 

  8.

The Amended and Restated 2005 Nordson Corporation Deferred Compensation Plan

 

  9.

The Nordson Corporation Employees’ Savings Trust Plan (NEST)

 

  10.

The Nordson Corporation Salaried Employees’ Health Care Plan

 

  11.

The Nordson Corporation Prescription Drug and Dental Plans

 

  12.

The Nordson Corporation Short Term and Long Term Disability Plans

 

  13.

The Nordson Corporation Group Life Insurance Plan-Salaried Employees

 

  14.

The Nordson Corporation Group Travel Accident Plan

 

  15.

Nordson Corporation’s policy of reimbursement for club dues, airline travel clubs, and the like

 

  16.

Nordson Corporation’s policies regarding vacation, holidays, and paid time off.

Exhibit 99.1

 

FOR RELEASE:    Immediately   

Nordson Corporation

28601 Clemens Road

Westlake, Ohio 44145 USA

CONTACT:   

Lara Mahoney

Vice President,

Investor Relations & Corporate Communications

440.414.5639

Lara.Mahoney@nordson.com

Nordson Corporation Names Sundaram Nagarajan as President and Chief Executive Officer, Effective August 1, 2019

Westlake, Ohio – (Insert Date) – Nordson Corporation (NASDAQ-NDSN) today announced that Sundaram Nagarajan (Naga) has been appointed President and Chief Executive Officer, effective August 1, 2019. Mr. Nagarajan succeeds Michael F. Hilton, who previously announced his plans to retire. Upon Mr. Nagarajan’s start date, Mr. Hilton will become Senior Advisor to the Company and remain on the board of directors until he retires on December 31, 2019.

Mr. Nagarajan joins Nordson following a 23-year career with Illinois Tool Works Inc. (ITW), a Fortune 200 company. He is currently the Executive Vice President, Automotive OEM Segment, for ITW, a $3.3 billion business segment. Under his leadership, the Automotive OEM segment has a proven track record of delivering profitable revenue growth through both organic and acquisitive means. Mr. Nagarajan has been focused on creating value for his customers through innovation and industry leading excellence in quality and delivery. He also has prioritized building strong, diverse and global leadership teams to sustain this above-market business performance.

“After a comprehensive search, we are excited to name Naga as Nordson’s next President and CEO. Naga’s passion for technology driven innovation, knowledge of global industrial markets, and outstanding record of improving the financial results of the businesses he has run by focusing on customer intimacy, operational excellence, and employee development, make him a perfect fit for Nordson,” said Michael Merriman, Chairman of the Board of Directors.

“Throughout my career, I’ve thrived in driving growth and profitability by focusing on the customer while also prioritizing innovation and talent development. I am very honored to join Nordson, which has always put its customers and employees first, and as a result has grown


into a market leading enterprise with an outstanding reputation. I look forward to building on this success with the Nordson team,” said Mr. Nagarajan.

Added Mr. Merriman, “On behalf of the entire Board, I want to thank Mike Hilton for his outstanding leadership of Nordson over the past ten years. We appreciate his commitment to supporting Naga in this important transition, and the Board and I look forward to his counsel as Senior Advisor to the Company.”

The terms of Mr. Nagarajan’s employment agreement will be described in a Current Report on Form 8-K to be filed by the Company.

About Sundaram Nagarajan+

In 1991, Mr. Nagarajan started his career at Hobart Brothers where he was engaged in the design and development of welding consumables. The company was acquired by ITW in 1996, and Mr. Nagarajan continued to grow and take on greater responsibility over the next 23 years. He was promoted to Group Vice President, ITW Welding Group in 2006 and Group President, Welding International in 2008. From 2010 – 2014, he served as Executive Vice President, Welding, where he led ITW’s $1.9 billion group of welding and related industrial businesses worldwide. In 2015, he was promoted to his current role as Executive Vice President, Automotive OEM Segment, reporting to the Chairman and CEO.

Mr. Nagarajan holds a BS degree from South Gujarat University, India, an MBA from Wright State University, Ohio, and a MS and Ph.D. in materials science from Auburn University, Auburn, Alabama.

Mr. Nagarajan is a member of the Board of Directors of Sonoco Products Company, Past Trustee of Hobart Institute of Welding Technology, Advisory Board Member of IACS, member of the Executive Club, member of the Economics Club of Chicago, Former Trustee of AWS Foundation Inc. and Co-Chair of ITW’s National United Way Campaign (2013 and 2014).

Except for historical information and comparisons contained herein, statements included in this release may constitute “forward-looking statements,” as defined by the Private Securities Litigation Reform Act of 1995. These statements involve a number of risks, uncertainties and


other factors, as discussed in the company’s filing with the Securities and Exchange Commission that could cause actual results to differ.

Nordson Corporation engineers, manufactures and markets differentiated products and systems used for the precision dispensing of adhesives, coatings, sealants, biomaterials, polymers, plastics and other materials, fluid management, test and inspection, UV curing and plasma surface treatment, all supported by application expertise and direct global sales and service. Nordson serves a wide variety of consumer non-durable, durable and technology end markets including packaging, nonwovens, electronics, medical, appliances, energy, transportation, construction, and general product assembly and finishing. Founded in 1954 and headquartered in Westlake, Ohio, the company has operations and support offices in more than 35 countries. Visit Nordson on the web at http://www.nordson.com , @Nordson_Corp , or www.facebook.com/nordson .

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