Exhibit 10.32
NewPage
Corporation
April
5, 2006
Mr. Peter H. Vogel
2245 Jaime Rose Way
Centerville, OH 45459
Dear
Peter:
The purpose of
this letter agreement (the Agreement) is to acknowledge and set forth the
terms of our agreement regarding the termination of your employment under the
Employment Agreement between NewPage Corporation (the Company) and you dated
May 2, 2005 (the Employment Agreement).
Capitalized terms not defined in this Agreement, shall have the
definitions given to them in the Employment Agreement.
1. You confirm that your last day of employment with the
Company was February 28, 2006 (the Termination Date), and effective as of
such date, you resigned from your position as President and Chief Executive
Officer of the Company.
In addition, effective as of the
Termination Date, you resigned from all offices, directorships and fiduciary
capacities held with, or on behalf of, the Company and its subsidiaries and
affiliates or any benefit plan sponsored by them.
Except as set forth herein,
the Employment Agreement and the Term (as defined therein) terminated on the
Termination Date.
2. In consideration of the obligations herein and in full
satisfaction of its obligations to you pursuant to the Employment Agreement or
otherwise,
(a)
The Company
shall pay you accrued but unpaid Base Salary through the Termination Date,
payable within ten (10) days following the execution hereof;
(b)
The Company
shall pay you $252,500 (i.e., two times Base Salary minus the original purchase
price paid by you for your Paper Class A Common Percentage Interests);
(c)
The Company
shall pay you a payment of $46,154 for accrued but unused 2006 vacation;
(d)
The Company
shall pay you $66,667 (i.e., a pro rata bonus for the year of termination);
(e)
You will
continue to receive welfare benefits under the Companys welfare benefit plans
for twenty-four (24) months following the Termination Date; provided that you
continue to pay the employee cost sharing payments in connection with such
benefits; provided, further, that if you become employed with another employer
and are eligible to receive welfare benefits under such other employers
welfare benefit plans, the welfare benefits under the Companys welfare benefit
plans shall be secondary to those provided under the welfare benefit plans of
such new employer;
(f)
You will be
provided, at the Companys expense, with up to one years outplacement services
with Right Management in Dayton, Ohio; and
(g)
You will be
entitled to receive all other accrued vested benefits to which are you are
entitled under the terms of the Companys employee benefit plans.
3. The Companys obligations under Paragraphs 2(b) through
2(d) above are contingent upon your signing and not revoking the General
Release attached to this Agreement as Appendix A (the Release), which is
hereby incorporated by reference and made a part of this Agreement. Subject to the expiration of the applicable
revocation period contained in the Release, the payments set forth in
Paragraphs 2(b) through 2(d) shall be paid in a lump sum within ten (10) days
following the execution hereof.
4. The provisions of Articles 6, 7 and 8 of the Employment
Agreement shall remain in full force and effect subsequent to the Termination
Date and shall survive the termination of the Employment Agreement. You represent and warrant that you have
complied with the provisions of Article 7 as of the date you execute this
Agreement.
5. You agree that the terms and conditions of this
Agreement are confidential and that you will not disclose the existence of this
Agreement or any of its terms to any third parties, other than to your spouse,
attorneys and financial and tax advisors, or as required by law or as may be
necessary to enforce this Agreement.
6. All payments by the
Company described in this Agreement will be reduced by all taxes and other
amounts that the Company is required to withhold under applicable law.
7. The Company
acknowledges and agrees that the payments provided hereunder are not subject to
mitigation or offset.
8. You and the Company
agree that this Agreement contains the complete agreement between you and the
Company and that there are no other agreements or representations relating in
any way to the subject matter of this Agreement and
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supersedes any and all prior agreements or
understandings with respect to this Agreements subject matter, except as
expressly set forth herein.
9. The provisions of this Agreement shall be construed in
accordance with the laws of the State of New York applicable to agreements made
and not to be performed entirely within such state, without regard to conflicts
of laws principles.
10. The provisions of this Agreement shall be severable. The unenforceability or invalidity of any one
or more provisions, clauses or sentences hereof shall not render any other
provision, clause or sentence herein contained unenforceable or invalid. The portion of the Agreement that is not
invalid or unenforceable shall be considered enforceable and binding on the
parties and the invalid or unenforceable provision(s), clauses or sentences
shall be deemed excised, modified or restricted to the extent necessary to
render the same valid and enforceable, and this Agreement shall be construed as
if such invalid or unenforceable provision(s), clauses(s) or sentences(s) were
omitted, modified or restricted.
11. This
Agreement may be signed in single or separate counterparts, each of which shall
constitute an original.
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NEWPAGE
CORPORATION
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By:
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/s/ Mark A. Suwyn
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Name:
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Mark A. Suwyn
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Title:
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Chief Executive Officer
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ACCEPTED
AND AGREED,
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this 5th
day of April 2006
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/s/ Peter H. Vogel
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Peter H. Vogel
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