- 9 -
parties’ previous agreements. Mr. Hess, on the other hand,
insisted that the covenant extend 8 years after the termination
of Mr. Kucklick’s employment. With respect to the scope of the
covenant, Mr. Kucklick originally wanted to be able to sell
technical consulting services to rim, wheel, or ring
manufacturers worldwide, other than direct competitors of HII.
Mr. Kucklick also proposed that the covenant not to compete apply
only to machinery, not machine tools, and only to the extent that
HII was manufacturing such machinery as of the termination of Mr.
Kucklick’s employment. In contrast, Mr. Hess insisted that Mr.
Kucklick disclose in advance the nature and duration of his
proposed consulting services and that HII retain the right to
veto any such agreement. He also insisted on a much broader
worldwide covenant not to compete covering all products
manufactured or marketed by HII or any of its subsidiaries. The
restrictions that Mr. Hess insisted upon were reflected in the
redemption agreement.
The employment agreement provided that Mr. Kucklick would
work full time for HII for 3 years at a base salary of $135,000
per year. Mr. Kucklick would continue as president of HEI
subject to HII’s discretion to reassign him. Mr. Kucklick
retired from his employment with HII and its subsidiaries in
1998, after he completed the 3-year period specified in the
employment agreement.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011