Darling Ingredients Inc 8-K/A, filed Oct 10, 2025
Darling Ingredients Inc. (DAR)
8-K/A
2025-10-10
For: 2025-09-26
View Original
Added on
April 04, 2026
About this 8-K/A
Darling Ingredients Inc filed this 8-K/A on October 10, 2025, reporting on events of September 26, 2025.
Items reported
- Item 5.02: Director or officer change, or executive pay
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K/A
(Amendment No. 1)
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
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Registrant’s telephone number, including area code: (972 ) 717-0300
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Securities registered pursuant to Section 12(b) of the Act:
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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).
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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. ☐
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Explanatory Note
On September 26, 2025, Darling Ingredients Inc. (the “Company”) filed a Current Report on Form 8-K (the “Original Form 8-K”) to report that Matt Jansen departed from his employment and executive officer role with the Company, effective September 26, 2025. This Amendment No.1 on Form 8-K/A is being filed to supplement the disclosure contained in Item 5.02 of the Original Form 8-K, including the execution of a General Release Agreement by and between the Company and Mr. Jansen, and to file the General Release Agreement as Exhibit 10.1 hereto. The remainder of the Original Form 8-K is unchanged.
Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
As previously disclosed in the Original Form 8-K, Mr. Jansen departed from his role with the Company as Chief Operating Officer – North America, effective September 26, 2025. On October 6, 2025, Mr. Jansen and the Company entered into a General Release Agreement (the “Release Agreement”).
Under the terms of the Release Agreement, in addition to the severance benefits referenced in the Original Form 8-K, and in return for his provision of transition services to the Company between the effective date of the Release Agreement and March 26, 2026 (the “Advisory Period”), Mr. Jansen shall be provided an advisory services fee in the aggregate sum of $500,000.00, payable in equal monthly installments during the Advisory Period. As consideration for the foregoing, Mr. Jansen has agreed to a general release of all claims against the Company and its affiliates, well as to be bound by restrictive covenants relating to nondisclosure of confidential information, return of Company property, non-solicitation of employees, non-interference, non-disparagement and non-competition.
The foregoing description of the Release Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of such document, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated by reference herein.
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Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
10.1 General Release Agreement, dated October 6, 2025, by and between Darling Ingredients Inc. and Matt Jansen
104 Cover Page Interactive Data File (embedded within Inline XBRL document)
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SIGNATURES
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.
| DARLING INGREDIENTS INC. | |||||||||||
| Date: October 10, 2025 | By: | /s/ John F. Sterling | |||||||||
| John F. Sterling | |||||||||||
| Executive Vice President, General Counsel | |||||||||||
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EXECUTION VERSION GENERAL RELEASE AGREEMENT This GENERAL RELEASE AGREEMENT and Exhibit (together, this “Agreement”) dated this 6th day of October 2025, is by and between Darling Ingredients Inc., a Delaware corporation (including its successors and assigns, the “Company”), and Matt Jansen (the “Executive”). 1. Last Day of Employment and Separation Pay; Advisory Services; Nondisparagement. Executive’s last day of employment with the Company was September 26, 2025. Executive’s employment was terminated by the Company without cause. Provided Executive executes this Agreement without revocation (as provided in Section 6 below) and complies with this Agreement and that certain Senior Executive Termination Benefits Agreement between Executive and the Company dated May 11, 2023 (the “Termination Benefits Agreement,” which is attached hereto as Exhibit 1) (collectively, the “Release Requirements”), Executive shall be entitled to receive the benefits provided to Executive in Section 4(a)-(g) of the Termination Benefits Agreement, payable in accordance with the terms of the Termination Benefits Agreement (the “Separation Pay”). In addition, in return for Executive’s provision of transition services as may be requested from time to time by the Company on reasonable advance notice related to matters within Executive’s responsibility while he served as an employee and subject to and conditioned upon Executive’s satisfaction of the Release Requirements and compliance with the post-employment restrictive covenants contained in the Termination Benefits Agreement, Executive shall be provided an aggregate sum of $500,000.00 (the “Advisory Services Fee”), payable in equal monthly installments between the effective date of this Agreement and March 26, 2026 (the “Consulting Term”). During the Consulting Term, Executive will serve as an independent contractor and will not be an employee of the Company, and will not be entitled to any additional compensation or benefits associated with such services following the Separation Date, other than payment of the Advisory Services Fee. The Advisory Services Fee will be reported on the appropriate IRS Form 1099 and Executive will be solely responsible for payment of any and all tax liabilities associated with the Advisory Services Fee. Executive agrees not to make negative comments or otherwise disparage the Company or its officers, directors, employees, shareholders, agents or products. 2. Release. In consideration of the Separation Pay, Executive, on behalf of himself, his descendants, ancestors, dependents, heirs, representatives, executors, administrators, successors, and assigns, does hereby fully and forever release and discharge the Company and each of its parent and holding companies, subsidiaries, affiliates, divisions, successors, and assigns, and all of its past and present trustees, directors, officers, agents, attorneys, insurers, employees, stockholders, and representatives (collectively the “Releasees”), from any and all claims, wages, demands, rights, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations, debts, costs, expenses, attorneys’ fees, damages, judgments, orders, or liabilities of whatsoever kind or nature in law, equity, or otherwise, whether now known or unknown, suspected or unsuspected, which Executive now owns or holds or has or may have against the Company and/or any of the other Releasees at any time on or through the Effective Date, including, without limitation: a. Any and all claims relating to or arising from his employment relationship with the Company (except any claims for vested pension or retirement benefits); b. Any and all claims of wrongful discharge from employment; constructive discharge; termination of employment; discrimination; retaliation; breach of contract, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion, and any other claim for tort, or for wrongful or unfair treatment; c. Any and all claims for violation of any federal, state or local law, rule, statute or regulation, including, but not limited to, Title VII of the Civil Rights Act of 1964 (“Title VII”); the Civil Rights Act of 1991; Sections 1981 through 1988 of Title 42 of the United States Code; the Age Discrimination in
2 Employment Act of 1967 (“ADEA”) and the Older Workers’ Benefits Protection Act; the Americans with Disabilities Act of 1990 (“ADA”); the Americans with Disabilities Act Amendments Act of 2008 (“ADA Amendments Act”); the Rehabilitation Act of 1973; the Employee Retirement Income Security Act of 1974 (“ERISA”); the Fair Credit Reporting Act; the Immigration Reform and Control Act; the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”); the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 (“VEVRAA”); any federal or state False Claims Act; the Sarbanes-Oxley Act; the Worker Adjustment and Retraining Notification Act (“WARN”); the Family and Medical Leave Act (“FMLA”); the Occupational Safety and Health Act (“OSHA”); the Equal Pay Act; the Fair Labor Standards Act (“FLSA”) and all amendments to each Act as well as the regulations issued thereunder; d. Any and all claims for violations of any Texas state or local law, rule, statute or regulation, including, but not limited to, The Texas Commission on Human Rights Act (a/k/a Chapter 21 of the Texas Labor Code); Chapter 451 of the Texas Labor Code; any other provision of the Texas Labor Code subject to release; The Texas Payday Act; any provision of the Texas Civil Practice and Remedies Code subject to release; any provision of the Texas Health and Safety Code subject to release; any provision of the Texas Occupation Code subject to release; e. Any and all claims arising out of any other federal, state or local law, rule, statute, or regulation relating to employment, discrimination, harassment, or retaliation including, but not limited to, any applicable laws in the state of Texas; f. Any and all claims for compensation relating to, or arising from, his employment with the Company, including without limitation, any claims for unpaid salary, pay in lieu of notice, accrued but unpaid benefits, overtime compensation, bonus payment(s), other incentive compensation or severance benefits, although this provision does not affect any pending or subsequent claim for unemployment benefits with any applicable agency; g. Any and all claims relating to, or arising from, his right to receive or purchase, or actual receipt or purchase, of shares of stock of the Company, including, without limitation, any claims of fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law; and h. Any and all other transactions, occurrences, acts or omissions, and any loss, damage, or injury whatsoever, known or unknown, suspected or unsuspected, resulting from any act or omission by or on the part of the Company and/or any of the other Releasees arising, committed, or omitted prior to and through the date on which he signs this Agreement or at any time during his employment with the Company or with any of the other Releasees. Executive acknowledges and agrees that Executive is the sole owner of the claims that are released in this Section 2, that none of these claims has been transferred or assigned to any other person, firm or other legal entity; and that Executive has the full right and power to grant, execute, and deliver the releases, undertakings, and agreements contained in this Agreement. Executive affirms that he has not filed, caused to be filed, or presently is a party to any claim against the Company or the Releasees, that Executive has no work- related injuries, and that Executive is not aware of any violation of law or Company policy on behalf of any of the Releasees. Notwithstanding anything contained in this Agreement to the contrary, the release provisions of this Agreement shall exclude: (i) claims for breach of this Agreement; (ii) claims for payments or benefits described in the Termination Benefits Agreement; (iii) Executive’s rights accrued under Company benefit plans through Executive’s last day of employment with Company and Executive’s rights to elect continued health coverage under COBRA; (iv) claims for indemnification and director and officer coverage; (v) claims for unemployment or workers’ compensation benefits which cannot be waived; (vi) rights as a shareholder of
3 Darling Ingredients Inc.; and (vii) claims under any other written agreement between Executive and Releasees entered into after the Effective Date except to the extent such agreement expressly states that it shall be subject to the release provisions of this Agreement. 3. Acknowledgment of Waiver of Claims Under ADEA. Executive expressly acknowledges that he is waiving and releasing any rights he may have under the ADEA and that this waiver and release is knowing and voluntary. Executive acknowledges the consideration given for this waiver of claims under the ADEA is in addition to anything of value to which he is already entitled. 4. Amounts Owed. Except as expressly provided in the Termination Benefits Agreement and as expressly provided in any equity award agreement(s) between Company and Executive with respect to a termination by the Company without cause, Executive acknowledges and agrees that the Company has fully satisfied any and all obligations owed to him arising out of his employment with or termination from the Company, and no further sums or benefits are owed to him by the Company or by any of the other Releasees at any time. Nothing in this Agreement waives or modifies Executive’s eligibility to receive shares of the Company’s common stock, if any, in accordance with the terms of any equity award that Executive has received from the Company. Additionally, nothing in this Agreement waives Executive’s eligibility to receive any award under applicable law, if any, for providing truthful information to a governmental agency or regulatory entity. 5. Consultation with Attorney; Voluntary Agreement. The Company advises Executive to consult with an attorney of his choosing prior to signing this Agreement. Executive understands and agrees that he has the right and has been given the opportunity to review this Agreement and, specifically, the General Release in Section 2 above, with an attorney. Executive also understands and agrees that (i) he is under no obligation to consent to the General Release set forth in Section 2 above, (ii) the payments to be made to Executive pursuant to the Termination Benefits Agreement and this Agreement are sufficient consideration to require him to abide with his obligations under this Agreement, including but not limited to the General Release set forth in Section 2 and any post-employment restrictive covenants contained in the Termination Benefits Agreement or this Agreement, (iii) he is not relying on any statements, understandings, representations, expectations, or agreements other than those expressly set forth in this Agreement, and (iv) he has read this Agreement, including the General Release set forth in Section 2, and understands its terms and that he enters into this Agreement freely, voluntarily, and without coercion. 6. Effective Date; Revocation. Executive acknowledges and represents that he has been given twenty-one (21) days during which to review and consider the provisions of this Agreement and, specifically, the General Release set forth in Section 2 above. Executive further acknowledges and represents that he has been advised by the Company that he has the right to revoke this Agreement for a period of seven (7) days after signing it. Executive acknowledges and agrees that, if he wishes to revoke this Agreement, he must do so in a writing, signed by him and received by Patrick McNutt no later than 5:00 p.m. Central Time on the seventh (7th) day of the revocation period. If no such revocation occurs, the General Release and this Agreement shall become effective on the eighth (8th) day following his execution of this Agreement (the “Effective Date”). Executive further acknowledges and agrees that, in the event that he revokes this Agreement, the Termination Benefits Agreement shall be null and void and shall have no force or effect, and he shall have no right to receive any payment contained therein or herein. 7. Severability. In the event that any one or more of the provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remainder of the Agreement shall not in any way be affected or impaired thereby. 8. Waiver. No waiver by either party of any breach by the other party of any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of any other provision or condition at the time or at any prior or subsequent time. This Agreement and the provisions
4 contained herein shall not be construed or interpreted for or against either party because that party drafted or caused that party’s legal representative to draft any of its provisions. 9. Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Texas, without reference to its choice of law rules. 10. Arbitration. Any and all disputes relating to or arising from this Agreement (including but not limited to the arbitrability thereof), Executive’s employment with the Company and termination thereof, and the Termination Benefits Agreement, shall be submitted for binding confidential arbitration in accordance with Section 12(a) of the Termination Benefits Agreement. 11. Protected Rights. Notwithstanding any provision to the contrary in this Agreement or the Termination Benefits Agreement, Executive is permitted to (i) report possible violations of law or regulation to, or file a charge or complaint with, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Department of Justice, the Congress, any Inspector General, or any other federal, state or local governmental agency or commission (“Government Agencies”); (ii) communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company; and (iii) pursuant to applicable United States federal law, (A) disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law or (B) disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. 12. Entire Agreement. This Agreement and the Termination Benefits Agreement constitute the entire agreement and understanding of the parties with respect to the subject matter in such agreements and supersede all prior agreements, arrangements and understandings, written or oral, between the parties with respect to the subject matter in such agreements. Executive reaffirms the enforceability of all covenants contained in the Termination Benefits Agreement, and agrees that such covenants are reasonable and necessary to protect the legitimate business interests of the Company. Executive acknowledges and agrees that he is not relying on any representations or promises by any representative of the Company concerning the meaning of any aspect of this Agreement or the Termination Benefits Agreement. This Agreement and the Termination Benefits Agreement may not be amended, altered, or modified other than in a writing signed by Executive and an authorized representative of the Company. 13. Headings. All descriptive headings in this Agreement are inserted for convenience only and shall be disregarded in construing or applying any provision hereof. 14. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The parties agree that an executed copy of this Agreement delivered by facsimile, email, or other means of electronic transmission shall have the same legal effect as an original executed copy of this Agreement. [Remainder of page intentionally left blank]
EXECUTION VERSION Signature Page to Release Agreement IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the dates set forth below. DARLING INGREDIENTS INC. By:/s/ John F. Sterling Date: 10/6/2025 Name: John F. Sterling Title: EVP and General Counsel EXECUTIVE By:/s/ Matt Jansen Date: 10/7/2025 Matt Jansen
EXECUTION VERSION EXHIBIT 1 Senior Executive Termination Benefits Agreement between Executive and the Company dated May 11, 2023
1 SENIOR EXECUTIVE TERMINATION BENEFITS AGREEMENT This Senior Executive Termination Benefits Agreement (this “Agreement”), dated as of May 11, 2023 (the “Effective Date”) is entered into by and between Darling Ingredients Inc., a Delaware corporation (the “Company”), and Matt Jansen (the “Executive”). W I T N E S S E T H: WHEREAS, the Executive is being employed as a key member of the Company’s management team in a position of trust and as such will be provided confidential information of the Company and make valuable contributions to the productivity and profitability of the Company; and WHEREAS, the Company considers that providing the severance benefits provided for herein will operate as an incentive for the Executive to remain employed by the Company; NOW, THEREFORE, to induce the Executive to remain employed by the Company, and to acknowledge the “At Will” status of the Executive’s employment by the Company, and for other good and valuable consideration, the Company and the Executive agree as follows: 1. Certain Definitions. For the purposes of this Agreement, except as otherwise expressly provided herein or unless the context otherwise requires, the following terms shall have the following respective meanings: “Cause” shall mean any one or more of the following: (i) During periods that occur outside of the Protection Period, failure of the Executive to render services to the Company in accordance with the reasonable directions of the Company’s Chief Executive Officer or Board of Directors, which failure shall continue after written notice from the Company; (ii) Willful misconduct by the Executive in connection with the performance of the Executive’s services for the Company, including, (x) commission by the Executive of an act of fraud or dishonesty or of an act which he or she knew to be in material violation of his or her duties to the Company (including the unauthorized disclosure of confidential information), (y) harassment of or discrimination against individuals on account of gender, race, religion, national origin or disability or retaliation against an individual for making any claim that the Executive has so harassed or discriminated against such individual or (z) material breach of a written policy of the Company; provided that the Executive understands that nothing contained in this Agreement limits the protected rights of the Executive set forth in Section 6(h) below; or (iii) The conviction or plea of nolo contendere of the Executive to a felony. “Change of Control” shall mean, subject to Section 10, the occurrence of any of the following events:
2 (i) Any “Person” (within the meaning of Section 3(a)(9) of the Securities Exchange Act of 1934, as amended from time to time (the “Exchange Act”) and used in Sections 13(d) and 14(d) thereof, including a “group” as defined in Section 13(d) thereof) becomes the “Beneficial Owner” (withing the meaning of Rule 13d-3 of the General Rules and Regulations under the Exchange Act) of thirty percent (30%) or more of the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of its Directors (as defined below) (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this definition, the following acquisitions shall not constitute a Change of Control: (A) any acquisition directly from the Company, including without limitation, a public offering of securities; (B) any acquisition by the Company or any of its subsidiaries or affiliates; (C) any acquisition by any employee benefit plan or related trust sponsored or maintained by the Company or any of its subsidiaries or affiliates; or (D) any acquisition by any Person pursuant to a transaction which complies with clauses (A), (B), and (C) of paragraph (iii) below; (ii) Individuals who constitute the Board of Directors (the “Board”) as of the Effective Date (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a member of the Board (a “Director”) subsequent to the Effective Date whose election to the Board, or nomination for election by one or more of the Company’s shareholders, was approved by a vote of at least a majority of the Directors then comprising the Incumbent Board, shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election or removal of any Directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; (iii) Consummation of a reorganization, merger, amalgamation, statutory share exchange, consolidation or like event to which the Company is a party or a sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless, following such Business Combination: (A) all or substantially all of the individuals and entities who were the Beneficial Owners of Outstanding Company Voting Securities immediately prior to such Business Combination are the Beneficial Owners, directly or indirectly, of more than fifty percent (50%) of the combined voting power of the outstanding voting securities entitled to vote generally in the election of directors (or election of members of a comparable governing body) of the entity resulting from the Business Combination (including, without limitation, an entity which as a result of such transaction owns all or substantially all of the Company or all or substantially all of the Company’s assets either directly or through one or more of its subsidiaries) (the “Successor Entity”) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company Voting Securities; (B) no Person (excluding any Successor Entity or any employee benefit plan or related trust of the Company, such Successor Entity, or any of their subsidiaries) is the Beneficial Owner, directly or indirectly, of thirty percent (30%) or more of the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors (or comparable
3 governing body) of the Successor Entity, except to the extent that such ownership existed prior to the Business Combination; and (C) at least a majority of the members of the board of directors (or comparable governing body) of the Successor Entity were members of the Incumbent Board (including individuals deemed to be members of the Incumbent Board by reason of the proviso of paragraph (ii) above) at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or (iv) Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. “Code” shall mean the Internal Revenue Code of 1986, as amended. “Good Reason” shall mean the occurrence of any of the following events without the Executive’s consent, provided that the Executive has complied with the Good Reason Process (as defined below): (i) a material diminution in the Executive’s responsibility, authority or duty; (ii) a material diminution in the Executive’s base salary; or (iii) the relocation of the office at which the Executive was principally employed immediately prior to the Protection Period to a location more than fifty (50) miles from the location of such office, or the Executive being required to be based anywhere other than such office, except for required travel on business to an extent substantially consistent with the Executive’s business travel obligations immediately prior to the Protection Period. “Good Reason Process” shall mean that (i) the Executive reasonably determines in good faith that a Good Reason condition has occurred; (ii) the Executive notifies the Company in writing of the occurrence of the Good Reason condition within sixty (60) days of such occurrence; (iii) the Executive cooperates in good faith with the Company’s efforts, for a period of not less than thirty (30) days following such notice (the “Cure Period”), to remedy the condition; (iv) notwithstanding such efforts, the Good Reason condition continues to exist following the Cure Period; and (v) the Executive’s resignation for Good Reason (i.e., as a result of such Good Reason condition) occurs within sixty (60) days after the end of the Cure Period. “Qualifying Termination” shall mean any termination of the Executive’s employment with the Company for any reason other than the following: (i) The termination of the Executive’s employment by the Executive due to the Executive’s voluntary resignation; provided that the Executive’s resignation of his or her employment for Good Reason during the Protection Period shall not constitute a voluntary resignation for the purposes of this Agreement; (ii) The termination of the Executive’s employment by the Company for Cause; or (iii) The termination of the Executive’s employment by the Company or the Executive in accordance with the Company’s retirement policy (including early retirement, if included in such policy and elected by the Executive in writing) generally applicable to its senior executive employees, or in accordance with any other retirement agreement entered into by and between the Executive and the Company (referred to herein as a “normal retirement”); provided that the Executive’s resignation of his or
4 her employment for Good Reason during the Protection Period shall not constitute a “normal retirement” for the purposes of this Agreement; provided further that notwithstanding any of the foregoing, the placement of the Executive on permanent or long-term disability status as defined by the Company’s long-term disability policy covering the Executive and the death of the Executive shall not be deemed a Qualifying Termination and shall not qualify the Executive for the benefits set forth in this Agreement. “Protection Period” shall mean the two (2)-year anniversary of a Change of Control. “Section 409A” shall mean Section 409A of the Code and the Department of Treasury regulations and other interpretive guidance issued thereunder. “Termination Base Pay Amount” shall mean (i) in the event the Termination Date occurs outside of the Protection Period, an amount equal to two (2) times the Executive’s annual base salary as in effect on the Termination Date, and (ii) in the event the Termination Date occurs within the Protection Period, an amount equal to two (2) times the sum of the Executive’s (x) annual base salary at the highest rate in effect for the preceding twelve (12) months prior to the Termination Date and (y) target annual bonus amount for the fiscal year in which the Termination Date occurs. “Termination Date” shall mean the date of the Executive’s Qualifying Termination. 2. Circumstances Triggering Receipt of Severance Benefits. Subject to the Executive’s execution of a general release in favor of the Company, for which the seven (7)-day revocation period has expired, pursuant to which the Executive waives, effective as of the Termination Date (as hereinafter defined), any and all claims, known or unknown, relating to the Executive’s employment by the Company or the termination thereof, and provided the Executive has not breached, and is in full compliance with all terms of, this Agreement, the Company shall provide the Executive with the benefits set forth in Section 4 upon the Executive’s Qualifying Termination. Notwithstanding the foregoing, the Executive (a) must deliver to the Company the general release (as described above) no later than twenty-one (21) days following the Termination Date (or if required under applicable law no later than forty-five (45) days following the Termination Date (the “Extended Consideration Period”)), and (b) must not revoke such general release within the applicable seven (7)-day revocation period. Any payments that would be made pursuant to Section 4(a)(i), Section 4(e) or Section 4(g) prior to the thirtieth (30th) day following the Termination Date shall be made on the first payroll date after the thirtieth (30th) day following the Termination Date (the “Initial Payroll Date”); provided that if the Extended Consideration Period applies, the above references in this sentence to the thirtieth (30th) day shall be changed to the sixtieth (60th) day. 3. No Entitlement of Employment and Acknowledgment of “At Will” Status. This Agreement shall not be construed as and does not constitute a promise or guaranty of continued employment. In consideration of this Agreement, the Executive acknowledges and agrees that his or her employment with the Company is “At Will”. The Executive understands
5 that his or her employment with the Company is not for a specified term and is at the mutual consent of the Executive and the Company and, therefore, the Company can terminate the employment relationship at will, with or without Cause. 4. Termination Benefits. Subject to the conditions set forth in Section 2, including but not limited to the execution and non-revocation of a general release and continued compliance with all terms of this Agreement, the following benefits (subject to any changes in benefit programs that may occur in the future and any applicable payroll or other taxes required to be withheld) shall be provided to the Executive: (a) Severance Benefits. (i) In the event the Termination Date occurs outside of the Protection Period, the Company shall pay to the Executive the Termination Base Pay Amount that relates to a Termination Date occurring outside of the Protection Period, which amount shall be paid periodically in substantially equal installments for a period of twenty-four (24) months following the Termination Date. Such installments shall be paid, according to the payroll practices of the business unit to which the Executive provided services prior to the Termination Date (i.e., on the regular payroll dates that are applicable to such unit). Each such periodic installment payment is hereby designated a separate payment for purposes of Section 409A. (ii) In the event the Termination Date occurs within the Protection Period, including as a result of the Executive’s resignation of his or her employment for Good Reason during the Protection Period, the Company shall pay to the Executive the Termination Base Pay Amount that relates to a Termination Date occurring within the Protection Period, which amount shall be paid in a lump sum on the Initial Payroll Date. (b) Prorated Bonus. (i) In the event the Termination Date occurs outside of the Protection Period, the Company shall pay to the Executive, if applicable, an amount equal to the annual bonus payment the Executive would have earned with respect to the fiscal year in which the Termination Date occurs (i.e., contingent on satisfaction of the performance goals that are applicable to such annual bonus), if any, if his or her termination of employment had not occurred and he or she had remained employed through such date on which such bonus would be paid, adjusted on a pro rata basis based on the number of days the Executive was actually employed by the Company during such fiscal year to which such annual bonus opportunity relates. (ii) In the event the Termination Date occurs within the Protection Period, the Company shall pay to the Executive the greater of (x) an amount equal to the annual bonus payment the Executive would have earned with respect to the
6 fiscal year in which the Termination Date occurs (i.e., contingent on satisfaction of the performance goals that are applicable to such annual bonus), if any, if his or her termination of employment had not occurred and he or she had remained employed through such date on which such bonus would be paid or (y) such Executive’s target annual bonus amount for the fiscal year in which the Termination Date occurs, in each case adjusted on a pro rata basis based on the number of days the Executive was actually employed by the Company during such fiscal year to which such annual bonus opportunity relates. Such prorated bonus, as applicable, shall be paid to the Executive in a lump sum upon the date that annual bonus payments are generally made to the Company’s executive officers, and in any event at such time that is no earlier than the Initial Payroll Date, and no later than the first March 15th date that follows the fiscal year in which the Termination Date occurs. (c) Prior-Year Bonus. In the event that the Termination Date occurs following the close of a fiscal year but prior to the payment of the annual bonus (if any) that is applicable with respect to such fiscal year, the Company shall pay the Executive, upon the Initial Payroll Date, a lump-sum cash payment in an amount equal to the amount of such bonus that the Executive would have received for such prior fiscal year (i.e., contingent on satisfaction of the performance goals that are applicable to such annual bonus), if any, if his or her termination of employment had not occurred and he or she had remained employed through such date on which such bonus would be paid. (d) Vacation Pay. Any accrued vacation pay due but not yet taken at the Termination Date shall be paid to the Executive on the Termination Date. (e) COBRA Benefits. The Executive shall be entitled to elect, to the extent permitted under COBRA, to continue (for the Executive and his or her eligible dependents) to participate in the medical, dental and vision benefits provided under the Company’s appliable group health plan(s) following the Termination Date. To the extent the Executive elects to continue such medical, dental and vision benefits, the Company will provide the Executive with a monthly reimbursement payment for the COBRA premiums charged and paid for up to eighteen (18) months; provided that (i) each such monthly reimbursement shall be paid following the Company’s receipt of proof of payment for the COBRA premium (in a form satisfactory to the Company) and (ii) no such reimbursement shall be provided to the extent the Company determines that the reimbursement would result in any fine, penalty or violation of law for being a discriminatory benefit or otherwise. For the avoidance of doubt, (A) such reimbursement payments (x) shall cease when the Executive becomes eligible to participate in any other employer-sponsored health plan, and (y) shall be includible in the Executive’s gross income, and (B) all other employee welfare benefits and perquisites that the Executive was receiving (or entitled to receive) prior to the Termination Date shall cease as of the Termination Date. (f) Retirement Benefits. This Agreement shall not affect the Executive’s entitlement to benefits under the Company’s retirement plan accrued as of his or her termination.
7 (g) Executive Outplacement Counseling. The Company shall engage an outplacement counseling service of national reputation, at its own expense to assist the Executive in obtaining employment, until the earliest of (i) two (2) years from the Termination Date, (ii) such date as the Executive has obtained employment, or (iii) until such time the Company’s expenses equal $20,000. 5. Entirety. This Agreement constitutes the entire agreement between the parties pertaining to the subject matter contained herein and supersedes all prior and contemporaneous agreements, representations and understandings of the parties. No supplement, modification or amendment of this Agreement shall be binding unless referring specifically to this Agreement and executed in writing by the parties hereto. In no event will the Executive be entitled to severance under both this Agreement and the Company’s severance policy, if any, as it is the intent of the parties hereto that the severance provided for in this Agreement shall be in lieu of, and not in addition to, the severance that the Executive would otherwise be entitled to under the Company’s severance policy, if any. 6. Certain Obligations of the Executive. In order to induce the Company to enter into this Agreement, the Executive hereby agrees to the following obligations, which obligations of the Executive shall be in addition to, and shall not limit, any other obligation of the Executive to the Company with respect to the matters set forth herein or otherwise: (a) Nondisclosure. The Executive acknowledges that during his or her employment he or she will have access to and the Company promises to provide the Executive with Confidential Information (as hereinafter defined) which has great value to the Company. The Executive hereby agrees that all documents, records, techniques, business secrets, price and route information, business strategy and other information, whether in electronic form, hardcopy or other format, which have come into his or her possession from time to time during his or her employment by the Company or which may come into his or her possession during his or her employment (collectively, “Confidential Information”), shall be deemed to be confidential and proprietary to the Company and the Executive further agrees to retain in confidence any Confidential Information known to him or her concerning the Company and its affiliates and their respective businesses, unless such information (i) is publicly disclosed by the Company or (ii) is required to be disclosed by valid legal process; provided, however, that prior to any such disclosure, if reasonably practicable, the Executive must first notify the Company and cooperate with the Company (at the Company’s expense) in seeking a protective order; and further provided that nothing in this Section 6(a) limits any provision of Section 6(h) below. (b) Return of Property. The Executive agrees that, upon termination of the Executive’s employment with the Company for any reason, the Executive will return to the Company, in good condition, all property of the Company and any of its affiliates, including without limitation, keys; building access cards; computers; cellular telephones; automobiles; the originals and all copies (in whatever format) of all
8 management, training, marketing, pricing, strategic, routing and selling materials; promotional materials; other training and instructional materials; financial information; vendor, owner, manager and product information; customer lists; other customer information; and all other selling, service and trade information and equipment; provided that nothing in this Section 6(b) limits any provision of Section 6(h) below. If such items are not returned in accordance with this Section 6(b), the Company will have the right to charge the Executive for all reasonable damages, costs, attorneys’ fees and other expenses incurred in searching for, taking, removing and/or recovering such property. (c) Non-solicitation. During the period of employment with the Company and for a period of twenty-four (24) months thereafter, the Executive will not, on the Executive’s own behalf or on behalf of any other person, partnership, association, corporation or other entity, or otherwise act directly or indirectly to solicit or in any manner attempt to influence or induce any employee of the Company or its affiliates to leave the employment of the Company or its affiliates. (d) Non-interference. During the period of employment with the Company and for a period of twenty-four (24) months thereafter, the Executive shall not, directly or indirectly, interfere with, impair or damage the Company’s relationships with any customer, client, supplier, licensee or business partner. (e) Non-Competition Agreement. During the period of employment with the Company and for a period of twenty-four (24) months thereafter, the Executive shall not, directly or indirectly, own, manage, operate, have any interest as an employee, salesperson, consultant, officer or director, control or participate in the ownership, management, operation or control of any business, whether in corporate, proprietorship or partnership form or otherwise, engaged in any city, state or part thereof in the United States in the (i) production of ingredients through the collection and/or processing of animal by-products, organic waste, bakery residuals and/or used cooking oil, (ii) servicing of grease traps, or (iii) any other business that the Company has been engaged in during the Executive’s employment (collectively a “Restricted Business”); provided, however, that the restrictions contained in this Section 6(e) shall not restrict (A) the acquisition of any capital stock or other securities of the Company and (B) the acquisition by the Executive, directly or indirectly, of less than one percent (1%) of the outstanding capital stock of any publicly traded company engaged in a Restricted Business. In the event the Federal Trade Commission passes a rule or regulation that prohibits any of the restrictions in this Section 6(e), any prohibited restriction shall be null and void until the time such rule or regulation is enjoined or otherwise preempted, overturned, or stayed. (f) Cooperation. The Executive agrees to cooperate, at the request and expense of the Company, in the prosecution and/or defense of any claim or litigation in which the Company or any affiliate is involved on the date of the termination of the Executive’s employment with the Company for any reason or thereafter that includes subject matter as to which the Executive has knowledge and/or expertise; provided that nothing in this Section 6(f) limits any provision of Section 6(h) below.
9 (g) Damages. If the Executive breaches or threatens to breach the covenants contained in this Section 6, the Company will have no further obligations to the Executive pursuant to this Agreement or otherwise, the Executive shall immediately forfeit any amounts or benefits under Section 4, and the Company shall be entitled to recover from the Executive all such damages to which it may be entitled at law or in equity. In addition, the Executive acknowledges that any such breach may result in immediate and irreparable harm to the Company for which money damages are likely to be inadequate. Accordingly, as the sole exception to Section 12(a), the Company may seek whatever relief it determines to be appropriate to protect the Company’s rights under this Agreement, including, without limitation, an injunction or equitable relief in the federal and state courts of Dallas County, Texas, and the Executive hereby irrevocably agrees and waives any objection to the jurisdiction and venue of such courts. The Executive acknowledges good and sufficient consideration for the covenants of this Section 6. (h) Protected Rights. The Executive understands that nothing contained in this Agreement limits the Executive’s ability to report possible violations of law or regulation to, or file a charge or complaint with, the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the Department of Justice, the Congress, any Inspector General, or any other federal, state or local governmental agency or commission (“Government Agencies”). The Executive further understands that this Agreement does not limit the Executive’s ability to communicate with any Government Agencies or otherwise participate in any investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information, without notice to the Company. Nothing in this Agreement shall limit the Executive’s ability under applicable United States federal law to (i) disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law or (ii) disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. (i) Reformation. In the event that any covenant contained in this Section 6 should ever be adjudicated to exceed the time, geographic or other limitations permitted by applicable law, then such covenant shall be reformed to the maximum time, geographic or other limitations permitted by applicable law. The covenants contained in this Section 6 and each provision hereof are severable and distinct covenants and provisions. The invalidity or unenforceability of any such covenant or provision as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction. 7. Successors. The Company 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 the Company to expressly assume and agree to perform this Agreement in the same manner and
10 to the same extent that the Company would be required to perform it if no such succession has taken place. 8. Governing Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the internal laws of the State of Texas. 9. Termination. This Agreement shall terminate on December 31, 2023 (the “Term”); provided, however, that the Term shall automatically extend for successive one (1) year periods on December 31, 2023 and each anniversary thereof, unless the Executive’s employment is terminated prior thereto or the Company provides written notice to the Executive of the Company’s intention not to extend the Term at least six (6) months prior to the applicable extension date. Notwithstanding any provision herein to the contrary, in the event of a Change of Control, the Term shall automatically be extended until the end of the Protection Period. 10. Section 409A. All amounts payable under this Agreement are intended to be exempt from, or comply with, Section 409A and this Agreement shall be interpreted in accordance with such intent. Notwithstanding any provision of this Agreement to the contrary, and if and only to the extent it becomes necessary to prevent any accelerated or additional tax under Section 409A, if the Executive is a “specified employee” as defined in Section 409A, any severance pay or benefits constituting “nonqualified deferred compensation” to which Section 409A applies and payable by reason of the Executive’s termination of employment shall be deferred (without any adjustment to the amount of such payments or benefits ultimately paid or provided to the Executive) until the date that is six (6) months following such termination (or the earliest date as is permitted under Section 409A). A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to Section 409A upon or following a termination of employment until such termination is also a “separation from service” within the meaning of Section 409A and for purposes of any such provision of this Agreement, references to a “resignation,” “termination,” “terminate,” “termination of employment” or like terms shall mean separation from service. To the extent required to comply with Section 409A, if the period available to execute (and not revoke) the general release described herein spans two (2) calendar years, payment of the benefits described in Section 4(a)(i), Section 4(e) and Section 4(g) will neither commence nor occur, as applicable, until the second calendar year. To the extent that reimbursements or in-kind benefits under this Agreement constitute non- exempt “nonqualified deferred compensation” for purposes of Section 409A, (a) all reimbursements hereunder shall be made on or prior to the last day of the calendar year following the calendar year in which the expense was incurred by the Executive, (b) any right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (c) the amount of expenses eligible for reimbursement or in-kind benefits provided in any calendar year shall not in any way affect the expenses eligible for reimbursement or in-kind benefits to be provided, in any other calendar year. Notwithstanding the foregoing or anything to the contrary in this Agreement, neither the Company nor any
11 other person will be liable to the Executive by reason of any acceleration of income, or any additional tax (including any interest and penalties), asserted with respect to any of the payments under this Agreement, including by reason of the failure of this Agreement to satisfy the applicable requirements of Section 409A in form or in operation. If the Executive is entitled to receive payment of the Termination Base Pay Amount pursuant to Section 4(a)(ii) hereof due to the termination of the Executive’s employment following a Change of Control that does not constitute a “change in control event,” within the meaning of Section 409A and such payment of the Termination Base Pay Amount is subject to Section 409A, then the Executive shall continue to be entitled to receive payment of the Termination Base Pay Amount, but the Termination Base Pay Amount shall not be paid in a lump sum, but instead shall be paid in substantially equal installments over the twenty-four (24)-month period as described in, and in accordance with, Section 4(a)(i) hereof. 11. Section 280G. Notwithstanding any other provision of this Agreement, if any payment or benefit the Executive would receive pursuant to a Change of Control or otherwise (whether paid, payable or provided pursuant to the terms of this Agreement or otherwise) (each a “Payment” and collectively the “Payments”) could constitute a “parachute payment” within the meaning of Section 280G of the Code, then the Payments shall be either (a) reduced such that the maximum amount of the Payments shall be One Dollar ($1.00) less than the amount that would cause the Payments to be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), or (b) delivered in full pursuant to the terms of this Agreement. The determination of whether clause (a) or (b) of the preceding sentence shall be given effect shall be made by the Company on the basis of which of such clauses results in the receipt by the Executive of the greater Net After-Tax Receipt (as defined herein) of the aggregate Payments. The term “Net After-Tax Receipt” shall mean the present value (as determined in accordance with Section 280G of the Code) of the Payments net of all applicable federal, state and local income, employment and other applicable taxes and the Excise Tax. If clause (b) above is given effect and the Payments are reduced, such reduction shall be accomplished by first reducing or eliminating the portion of the Payments that are payable in cash and then by reducing or eliminating the non-cash portion of the Payments, in each case in reverse order beginning with payments and benefits which are to be paid or provided the furthest in time from the date of the determination described below and in each case in accordance with Section 409A. Unless the Company and the Executive otherwise agree in writing, any determination required under this paragraph shall be made by the independent public accounting firm serving as the Company’s auditing firm (the “Third Party”), and all such determinations shall be conclusive, final and binding on the parties hereto. The Company and the Executive shall furnish to the Third Party such information and documents as the Third Party may reasonably request in order to make a determination under this Section 11. The Company shall bear all fees and costs of the Third Party with respect to all determinations under or contemplated by this paragraph.
12 12. Dispute Resolution. (a) Arbitration. Subject to Section 6(g), all claims or disputes arising out of or relating to, or in connection with the construction, meaning, or effect of this Agreement or the Executive’s employment or termination thereof shall be submitted for binding resolution in arbitration with JAMS (“JAMS”) before a neutral arbitrator (the “Arbitrator”) admitted to practice law in Texas for fifteen (15) years or more chosen by agreement of the parties hereto. If the parties are unable to decide the Arbitrator, the parties will follow the process set forth in Rule 12 of the JAMS Commercial Arbitration Rules & Procedures (or any comparable rule then in existence) to strike and rank arbitrators for the selection of the Arbitrator, except that in the event that appointment cannot be made from the submitted lists, JAMS shall submit to the parties a new list of arbitrators with the same qualifications as set forth above until the Arbitrator is selected. JAMS shall not have the power to make the appointment from or among members of the National Roster. The arbitration proceeding and all related documents will be confidential unless disclosure is required by law. The Arbitrator will have the authority to award the same remedies, damages, and costs that a court could award, including but not limited to the right to award injunctive relief. The Arbitrator’s decision will be final and binding and not subject to appeal. The judgment on the award rendered by the Arbitrator may be entered in any court having jurisdiction thereof. This Agreement involves interstate commerce, and this provision can be enforced under the Federal Arbitration Act. Arbitration shall proceed solely on an individual basis without the right for any claims to be arbitrated on a class action or collective action basis or on bases involving claims brought in a purported representative capacity on behalf of others. The Arbitrator’s authority to resolve and make written awards is limited to claims between the Executive and the Company alone. Claims may not be joined, coordinated, or consolidated unless agreed to in writing by all parties hereto. (b) Jury Waiver. SUBJECT TO SECTION 12(a) ABOVE, EACH OF THE EXECUTIVE AND THE COMPANY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN ANY PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). (c) Recovery of Attorney’s Fees. If any party institutes any legal suit, action, or proceeding arising from or relating to enforcement of any provision of this Agreement, the prevailing party shall be entitled, in addition to all other remedies to which the prevailing party may be entitled, to recover the costs and expenses incurred by the prevailing party in conducting or defending the suit, action, or proceeding, including such party’s reasonable attorneys’ fees and expenses.
13 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered as of the day and year first above set forth. DARLING INGREDIENTS INC. By: /s/ John F. Sterling Name: John F. Sterling Title: EVP and General Counsel EXECUTIVE /s/ Matt Jansen Matt Jansen