EMPLOYMENT AGREEMENT AS AMENDED AND RESTATED
AS AMENDED AND
RESTATED
THIS
EMPLOYMENT AGREEMENT (this “Agreement”), effective as of May 25, 2009 (the
“Effective Date”), is made on May 28, 2009 between ▇▇▇▇▇▇ Energy Company, a
Delaware corporation (the “Company”), and ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ (the
“Executive”). This Agreement replaces and supersedes, as of the
Effective Date, the employment agreement between the Company and the Executive
effective as of the May 25, 2006 and amended and restated on
December 23, 2008 (the “Original Agreement”).
WITNESSETH:
WHEREAS,
Executive is a senior executive of the Company or one of its Subsidiaries (as
defined in Section 25) and has made and is expected to continue to make major
contributions to the short-term and long-term profitability, growth and
financial strength of the Company; and
WHEREAS,
the Board of Directors of the Company (the “Board,” as defined in Section 25)
recognized that, as is the case with many publicly held corporations, the
possibility of a Change in Control (as defined in Section 25) exists and
consequently entered into a Change in Control Severance Agreement dated
May 25, 2006 with the Executive, which the Company and the Executive
amended and restated effective January 1, 2009 (the “Change in Control
Agreement”); and
WHEREAS,
the Board has determined that Executive should be provided with certain
employment rights during his continued employment prior to the generally
applicability of the Change in Control Agreement, as well as certain severance
rights in the event his employment ends under circumstances where the Change in
Control Agreement is inapplicable; and
WHEREAS,
the Board has determined that Executive will not be entitled to payments and
benefits under this Agreement and the Change in Control Agreement with respect
to the same set of circumstances and that it is desirable to provide for
appropriate coordination, without duplication, of payment and benefit rights in
the event Executive becomes entitled to payments or benefits pursuant to this
Agreement and at the same time is entitled to payments and benefits under the
Change in Control Agreement; and
WHEREAS,
in consideration of Executive’s continued employment with the Company, the
Company desired to provide Executive with certain compensation and benefits set
forth in this Agreement in order to ameliorate the financial and career impact
on Executive in the event Executive’s employment with the Company is terminated
for certain reasons prior to a Change in Control; and
WHEREAS,
the Company and the Executive now desire to replace the Original Agreement,
effective as of the Effective Date.
NOW,
THEREFORE, in consideration of the foregoing and the mutual covenants and
agreements hereinafter set forth (including definitions of capitalized terms
which are set forth in Section 25 and throughout this Agreement) and intending
to be legally bound hereby, the Company and Executive agree as
follows:
1. Employment.
(a)
Subject to the terms and conditions of this Agreement, the Company agrees to
employ Executive during the term hereof as a senior executive of the
Company or one of its Subsidiaries (as defined in Section 25). In such
capacity, Executive shall report to such person as the President and Chief
Executive Officer of the Company shall determine, and shall have the customary
powers, responsibilities and authorities of executives holding such positions in
corporations of the size, type and nature of the Company or Subsidiary which
employs him, as it exists from time to time, and as are assigned by the
President and Chief Executive Officer of the Company.
(b)
Subject to the terms and conditions of this Agreement, Executive hereby accepts
such employment originally commencing as of the Effective Date and agrees,
subject to any period of vacation and sick leave, to devote his full business
time and efforts to the performance of services, duties and responsibilities in
connection therewith.
2. Term of
Agreement.
(a) Regular
Term. The term of this Agreement (the “Term”) commenced on the
Effective Date and shall continue until May 25, 2012.
(b) Termination of Agreement
Upon a Change in Control. Notwithstanding the foregoing, this
Agreement shall automatically terminate if Executive is employed by the Company
or any Subsidiary
(as defined in Section 25) at the time a Change in Control
occurs.
3. Compensation.
(a) Salary. During the Term, the
Company shall pay Executive a base salary (“Base Salary”) at an annual rate of
$340,000 effective as of June 1, 2009 (subject, however, Executive’s
waiver, if any, in effect on the day before the Effective Date of part of his
otherwise payable base salary for certain purposes, which waiver shall remain
effective until revoked). Base Salary shall be payable in accordance with the
ordinary payroll practices of the Company (but no less frequently than monthly).
During the Term, the Board shall, in good faith, review, at least annually,
Executive’s Base Salary in accordance with the Company’s customary procedures
and practices regarding the salaries of senior executives and may, if determined
by the Board to be appropriate, increase, but not decrease, Executive’s Base
Salary following such review. “Base Salary” for all purposes herein shall be
deemed to be a reference to any such increased amount.
(b) Annual Bonus. In addition to
his Base Salary, during the Term, Executive shall be eligible to receive annual
cash bonus awards for fiscal years 2010, 2011 and 2012 of $210,000, which amount
may be increased at the discretion of the Compensation Committee. Each annual
cash bonus award shall be subject to the terms and conditions set forth by the
Compensation Committee of the Board for each fiscal year. Except as provided
herein, the annual cash bonus awards shall be payable to Executive at the time
bonuses are paid to other similarly situated executives of the Company and its
Subsidiaries in accordance with the Company’s policies and practices as set by
the Board.
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(c) Long-term Incentive Awards.
During the Term, Executive shall be eligible to receive long-term incentive
awards as a Level 2 participant in the Company’s long-term incentive awards
program. The long-term incentive awards shall be subject to the terms and
conditions set forth by the Compensation Committee of the Board for each
long-term incentive period. Except as provided herein, long-term cash incentive
awards shall be payable or shall vest, as the case may be, at the time such
awards are paid or vest for similarly situated executives of the Company and its
Subsidiaries in accordance with the Company’s policies and practices as set by
the Board.
(d) Existing Equity- and Cash-Based
Compensation. Any outstanding agreement made with Executive under the
Company’s long-term cash and equity incentive program, including, stock option,
restricted stock, restricted unit, other equity- or cash-based incentive awards
or other equity- or cash-based incentive agreements as of the Effective Date and
the date hereof (the “Ancillary Documents”) shall remain in full force and
effect and shall not be affected by this Agreement, except as set forth in
Section 6(c).
4. Employee Benefit Programs,
Plans and Practices; Perquisites.
(a) In
General. The Company
shall provide Executive while employed hereunder with coverage under such
employee benefit plans (commensurate with his position in the Company and to the
extent permitted under any employee benefit plan) in accordance with the terms
thereof, Directors and Officers insurance policy, which covers claims arising
out of actions or inactions occurring during the Term, in accordance with the
Directors and Officers insurance policy, and other employee benefits which the
Company may make available to other similarly situated executives of the Company
and its Subsidiaries from time to time in its discretion. The Company also shall
provide Executive while employed hereunder with perquisites which the Company
may make available to other similarly situated executives of the Company and its
Subsidiaries from time to time in its discretion.
(b) Supplemental
Benefit Plan Participation. Notwithstanding anything to the
contrary in the foregoing, Executive shall be provided participation in the A.
T. ▇▇▇▇▇▇, Inc. Supplemental Benefit Plan (the “SERP”), subject to the
following: (i) Executive’s retirement benefit shall be equal to the excess
of (A) the retirement benefit amount to which he would be entitled assuming
he participated in the “Coal Company Plan” component of the ▇▇▇▇▇▇ Energy
Retirement Plan (the “MERP”), but determined without regard to the limits set
forth in section 401(a)(17) and 415, if applicable, of the Code (as defined in
Section 25), over (B) the actuarial value (as determined pursuant to the
SERP) of his actual MERP benefit; (ii) his SERP benefit shall not become
vested unless he remains an employee of the Company or one of its affiliates
until May 24, 2014; and (iii) any election by Executive to receive his
SERP benefit payment at the later of his “Normal Retirement Date” (as defined in
the SERP) or his “Separation from Service” (as defined in the SERP) shall be
subject to applicable requirements under Section 409A of the Code and shall not
be effective if Executive vests in his SERP benefit earlier than 12 months after
he is designated as a participant in the SERP.
5. Expenses. Subject to
prevailing Company policy or such guidelines as may be established by the Board,
the Company will reimburse Executive for all reasonable expenses incurred by
Executive in carrying out his duties no later than the last day of the year
following the year in which the Executive incurs the reimbursable
expense.
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6. Termination of
Employment.
(a) Employment Rights. Executive
and the Company acknowledge that, except as may otherwise be provided under this
Agreement or any other written agreement between Executive and the Company or a
Subsidiary or as set forth in Section 6(b), the employment of Executive by the
Company is “at will” and may be terminated by the Company without further
compensation. Nothing expressed or implied in this Agreement will
create any right or duty on the part of the Company or Executive to have
Executive remain in the employment of the Company or any Subsidiary.
(b) Termination in a Covered
Termination. Executive shall be entitled to the payments provided in
Section 6(c) on account of a Covered Termination. A “Covered
Termination” is the severance of Executive’s employment that occurs during the
Term and prior to the occurrence of a Change in Control, under circumstances
where Executive is not entitled to any compensation, payment or benefit under
the Change in Control Agreement and due to either (i) a termination by the
Company other than for Cause (as defined in Section 25) and other than due to
Executive’s death or Disability (as defined in Section 25) or (ii) a
termination by Executive for Good Reason (as defined in Section
25).
(c) Payments and Benefits Upon a Covered
Termination. Subject to the provisions of Sections 7, 8 and 9 hereof, in
the event a Covered Termination described in Section 6(b) occurs, the Company
shall pay or provide to Executive on or beginning, as applicable, the first
business day that occurs following sixty (60) days after his Termination Date
(as defined in Section 25):
(i) a
lump sum cash payment equal to Executive’s Base Salary in effect on his
Termination Date from the day following the Termination Date to the end of the
Term, but in no event shall the aggregate amount of such payments exceed 2.5
times Executive’s Base Salary as of the Termination Date;
(ii) a
lump sum cash payment equal to Executive’s Retention Cash Awards (as defined in
Section 25) that are unpaid as of the Termination Date;
(iii) a lump sum cash
payment equal to the sum of (A) any earned annual cash bonus award
for fiscal year 2009, 2010 or 2011 that is unpaid prior to Executive’s
Termination Date (determined without regard to any requirement that Executive
remain employed until the regular payment date therefor) and (B) the following applicable
amount(s) for each of fiscal years 2009, 2010, 2011 and 2012 that has not
ended prior to Executive’s Termination Date: (I) for
2009, the target annual cash bonus award, (II) for 2010, $200,000,
(III) for 2011, $200,000, and (IV) for 2012, $200,000;
(iv) a lump sum cash
payment equal to the sum of (A) any earned long-term cash incentive
bonus award for a
long-term performance period that contains, as a last year of
measurement, fiscal year 2009, 2010 or 2011 and that has ended prior to
Executive’s Termination Date that is unpaid as of the Termination Date
(determined without regard to any requirement that Executive remain employed
until the regular payment date therefor) and (B) the following applicable
amount(s):
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(I) any and all
target long-term cash incentive bonus awards for each of the long-term
performance periods that contain, as the first year of measurement,
fiscal year 2009 or any earlier year and that contain, as the last year of
measurement 2009, 2010 or 2011 that has not ended prior to Executive’s
Termination Date,
and
(II) if Executive’s
Termination Date occurs in 2012, $75,000;
(v) all
outstanding equity-based awards granted to Executive prior to or during the Term
of this Agreement but prior to the Termination Date, including but not limited
to stock options, restricted stock and restricted units, that otherwise would
vest during the Term of this Agreement, shall automatically be immediately
vested on Executive’s Termination Date; and
(vi) from
the day following the Termination Date to the end of the Term (the “Medical
Coverage Period”), Executive shall continue to receive on a monthly basis the
medical coverage in effect on his Termination Date (or generally comparable
coverage) for himself and, if applicable, his spouse and dependents, as the same
may be changed from time to time for employees generally, as if Executive had
continued in employment during such period; or, as an alternative, the Company
may elect to pay Executive cash in lieu of such coverage in an amount equal to
Executive’s reasonable after-tax cost of continuing comparable coverage, where
such coverage may not be continued by the Company (or where such continuation
would adversely affect the tax status of the plan pursuant to which the coverage
is provided), with any such cash payments to be made in accordance with the
ordinary payroll practices of the Company (not less frequently than monthly) for
employees generally for the period during which such cash payments are to be
provided.
(A) If
Executive does not receive the cash payment described in the preceding sentence,
the Company shall take all commercially reasonable efforts to provide that the Consolidated Omnibus
Budget Reconciliation Act of 1986, as amended (COBRA), health care
continuation coverage period under section 4980B of the Code (as defined in
Section 25) shall commence immediately after the Medical Coverage Period, with
such continuation coverage continuing until the end of applicable COBRA health
care continuation coverage period.
(B) If
Executive would have been eligible for post-retirement medical coverage had he
retired from employment during the Medical Coverage Period, but is not so
eligible as the result of his Covered Termination, then at the conclusion of the
benefit continuation period described in (A) above, the Company shall take all
commercially reasonable efforts to provide Executive on a monthly basis with
additional continued group medical coverage comparable to that which would have
been available to him from time to time under the Company’s post-retirement
medical program, for as long as such coverage would have been available under
such program, or, as an alternative, the Company may elect to pay Executive cash
in lieu of such coverage in an amount equal to Executive’s reasonable after-tax
cost of continuing comparable coverage, where such coverage may not be continued
by the Company (or where such continuation would adversely affect the tax status
of the plan pursuant to which the coverage is provided), with any such cash
payments to be made in accordance with the ordinary payroll practices of the
Company (not less frequently than monthly) for
5
employees
generally for the period during which such cash payments are to be
provided.
Notwithstanding
anything to the contrary herein, in no event shall this Agreement entitle
Executive to receive more than one payment for any award granted to Executive;
if any award is earned or otherwise payable (other than as provided in this
Agreement) but unpaid, any payment with respect to such award pursuant to this
Agreement will be considered a full satisfaction of Executive’s rights with
respect to such award; and if Executive has elected to defer the payment of one
or more, or any portion, of any payment otherwise due to be made without regard
to this Agreement into a nonqualified deferred compensation plan maintained by
the Company or any of its Subsidiaries, then in lieu of payment directly to
Executive, such payment, or the applicable portion thereof, elected to be
deferred shall be paid or credited instead under such nonqualified deferred
compensation plan if and to the extent that payment pursuant to this Agreement
would be considered an impermissible acceleration or change in the time or form
of payment thereof in violation of the requirements of Section 409A of the Code
(as defined in Section 25).
Notwithstanding the
foregoing or any other provision of this Agreement or any Change in Control
Agreement, the Company and Executive explicitly agree that Executive will
not be entitled to payments and benefits under this Agreement and under any
Change in Control Agreement with respect to the same set of circumstances and in
the event Executive becomes entitled to payments or benefits pursuant to this
Agreement and at the same time is entitled to payments and benefits under any
Change in Control Agreement with respect to the same set of circumstances,
Executive shall only be entitled to those payments and benefits under, and only
be subject to the other applicable provisions of, this Agreement or the Change
in Control Agreement (to the total exclusion of the payment and benefit rights
and terms and conditions of the other agreement) based solely on which agreement
provides in the aggregate, on an after-tax basis, the greatest value to
Executive when each agreement’s payments and benefits are reasonably
valued. Such valuation shall be determined in the sole and absolute
discretion of the Company.
(d) Cessation of Employment on Account
of Disability, Cause or Death. Notwithstanding anything in this Agreement
to the contrary, if Executive’s employment terminates on account of Disability,
Executive shall be entitled only to receive disability benefits under any
disability program maintained by the Company that covers Executive, and
Executive shall not be considered to have incurred a Covered Termination under
this Agreement and shall not receive payments and benefits pursuant to this
Section 6. If Executive’s employment terminates on account of Cause or because
of his death, Executive shall not be considered to have incurred a Covered
Termination under this Agreement and shall not receive payments and benefits
pursuant to this Section 6.
(e) Beneficiaries. Executive shall
be entitled to select (and change, to the extent permitted under any applicable
law) a beneficiary or beneficiaries to receive any compensation payable
hereunder following Executive’s death, and may change such election, in either
case by giving the Company written notice thereof. In the event of Executive’s
death or a judicial determination of his incompetence, reference in this
Agreement to Executive shall be deemed, where appropriate, to refer to his
beneficiary, estate or other legal representative. If Executive dies without
having designated a beneficiary, or if the beneficiary so designated has
predeceased Executive or cannot be located by the Company within one year after
the date when the
6
Company
commenced making a reasonable effort to locate such beneficiary, then
Executive's surviving spouse, or if none, then Executive's estate shall be
deemed to be his beneficiary.
7. Nonqualified Deferred
Compensation Plan Omnibus Provisions. Notwithstanding any other provision
of this Agreement, it is intended that any payment or benefit which is provided
pursuant to or in connection with this Agreement which is considered to be
nonqualified deferred compensation subject to Section 409A of the Code (as
defined in Section 25) shall be provided and paid in a manner, and at such time,
including without limitation payment and provision of benefits only in
connection with a permissible payment event contained in Section 409A occurs
(e.g., death, disability, separation from service from the Company and its
affiliates as defined for purposes of Section 409A of the Code), and in such
form, as complies with the applicable requirements of Section 409A of the Code
to avoid the unfavorable tax consequences provided therein for
non-compliance. Notwithstanding any other provision of this
Agreement, the Board is authorized to amend this Agreement, to amend any
election made by Executive under this Agreement and/or to delay the payment of
any monies and/or provision of any benefits in such manner as may be determined
by it to be necessary or appropriate to comply, or to evidence or further
evidence required compliance, with Section 409A of the Code (including any
transition or grandfather rules thereunder). For purposes of this
Agreement, all rights to payments and benefits hereunder shall be treated as
rights to receive a series of separate payments and benefits to the fullest
extent allowed by Section 409A of the Code. If Executive is a key employee (as
defined in Section 416(i) of the Code without regard to paragraph (5) thereof)
and any of the Company’s stock is publicly traded on an established securities
market or otherwise, then payment of any amount or provision of any
benefit under this Agreement which is considered to be nonqualified deferred
compensation subject to Section 409A of the Code shall be deferred for six (6)
months as required by Section 409A(a)(2)(B)(i) of the Code (the “409A Deferral
Period”). In the event such payments
are otherwise due to be made in installments or periodically during the 409A
Deferral Period, the payments which would otherwise have been made in the 409A
Deferral Period shall be accumulated and paid in a lump sum as soon as the 409A
Deferral Period ends, and the balance of the payments shall be made as otherwise
scheduled. In the event benefits are
required to be deferred, any such benefit may be provided during the 409A
Deferral Period at Executive’s expense, with Executive having a right to
reimbursement from the Company once the 409A Deferral Period ends, and the
balance of the benefits shall be provided as otherwise scheduled. For
purposes of this Agreement, severance of employment will be read to mean a
“separation from service” within the meaning of Section 409A of the Code where
it is reasonably anticipated that no further services would be performed after
such date or that the level of bona fide services Executive would perform after
that date (whether as an employee or independent contractor) would permanently
decrease to no more than 20 percent of the average level of bona fide
services performed over the immediately preceding thirty-six (36) month period
(or, if lesser, the period of Executive’s service).
8. Release.
Notwithstanding the foregoing, no payments shall be made or benefits provided
under Section 6(c) unless Executive executes, and does not revoke, the Company’s
standard written release, substantially in the form as attached hereto as
Appendix A (the “Release”), of any and all claims against the Company and all
related parties with respect to all matters arising out of Executive’s
employment by the Company (other than any claim or entitlement under an employee
benefit, long term cash or equity compensation plan, program, arrangement or
agreement which is due pursuant to the terms of such plan, program, arrangement
or agreement) or a termination thereof. Such Release, with the period for
revoking the same having already expired, must be provided to the Company on or
after, but no later than sixty (60) days following, Executive’s Termination
Date.
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9. Covenants Not to Compete and
Not to Solicit; Breach of Agreement Obligations by
Executive.
(a) Covenant Not to Compete. In
the event Executive is entitled to receive payments and benefits under Section
6(c) above, then, for a period of one (1) year following Executive’s Termination
Date, Executive shall not directly or indirectly engage in (whether as an
employee, consultant, proprietor, partner, director or otherwise), or have any
ownership interest in, or participate in a financing, operation, management or
control of, any person, firm, corporation or business that is a Restricted
Business in a Restricted Territory without the prior written consent of the
Board. For this purpose, ownership, whether direct or beneficial, of no more
than 5% of the outstanding securities entitled to vote generally in the election
of directors of a publicly traded corporation shall not constitute a violation
of this provision.
(b) Covenant Not to Solicit. In
the event Executive is entitled to receive payments and benefits under Section
6(c) above, then, for a period of one (1) year following Executive’s Termination
Date, Executive shall not: (i) solicit, encourage or take any other action which
is intended to induce any other employee, any supplier or any customer, of the
Company or any Subsidiary to terminate his employment or relationship with the
Company or any Subsidiary; or (ii) interfere in any manner with the contractual
or employment relationship between the Company and any such employee, supplier
or customer of the Company or any Subsidiary. The foregoing shall not prohibit
Executive or any entity with which Executive may be affiliated from hiring a
former employee of the Company or any Subsidiary; provided, that such hiring
results exclusively from such former employee’s affirmative response to a
general recruitment effort.
(c) Interpretation. The covenants
contained herein are intended to be construed as a series of separate covenants,
one for each of the counties, parishes, towns, cities or states or similar local
governmental or political subdivisions of the Restricted Territory. Except for
geographic coverage, each such separate covenant shall be deemed identical in
terms to the covenant contained in the preceding subsections. If, in any
judicial proceeding, the court shall refuse to enforce any of the separate
covenants (or any part thereof) deemed included in such subsections, then such
unenforceable covenant (or such part) shall be deemed to be eliminated from this
Agreement for the purpose of those proceedings to the extent necessary to permit
the remaining separate covenants (or portions thereof) to be
enforced.
(d) Remedies for
Breach. In the event of Executive’s termination of employment,
the Company’s obligations to provide the payments and benefits set forth in
Section 6(c) shall be and are expressly conditioned upon Executive’s covenants
not to compete and not to solicit as provided herein. In the event Executive
breaches his obligations to the Company as provided herein, the Company’s
obligations to provide the payments and benefits set forth in Section 6(c) shall
cease, and Executive shall be obligated to return to the Company any payments
and the value of any benefits previously received by him pursuant to Section
6(c). In addition, it is recognized that damages in the event of breach of this
Section 9 by Executive would be difficult, if not impossible, to ascertain, and
it is therefore specifically agreed that the Company, in addition to and without
limiting any other remedy or right it may have, shall have the right to an
injunction or other equitable relief in any court of competent jurisdiction,
enjoining any such breach. The existence of the express rights to
cease or recover payment and the value of benefits otherwise
8
provided
for in Section 6(c) and to obtain an injunction or other equitable relief shall
not preclude the Company from pursuing any other rights and remedies at law or
in equity which it may have.
(e) Definitions. For proposes of
this Section 9, the following terms have the following meanings:
(i)
“Restricted Business” means any business function with a direct competitor of
the Company or any Subsidiary that is substantially similar to the business
function performed by Executive with the Company or any Subsidiary immediately
prior to his Termination Date.
(ii)
“Restricted Territory” means the counties, parishes, towns, cities, or states or
similar governmental or political subdivisions of any country in which the
Company or any Subsidiary operates or does business, inclusive of markets in
which the Company competes with the Restricted Business to sell its
products.
(f) Reasonableness. In the event
that the provisions of this Section 9 shall ever be deemed to exceed the time,
scope or geographic limitations permitted by applicable laws, then such
provisions shall be reformed to the maximum time, scope or geographic
limitations, as the case may be, permitted by applicable laws.
10. Enforcement. Without
limiting the rights of Executive at law or in equity, if the Company fails to
make any payment required to be made or provided hereunder on a timely basis,
the Company will pay interest on the amount or value thereof at an annualized
rate of interest equal to the so-called composite “prime rate” as quoted from
time to time during the relevant period in the Eastern Edition of The Wall Street
Journal. Such interest will be payable as it accrues consistent with the
timing of the related payments or benefits to be provided. Any change in such
prime rate will be effective on and as of the date of such change.
11. Duties upon Termination;
Mitigation Obligation. Upon termination of
employment for any reason, Executive or his estate shall surrender to the
Company all correspondence, letters, files, contracts, mailing lists, customer
lists, advertising materials, ledgers, supplies, equipment, checks, and all
other materials and records of any kind that are the property of the Company or
any of its subsidiaries or affiliates, that may be in Executive’s possession or
under his control, including all copies of any of the foregoing. The Company
hereby acknowledges that it will be difficult and may be impossible for
Executive to find reasonably comparable employment following the Termination
Date. Accordingly, the payment and provision of the severance compensation by
the Company to Executive in accordance with the terms of this Agreement is
hereby acknowledged by the Company to be reasonable, and Executive will not be
required to mitigate the amount of any payment provided for in this Agreement by
seeking other employment or otherwise, nor will any profits, income, earnings or
other benefits from any source whatsoever create any mitigation, offset,
reduction or any other obligation on the part of Executive hereunder or
otherwise.
12. Legal Fees and
Expenses. If
litigation or arbitration is commenced by either party to enforce or interpret
any provision contained in this Agreement, the Company will undertake to
indemnify Executive for his reasonable attorneys' fees and expenses
associated with such
litigation or arbitration if Executive substantially prevails in such litigation
or arbitration or any settlement thereof. Notwithstanding the
foregoing, if it should
appear to Executive that the Company has failed to
9
comply
with any of its obligations under this Agreement or in the event that the
Company or any other person takes or threatens to take any action to declare
this Agreement void or unenforceable, or institutes any litigation or other
action or proceeding designed to deny, or to recover from, Executive the
payments provided or intended to be provided to Executive under Section 6(c) of
this Agreement, the Company will in any event
reimburse Executive for his reasonable attorneys' fees and expenses
incurred in
connection therewith up to $10,000 without regard to the commencement or outcome
of any litigation or arbitration in order for Executive to retain
counsel to advise and
represent Executive in connection with any such interpretation, enforcement or
defense, including without limitation the initiation or defense of any
litigation or other legal action, whether by or against the Company or any
director, officer or employee of the Company, in any jurisdiction.
Notwithstanding any existing or prior attorney-client relationship between the
Company and such counsel, the Company irrevocably consents to Executive’s
entering into an attorney-client relationship with such counsel, and in that
connection, the Company and Executive agree that a confidential relationship
will exist between Executive and such counsel. The first $10,000 of such
expenses will be paid by the Company as soon as administratively feasible after
they are incurred by Executive, and any balance thereof
due to Executive shall be paid within thirty (30) days after any final judgment
or decision or settlement in which Executive substantially
prevails.
13. Confidentiality.
Executive hereby covenants and agrees that, except as specifically requested or
directed by the Company, he will not disclose to any person not employed by the
Company, or use in connection with engaging in competition with the Company, any
confidential or proprietary information (as provided below) of the Company. For
purposes of this Agreement, the term “confidential or proprietary information”
will include all information of any nature and in any form that is owned by the
Company and that is not publicly available (other than by Executive’s breach of
this Section 13) or generally known to persons engaged in businesses similar or
related to those of the Company. Confidential or proprietary information will
include, without limitation, the Company’s financial matters, customers,
employees, industry contracts, strategic business plans, product development (or
other proprietary product data), marketing plans, consulting solutions and
processes, and all other secrets and all other information of a confidential or
proprietary nature which is protected by the Uniform Trade Secrets Act. For
purposes of the preceding two sentences, the term “Company” will also include
any Subsidiary. The foregoing obligations imposed by this Section 13 will not
apply (i) in the course of the business of and for the benefit of the Company,
(ii) if such confidential or proprietary information has become, through no
fault of Executive, generally known to the public, or (iii) if Executive is
required by law to make disclosure (after giving the Company notice and an
opportunity to contest such requirement). In addition, if not otherwise filed by
the Company with the U.S. Securities and Exchange Commission (“SEC”) and
available through public disclosure from the SEC, Executive agrees not to
disclose the terms of this Agreement to anyone, except Executive’s spouse,
attorney and, as necessary, tax/financial advisor, except as may be required by
law. Likewise, the Company agrees that the terms of this Agreement will not be
disclosed except as may be necessary to obtain approval or authorization to
fulfill its obligations hereunder or as required by law. It is expressly
understood that any violation of the confidentiality obligation imposed
hereunder constitutes a material breach of this Agreement.
14. Employment Rights.
Executive and the Company acknowledge that, except as may otherwise be provided
under any other written agreement between Executive and the Company or a
Subsidiary, the employment of Executive by the Company is “at
will.” Nothing expressed or implied in this Agreement will create any
right or duty on the part of the Company or Executive to have Executive remain
in the employment of the Company or any Subsidiary.
10
15. Withholding of Taxes.
The Company may withhold from any amounts payable under this Agreement all
federal, state, city or other taxes as the Company is required to withhold
pursuant to any applicable law, regulation or ruling.
16. Successors and Binding
Agreement.
(a) The
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation, reorganization or otherwise) to all or substantially all
of the business or assets of the Company, by agreement in form and substance
reasonably satisfactory to Executive, expressly to assume and agree to perform
this Agreement in the same manner and to the same extent the Company would be
required to perform if no such succession had taken place. This Agreement will
be binding upon and inure to the benefit of the Company and any successor to the
Company, including without limitation any persons acquiring directly or
indirectly all or substantially all of the business or assets of the Company
whether by purchase, merger, consolidation, reorganization or otherwise (and
such successor will thereafter be deemed “Company” for the purposes of this
Agreement), but will not otherwise be assignable, transferable or delegable by
the Company.
(b) This
Agreement will inure to the benefit of and be enforceable by Executive’s
personal or legal representatives, executors, administrators, successors, heirs,
distributees and legatees. This Agreement will supersede the provisions of any
employment agreement between Executive and the Company that relate to any matter
that is also the subject of this Agreement, and such provisions in such
employment agreement will be null and void. Except as provided in Section 6(c)
or 7 hereof, the foregoing sentence shall have no impact on any outstanding agreement
made with Executive under the Company’s long-term incentive program, including,
stock option, restricted stock, restricted unit, other equity- or cash-based
incentive awards or other equity- or cash-based agreements at any time in
effect.
(c) This
Agreement is personal in nature and neither of the parties hereto will, without
the consent of the other, assign, transfer or delegate this Agreement or any
rights or obligations hereunder except as expressly provided in Sections 16(a)
and (b). Without limiting the generality or effect of the foregoing, Executive’s
right to receive payments hereunder will not be assignable, transferable or
delegable, whether by pledge, creation of a security interest, or otherwise,
other than by a transfer by Executive’s will or by the laws of descent and
distribution and, in the event of any attempted assignment or transfer contrary
to this Section 16(c), the Company will have no liability to pay any amount so
attempted to be assigned, transferred or delegated.
17. Notices. For all
purposes of this Agreement, all communications, including without limitation,
notices, consents, requests or approvals, required or permitted to be given
hereunder will be in writing and will be deemed to have been duly given when
hand delivered or dispatched by electronic facsimile transmission (with receipt
thereof confirmed electronically), or five (5) business days after having been
mailed by United States registered or certified mail, return receipt requested,
postage prepaid, or three (3) business days after having been sent by a
nationally recognized courier service for overnight/next-day delivery, such as
FedEx, UPS, or the United States Postal Service, addressed to the Company (to
the attention of the Secretary of the Company) at its principal executive office
and to Executive at his principal residence, or to such other address as any
party may
11
have
furnished to the other in writing and in accordance herewith, except that
notices of changes of address will be effective only upon receipt.
18. Governing
Law; Dispute Resolution. The validity,
interpretation, construction and performance of this Agreement will be governed
by and construed in accordance with the substantive laws of the State of
Delaware, without giving effect to the principles of conflict of laws of such
State. Any dispute or controversy arising under or in connection with
this Agreement shall be resolved by arbitration in either Richmond, Virginia or
Charleston, West Virginia as so determined by Executive. Three arbitrators shall
be selected, and arbitration shall be conducted, in accordance with the rules of
the American Arbitration Association. Subject to Section 12 hereof, the
arbitrators shall have the discretion to award the cost of arbitration,
arbitrators’ fees and the respective attorneys’ fees of each party between the
parties as they see fit.
19. Validity. If any
provision of this Agreement or the application of any provision hereof to any
person or circumstances is held invalid, unenforceable or otherwise illegal, the
remainder of this Agreement and the application of such provision to any other
person or circumstances will not be affected, and the provision so held to be
invalid, unenforceable or otherwise illegal will be reformed to the extent (and
only to the extent) necessary to make it enforceable, valid or
legal.
20. Amendment;
Modification. This Agreement may only be amended by written agreement of
the parties hereto. No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in a
writing signed by Executive and the Company. No waiver by either party hereto at
any time of any breach by the other party hereto or compliance with any
condition or provision of this Agreement to be performed by such other party
will be deemed a waiver of similar or dissimilar provisions or conditions at the
same or at any prior or subsequent time. No agreements or representations, oral
or otherwise, expressed or implied with respect to the subject matter hereof
have been made by either party that are not set forth expressly in this
Agreement.
21. Acknowledgement.
Executive acknowledges that he has signed this Agreement voluntarily and
knowingly in exchange for the consideration described herein, which Executive
acknowledges is adequate and satisfactory to him and which Executive
acknowledges is in addition to any other benefits to which Executive is
otherwise entitled and that Executive has been and is hereby advised in writing
to consult with an attorney prior to signing this Agreement.
22. Miscellaneous.
References to Sections are to references to Sections of this Agreement. Any
reference in this Agreement to a provision of a statute, rule or regulation will
also include any successor provision thereto. Whenever used herein, the
masculine includes the feminine.
23. Survival.
Notwithstanding any provision of this Agreement to the contrary, the parties’
respective rights and obligations under Sections 6, 7, 8, 9, 10, 11, 12, 13, 16
and 18 will survive any termination or expiration of this Agreement or the
termination of Executive’s employment for any reason whatsoever.
24. Counterparts. This
Agreement may be executed in one or more counterparts, each of which will be
deemed to be an original but all of which together will constitute one and the
same agreement.
12
25. Certain Defined
Terms. In addition to terms defined elsewhere herein, the following terms
have the following meanings when used in this Agreement with initial capital
letters:
(a)
“Board” means the Board of Directors of the Company. If Executive is also a
member of the Board, then in the case of any provision hereof that requires
action by, or a determination of, the Board in connection with this Agreement,
it is understood that such provision refers to the members of the Board other
than Executive. Unless otherwise provided by the Board and except in determining
Cause, the Compensation Committee of the Board shall have full authority to act
on behalf of the Board in connection with any duty or action expressly assigned
under, or implicitly to be acted on in connection with, this Agreement to or by
the Board.
(b)
“Cause” shall occur hereunder only upon:
(i) the
willful and continued failure by Executive substantially to perform his duties
with the Company (other than any such failure resulting from his incapacity due
to physical or mental illness) after a written demand for substantial
performance is delivered to him by the Board which specifically identifies the
manner in which the Board believes that he has not substantially performed his
duties,
(ii)
Executive’s willful breach of fiduciary duty, willful violation of any law,
rule, or regulation (other than traffic violations or similar offenses), willful
violation of a final cease and desist order or willful engaging in other gross
misconduct which is materially and demonstrably injurious to the Company or any
Subsidiary, or
(iii)
Executive’s conviction of, or pleading guilty or nolo contendere to, the
commission of a felony involving fraud, embezzlement, theft or moral
turpitude.
For
purposes of this Section 25(b), no act, or failure to act, on Executive’s part
described in clause (i) or (ii) above shall be considered “willful” unless done,
or omitted to be done, by him not in good faith and without reasonable belief
that his action or omission was in the best interest of the Company and its
Subsidiaries. Notwithstanding the foregoing, Executive shall not be deemed to
have been terminated for Cause unless and until there shall have been delivered
to him a copy of a resolution duly adopted by the affirmative vote of not less
than two-thirds of the entire membership of the Board at a meeting of the Board
called and held for the purpose, among others (after at least twenty (20) days
prior notice to Executive and an opportunity for Executive, together with his
counsel, to be heard before the Board), of finding that (x) in the good faith
opinion of the Board Executive failed to perform his duties or engaged in
misconduct as set forth above in clause (i) or (ii) of this paragraph, and, if
applicable, that Executive did not correct such failure or cease such misconduct
after being requested to do so by the Board, or (y) as set forth in clause (iii)
of this paragraph, Executive has been convicted of or has entered a plea of nolo
contendere to the commission of a felony. The fact that Executive
is or shortly may be “retirement eligible” and thus eligible for or entitled to
post-retirement benefits from any plan, arrangement or program sponsored,
participated in or contributed to by the Company or any Subsidiary shall not
prevent Executive’s termination from being considered termination for
Cause.
(c)
“Change in Control” means the occurrence of any of the following
events:
13
(i) a third person,
including a “group” as defined in Section 13(d)(3) of the Securities Exchange Act of
1934, as amended, acquires (or has acquired during the twelve (12) month
period ending on the date of the most recent acquisition by such person) shares
of the Company having thirty (30) percent or more of the total number of votes
that may be cast for the election of directors of the Company; or
(ii) as the result
of any cash tender or exchange offer, merger or other business combination, or
any combination of the foregoing transactions, (a “Transaction”), the persons
who were directors of the Company before the Transaction shall cease to
constitute a majority of the Board of the Company or any successor to the
Company and be replaced by persons whose appointment or election is not endorsed
by the majority of directors before the Transaction.
(d)
“Code” means the Internal Revenue Code of 1986, as amended.
(e)
“Disability” means Executive becomes permanently disabled within the meaning of,
and begins actually to receive long-term disability benefits pursuant to, the
long-term disability plan of the Company or any Subsidiary in effect for, or
applicable to, Executive, or if none, then Executive is determined by the Social
Security Administration to be totally and permanently disabled for purposes of
entitlement to Social Security disability benefits.
(f) “Good
Reason” means one of the following events:
(i) the assignment
to Executive of any duties inconsistent in any respect with Executive’s position
(including status, offices, titles and reporting requirements), authority,
duties or responsibilities in effect immediately on the Effective Date, or any
other action by the Company or any Subsidiary which results in a diminution in
such position, authority, duties or responsibilities, other than an isolated,
insubstantial and inadvertent action not taken in bad faith and which is
remedied by the Company or Subsidiary promptly after receipt of notice thereof
given by Executive;
(ii) any failure by
the Company or any Subsidiary to continue Executive’s employment upon the terms
and conditions as existed on the Effective Date (as the same may be increased
from time to time during the Term) other than an isolated, insubstantial and
inadvertent failure not occurring in bad faith and which is remedied by the
Company or Subsidiary promptly after receipt of notice thereof given by
Executive, including but not limited to compensation level and annual and
long-term cash and equity incentive opportunity, but excluding any term or
condition covered in clause (i) above; or
(iii) a
material reduction in the level of Employee Benefits provided to Executive on the Effective
Date.
For
purposes hereof, “Employee Benefits” means the perquisites, benefits and service
credit for benefits as provided under any and all employee retirement income and
welfare benefit policies, plans, programs or arrangements in which Executive is
entitled to participate, including, without limitation, any stock option, stock
appreciation, stock purchase, restricted stock, restricted unit, performance
stock, performance unit, shadow stock or similar equity incentive plan, program,
arrangement, savings, pension, supplemental executive retirement, or
14
other
retirement income or welfare benefit, deferred compensation, incentive
compensation, group or other life, health, medical/hospital or other insurance
(whether funded by actual insurance or self-insured by the Company or a
Subsidiary), disability, salary continuation, expense reimbursement and other
employee benefit policies that may exist as of the Effective Date or any
successor policies, plans or arrangements that provide substantially similar
perquisites or benefits.
Without
limiting the generality or effect of the foregoing, Executive shall have no
right to terminate employment for Good Reason in connection with an event
described above unless (x) Executive provides written notice to the Company
within thirty (30) days of the occurrence of such event that identifies such
event with particularity, and (y) the Company fails to correct such event within
ten (10) business days after receipt of such notice from Executive.
In no
event shall the termination of Executive’s employment with the Company on
account of Executive’s death or Disability or because Executive engaged in
conduct constituting Cause be deemed to be a termination for Good
Reason.
(g)
“Retention Cash Awards" means the retention cash awards of $150,000 payable to
Executive on January 1, 2010, January 1, 2011 and January 1, 2012
so long as Executive has been continuously employed by the Company through each
such date, respectively.
(h) “Subsidiary” means any
Company affiliate, whether or not incorporated, at least 50% of the
outstanding capital stock or other ownership interests of which is owned,
directly or indirectly, by the Company.
(i)
“Termination Date” means the last day of Executive’s employment with the Company
and all Subsidiaries.
IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and
delivered as of May 28, 2009.
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▇▇▇▇▇▇
ENERGY COMPANY
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By:
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/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇. | ||
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Name:
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▇▇▇▇▇▇
▇. ▇▇▇▇▇▇▇▇, ▇▇.
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||
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Title:
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President
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/s/
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇
▇. ▇▇▇▇▇▇▇▇
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15
Appendix
A
SEPARATION OF EMPLOYMENT
AGREEMENT AND GENERAL RELEASE
THIS
SEPARATION OF EMPLOYMENT AGREEMENT AND GENERAL RELEASE (the “Agreement”) is made
as of this
day of ,
,
by and between ▇▇▇▇▇▇ Energy Company, a Delaware corporation (the “Company”),
and _______________________ (the “Executive”).
WHEREAS,
Executive formerly was employed by the Company as ;
and
WHEREAS,
Executive and Company entered into an Employment Agreement, effective as of
May 25, 2009 (the “Employment Agreement”) which provides for certain
payments in the event that Executive’s employment is terminated on account of a
reason set forth in the Employment Agreement; and
WHEREAS,
an express condition of Executive’s entitlement to the payments under the
Employment Agreement is the execution of a general release in the form set forth
below; and
WHEREAS,
Executive and the Company mutually desire to terminate Executive’s employment on
an amicable basis, such termination to be effective
,
(“Termination Date”).
NOW,
THEREFORE, IT IS HEREBY AGREED by and between Executive and the Company as
follows:
1. (a)
Executive, for and in consideration of the commitments of the Company as set
forth in paragraph 6 of this Agreement, and intending to be legally bound, does
hereby REMISE, RELEASE AND FOREVER DISCHARGE the Company, its affiliates,
subsidiaries and parents, and its officers, directors, employees, and agents,
and its and their respective successors and assigns, heirs, executors, and
administrators (collectively, “Releasees”) from all causes of action, suits,
debts, claims and demands whatsoever in law or in equity, which Executive ever
had, now has, or hereafter may have, whether known or unknown, or which
Executive’s heirs, executors, or administrators may have, by reason of any
matter, cause or thing whatsoever, from the beginning of Executive’s employment
to the date of this Agreement, and particularly, but without limitation of the
foregoing general terms, any claims arising from or relating in any way to
Executive’s employment relationship with the Company, the terms and conditions
of that employment relationship, and the termination of that employment
relationship, including, but not limited to, any claims arising under the Age
Discrimination in Employment Act, the Older Workers Benefit Protection Act,
Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act,
the Family and Medical Leave Act of 1993, the Employee Retirement Income
Security Act of 1974, and any other claims under any federal, state or local
common law, statutory, or regulatory provision, now or hereafter recognized, and
any claims for attorneys’ fees and costs. This Agreement is effective without
regard to the legal nature of the claims raised and without regard to whether
any such claims are based upon tort, equity, implied or express contract or
discrimination of any sort.
(b) To
the fullest extent permitted by law, and subject to the provisions of paragraph
11 below, Executive represents and affirms that (i) [other than ,] Executive has not filed or
A-1
caused to
be filed on Executive’s behalf any claim for relief against the Company or any
Releasee and, to the best of Executive’s knowledge and belief, no outstanding
claims for relief have been filed or asserted against the Company or any
Releasee on Executive’s behalf; and (ii) [other than ,] Executive has not reported
any improper, unethical or illegal conduct or activities to any supervisor,
manager, department head, human resources representative, agent or other
representative of the Company, to any member of the Company’s legal or
compliance departments, or to the ethics hotline, and has no knowledge of any
such improper, unethical or illegal conduct or activities. Executive agrees to
dismiss with prejudice all claims for relief filed before the date
hereof.
(c)
Notwithstanding any other provision herein, the foregoing release does not apply
to any claim or entitlement under an employee benefit or long term cash or
equity incentive compensation plan, program, arrangement or agreement which is
due pursuant to the terms of such plan, program, arrangement or
agreement.
2. The
Company, for and in consideration of the commitments of Executive as set forth
in this Agreement, and intending to be legally bound, does hereby REMISE,
RELEASE AND FOREVER DISCHARGE Executive from all claims, demands or causes of
action arising out of facts or occurrences prior to the date of this Agreement,
but only to the extent the Company knows or reasonably should know of such facts
or occurrence and only to the extent such claim, demand or cause of action
relates to a violation of applicable law or the performance of Executive’s
duties with the Company; provided, however, that this release of claims shall
not in any case be effective with respect to any claim by the Company alleging a
breach of Executive’s obligations under this Agreement. [Note: The Company and Executive may,
but shall not be required to mutually agree on a case-by-case basis at the time
of the signing of this release to include the foregoing provision, or a
substantially similar provision, to this Agreement.]
3. In
consideration of the Company’s agreements as set forth in paragraph 6 herein,
Executive agrees to comply with the limitations described in Sections 9 and 13
of the Employment Agreement.
4.
Executive further agrees and recognizes that Executive has permanently and
irrevocably severed Executive’s employment relationship with the Company and its
affiliated entities, that Executive shall not seek employment with the Company
or any affiliated entity at any time within two (2) years after his Termination
Date, and that neither the Company nor any affiliated entity has any obligation
to employ him in the future.
5.
Executive further agrees that Executive will not disparage or subvert the
Company, or make any statement reflecting negatively on the Company, its
affiliated entities, or any of their officers, directors, employees, agents or
representatives, including, but not limited to, any matters relating to the
operation or management of the Company, Executive’s employment and the
termination of Executive’s employment, irrespective of the truthfulness or
falsity of such statement.
6. In
consideration for Executive’s agreements as set forth herein, the Company agrees
to pay or provide to or for Executive the payments described in Section 6(c) of
the Employment Agreement, the provisions of which are incorporated herein by
reference. Except as set forth in this Agreement, it is expressly agreed and
understood that Releasees do not have, and will not have, any obligations to
provide Executive at any time in the future with any payments, benefits or
considerations other than those recited in this paragraph, those excluded from
release in Section 1(c) of this Agreement or those
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required
by law, other than under the terms of any benefit plans which provide benefits
or payments to former employees according to their terms.
7.
Executive understands and agrees that the payments and agreements provided in
this Agreement are being provided to him in consideration for Executive’s
acceptance and execution of, and in reliance upon Executive’s representations
in, this Agreement. Executive acknowledges that if Executive had not executed
this Agreement containing a release of all claims against the Company, Executive
would not have been entitled to the payments set forth in Section 6(c) of the
Employment Agreement.
8.
Executive acknowledges and agrees that the Company previously has satisfied any
and all obligations owed to him under any employment agreement or offer letter
Executive has with the Company and, further, that this Agreement supersedes any
employment agreement or offer letter Executive has with the Company, and any and
all other prior agreements or understandings, whether written or oral, between
the parties which are inconsistent with this Agreement, and further, that,
except as set forth expressly herein, no promises or representations have been
made to him in connection with the termination of Executive’s employment
agreement, if any, or offer letter, if any, with the Company, or the terms of
this Agreement or the Employment Agreement.
9. If not
otherwise filed by the Company with the U.S. Securities and Exchange Commission
(“SEC”) and available through public disclosure from the SEC, Executive agrees
not to disclose the terms of this Agreement or the Employment Agreement to
anyone, except Executive’s spouse, attorney and, as necessary, tax/financial
advisor, except as may be required by law. Likewise, the Company agrees that the
terms of this Agreement will not be disclosed except as may be necessary to
obtain approval or authorization to fulfill its obligations hereunder or as
required by law. It is expressly understood that any violation of the
confidentiality obligation imposed hereunder constitutes a material breach of
this Agreement.
10.
Executive represents that Executive does not presently have in Executive’s
possession any records and business documents, whether on computer or hard copy,
and other materials (including but not limited to computer disks and tapes,
computer programs and software, office keys, correspondence, files, customer
lists, technical information, customer information, pricing information,
business strategies and plans, sales records and all copies thereof)
(collectively, the “Corporate Records”) provided by the Company and/or its
predecessors, subsidiaries or affiliates or obtained as a result of Executive’s
prior employment with the Company and/or its predecessors, subsidiaries or
affiliates, or created by Executive while employed by or rendering services to
the Company and/or its predecessors, subsidiaries or affiliates. Executive
acknowledges that all such Corporate Records are the property of the Company. In
addition, Executive shall promptly return in good condition any and all Company
owned equipment or property, including, but not limited to, automobiles,
personal data assistants, facsimile machines, copy machines, pagers, credit
cards, cellular telephone equipment, business cards, laptops and computers,
unless mutually agreed upon in writing. As of the Termination Date, the Company
will make arrangements to remove, terminate or transfer any and all business
communication lines including network access, cellular phone, fax line and other
business numbers.
11.
Nothing in this Agreement shall prohibit or restrict Executive from: (i) making
any disclosure of information required by law; (ii) providing information to, or
testifying or otherwise assisting in any investigation or proceeding brought by,
any federal regulatory or law enforcement
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agency or
legislative body, any self-regulatory organization, or the Company’s designated
legal, compliance or human resources officers; or (iii) filing, testifying,
participating in or otherwise assisting in a proceeding relating to an alleged
violation of any federal, state or municipal law relating to fraud, or any rule
or regulation of the Securities and Exchange Commission or any self-regulatory
organization.
12. The
parties agree and acknowledge that the agreement by the Company described
herein, and the settlement and termination of any asserted or unasserted claims
against the Releasees, are not and shall not be construed to be an admission of
any violation of any federal, state or local statute or regulation, or of any
duty owed by any of the Releasees to Executive.
13.
Executive agrees and recognizes that should Executive breach any of the
obligations or covenants set forth in this Agreement, the Company will have no
further obligation to provide Executive with the consideration set forth herein,
and will have the right to seek repayment of all consideration paid up to the
time of any such breach. Further, Executive acknowledges in the event of a
breach of this Agreement, Releasees may seek any and all appropriate relief for
any such breach, including equitable relief and/or money damages, attorneys’
fees and costs.
14.
Executive further agrees that the Company shall be entitled to preliminary and
permanent injunctive relief, without the necessity of proving actual damages, as
well as to an equitable accounting of all earnings, profits and other benefits
arising from any violations of this Agreement, which rights shall be cumulative
and in addition to any other rights or remedies to which the Company may be
entitled.
15. This
Agreement and the obligations of the parties hereunder shall be construed,
interpreted and enforced in accordance with the laws of the State of Delaware,
without giving effect to the principles of conflict of laws of such
State.
16.
Executive certifies and acknowledges as follows:
(a) That
Executive has read the terms of this Agreement, and that Executive understands
its terms and effects, including the fact that, other than as excepted in
paragraph 1 hereof, Executive has agreed to RELEASE AND FOREVER DISCHARGE the
Company and each and every one of its affiliated entities from any legal action
arising out of Executive’s employment relationship with the Company and the
termination of that employment relationship; and
(b) That
Executive has signed this Agreement voluntarily and knowingly in exchange for
the consideration described herein, which Executive acknowledges is adequate and
satisfactory to him and which Executive acknowledges is in addition to any other
payments or benefits to which Executive is otherwise entitled; and
(c) That
Executive has been and is hereby advised in writing to consult with an attorney
prior to signing this Agreement; and
(d) That
Executive does not waive rights or claims that may arise after the date this
Agreement is executed; and
A-4
(e) That
the Company has provided him with a period of twenty-one (21) days within which to
consider this Agreement, and that Executive has signed on the date indicated
below after concluding that this Separation of Employment Agreement and General
Release is satisfactory to him; and
(f)
Executive acknowledges that this Agreement may be revoked by him within seven
(7) days after execution, and it shall not become effective until the expiration
of such seven (7) day revocation period. In the event of a timely revocation by
Executive, this Agreement will be deemed null and void and the Company will have
no obligations hereunder.
Intending
to be legally bound hereby, Executive and the Company executed the foregoing
Separation of Employment Agreement and General Release this
day of ,
.
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Witness:
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||||||||
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Executive
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||||||||
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▇▇▇▇▇▇
ENERGY COMPANY
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By:
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Witness:
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|||||||
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Name:
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||||||||
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Title:
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||||||||
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