EMPLOYMENT PROTECTION AGREEMENT
This Agreement (this "Agreement") is made as of the 22nd day of
September, 1998, among ▇▇▇▇ ▇▇▇▇▇, Inc., a corporation organized under the laws
of the State of Delaware (together with any successor thereto, "▇▇▇▇ ▇▇▇▇▇"),
▇▇▇▇▇▇ Grocery Company, a Delaware corporation and wholly owned subsidiary of
▇▇▇▇ ▇▇▇▇▇ (together with any successor thereto, "Employer"), and ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ ("Executive").
WITNESSETH THAT:
WHEREAS, Executive is currently employed as a member of the executive
management team of the Company and is currently party to an Executive Severance
Agreement, dated March 10, 1998 (the "Current Agreement");
WHEREAS, the Company considers it essential to its best interests and
the best interests of the shareholders of ▇▇▇▇ ▇▇▇▇▇ to ▇▇▇▇▇▇ the continued
employment of the members of the Company's executive management team, including
Executive, and to reinforce and encourage the continued attention and dedication
of such individuals to their respective assigned duties without distraction in
the event that the possibility of a change in control exists;
WHEREAS, the Company recognizes that the possibility of a change in
control exists and that such possibility and the uncertainty and questions which
may arise among members of its executive management team regarding the
consequences of any such change in control may result in the distraction or
departure of one or more of such individuals, to the detriment of the Company
and the shareholders of ▇▇▇▇ ▇▇▇▇▇;
NOW, THEREFORE, to provide Executive an incentive to continue his
dedication to the Company and to make available to the Company his advice and
counsel notwithstanding the possibility of a change in control of the Company,
and to encourage Executive to remain in the employ of the Company, and for other
good and valuable consideration, the Company and Executive hereby agree as
follows:
1. Definitions.
(i) "Annual Cash Compensation" shall mean an amount equal to the sum
of (x) Executive's annual base salary, at the annual rate in effect immediately
prior to the Qualifying Termination, and (y) the percentage of such base salary
payable to Executive under the terms of the Company's annual bonus plan for its
senior executives as in effect for the plan year which includes the Closing Date
and assuming that the maximum performance objectives for such plan year had been
achieved; provided that, if Executive's employment is terminated by Executive
following a reduction in Executive's annual base salary or the percentage of
such base salary
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payable to Executive as an annual bonus, Annual Cash Compensation shall be
determined on the basis of Executive's annual base salary at the rate in effect
immediately prior to such reduction and the percentage thereof payable to
Executive as an annual bonus in effect prior to any reduction thereof.
(ii) "Cause," when used in connection with the termination of
Executive's employment by Employer shall mean the occurrence of any of the
following events: (a) Executive's material dishonesty or misappropriation in
connection with the performance of the duties of his position with the Company
that adversely affects the Company or its property or funds; (b) Executive's
extreme misconduct, including reckless or willful destruction of Company
property, unauthorized disclosure of confidential information or sexual, racial
or other actionable harassment; (c) Executive's conviction of or plea of nolo
contendere to a felony or any other crime involving moral turpitude; or (d)
Executive's illegal, immoral, dishonest or fraudulent conduct in connection with
the performance of the duties of his position with the Company that results in
material harm to the business reputation of the Company or subjects the Company
to material financial loss or material loss of business.
(iii) "Change in Control" shall mean the occurrence of any of the
following events:
(a) the shareholders of ▇▇▇▇ ▇▇▇▇▇ approve: (i) any merger, statutory plan
of exchange or other business combination involving ▇▇▇▇ ▇▇▇▇▇, other than
any such transaction immediately following which the holders of ▇▇▇▇ ▇▇▇▇▇
capital stock immediately prior to such transaction continue to own equity
securities of the surviving entity representing more than 50 per cent of
the equity securities of such entity entitled to vote generally in the
election of directors of such entity, or (ii) any sale, lease, exchange, or
other transfer (in one transaction or a series of related transactions) of
all or substantially all of the assets of the Company or the adoption by
▇▇▇▇ ▇▇▇▇▇ of any plan or proposal for the liquidation or dissolution of
the Company;
(b) the commencement of a tender or exchange offer (other than one made by
▇▇▇▇ ▇▇▇▇▇) for any capital stock of ▇▇▇▇ ▇▇▇▇▇ (or securities convertible
into such capital stock), provided a Change in Control shall be deemed to
have occurred only if such offer results in a portion of those securities
being purchased and the offeror after the consummation of the offer is the
beneficial owner (as determined pursuant to Section 13(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act")), directly or
indirectly, of securities representing at least 20 percent of the voting
power of outstanding securities of ▇▇▇▇ ▇▇▇▇▇;
(c) a report on Schedule 13D of the Exchange Act is filed with the
Securities and exchange Commission or is received by ▇▇▇▇ ▇▇▇▇▇ reporting
the beneficial ownership by any person of securities representing 20
percent or more of the voting power of outstanding securities of ▇▇▇▇
▇▇▇▇▇, except that if such report shall be filed or so received during a
tender offer or exchange offer described in subparagraph (b) above, the
provisions of such subparagraph shall apply in determining whether a Change
in Control occurs; or
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(d) during any period of 12 consecutive months or less, individuals who at
the beginning of such period constituted a majority of the Board of
Directors of ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ for any reason to constitute a majority
thereof unless the nomination or election of such new directors was
approved by a vote of at least two-thirds of the directors then still in
office who were directors at the beginning of such period.
Notwithstanding anything in the foregoing to the contrary, no Change of Control
shall be deemed to have occurred for purposes of this Agreement by virtue of any
transaction which results in Executive, or a group (within the meaning of
section 13(d)(3) of the Exchange Act) of persons which includes Executive,
acquiring, directly or indirectly, securities representing 20 percent or more of
the voting power of outstanding securities of ▇▇▇▇ ▇▇▇▇▇.
(iv) "Closing Date" shall mean the date of the consummation of a
transaction constituting a Control in Control, provided, that if the Change in
Control transaction is effected through a series of transactions or other
occurrences, the term "Closing Date" shall mean the date on which the first such
transaction is consummated or the date of the first such occurrence.
(v) "Company" shall mean, collectively, ▇▇▇▇ ▇▇▇▇▇, Employer and their
respective subsidiaries and affiliates and any successor to any such entity.
(vi) "Contract Period" shall mean the period commencing on any Closing
Date and ending on the eighteen month anniversary of such Closing Date.
(vii) "Disability," when used in connection with the termination of
Executive's employment with Employer, shall mean Executive's failure to
substantially perform the duties of his employment with Employer due to
Executive's illness or incapacity lasting for a period of six consecutive months
after notice thereof has been delivered by Employer to Executive. The
determination of Executive's disability shall be made by the Board of Directors
of ▇▇▇▇ ▇▇▇▇▇ in good faith based upon the advice and evidence of Executive's
personal physician and a competent medical expert retained for such purpose by
the Board.
(viii) "Qualifying Termination" shall have the meaning specified in
Section 2(ii) hereof.
(ix) "Severance Period" shall mean the period commencing on the
Termination Date and ending on the three year anniversary of the Termination
Date.
(x) "Termination Date" shall mean, in the case of a termination of
Executive's employment with Employer (a) by Employer for Cause, immediately upon
receipt by Executive of written notice of such termination, (b) by Employer
Without Cause or by Executive, as of the date specified in the written notice of
such termination delivered by Employer or Executive, as the case may be, to the
other, which date shall not be less than 14 days nor more than 28 days following
the date of delivery thereof, (c) by Employer due to Executive's Disability, the
date which is at least 30 days following the date written notice of such
termination and the specific reasons therefore is delivered to Executive, or (d)
due to Executive's death, the date of death.
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(xi) "Without Cause," when used in connection with the termination of
Executive's employment with Employer, shall mean any termination of Executive's
employment by Employer that is not a termination for Cause or a termination due
to Executive's Disability or death.
2. Termination of Employment of Executive.
(i) At all times, each of Employer and Executive shall have the right
by written notice delivered to the other to terminate Executive's employment
with Employer for any reason. Following any termination of Executive's
employment with Employer, Employer shall immediately pay to Executive all
accrued and unpaid compensation for periods prior the Termination Date and
Executive shall be entitled to all accrued benefits and coverages under the
terms of any employee compensation or benefit plan of the Company in which
Executive was a participant at any time during the period of his employment with
the Company.
(ii) In the event that the employment of Executive with Employer is
terminated (x) by Employer Without Cause (i) prior to the Contract Period and in
anticipation of a Change in Control or (ii) during the Contract Period or (y) by
Executive for any or no reason during the Contract Period (any such termination
under clause (x) or (y), a "Qualifying Termination"), Executive shall be
entitled to receive the compensation and benefits provided in Section 3 of this
Agreement. Executive shall have no right to receive any compensation or benefits
under Section 3 of this Agreement upon any other termination of Executive's
employment prior to or during the Contract Period.
3. Severance Compensation and Benefits Payable Upon Qualifying Termination.
(i) In the event of a Qualifying Termination, Employer shall pay or
provide to Executive as severance, and Executive shall be entitled to, the
following compensation and benefits in lieu of any other base or annual bonus
compensation or benefits for periods subsequent to the Termination Date payable
under any plan or agreement of the Company (other than the Current Agreement),
provided that all cash compensation provided under this Section 3 shall be
reduced on a dollar for dollar basis by the amount of comparable cash
compensation paid to Executive by the Company as severance pursuant to the
Current Agreement, if any, and any benefits provided under this Section 3 shall
be reduced by and to the extent of any comparable benefits provided to Executive
by the Company as an additional severance benefit pursuant to the Current
Agreement, if any:
a) continued payments of installments of Executive's Annual Cash
Compensation for the Severance Period, such payments to be made
to Executive in accordance with the Company's regular payroll
practices in effect for its senior executives;
b) a single lump sum payment, to be paid to Executive as soon as
reasonably practicable, but in no event more than 20 days,
following the Termination Date, of a cash amount equal to the
product of (x) the annual incentive bonus to which Executive
would have been entitled under the executive bonus plan
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or arrangement of the Company in effect for Executive for the
plan year that includes the Termination Date had Executive
continued in employment until the last day of such plan year (or
other date required to be eligible to receive an annual bonus for
such year) and assuming that the maximum performance objectives
for such plan year had been achieved multiplied by (y) a
fraction, the numerator of which equals the number of days in the
plan year that have elapsed as of the Termination date and the
denominator of which equals 365;
c) continued coverage of Executive and his or her eligible
dependents during the Severance Period under the Company's
executive and employee medical, health and other welfare benefit
plans in which Executive was a participant immediately prior to
the Termination Date, subject to payment by Executive of all
premiums and other copayment amounts required under the terms of
such plans to be paid by participants therein of comparable
position and seniority to Executive, provided that if Executive's
employment is terminated by Executive following a reduction in
the coverage of Executive or his or her eligible dependents under
any such plan, coverage under this subparagraph (c) shall be
provided in accordance with the terms of the applicable plan or
plans as in effect prior to any reduction thereof;
d) in determining the benefits payable to Executive under the Ralphs
Grocery Company Retirement Supplement Plan and the Ralphs Grocery
Company Supplemental Executive Retirement Plan, in the event of a
Qualifying Termination, Executive shall be credited with service
through the end of the Severance Period, provided that if
Employer amends either plan to cease accruals thereunder and
includes Executive under a different supplemental plan, Executive
shall be entitled to coverage under such different plan during
the Severance Period in lieu of the foregoing service credit, and
e) in accordance with the terms of the Current Agreement, all of
Executive's stock options that are outstanding immediately prior
to the Termination Date shall become fully vested and exercisable
as of the Termination Date and shall thereafter remain
exercisable in accordance with the applicable provisions of the
relevant option agreement.
(ii) Anything in this Agreement to the contrary notwithstanding, in
the event it shall be determined that any payment or distribution by the Company
to or for the benefit of Executive (whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise, but
determined without regard to any additional payments required under this
subparagraph (ii)) (a "Payment") would be subject to the excise tax imposed by
Section 4999 of the 1986 Internal Revenue Code, as amended (the "Code"), or any
interest or penalties are incurred by the Employee with respect to such excise
tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the "Excise Tax"), Employer shall make a
payment (a "Gross-Up Payment") to Executive in an amount such that, after
payment by Employee of all income or other taxes (and any interest and penalties
imposed with respect thereto) and
5
Excise Taxes imposed upon the Gross-Up Payment, Employee retains an amount of
the Gross-Up Payment equal to the Excise Tax imposed upon the Payments.
a) Subject to the provisions of Section 3(ii)(b), all determinations
required to be made under this Section 3(ii),including whether
and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving
at such determination, shall be made by a certified public
accounting firm designated by Executive (the "Accounting Firm")
which shall provide detailed supporting calculations both to ▇▇▇▇
▇▇▇▇▇ and Executive within fifteen (15) business days of the
receipt of notice from Executive that there has been a Payment,
or such earlier time as is requested by Executive. If the
Accounting Firm determines that no Excise Tax is payable by
Executive, it shall, upon the written request of Executive,
furnish Executive with a written opinion that failure to report
the Excise Tax on the Executive's applicable federal income tax
return would not result in the imposition of a negligence or
similar penalty. The calculations prepared by the Accounting Firm
shall be reviewed on behalf of Employer and ▇▇▇▇ ▇▇▇▇▇ by ▇▇▇▇
▇▇▇▇▇'▇ independent auditors (the "▇▇▇▇ ▇▇▇▇▇ Accounting Firm")
which shall provide its conclusions, together with detailed
supporting calculations, both to ▇▇▇▇ ▇▇▇▇▇ and to Executive
within 15 business days after receipt of the calculations and
supporting materials prepared by the Accounting Firm. In the
event of a dispute between the Accounting Firm and the ▇▇▇▇ ▇▇▇▇▇
Accounting Firm, such firms shall, within five business days of
receipt of the conclusions and supporting materials prepared by
the ▇▇▇▇ ▇▇▇▇▇ Accounting Firm, jointly select a third nationally
recognized certified public accounting firm (the "Third
Accounting Firm") to resolve the dispute. The Third Accounting
Firm shall submit its conclusions to ▇▇▇▇ ▇▇▇▇▇ and Executive
within 15 business days after receipt of notice of its
appointment hereunder and the decision of the Third Accounting
Firm shall be final, binding and conclusive upon Executive,
Employer and ▇▇▇▇ ▇▇▇▇▇. All fees and expenses of all such
accounting firms shall be borne solely by Employer. Any Gross-Up
Payment shall be paid by Employer to Executive within five
business days after the earlier of acceptance by ▇▇▇▇ ▇▇▇▇▇ of
the calculations prepared by the Accounting Firm or ▇▇▇▇ ▇▇▇▇▇'▇
receipt of the Third Accounting Firm's determination.
b) As a result of the uncertainty in the application of Section 4999
of the Code at the time of the initial determination of whether
any Gross-Up Payment should be made hereunder, it is possible
that a Gross-Up Payment will have been due but not made by
Employer (an "Underpayment"), consistent with the calculations
required to be made hereunder. In the event that ▇▇▇▇ ▇▇▇▇▇
exhausts its remedies pursuant to this Section 3(ii) and
Executive thereafter is required to make a payment of any Excise
Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be
promptly paid by Employer to or for the benefit of Executive.
6
c) Executive shall notify ▇▇▇▇ ▇▇▇▇▇ in writing of any claim by the
Internal Revenue Service that, if successful, would require the
payment by Employer of the Gross-Up Payment. Such notification
shall be given as soon as practicable but no later than ten
business days after Executive is informed in writing of such
claim and shall apprise ▇▇▇▇ ▇▇▇▇▇ of the nature of such claim
and the date on which such claim is requested to be paid.
Executive shall not pay such claim prior to the expiration of the
thirty (30) day period of following the date on which it gives
such notice to ▇▇▇▇ ▇▇▇▇▇ (or such shorter period ending on the
date that any payment of taxes with respect to such claim is
due). If ▇▇▇▇ ▇▇▇▇▇ notifies Executive in writing prior to the
expiration of such period that it desires to contest such claim,
Executive shall:
(1) give ▇▇▇▇ ▇▇▇▇▇ any information reasonably
requested by it relating to such claim;
(2) take such action in connection with contesting such
claim as ▇▇▇▇ ▇▇▇▇▇ shall reasonably request in writing from
time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney
reasonably selected by ▇▇▇▇ ▇▇▇▇▇ and acceptable to
Executive;
(3) cooperate with ▇▇▇▇ ▇▇▇▇▇ in good faith in order
effectively to contest such claim; and
(4) permit ▇▇▇▇ ▇▇▇▇▇ to participate in any proceedings
relating to such claim;
provided, however, that Employer shall bear and pay directly all
costs and expenses (including additional interest and penalties)
incurred in connection with such contest and shall indemnify and
hold Executive harmless, on an after-tax basis, for any Excise
Tax or income tax (including interest and penalties with respect
thereto) imposed as a result of such representation and payment
of costs and expenses. Without limitation on the foregoing
provisions of this Section 3(ii), ▇▇▇▇ ▇▇▇▇▇ shall control all
proceedings taken in connection with such contest and, at its
sole option, may pursue or forgo any and all administrative
appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option,
either direct Executive to pay the tax claimed and ▇▇▇ for a
refund or contest the claim in any permissible manner, and
Executive agrees to prosecute such contest to a determination
before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as ▇▇▇▇ ▇▇▇▇▇
shall determine; provided, however, that if ▇▇▇▇ ▇▇▇▇▇ directs
Executive to pay such claim and ▇▇▇ for a refund, Employer shall
advance the amount of such payment to Executive, on an
interest-free basis and shall indemnify and hold Executive
harmless, on an after-tax basis, from any Excise Tax or income
tax (including interest or penalties with respect thereto)
imposed with respect to
7
such advance or with respect to any imputed income with respect
to such advance; and further provided that any extension of the
statute of limitations relating to payment of taxes for the
taxable year of Executive with respect to which such contested
amount is claimed to be due is limited solely to such contested
amount. Furthermore, ▇▇▇▇ ▇▇▇▇▇'▇ control of the contest shall be
limited to issues with respect to which a Gross-Up Payment would
be payable hereunder and Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority.
d) If, after the receipt by Executive of an amount advanced by
Employer pursuant to this Section 3(ii), Executive becomes
entitled to receive any refund with respect to such claim,
Executive shall (subject to Employer's and ▇▇▇▇ ▇▇▇▇▇'▇ complying
with the requirements of this Section 3(ii)) promptly pay to
Employer the amount of such refund (together with any interest
paid or credited thereon after taxes applicable thereto). If,
after the receipt by Executive of an amount advanced by Employer
pursuant to this Section 3(ii), a determination is made that
Executive shall not be entitled to any refund with respect to
such claim and Employer does not notify Executive in writing of
its intent to contest such denial of refund prior to the
expiration of thirty (30) days after such determination, then
such advance shall be forgiven and shall not be required to be
repaid and the amount of such advance shall offset, to the extent
thereof, the amount of Gross-Up Payment required to be paid.
(iii) Executive shall not be required to mitigate the amount of any
compensation, benefits or other payments provided for in this Agreement by
seeking other employment or otherwise. Further, the amount of any cash
compensation provided for in this Agreement shall not be reduced or offset by
any compensation or other amounts paid to or earned by Executive in connection
with any alternative employment obtained by Executive (including
self-employment). To the extent Executive and his or her eligible dependents
obtains in connection with any subsequent employment benefit coverage comparable
to that provided to Executive pursuant to Section 3(i)(c) hereof and for a
concurrent period, the benefit coverage provided hereunder will be reduced or,
if applicable, eliminated.
(iv) Except as required pursuant to Section 3(i)(c) or 3(i)(d), no
amounts paid pursuant to this Agreement will constitute compensation for any
purpose under any retirement plan or other employee benefit plan, program,
arrangement or agreement of the Company.
4. Assignment; Assumption of Agreement. This Agreement is personal to
Executive and Executive may not assign or transfer any part of his rights or
duties hereunder, or any payments due to him hereunder, to any other person,
except that this Agreement shall inure to the benefit of and be enforceable by
Executive's personal or legal representatives, executors, administrators, heirs,
distributees, devisees, legatees or beneficiaries. This Agreement shall be
binding on any successor to ▇▇▇▇ ▇▇▇▇▇ or Employer, as the case may be, and may
not be assigned by ▇▇▇▇ ▇▇▇▇▇ or Employer without the prior written consent of
Executive. ▇▇▇▇ ▇▇▇▇▇ and Employer shall each require any successor thereto
(whether by merger, liquidation, dissolution or otherwise
8
by operation of law), by agreement in form and substance satisfactory to
Executive, to expressly assume and agree to perform their respective obligations
under this Agreement in the same manner and to the same extent that ▇▇▇▇ ▇▇▇▇▇
or Employer, as the case may be, would be required to perform such obligations
if no such succession had occurred. Failure of ▇▇▇▇ ▇▇▇▇▇ or Employer to obtain
a satisfactory assumption agreement from any successor will be deemed to be a
termination of Executive's employment by Employer Without Cause and in
anticipation of a Change in Control entitling Executive to all compensation and
benefits specified in Section 3 hereof.
5. Modification; Waiver. No provisions 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 by an officer of each of ▇▇▇▇ ▇▇▇▇▇ and
Employer thereunto expressly authorized by the Board of Directors of ▇▇▇▇ ▇▇▇▇▇
and Employer, respectively. Waiver by any party of any breach of or failure to
comply with any provision of this Agreement by any other party shall not be
construed as, or constitute, a continuing waiver of such provision, or a waiver
of any other breach of, or failure to comply with, any other provision of this
Agreement.
6. Arbitration of Disputes.
(i) Any disagreement, dispute, controversy or claim arising out of or
relating to this Agreement or the interpretation or validity hereof shall be
settled exclusively and finally by arbitration. It is specifically understood
and agreed that any such disagreement, dispute or controversy which cannot be
resolved between the parties, including without limitation any matter relating
to interpretation of this Agreement, may be submitted to arbitration
irrespective of the magnitude thereof, the amount in controversy or whether such
disagreement, dispute or controversy would otherwise be considered justiciable
or ripe for resolution by a court or arbitral tribunal.
(ii) The arbitration shall be conducted in accordance with the
Commercial Arbitration Rules (the "Arbitration Rules") of the American
Arbitration Association ("AAA").
(iii) The arbitral tribunal shall consist of one arbitrator. The
parties to the arbitration jointly shall directly appoint such arbitrator within
30 days of initiation of the arbitration. If the parties shall fail to appoint
such arbitrator as provided above, such arbitrator shall be appointed by the AAA
as provided in the Arbitration Rules and shall be a person who (a) maintains his
principal place of business within 30 miles of the City of Portland, Oregon and
(b) has substantial experience in executive compensation. The parties shall each
pay an equal portion of the fees, if any, and expenses of such arbitrator.
(iv) The arbitration shall be conducted within 30 miles of the City of
Portland, Oregon or in such other city in the United States of America as the
parties to the dispute may designate by mutual written consent.
(v) At any oral hearing of evidence in connection with the
arbitration, each party thereto or its legal counsel shall have the right to
examine its witnesses and to cross-examine the witnesses of any opposing party.
No evidence of any witness shall be presented unless the
9
opposing party or parties shall have the opportunity to cross-examine such
witness, except as the parties to the dispute otherwise agree in writing or
except under extraordinary circumstances where the interests of justice require
a different procedure.
(vi) Any decision or award of the arbitral tribunal shall be final and
binding upon the parties to the arbitration proceeding. The parties hereto
hereby waive to the extent permitted by law any rights to appeal or to seek
review of such award by any court or tribunal. The parties hereto agree that the
arbitral award may be enforced against the parties to the arbitration proceeding
or their assets wherever they may be found and that a judgment upon the arbitral
award may be entered in any court having jurisdiction.
(vii) Nothing herein contained shall be deemed to give the arbitral
tribunal any authority, power, or right to alter, change, amend, modify, add to
or subtract from any of the provisions of this Agreement.
(viii) If any dispute is not resolved within 60 days from the date of
the commencement of an arbitration, then ▇▇▇▇ ▇▇▇▇▇ shall, at its option, elect
to pay Executive either (a) within 5 days after the end of such 60-day period,
the amount or amounts which would have been payable to Executive had there been
no dispute, subject to reimbursement to the extent consistent with the final
disposition of the dispute or (b) following final disposition of the dispute,
the amount determined in such final disposition to have been payable, together
with Interest from the date when such sums were originally payable to the date
of actual payment. For purpose of this paragraph (viii) the term "Interest"
means interest at a rate equal to 6% per annum, compounded monthly.
(ix) Notwithstanding anything to the contrary in this Agreement, the
arbitration provisions set forth in this Section 7 shall be governed exclusively
by the Federal Arbitration Act, Title 9, United States Code.
7. Guaranty. Each and every covenant and obligation of Employer hereunder
shall be guaranteed by ▇▇▇▇ ▇▇▇▇▇.
8. Notice. All notices, requests, demands and other communications required
or permitted to be given by either party to the other party to this Agreement
(including, without limitation, any notice of termination of employment and any
notice of an intention to arbitrate) shall be in writing and shall be deemed to
have been duly given when delivered personally or received by certified or
registered mail, return receipt requested, postage prepaid, at the address of
the other party, as follows:
If to ▇▇▇▇ ▇▇▇▇▇, to:
▇▇▇▇ ▇▇▇▇▇, Inc.
▇▇▇▇ ▇.▇. ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Attention: General Counsel
10
If to Employer, to
Ralphs Grocery Company
C/O ▇▇▇▇ ▇▇▇▇▇, Inc., above
If to Executive, to:
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Ralphs Grocery Company
▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Any party hereto may change its address for purposes of this Section 8 by giving
fifteen (15) days' prior notice
9. Severability. If any term or provision of this Agreement or the
application thereof to any person or circumstance shall to any extent be invalid
or unenforceable, the remainder of this Agreement or the application of such
term or provision to persons or circumstances other than those as to which it is
held invalid or unenforceable shall not be affected thereby, and each term and
provision of this Agreement shall be valid and enforceable to the fullest extent
permitted by law.
10. Headings. The headings in this Agreement are inserted for convenience
of reference only and shall not be a part of or control or affect the meaning of
this Agreement.
11. Counterparts. This Agreement may be executed in several counterparts,
each of which shall be deemed an original.
12. Governing Law. This Agreement has been executed and delivered in the
State of Oregon and shall in all respects be governed by, and construed and
enforced in accordance with, the laws of the State of Oregon, without reference
to its principles of conflicts of law.
13. Certain Withholdings. Employer shall withhold from any amounts payable
to Executive hereunder all federal, state, city and other taxes and withholdings
that are required to be withheld pursuant to any applicable law or regulation.
14. Entire Agreement. This Agreement supersedes any and all other oral or
written agreements heretofore made relating to the subject matter hereof and
constitutes the entire agreement of the parties relating to the subject matter
hereof.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first written above.
▇▇▇▇ ▇▇▇▇▇, INC. RALPHS GROCERY COMPANY
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By: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ By: ▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Title:
EXECUTIVE
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