EXHIBIT 10.30
EMPLOYMENT AGREEMENT
This Employment Agreement between World Airways, Inc., a Delaware
corporation ("World" or the "Company") and ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇ ("▇▇▇▇▇▇▇▇▇") is
entered into this 22nd day of August 2003.
WHEREAS, ▇▇▇▇▇▇▇▇▇ has agreed to serve as World's Senior Vice President
Planning and Corporate Development as of August 16, 2003.
NOW, THEREFORE, World and ▇▇▇▇▇▇▇▇▇, in consideration of the foregoing
and other mutual covenants and promises contained herein, the sufficiency of
which are hereby acknowledged, hereby agree as follows:
1. Acceptance of Employment. Subject to the terms and conditions set
forth below, World agrees to employ ▇▇▇▇▇▇▇▇▇ and ▇▇▇▇▇▇▇▇▇ accepts such
employment.
2. Term. The period of employment shall be from August 16, 2003,
through August 15, 2006, unless further extended or sooner terminated as
hereinafter set forth. In the absence of notice, this Agreement shall be renewed
on the same terms and conditions for one year from the date of expiration. Not
later than February 15, 2006, ▇▇▇▇▇▇▇▇▇ shall initiate discussions with the
Chairman of the Board (hereinafter "Chairman") regarding the renewal of this
Agreement. At that time, if ▇▇▇▇▇▇▇▇▇ wishes to renew this Agreement on
different terms, ▇▇▇▇▇▇▇▇▇ shall give written notice to the Chairman. If the
Chairman does not wish to renew this Agreement at its expiration, or wishes to
renew on different terms, the Chairman shall give written notice to ▇▇▇▇▇▇▇▇▇ no
later than February 15, 2006.
3. Position and Duties. ▇▇▇▇▇▇▇▇▇ shall serve as Senior Vice President
Planning and Corporate Development with duties encompassing strategic planning,
fleet management, and business transaction (M&A) activities. The Chairman will
have reasonable latitude to make changes in ▇▇▇▇▇▇▇▇▇'▇ responsibilities, except
that ▇▇▇▇▇▇▇▇▇'▇ responsibilities may not be modified in a way that would be
inconsistent
with the status of Senior Vice President Planning and Corporate Development.
Following a Change of Control (as hereinafter defined), ▇▇▇▇▇▇▇▇▇'▇
responsibilities may not be changed without mutual agreement. ▇▇▇▇▇▇▇▇▇ agrees
to render his services to the best of his abilities and will comply with all
policies, rules and regulations of the company and will advance and promote to
the best of his ability the business and welfare of the Company. ▇▇▇▇▇▇▇▇▇ shall
devote all of his working time, attention, knowledge and skills solely to the
business and interests of World. ▇▇▇▇▇▇▇▇▇ may not accept any other engagement
with or without compensation, which would affect his ability to devote all of
his working time and attention to the business and affairs of World without the
prior written approval of the Chairman of the Board. ▇▇▇▇▇▇▇▇▇ agrees to accept
assignments on behalf of World or affiliated companies commensurate with his
responsibilities hereunder, except that the terms and conditions of assignments
exceeding 60 consecutive days outside the Atlanta, Georgia Standard Metropolitan
Statistical Area will require mutual agreement.
4. Compensation and Related Matters.
(a) Base Salary. ▇▇▇▇▇▇▇▇▇ shall receive a minimum salary of
$175,000 per annum payable in accordance with the payroll procedures for World's
salaried employees in effect during the term of this Agreement. ▇▇▇▇▇▇▇▇▇ agrees
to participate equally, on a percentage basis, in any across the board salary
reductions approved by senior management.
(b) Performance Stock Options. ▇▇▇▇▇▇▇▇▇ has been granted 100,000
options to purchase World's Common Stock, par value $.001 per share ("World
Airways Common Stock") pursuant to the 1995 World Airways Stock Option Plan (the
"Plan") as set forth in the Stock Option Agreement between World and ▇▇▇▇▇▇▇▇▇
dated August 22, 2003 (together, the "Options" and the "Option Agreement"). In
the event of a Change in Control as defined below, all Options shall be
immediately exercisable.
(c) Business Expenses. ▇▇▇▇▇▇▇▇▇ shall be entitled to reimbursement
of reasonable business related expenses from time to time consistent with
World's policies, including, without limitation, submitting in a timely manner
appropriate documentation of such expenses.
(d) Fringe Benefits. ▇▇▇▇▇▇▇▇▇ shall be entitled to participate in
all employee benefit plans made available from time to time to all executives of
World in accordance with the terms of such plans. In the event this Agreement is
terminated by either party for any reason other than death or for cause,
▇▇▇▇▇▇▇▇▇ may participate in World's health and other benefit programs for a
period of one year from the date of ▇▇▇▇▇▇▇▇▇'▇ termination, or until ▇▇▇▇▇▇▇▇▇
obtains comparable coverage, whichever is earlier.
(e) Personnel Policies, Conditions and Benefits. Except as otherwise
provided herein, ▇▇▇▇▇▇▇▇▇'▇ employment shall be subject to the personnel
policies and benefits plans which apply generally to World's employees as the
same may be interpreted, adopted, revised or deleted from time to time, during
the term of this Agreement, by World in its sole discretion. While this
Agreement is in effect, ▇▇▇▇▇▇▇▇▇ shall receive twenty (20) days of vacation, in
addition to sick leave, holidays, and such other leave as World may provide. All
such vacation and leave shall be taken in accordance with the Company's
procedures.
(f) Indemnification; D&O Insurance. Subject to Section 6(b) of this
Agreement, World shall provide (or cause to be provided) to ▇▇▇▇▇▇▇▇▇
indemnification against all expenses (including attorneys' fees), judgments,
fines and amounts paid in settlements in connection with any threatened, pending
or completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (including an action by or in the right of World) by reason of
his being or having been an officer, director or employee of World or any
affiliated entity, advance expenses (including attorneys' fees) incurred by
▇▇▇▇▇▇▇▇▇ in defending any such civil, criminal, administrative or investigative
action, suit or proceeding and maintain directors' and officers' liability
insurance coverage (including coverage for securities-related claims) upon
substantially the same terms and conditions as set forth in the Indemnification
Agreement dated August 22, 2003, between ▇▇▇▇▇▇▇▇▇ and World Airways, Inc. (the
"Indemnity Agreement").
5. Termination of Employment.
(a) Death. ▇▇▇▇▇▇▇▇▇'▇ employment hereunder shall terminate upon his
death, in which event World shall have no further obligation to ▇▇▇▇▇▇▇▇▇ or his
estate with
respect to compensation, other than the disposition of life insurance and
related benefits and accrued and unpaid base salary and incentive compensation,
if any, for periods prior to the date of termination pursuant to the terms of
the respective employee benefits and incentive compensation plans then in
effect.
(b) By World for Disability. If ▇▇▇▇▇▇▇▇▇ is unable, or fails, to
perform services pursuant to this agreement through illness or physical or
mental disability and such failure or disability shall exist for twelve (12)
consecutive months, then World may terminate this Agreement upon written notice
to ▇▇▇▇▇▇▇▇▇, in which event World shall have no obligation to ▇▇▇▇▇▇▇▇▇ with
respect to compensation under Section 4(a) of this Agreement. If ▇▇▇▇▇▇▇▇▇
becomes entitled to Social Security benefits payable on account of disability,
he will be deemed conclusively to be disabled for purposes of this Agreement.
(c) By World for Cause. (i) Except under the circumstances set forth
in 5(c)(ii) below, the Chairman of the Board may terminate this Agreement for
Cause. "Cause" shall be defined as (A) sustained performance deficiencies which
are communicated to ▇▇▇▇▇▇▇▇▇ in written performance appraisals and/or other
written communications (including, but not limited to memos and/or letters) by
the Chairman, (B) gross misconduct, including significant acts or omissions
constituting dishonesty, intentional wrongdoing or malfeasance, whether or not
relating to the business of World, or (C) commission of a felony or any crime
involving fraud or dishonesty, or (D) a material breach of this Agreement.
(ii) In the event of a Change of Control, as defined below,
▇▇▇▇▇▇▇▇▇ may only be terminated for Cause pursuant to a resolution duly adopted
by the affirmative vote of a majority of the entire membership of the Board, at
a meeting of the Board finding that, in the good faith opinion of the Board,
▇▇▇▇▇▇▇▇▇ was guilty of conduct set forth in 5(c)(i)(A), or (B), provided,
however, that ▇▇▇▇▇▇▇▇▇ may not be terminated for Cause hereunder unless: (1)
▇▇▇▇▇▇▇▇▇ receives prior written notice of World's intention to terminate this
Agreement for Cause and the specific reasons therefore; and (2) ▇▇▇▇▇▇▇▇▇ has an
opportunity to be heard by World's Board and be given, if the acts are
correctable, a reasonable opportunity to correct the act or acts (or non-action)
giving rise to such written notice. If the Board, by resolution duly adopted by
the affirmative vote of a majority of the entire membership of the Board, finds
that ▇▇▇▇▇▇▇▇▇ fails to make
such correction after reasonable opportunity to do so, this Agreement may be
terminated for Cause.
(d) By World for Other Than Cause. In the event the Board terminates
this Agreement for reasons other than Cause or Disability as defined in
sub-paragraph (c) above, World will pay to ▇▇▇▇▇▇▇▇▇ within ten (10) days of
notice of termination (or, in the case of incentive bonus compensation, if any,
within ten (10) days of determination of amounts payable under the applicable
bonus plan) eighteen months base salary, in each case including deferred salary
and/or bonus compensation, if any, payable under this Agreement. In addition,
all granted but unvested Options under the Option Agreements shall become
immediately exercisable. In the event that any payment to ▇▇▇▇▇▇▇▇▇ under this
paragraph is subject to any federal or state excise tax, World shall pay to
▇▇▇▇▇▇▇▇▇ an additional amount equal to the excise tax imposed including
additional federal and state income and excise taxes as a result of the payments
under this paragraph, and such payment will be made when the excise tax and
income taxes are due; provided, however, that ▇▇▇▇▇▇▇▇▇ agrees to assist World
Airways by using his best efforts to structure matters so that any payment to
▇▇▇▇▇▇▇▇▇ under this paragraph is not subject to any federal or state excise
tax. Whether an excise tax is payable, and the amount of the excise tax and
additional income taxes payable, shall be determined by World's accountants and
World shall hold ▇▇▇▇▇▇▇▇▇ harmless from any and all taxes, penalties, and
interest that may become due as a result of the failure to properly determine
that an excise tax is payable or the correct amount of the excise tax and
additional income taxes, together with all legal and accounting fees reasonably
incurred by ▇▇▇▇▇▇▇▇▇ in connection with any dispute with any taxing authority
with respect to such determinations and/or payments.
(e) By ▇▇▇▇▇▇▇▇▇ for Good Reason. ▇▇▇▇▇▇▇▇▇ may terminate his
employment hereunder (for purposes of this Agreement "Good Reason") after giving
at least 30 days notice in the event that, without ▇▇▇▇▇▇▇▇▇'▇ consent, (i)
World relocates its general and administrative offices or ▇▇▇▇▇▇▇▇▇'▇ place of
employment to an area other than the Atlanta, Georgia Standard Metropolitan
Statistical Area, (ii) he is assigned any duties substantially inconsistent with
Section 3 hereof, (iii) World reduces his annual base salary as in effect on the
date hereof or as the same may be increased from time to time, except as
provided in Section 4(a) above; (iv) World fails, without ▇▇▇▇▇▇▇▇▇'▇ consent,
to pay ▇▇▇▇▇▇▇▇▇ any portion of his current compensation, or to pay him any
portion of an installment of deferred compensation under any deferred
compensation program of World, within seven (7) days of the date such
compensation is due; (v) World fails to continue in effect any compensation plan
in which ▇▇▇▇▇▇▇▇▇ participates which is material to ▇▇▇▇▇▇▇▇▇'▇ total
compensation, unless an equitable arrangement (embodied in an ongoing substitute
or alternative plan) has been made with respect to such plan, or to continue
▇▇▇▇▇▇▇▇▇'▇ participation therein (or in such substitute or alternative Plan) on
a basis not materially less favorable, both in terms of the amount of benefits
provided and the level of ▇▇▇▇▇▇▇▇▇'▇ participation relative to other
participants; (vi) World fails to continue to provide ▇▇▇▇▇▇▇▇▇ with benefits
substantially similar to those enjoyed by ▇▇▇▇▇▇▇▇▇ under any of World's
pension, life insurance, medical, health and accident, or disability plans in
which ▇▇▇▇▇▇▇▇▇ was participating, World takes any action which would directly
or indirectly materially reduce any of such benefits or deprive ▇▇▇▇▇▇▇▇▇ of any
material fringe benefit enjoyed by ▇▇▇▇▇▇▇▇▇; (vii) World terminates, or
proposes to terminate, ▇▇▇▇▇▇▇▇▇'▇ employment hereunder contrary to the
requirements of Section 5(c) hereof (for purposes of this Agreement, no such
termination or purported termination shall be effective); or, with or without
▇▇▇▇▇▇▇▇▇'▇ consent (viii) the Board approves the liquidation or dissolution or
Change of Control of World prior to the end of this Agreement. In the event that
▇▇▇▇▇▇▇▇▇ decides to terminate this Agreement and his employment with World or
any successor in interest in accordance with the provisions of this Section
5(e), World shall have the same obligations as set forth in Section 5(d) hereof.
Any other payments due or actions required under this paragraph shall be made as
lump sums or taken within 10 days of termination of the Agreement.
(f) By ▇▇▇▇▇▇▇▇▇ for Other Than Good Reason. Notwithstanding the
above, ▇▇▇▇▇▇▇▇▇ may upon giving reasonable notice, not to be less than 30 days,
terminate this Agreement without further obligation on the part of ▇▇▇▇▇▇▇▇▇ or
World.
(g) Changes of Control. For purposes of this Agreement, a "Change of
Control" includes the occurrence of any one or more of the following events:
(i) any Person, other than the Company, is or becomes the
Beneficial Owner (as defined in Rule 13d-3 under the Securities Exchange Act of
1934, as
amended (the "Exchange Act")), directly or indirectly, of securities of World
representing more than 50% of the combined voting power of World's then
outstanding securities; or
(ii) during any period of two (2) consecutive years (not
including any period prior to the execution of this Agreement), individuals who
at the beginning of such period constitute the Board of World and any new
director (other than a director designated by a Person who has entered into an
agreement with World to effect a transaction described in clause (i), (iii) or
(iv) or this Section 5 (f)) whose election by the Board of World or nomination
for election by the stockholders of World was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were directors
at the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute a majority thereof;
or
(iii) the shareholders of World approve a merger or
consolidation of World with any other corporation, other than (A) a merger or
consolidation which would result in the voting securities of World outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or being converted into voting securities of the surviving entity),
in combination with the ownership of any trustee or other fiduciary holding
securities under an employee benefit plan of World or any of its affiliates, at
least 50% of the combined voting power of the voting securities of World or such
surviving entity outstanding immediately after such merger or consolidation, or
(B) a merger or consolidation effected to implement a recapitalization of World
(or similar transaction) in which no Person acquires more than 50% of the
combined voting power of World's then outstanding securities; or
(iv) the shareholders of World approve a plan of complete
liquidation of World or an agreement for the sale or disposition by World of all
or substantially all of World's assets.
(h) "Person" Defined. For purposes of this Section, "Person" shall
have the meaning given in Section (3)(a)(9) of the Exchange Act, as modified and
used in Sections 13(d) and 14(d) thereof; however, a Person shall not include
(i)World or any of its subsidiaries or affiliates; (ii) a trustee or other
fiduciary holding securities under an employee benefit plan of World or any of
its subsidiaries; (iii) an underwriter temporarily
holding securities pursuant to an offering of such securities; or (iv) a
corporation owned, directly or indirectly, by the stockholders of World in
substantially the same proportions as their ownership of stock of World.
(i) Notice of Termination. Termination of this Agreement by World or
termination of this Agreement by ▇▇▇▇▇▇▇▇▇ shall be communicated by written
notice to the other party hereto, specifically indicating the termination
provision relied upon.
(j) Company Property. At the termination of ▇▇▇▇▇▇▇▇▇'▇ employment,
whether voluntary or involuntary, ▇▇▇▇▇▇▇▇▇ shall return all company property,
including without limitation all electronic and paper files and documents and
all copies thereof.
6. Confidentiality. (a) ▇▇▇▇▇▇▇▇▇ recognizes and acknowledges that he
will acquire during his employment with World information that is confidential
to World and that represents valuable, special and unique assets of World
("Confidential Information"). Such Confidential Information (whether or not
reduced to tangible form) includes, but is not limited to: trade secrets;
financing documents and information; financial data; new product information;
copyrights; information relating to schedules and locations; cost and pricing
information; performance features; business techniques; business methods;
business and marketing plans or strategies; business dealings and arrangements;
business objectives; customer information; sales information; acquisition,
merger or business development plans or strategies; research and development
projects; legal documents and information; personnel information; and any and
all other information concerning World's business and business practices that is
not generally known or made available to the public or to World's competitors or
is not readily ascertainable by other means, which, if misused or disclosed,
could adversely affect the business of World. ▇▇▇▇▇▇▇▇▇ agrees that he will not,
during employment with World and for a period of two (2) years following
termination of employment for any reason, whether voluntary or involuntary, with
or without Cause, directly or indirectly:
(i) disclose any Confidential Information to any person, company
or other entity (other than authorized persons employed by or
affiliated with World who, in the interest of World, have a
business need to know such information), or
(ii) use any Confidential Information in any way, except as
required by his duties to World or by law, unless he obtains
World's prior written approval of such disclosure or use.
World's rights under this Section shall be cumulative to, and
shall not limit, World's rights under the Georgia Uniform
Trade Secrets Act or any other state or federal trade secret
or unfair competition statute or law. The parties hereto
stipulate that as between them, the foregoing matters are
important, material, and confidential and gravely affect the
successful conduct of the business of World, and World's good
will, and that any breach of the terms of this paragraph shall
be a material breach of this Agreement.
(b) Section 4(f) of this Agreement and any other indemnity agreements
between ▇▇▇▇▇▇▇▇▇ and World shall not apply to actions, suits or proceedings to
enforce World's rights under, or that otherwise relate to, this Agreement,
including without limitation, this Section
(c) References in this Section 6 to "World" include World Airways, Inc.
and any and all of its current or future parents, subsidiaries, affiliated
companies, and divisions.
7. Beneficiary. The Beneficiary of any payment due and payable at the
time of ▇▇▇▇▇▇▇▇▇'▇ death, or otherwise due upon his death, shall be such person
or persons, as ▇▇▇▇▇▇▇▇▇ shall designate in writing to World. If no such
beneficiary shall survive ▇▇▇▇▇▇▇▇▇, any such payments shall be made to his
estate.
8. Intellectual Property. (a) Any improvements, new techniques,
processes, inventions, works, discoveries, products or copyrightable or
patentable materials made or conceived by ▇▇▇▇▇▇▇▇▇, either solely or jointly
with other person(s), (1) during ▇▇▇▇▇▇▇▇▇'▇ period of employment by World,
during working hours; (2) during the period after termination of his employment
during which he is retained by World as a consultant; or (3) with use of World's
intellectual property or Confidential Information, shall be the sole and
exclusive property of World without royalty or other consideration to ▇▇▇▇▇▇▇▇▇.
(b) ▇▇▇▇▇▇▇▇▇ agrees to inform World promptly and in full of such
intellectual property by a full written report setting forth in detail the
procedures used and the results achieved.
(c) ▇▇▇▇▇▇▇▇▇ shall at World's request and expense execute any and
all applications, assignments, or other instruments which World shall deem
necessary to apply for, register, and/or obtain copyrights or Letters Patent of
the United States or of any foreign country, or to otherwise protect World's
interests in such intellectual property.
(d) ▇▇▇▇▇▇▇▇▇ shall assign and does hereby assign to World all
interests and rights, including but not limited to copyrights, in any such
intellectual property.
9. No Waiver. The failure of either party at any time to enforce any
provisions of this Agreement or to exercise any remedy, option, right, power or
privilege provided for herein, or to require the performance by the other party
of any of the provisions hereof, shall in no way be deemed a waiver of such
provision at the same or at any prior or subsequent time.
10. Governing Law. All questions concerning the construction, validity,
application and interpretation of this Agreement shall be governed by and
construed in accordance with the laws of the State of Georgia without giving
effect to any choice of law or conflict of law provision or rule (whether of
Georgia or any other jurisdiction) that would cause the application of the law
of any jurisdiction other than Georgia. ▇▇▇▇▇▇▇▇▇ agrees to submit to personal
jurisdiction in the State of Georgia.
11. Validity. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not be deemed to affect the validity or
enforceability of any other provision of this Agreement, which shall remain in
full force and effect.
12. Successors. This Agreement shall inure to the benefit of and be
binding upon World, its successors and assigns, including any corporation or
other business entity which may acquire all or substantially all of World's
assets or business, or within which World may be consolidated or merged, or any
surviving corporation in a merger involving World.
13. Waiver of Modification of Agreement. No waiver or modification of
this Agreement shall be valid unless in writing and duly executed by both
parties.
14. Counterparts. This Agreement may be executed in one or more
counterparts, each of which together will constitute one and the same
instrument.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the date and year first above written.
WORLD AIRWAYS, INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Chairman and CEO
/s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇