Andrew R. Sriubas
Exhibit 10.2
Xxxxxx X. Xxxxxxx
00 Xxxxx Xxxx Xxxx
Xxx Xxxxxx, XX 00000
as of July 28, 2014
Dear Andy:
CBS Outdoor Americas Inc. (the “Company”), having an address at 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, operating in the outdoor advertising business in the United States, Canada and Latin America (“Outdoor”), agrees to employ you and you agree to continue to accept such employment upon the following terms and conditions:
1. Term. The term of your employment under this Agreement shall commence on July 28, 2014 and, unless earlier terminated by the Company or you pursuant to paragraph 8 or because of your death or Disability (as defined below), shall continue through and until July 27, 2017.
2. Duties. You agree to devote your entire business time, attention and energies to the Outdoor business. You will be Executive Vice President, Strategic Planning and Development of the Company and you agree to perform all duties reasonable and consistent with that office and related to the Outdoor business, as the Chief Executive Officer of the Company (the “CEO”) (or other individual designated by the CEO) may assign to you from time to time. Notwithstanding the foregoing, nothing herein shall prohibit you from (a) engaging in personal investment activities for yourself and your family that do not give rise to any conflicts of interest with the Company and are otherwise in compliance with Section 6(a), (ii) engaging in charitable and civic activities, so long as such outside interests do not interfere with the performance of your duties hereunder and (iii) engaging in the activities set forth in Schedule A.
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3. Compensation.
(a) Salary. For all the services rendered by you in any capacity under this Agreement, the Company agrees to pay you base salary (“Salary”) at the rate of Five Hundred Fifty Thousand Dollars ($550,000) per annum, less applicable deductions and withholding taxes, in accordance with the Company’s payroll practices as they may exist from time to time. During the Term of this Agreement, your Salary may be increased, and such increase, if any, shall be made at a time, and in an amount, that the Company shall determine in its sole discretion.
(b) Bonus Compensation. You also shall be eligible to receive annual bonus compensation (“Bonus”) during your employment with the Company under this Agreement, determined and payable as follows:
(i) | Your Bonus for each calendar year during your employment with the Company under this Agreement will be determined in accordance with the guidelines of the Company’s short-term incentive program, as applicable (the “STIP”), as such guidelines may be amended from time to time without notice in the sole discretion of the Company. |
(ii) | Your target bonus (“Target Bonus”) for each of those calendar years shall be 75% of your Salary as in effect on November 1st of such year or the last day of the Term, if earlier. Your Bonus for any of those calendar years may be subject to proration for the portion of such calendar year that you were employed by the Company. For the performance year 2014, your bonus will be guaranteed at 100% performance (i.e. 75% of your Salary in effect on November 1, 2014), but will be prorated based on your date of hire. |
(iii) | Your Bonus for any calendar year shall be payable, less applicable deductions and withholding taxes, by February 28th of the following year. |
(c) Long-Term Incentive Compensation. Beginning in 2015, you shall be eligible to receive annual grants of long-term incentive compensation under the Company’s Omnibus Stock Incentive Plan, as applicable, as may be amended from time to time without notice in the sole discretion of the Company, as applicable (the “LTMIP”). You shall have a “Target” long-term incentive value equal to Seven Hundred Fifty Thousand Dollars ($750,000). The precise amount, form and timing of any such long-term incentive award, if any, shall be determined in the sole discretion of the Company’s Board of Directors (or a committee thereof) (the “Board”), but shall be consistent with the grants made to other senior executives of the Company. For 2014, subject to Board approval, we have agreed to make an "out-of-cycle" equity award equal to Seven Hundred Fifty Thousand Dollars ($750,000) in value awarded in the form of restricted share units shortly after you commence employment in order to establish appropriate long-term incentives at the outset
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of your career with the Company. The precise form and terms of this award will be made consistent with annual management grants made to other senior executives of the Company.
4. Benefits. You shall participate in such vacation, medical, dental, life insurance, long-term disability insurance, retirement, long-term incentive and other plans as the Company may have or establish from time to time in which similarly-situated senior executives participate and in which you would be entitled to participate under the terms of the plan. This provision, however, shall not be construed to either require the Company to establish any welfare, compensation or long-term incentive plans, or to prevent the modification or termination of any plan once established, and no action or inaction with respect to any plan shall affect this Agreement. You shall be eligible for four (4) weeks of vacation each year, subject to proration in 2014 for the portion of the calendar year that you were employed by the Company, and subject to increase as provided in the Company policies.
5. Business Expenses. During your employment under this Agreement, the Company shall reimburse you for such reasonable travel and other expenses incurred in the performance of your duties as are customarily reimbursed to the Company executives at comparable levels. Any such travel and other expenses shall be reimbursed by the Company as soon as practicable in accordance with its established guidelines, as may be amended from time to time, but in no event later than December 31st of the calendar year following the calendar year in which you incur the related expenses.
6. Non-Competition, Confidential Information, Etc.
(a) Non-Competition. You agree that your employment with the Company is on an exclusive basis and that, while you are employed by the Company or any of its subidiaries, you will not engage in any other business activity which is in conflict with your duties and obligations (including your commitment of time) under this Agreement. You further agree that, during the Non-Compete Period (as defined below), you shall not directly or indirectly engage in or participate in (or negotiate or sign any agreement to engage in or participate in), whether as an owner, partner, stockholder, officer, employee, director, agent of or consultant for, any business which at such time is competitive with any business, division, operation or other activity of the Company, (x) with respect to which you had any responsibility, involvement or supervision, (y) with respect to which you had access to any Confidential Information (as defined below) that could benefit such competitor’s business or harm and/or the Company’s business or (z) where you would provide services , of the same or similar nature as services performed by you for the Company, without the written consent of the Company, as applicable; provided, that (x) this provision shall not prevent you from investing as less than a one (1%) percent stockholder in the securities of any company listed on a national securities exchange or quoted on an automated quotation system or (y) engaging in any of the activities set forth in Schedule A hereto (which are hereby consented to by the Company). The Non-Compete Period shall cover the period during your employment with the Company and shall continue following the termination of your employment for any reason, including by expiration of
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the Term, for the greater of (i) six (6) months or (ii) for so long as any payments are to be made to you pursuant to paragraph 8(c) of this Agreement, unless you request and the Company accepts a written request pursuant to paragraph 6(j) of this Agreement, if any.
(b) Confidential Information. You agree that, during the Term and at any time thereafter, (i) you shall not use for any purpose or disclose to any third party, other than the duly authorized business of the Company, any information relating to the Company, which is non-public, confidential or proprietary to the Company(“Confidential Information”), including any trade secret or any written (including in any electronic form) or oral communication incorporating Confidential Information in any way (except as may be required by law or in the performance of your duties under this Agreement consistent with the Company’s policies); and (ii) you will comply with any and all confidentiality obligations of the Company to a third party, whether arising under a written agreement or otherwise. Information shall not be deemed Confidential Information which (x) is or becomes generally available to the public other than as a result of a disclosure by you or at your direction or by any other person who directly or indirectly receives such information from you, or (y) is or becomes available to you on a nonconfidential basis from a source which is, to your knowledge, entitled to disclose it to you. For purposes of this paragraph 6(b), the term “third party” shall be defined to mean any person other than the Company.
(c) No Solicitation, Etc. You agree that, while employed by the Company and for the greater of: twelve (12) months thereafter or for so long as the Company is making any payments to you pursuant to paragraph 8(c), you shall not, directly or indirectly:
(A) | employ or solicit the employment of any person who is then or has been within six (6) months prior thereto, an employee of the Company (other than any employee terminated by the Company); or |
(B) | do any act or thing to cause, bring about, or induce any interference with, disturbance to, or interruption of any of the then-existing relationships (whether or not such relationships have been reduced to formal contracts) of the Company, with any customer, employee, consultant or supplier. |
(d) Outdoor Ownership. The results and proceeds of your services under this Agreement, including, without limitation, any works of authorship resulting from your services during your employment with the Company, and any works in progress resulting from such services, shall be works-made-for-hire and they shall be deemed the sole owner throughout the universe of any and all rights of every nature in such works, whether such rights are now known or hereafter defined or discovered, with the right to use the works in perpetuity in any manner they determine in their sole discretion without any further payment to you. If, for any reason, any of such results and proceeds are not legally deemed a work-made-for-hire and/or there are any rights in such results and proceeds which do not accrue to the Company under the preceding sentence, then you hereby irrevocably assign
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and agree to assign any and all of your right, title and interest thereto, including, without limitation, any and all copyrights, patents, trade secrets, trademarks and/or other rights of every nature in the work, whether now known or hereafter defined or discovered, and they shall have the right to use the work in perpetuity throughout the universe in any manner they determine in their sole discretion without any further payment to you. You shall, as may be requested by the Company from time to time, do any and all things which the Company may deem useful or desirable to establish or document the Company’s rights in any such results and proceeds, including, without limitation, the execution of appropriate copyright, trademark and/or patent applications, assignments or similar documents and, if you are unavailable or unwilling to execute such documents, you hereby irrevocably designate the Company’s General Counsel or his designee as your attorney-in-fact with the power to execute such documents on your behalf. To the extent you have any rights in the results and proceeds of your services under this Agreement that cannot be assigned as described above, you unconditionally and irrevocably waive the enforcement of such rights. This paragraph 6(d) is subject to, and does not limit, restrict, or constitute a waiver by the Company of any ownership rights to which they may be entitled by operation of law by virtue of being your employer.
(e) Litigation.
You agree to reasonably cooperate with the Company, and their attorneys, both during and after the termination of your employment, in connection with any litigation or other proceeding arising out of or relating to matters in which you were involved prior to the termination of your employment. Your cooperation shall include, without limitation, providing assistance to the Company’s counsel, experts or consultants, and providing truthful testimony in pretrial and trial or hearing proceedings. In the event that your cooperation is requested after the termination of your employment, and subject to the first sentence of this paragraph, the Company will (x) seek to minimize interruptions to your schedule to the extent consistent with its interests in the matter; (y) reimburse you for all reasonable and appropriate out-of-pocket expenses actually incurred by you in connection with such cooperation upon reasonable substantiation of such expenses within 60 calendar days following the date on which the Company receives appropriate documentation with respect to such expenses, but in no event later than December 31 of the year following the year in which you incur the related expenses; and (z) pay you a per diem fee of $500 within 60 calendar days following the last day of the month in which any such cooperation is provided.
(iii) | You agree that during the Term and at any time thereafter, to the fullest extent permitted by law, you will not testify voluntarily in any lawsuit or other proceeding which directly or indirectly involves the Company, or which may create the impression that such |
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testimony is endorsed or approved by the Company, without advance notice (including the general nature of the testimony) to and, if such testimony is without subpoena or other compulsory legal process the approval of, the General Counsel (or equivalent position thereof) of the Company.
(f) No Right to Give Interviews or Write Books, Articles, Etc. During the Term, except as authorized by the Company, you shall not (i) give any interviews or speeches, or (ii) prepare or assist any person or entity in the preparation of any books, articles, television or motion picture productions or other creations, in either case, concerning the Company or any of their respective officers, directors, agents, employees, suppliers or customers.
(g) Return of Property. All documents, data, recordings, or other property, whether tangible or intangible, including all information stored in electronic form, obtained or prepared by or for you and utilized by you in the course of your employment with the Company shall remain the exclusive property of the Company. In the event of the termination of your employment for any reason, the Company reserves the right, to the extent permitted by law and in addition to any other remedy the Company may have, to deduct from any monies otherwise payable to you the following: (i) all amounts you may owe to the Company at the time of or subsequent to the termination of your employment with the Company; and (ii) the value of the Company property which you retain in your possession after the termination of your employment with the Company. In the event that the law of any state or other jurisdiction requires the consent of an employee for such deductions, this Agreement shall serve as such consent. Notwithstanding anything in this Section 6(g) to the contrary, the Company will not exercise such right to deduct from any monies otherwise payable to you to the extent such offset would be a violation of Internal Revenue Code Section 409A (“Code Section 409A”).
(h) Non-Disparagement. You agree that, during the Term and for one year thereafter, you shall not, in any communications with the press or other media or any customer, client or supplier of the Company, criticize, ridicule or make any statement which disparages or is derogatory of the Company, or any of their respective directors or senior officers. Your obligations under this paragraph shall not apply to any disclosures required by applicable law, regulation or order of any court or governmental agency.
(i) Injunctive Relief. The Company has entered into this Agreement in order to obtain the benefit of your unique skills, talent, and experience. You acknowledge and agree that any violation of paragraphs 6(a) through (h) of this Agreement will result in irreparable damage to the Company and, accordingly, the Company may obtain injunctive and other equitable relief for any breach or threatened breach of such paragraphs, in addition to any other remedies available to the Company.
(j) Survival; Modification of Terms. Your obligations under paragraphs 6(a) through (i) shall remain in full force and effect for the entire period provided therein notwithstanding the termination of your employment under this Agreement for any reason
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or the expiration of the Term; provided, however, that your obligations under paragraph 6(a) (but not under any other provision of this Agreement) shall cease if: (x) the Company terminates your employment without Cause and (y) you provide the Company a written notice indicating your desire to waive your right to receive, or to continue to receive, termination payments and benefits under paragraph 8(c)(i) through (iii) and (z) the Company notifies you that it has, in its sole discretion, accepted your request. You and the Company agree that the restrictions and remedies contained in paragraphs 6(a) through (i) are reasonable and that it is your intention and the intention of the Company that such restrictions and remedies shall be enforceable to the fullest extent permissible by law. If a court of competent jurisdiction shall find that any such restriction or remedy is unenforceable but would be enforceable if some part were deleted or the period or area of application reduced, then such restriction or remedy shall apply with the modification necessary to make it enforceable. You acknowledge that the Company and CBS conduct their business operations around the world and have invested considerable time and effort to develop the international brand and goodwill associated with the “CBS Outdoor” name. To that end, you further acknowledge that the obligations set forth in this paragraph 6 are by necessity international in scope and necessary to protect the international operations and goodwill of the Company.
7. Disability. In the event that you become “disabled” within the meaning of such term under the Company’s Short-Term Disability (“STD”) program and its Long-Term Disability (“LTD”) program while employed during the Term (such condition is referred to as a “Disability”), you will be considered to have experienced a termination of employment with the Company and its Subsidiaries as of the date you first become eligible to receive benefits under long-term disability (“LTD”) program in which the Company’s senior executives are eligible to participate or, if you do not become eligible to receive benefits under such Company LTD program, you have not returned to work by the six (6) month anniversary of your Disability onset date. Except as provided in this paragraph 7, if you become Disabled while employed during the Term, you will exclusively receive compensation under the STD program in accordance with its terms. Thereafter, you will be eligible to receive benefits under the LTD program in accordance with its terms. If you have not returned to work by December 31st of a calendar year during the Term, you will receive bonus compensation for the calendar year(s) during the Term in which you receive compensation under the STD program, determined as follows:
(i) | for the portion of the calendar year from January 1st until the date on which you first receive compensation under the STD program, bonus compensation shall be determined in accordance with the STIP (i.e., based upon the Company’s achievement of its goals and the Company’s good faith estimate of your achievement of your personal goals) and prorated for such period; and |
(ii) | for any subsequent portion of that calendar year and any portion of the following calendar year in which you receive compensation |
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under the STD program, bonus compensation shall be in an amount equal to your Target Bonus and prorated for such period(s).
Subject to paragraph 18 hereof, bonus compensation under this paragraph 7 shall be paid, less applicable deductions and withholding taxes, by February 28th of the year(s) following the year as to which such bonus compensation is payable. You will not receive bonus compensation for any portion of the calendar year(s) during the Term while you receive benefits under the LTD program. For the periods that you receive compensation and benefits under the STD and LTD programs, such compensation and benefits and the bonus compensation provided under this paragraph 7 are in lieu of Salary and Bonus under paragraphs 3(a) and (b).
8. Termination.
(a) (i) Termination for Cause. The Company may, at its option, terminate your employment under this Agreement forthwith for Cause and the Company thereafter shall have no further obligations under this Agreement, including, without limitation, any obligation to pay Salary or Bonus or provide benefits. “Cause” shall mean: (i) proven acts of dishonesty involving the Company; (ii) proven embezzlement, fraud or other conduct which would constitute a felony or a misdemeanor involving fraud or perjury; (iii) willful unauthorized disclosure of Confidential Information; (iv) your failure to obey a material lawful directive that is appropriate to your position from an executive(s) in your reporting line; (v) your failure to comply with the written policies of the Company Business Conduct Statement or successor conduct statement as they apply from time to time; (vi) your material breach of this Agreement (including any representations herein); (vii) your failure (except in the event of your Disability) or refusal to substantially perform your material obligations under this Agreement; (viii) willful failure to cooperate with a bona fide internal investigation or investigation by regulatory or law enforcement authorities or the destruction or failure to preserve documents or other material reasonably likely to be relevant to such an investigation, or the inducement of others to fail to cooperate or to destroy or fail to produce documents or other material; or (ix) conduct which is considered an offense involving moral turpitude under federal, state or local laws, or which brings you to public disrepute, scandal or ridicule or reflects unfavorably upon any of the Company’s businesses or those who conduct business with the Company. The Company will give you written notice prior to terminating your employment pursuant to (iv), (v), (vi), (vii), (viii) or (ix) of this paragraph 8(a), setting forth the nature of any alleged failure, breach or refusal in reasonable detail and the conduct required to cure, if capable of cure. Except for a failure, breach or refusal which, by its nature, cannot reasonably be expected to be cured, you shall have ten (10) business days from the giving of such notice within which to cure any failure, breach or refusal under (iv), (v), (vi), (vii), (viii) or (ix) of this paragraph 8(a); provided, however, that, if the Company reasonably expects irreparable injury from a delay of ten (10) business days, the Company may give you notice of such shorter period within which to cure as is reasonable under the circumstances.
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(ii) Voluntary Resignation without a Good Reason. You may, at your option, resign your employment under this Agreement at any time without a Good Reason (as defined below) by providing the Company with at least thirty (30) days’ advance written notice, in which case, you shall be paid the Accrued Obligations (as defined in paragraph 8(c)), and such resignation shall not be deemed to be a breach of this Agreement.
(b) Termination Without Cause; Termination for Good Reason. The Company may terminate your employment under this Agreement without Cause at any time during the Term by written notice to you. You may terminate your employment under this Agreement for Good Reason at any time during the Term by written notice to the Company.
(c) Termination Payments/Benefits. In the event that your employment terminates under paragraph 8(b) during the Term hereof, subject to paragraph 18, you shall thereafter receive, less applicable withholding taxes, (x) any unpaid Salary through and including the date of termination, any unpaid Bonus earned for the calendar year prior to the calendar year in which you are terminated, any business expense reimbursements incurred but not yet approved and/or paid and such other amounts as are required to be paid or provided by law (the “Accrued Obligations”), payable within thirty (30) days following your termination date, and (y) subject to your compliance with paragraph 8(g) hereunder, the following payments and benefits:
(i) | Salary: a severance amount equal to twelve (12) months of your then current base Salary described in paragraph 3(a), payable in accordance with the Company’s then effective payroll practices (your “Regular Payroll Amount”) as follows: |
(A) beginning on the regular payroll date (“Regular Payroll Dates”) following your termination of employment, you will receive your Regular Payroll Amount on the Regular Payroll Dates that occur on or before March 15th of the year following the year in which your employment terminates;
(B) beginning with the first Regular Payroll Date after March 15th of the year following the year in which your employment terminates, you will receive your Regular Payroll Amount, if any remains due, until you have received an amount equal to the maximum amount permitted to be paid pursuant to Treasury Regulation Section 1.409A-1(b)(9)(iii)(A) (i.e., the lesser of two times your annualized compensation or two times the Section 401(a)(17) limit for the year in which your termination occurs, $520,000 for 2014); provided, however, that in no event shall payment be made to you pursuant to this paragraph 8(c)(i)(B) later than December 31st of the second year following your termination of employment; and
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(C) the balance of your Regular Payroll Amount, if any remains due, will be paid to you by payment of your Regular Payroll Amount on your Regular Payroll Dates beginning with the regular payroll date that follows the date of the final payment pursuant to paragraph 8(c)(i)(B);
provided, however, that to the extent that you are a “specified employee” (within the meaning of Code Section 409A and determined pursuant to procedures adopted by the Company) at the time of your termination and any portion of your Regular Payroll Amount that would be paid to you during the six-month period following your termination of employment constitutes “deferred compensation” within the meaning of Code Section 409A, such portion shall be paid to you in a lump sum on the earlier of (x) the first business day of the seventh month following the month in which your termination of employment occurs or (y) your death (the applicable date, the “Permissible Payment Date”) rather than as described in paragraph 8(c)(i)(A), (B) or (C), as applicable, and any remaining Salary, if any, shall be paid to you or your estate, as applicable, by payment of your Regular Payroll Amount on your Regular Payroll Dates commencing with the Regular Payroll Date that follows the Permissible Payment Date. Each payment pursuant to this paragraph 8(c) shall be regarded as a separate payment and not one of a series of payments for purposes of Code Section 409A.
(ii) | Prorated Bonus: a prorated bonus based the number of months that you were actively rendering services during the calendar year prior to your termination. The actual bonus amount shall be determined in a manner consistent with other Company executives with such bonus paid in the year following the year such bonus compensation is earned, but no later than February 28th of such year. |
(iii) | Health Benefits: medical and dental insurance coverage for you and your eligible dependents provided under company paid COBRA benefits at no cost to you (except as hereafter described) pursuant to the Company’s benefit plans in which you participated in at the time of your termination of employment for a period of twelve (12) months, or if earlier, the date on which you become eligible for medical or dental coverage as the case may be from a third party; provided, that, during the period that the Company provides you with this coverage, an amount equal to the applicable COBRA premiums (or such other amounts as may be required by law) will be included in your income for tax purposes to the extent required by law and the Company may withhold taxes from your compensation for this purpose; provided, further, that you may elect |
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to continue your medical and dental insurance coverage under COBRA at your own expense for the balance, if any, of the period required by law.
The payments and benefits provided for in this paragraph 8(c)(i) are in lieu of any other severance or income continuation or protection under any Company plan, program or agreement that may now or hereafter exist (unless the terms of such plan, program or agreement expressly state that the payments and benefits payable thereunder are intended to be in addition to the type of payments and benefits described in paragraph 8(c)(i)).
(d) Renewal Notice / Non-Renewal.
(i) If applicable, the Company shall notify you in writing six (6) months prior to the expiration of the Term of this Agreement if it intends to continue your employment beyond the expiration of the Term. If you are notified that the Company does intend to continue your employment beyond the Term, then you agree that you shall negotiate exclusively with the Company for the first 90 days following such notification. Nothing contained herein shall obligate the Company to provide an increase to your compensation hereunder upon such renewal.
(ii) If you remain employed on the date that is the last day of the Term, but have not entered into a new contractual relationship with the Company (or any of the Company’s subsidiaries), then, unless you agree to continue your employment following expiration of the Term on an “at will” basis, your employment with the Company shall terminate at the end of the Term and you will be entitled to receive the payments and benefits described in paragraph 8(c) on the same basis as if your termination of employment were a termination without Cause under paragraph 8(b) above, subject to your execution of a release in favor of the Company as further described in paragraph 8(g). If you agree to continue your employment with the Company on an “at will” basis following expiration of the Term, you will continue to be paid your Salary in effect immediately prior to the expiration of the Term and will continue to be eligible to receive a Bonus and annual LTMIP grants at the same target levels as in effect immediately prior to the expiration of the Term, and if the Company subsequently terminates your “at will” employment without Cause (as that term is defined in paragraph 8(a)(i)), you will become eligible to receive and you will be entitled to receive the payments and benefits described in paragraph 8(c) on the same basis as during the Term.
(e) Termination of Benefits. Notwithstanding anything in this Agreement to the contrary (except as otherwise provided in paragraph 8(c)(iii) with respect to medical and dental benefits), participation in all the Company benefit plans and programs (including, without limitation, vacation accrual, all retirement and related excess plans and LTD) will terminate upon the termination of your employment except to the extent otherwise expressly provided in such plans or programs and subject to any vested rights you may have under the terms of such plans or programs. The foregoing shall not apply to the LTMIP
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and, after the termination of your employment, your rights under the LTMIP shall be governed by the terms of the LTMIP award agreements or certificates and the applicable LTMIP plan(s) and this Agreement.
(f) Resignation from Official Positions. If your employment with the Company terminates for any reason, you shall be deemed to have resigned at that time from any and all officer or director positions that you may have held with the Company, and all board seats or other positions in other entities you held on behalf of the Company. If, for any reason, this paragraph 8(f) is deemed insufficient to effectuate such resignation, you agree to execute, upon the request of the Company, any documents or instruments which the Company may deem necessary or desirable to effectuate such resignation or resignations, and you hereby authorize the Secretary and any Assistant Secretary of the Company to execute any such documents or instruments as your attorney-in-fact.
(g) Release and Compliance with Paragraph 6.
(i) Notwithstanding any provision in this Agreement to the contrary, prior to payment by the Company of any amount or provision of any benefit pursuant to paragraph 8(c), within sixty (60) days following your termination of employment, (x) you shall have executed and delivered to the Company a general release in a form satisfactory to both and (y) such general release shall have become effective and irrevocable in its entirety (such date, the “Release Effective Date”); provided, however, that if, at the time any cash severance payments are scheduled to be paid to you pursuant to paragraph 8(c) you have not executed a general release that has become effective and irrevocable in its entirety, then any such cash severance payments shall be held and accumulated without interest, and shall be paid to you on the first Regular Payroll Date following the Release Effective Date. Your failure or refusal to sign and deliver the release or your revocation of an executed and delivered release in accordance with applicable laws, whether intentionally or unintentionally, will result in the forfeiture of the payments and benefits under paragraph 8(c). Notwithstanding the foregoing, if the sixty (60) day period does not begin and end in the same calendar year, then the Release Effective Date shall occur no earlier than January 1st of the calendar year following the calendar year in which your termination occurs.
(ii) Notwithstanding any provision in this Agreement to the contrary, the payments and benefits described in paragraph 8(c) shall immediately cease, and the Company shall have no further obligations to you with respect thereto, in the event that you materially breach any provision of paragraph 6 hereof.
(h) “Good Reason” means, with respect to you and without your express written consent, the occurrence of any one or more of the following at any time during your employment with the Company or any of its subsidiaries (including the actual termination date) by virtue of management outsourcing or otherwise:
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(i) (a) a significant adverse change in the nature or scope of your authorities, powers, functions, responsibilities or duties attached to your position with the Company and any subsidiary, (b) a reduction in the aggregate of your annual Base Salary or Bonus received from the Company and any subsidiary, (c) a reduction in your long-term incentive compensation opportunity from the level in effect on the date hereof or such higher level as may be in effect at any time after the date hereof, or (d) the termination or denial of your rights to retirement or welfare benefits or a reduction in the scope or value of such benefits (other than any such reduction that is generally applicable to all employees of the Company), and such change reduction or termination is not remedied by the Company within ten business days after receipt by the Company of written notice from you of such change, reduction or termination, as the case may be;
(iii) any change of your principal place of employment to a location more than 50 miles from your principal place of employment as of the commencement of the Term;
(iv) any failure of the Company to pay you any compensation when due (other than an inadvertent failure that is remedied within ten business days after receipt of written notice from you);
A termination of employment by you for Good Reason for purposes of this Agreement will be effective only if you give the Company written notice (“Notice of Termination for Good Reason”) of the termination setting forth in reasonable detail the specific conduct of the Company that constitutes Good Reason and the specific provisions of this Agreement on which you relied. Unless the parties agree otherwise, a termination of employment by you for Good Reason will be effective on the 30th day following the date when the Notice of Termination for Good Reason is given, unless the Company remedies the Good Reason condition within such period or elects to terminate your employment before the end of the 30-day period; provided, however, that so long as an event that constitutes Good Reason occurs and you deliver the Notice of Termination for Good Reason at any time prior to the 90th day following the effective termination date, the termination of your employment will be deemed to be a resignation for Good Reason. In such instance, all payments that would have been made during such 90-day period will be made in a lump-sum payment on the 90th day following your termination of employment, and subsequent payments will be made at the time and in the form set forth in paragraph 8(c) above. If the Company disputes the existence of Good Reason, the Company will have the burden of proof to establish that Good Reason does not exist. If you continue to provide services to the Company after one of the events giving rise to Good Reason has occurred, you will not be deemed to have consented to such event or to have waived your employment at any time for Good Reason in connection with such event.
9. Death. In the event of your death prior to the end of the Term while actively employed, your beneficiary or estate shall receive (i) your Salary up to the date on which
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the death occurs; (ii) any Bonus earned in the prior year but not yet paid; and (iii) bonus compensation for the calendar year in which the death occurs, determined in accordance with the STIP (i.e., based upon the Company’s achievement of its goals and the Company’s good faith estimate of your achievement of your personal goals) and pro-rated for the portion of the year through the date of death, payable, less applicable deductions and withholding taxes, by February 28th of the following year. In the event of your death after the termination of your employment while you are entitled to receive compensation under paragraph 8(c), your beneficiary or estate shall receive (x) any Salary payable under paragraph 8(c)(i) up to the date on which the death occurs; and (y) the prorated bonus payable under paragraph 8(c)(ii), payable in accordance with the schedule set forth in paragraph 8(c)(ii).
10. No Acceptance of Payments. You represent that you have not accepted or given nor will you accept or give, directly or indirectly, any money, services or other valuable consideration from or to anyone other than the Company for the inclusion of any matter as part of any film, television program or other production produced, distributed and/or developed by the Company or any of their respective affiliated companies.
11. Equal Opportunity Employer; Employee Statement of Business Conduct. You recognize that the Company is an equal opportunity employer. You agree that you will comply with the Company policies regarding employment practices and with applicable federal, state and local laws prohibiting discrimination on the basis of race, color, sex, religion, national origin, citizenship, age, marital status, sexual orientation, disability or veteran status. In addition, you agree that you will comply with the Company’s Business Conduct Statement, as applicable.
12. Notices. All notices under this Agreement must be given in writing, by personal delivery or by registered mail, at the parties’ respective addresses shown on this Agreement (or any other address designated in writing by either party), with a copy, in the case of the Company, to the attention of the General Counsel of the Company. Any notice given by registered mail shall be deemed to have been given three days following such mailing.
13. Assignment. This is an Agreement for the performance of personal services by you and may not be assigned by you or the Company except that the Company may assign this Agreement to any affiliated company of or any successor in interest to the Company provided such successor agrees to assume the Company’s obligations under this Agreement.
14. New York Law, Etc. You acknowledge that this Agreement has been executed, in whole or in part, in New York, and your employment duties are primarily performed in New York. Accordingly, you agree that this Agreement and all matters or issues arising out of or relating to your employment with the Company shall be governed by the laws of the State of New York applicable to contracts entered into and performed entirely therein.
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15. No Implied Contract. Nothing contained in this Agreement shall be construed to impose any obligation on the Company or you to renew this Agreement or any portion thereof. The parties intend to be bound only upon execution of a written agreement and no negotiation, exchange of draft or partial performance shall be deemed to imply an agreement. Neither the continuation of employment nor any other conduct shall be deemed to imply a continuing agreement upon the expiration of the Term.
16. Entire Understanding. This Agreement contains the entire understanding of the parties hereto relating to the subject matter contained in this Agreement, and can be changed only by a writing signed by both parties.
17. Void Provisions. If any provision of this Agreement, as applied to either party or to any circumstances, shall be found by a court of competent jurisdiction to be unenforceable but would be enforceable if some part were deleted or the period or area of application were reduced, then such provision shall apply with the modification necessary to make it enforceable, and shall in no way affect any other provision of this Agreement or the validity or enforceability of this Agreement.
18. Deductions and Withholdings, Payment of Deferred Compensation – 409A.
(a) To the extent applicable, it is intended that the compensation arrangements under this Agreement be in full compliance with Code Section 409A. This Agreement shall be construed in a manner to give effect to such intention. In no event whatsoever (including, but not limited to as a result of this paragraph 18 or otherwise) shall the Company nor any of its affiliates be liable for any tax, interest or penalties that may be imposed on you under Code Section 409A. Neither the Company nor any of its affiliates have any obligation to indemnify or otherwise hold you harmless from any or all such taxes, interest or penalties, or liability for any damages related thereto. You acknowledge that you have been advised to obtain independent legal, tax or other counsel in connection with Code Section 409A.
(b) Your right to any in-kind benefit or reimbursement benefits pursuant to any provisions of this Agreement or pursuant to any plan or arrangement of the Company covered by this Agreement shall not be subject to liquidation or exchange for cash or another benefit.
19. Arbitration. If any disagreement or dispute whatsoever shall arise between the parties concerning this Agreement (including the documents referenced herein) or your employment with the Company, the parties hereto agree that such disagreement or dispute shall be submitted to arbitration before the American Arbitration Association (“AAA”), and that a neutral arbitrator will be selected in a manner consistent with its Employment Arbitration Rules and Mediation Procedures (“Rules”). Such arbitration shall be confidential and private and conducted in accordance with the Rules. Any such arbitration proceeding shall take place in New York City before a single arbitrator (rather than a panel of arbitrators). The parties agree that the arbitrator shall have no authority to award any
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punitive or exemplary damages and waive, to the full extent permitted by law, any right to recover such damages in such arbitration. Each party shall bear its respective costs (including attorney’s fees, and there shall be no award of attorney’s fees). Judgment upon the final award rendered by such arbitrator, after giving effect to the AAA internal appeals process, may be entered in any court having jurisdiction thereof. Notwithstanding anything herein to the contrary, the Company shall be entitled to seek injunctive, provisional and equitable relief in a court proceeding as a result of your alleged violation of the terms of Section 6 of this Agreement, and you hereby consent and agree to exclusive personal jurisdiction in any state or federal court located in the City of New York, Borough of Manhattan.
20. Counterparts. This Agreement may be executed in one or more counterparts, including by facsimile, and all of the counterparts shall constitute one fully executed agreement. The signature of any party to any counterpart shall be deemed a signature to, and may be appended to, any other counterpart.
[signature page to follow]
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If the foregoing correctly sets forth our understanding, please sign, date and return all four (4) copies of this Agreement to the undersigned for execution on behalf of the Company; after this Agreement has been executed by the Company and a fully-executed copy returned to you, it shall constitute a binding agreement between us.
Very truly yours,
By: _ /s/ Xxxxxx X. Male _________
Xxxxxx X. Male
Chief Executive Officer
ACCEPTED AND AGREED:
__/s/ Xxxxxx Sriubas________
Xxxxxx Xxxxxxx
Dated:___7-28-14___________
SCHEDULE A
Xxxx Foundation- a 501(c)3 foundation promoting equality for all people. Xx. Xxxxxxx sits on the advisory board.
MSS- a corporation providing clearinghouse technology for wireless providers. Xx. Xxxxxxx has an informal advisory relationship.
Permafrost- a “green” chemical engineering company. Xx. Xxxxxxx provides general business advice.
Tout- provider of video exchange technology. Xx. Xxxxxxx has an informal advisory relationship.
