AMENDED AND RESTATED AGREEMENT
AMENDED AND
RESTATED
AGREEMENT
This Amended and Restated Agreement (this “Agreement”) made as of
____________________, between The York Water Company, a Pennsylvania corporation
(the “Company”), and ________________ (“Employee”).
WHEREAS, Employee is the
______________________ of the Company and devotes substantially all of his
business time and efforts to the Company’s affairs;
WHEREAS, the Company recognizes that the
departure or distraction of key management personnel would be detrimental to the
business of the Company;
WHEREAS, the Board of Directors of the Company
has determined that appropriate steps should be taken to reinforce and encourage
the continued attention and dedication of key members of the Company’s
management to their assigned duties without distraction;
WHEREAS, in consideration of Employee’s
continued employment with the Company and his agreement not to compete with the
Company as set forth in this Agreement, the Company agrees that Employee shall
receive the compensation set forth in this Agreement against the adverse
financial and career impact on Employee if his employment with the Company is
terminated under certain circumstances;
WHEREAS, the Company wishes to reward the
dedication and loyalty of Employee by providing for certain bonus payments to be
made to Employee based upon Employee’s tenure, the Company agrees that Employee
shall receive the payments set forth in this Agreement upon the achievement of
certain temporal milestones;
WHEREAS, the Company and Employee previously
entered into this Agreement on ____________ (the “Prior Agreement”); and
WHEREAS, the parties now
wish to amend and restate the Prior Agreement on the terms set forth herein to
make this Agreement compliant with the applicable requirements of Section 409A
of the Code (as defined below) and the regulations promulgated thereunder.
NOW, THEREFORE, in consideration of the
foregoing and the mutual covenants and agreements hereinafter set forth and
intending to be legally bound hereby, the parties hereto agree as follows:
1.
Definitions. For all purposes of this Agreement, the following terms shall
have the meanings specified in this Section unless the context clearly otherwise
requires:
(a)
“Affiliate” and “Associate” shall have the respective meanings ascribed to such
terms in Rule 12b-2 of the General Rules and Regulations under the Exchange
Act.
(b)
A Person shall be deemed the “Beneficial Owner” of any securities: (i) that such
Person or any of such Person’s Affiliates or Associates, directly or indirectly,
has the right to acquire (whether such right is exercisable immediately or only
after the passage of time) pursuant to any agreement, arrangement or
understanding (whether or not in writing) or upon the exercise of conversion
rights, exchange rights, rights, warrants or options, or otherwise; provided,
however, that a Person shall not be deemed the “Beneficial Owner” of securities
tendered pursuant to a tender or exchange offer made by such Person or any of
such Person’s Affiliates or Associates until such tendered securities are
accepted for payment, purchase or exchange; (ii) that such Person or any of such
Person’s Affiliates or Associates, directly or indirectly, has the right to vote
or dispose of or has “beneficial ownership” of (as determined pursuant to Rule
13d-3 of the General Rules and Regulations under the Exchange Act), including
without limitation, pursuant to any agreement, arrangement or understanding,
whether or not in writing; provided, however, that a Person shall not be deemed
the “Beneficial Owner” of any security under this clause (ii) as a result of an
oral or written agreement, arrangement or understanding to vote such security if
such agreement, arrangement or understanding (A) arises solely from a revocable
proxy given in response to a public proxy or consent solicitation made pursuant
to, and in accordance with, the applicable provisions of the General Rules and
Regulations under the Exchange Act, and (B) is not then reportable by such
Person on Schedule 13D under the Exchange Act (or any comparable or successor
report); or (iii) that are beneficially owned, directly or indirectly, by any
other Person (or any Affiliate or Associate thereof) with which such Person (or
any of such Person’s Affiliates or Associates) has any agreement, arrangement or
understanding (whether or not in writing) for the purpose of acquiring, holding,
voting (except pursuant to a revocable proxy as described in the proviso to
clause (ii) above) or disposing of any voting securities of the Company;
provided, however, that nothing in this Section 1(b) shall cause a Person
engaged in business as an underwriter of securities to be the “Beneficial Owner”
of any securities acquired through such Person’s participation in good faith in
a firm commitment underwriting until the expiration of 40 days after the date of
such acquisition.
(c)
“Board” shall mean the Board of Directors of the Company.
(d)
“Business Combination” shall mean a reorganization, merger or consolidation of
the Company.
(e)
“Cause” shall mean (i) misappropriation of funds or any act of common law fraud,
(ii) habitual insobriety or substance abuse, (iii) conviction of a felony or any
crime involving moral turpitude, (iv) willful misconduct or gross negligence by
Employee in the performance of his duties, (v) the willful failure of Employee
to perform a material function of Employee’s duties hereunder, or (vi) Employee
engaging in a conflict of interest or other breach of fiduciary duty.
(f)
“Change of Control” shall mean:
(i)
Any Person (except Employee, his Affiliates and Associates, the Company, any
Subsidiary of the Company, any employee benefit plan of the Company or of any
Subsidiary of the Company, or any Person or entity organized, appointed or
established by the Company for or pursuant to the terms of any such employee
benefit plan), together with all Affiliates and Associates of such Person,
becomes the Beneficial Owner in the aggregate of 50 percent or more of either
(A) the Outstanding Company Common Stock or (B) the Company Voting Securities ,
in either case unless a majority of the members of the Board in office
immediately prior to such acquisition determine within five business days of the
receipt of actual notice of such acquisition that the circumstances do not
warrant the implementation of the provisions of this Agreement;
(ii)
The Incumbent Board ceases for any reason to constitute at least a majority of
the Board, provided that any individual becoming a director subsequent to the
beginning of such period whose election or nomination for election by the
Company’s shareholders was approved by a vote of at least a majority of the
directors then constituting the Incumbent Board shall be considered as though
such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office is in connection
with an actual or threatened election contest relating to the election of the
Directors of the Company (as such terms are used in Rule 14a-11 of Regulation
14A promulgated under the Exchange Act);
(iii)
Consummation by the Company of a Business Combination, in each case, with
respect to which all or substantially all of the individuals and entities who
were the respective Beneficial Owners of the Outstanding Company Common Stock
and Company Voting Securities immediately prior to such Business Combination are
not, following such Business Combination, Beneficial Owners, directly or
indirectly, of more than 50 percent of, respectively, the then outstanding
shares of common stock and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors, as
the case may be, of the corporation resulting from such Business Combination in
substantially the same proportion as their ownership immediately prior to such
Business Combination of the Outstanding Company Common Stock and Company Voting
Securities, as the case may be, in any such case unless a majority of the
members of the Board in office immediately prior to such Business Combination
determines at the time of such Business Combination that the circumstances do
not warrant the implementation of the provisions of this Agreement; or
(iv)
(A) Consummation of a complete liquidation or dissolution of the Company or (B)
sale or other disposition of all or substantially all of the assets of the
Company other than to a corporation with respect to which, following such sale
or disposition, individuals and entities that are the Beneficial Owners of more
than 50 percent of, respectively, the Outstanding Company Common Stock and the
Company Voting Securities are substantially the same as the individuals and
entities who were the Beneficial Owners, respectively, of the Outstanding
Company Common Stock and Company Voting Securities immediately prior to such
sale or disposition in substantially the same proportion as their ownership of
the Outstanding Company Common Stock and Company Voting Securities, as the case
may be, immediately prior to such sale or disposition, in any such case unless a
majority of the members of the Incumbent Board in office immediately prior to
such sale or disposition determines at the time of such sale or disposition that
the circumstances do not warrant the implementation of the provisions of this
Agreement.
(g)
“Code” shall mean the Internal Revenue Code of 1986, as amended, and the
regulations promulgated thereunder.
(h)
“Company Voting Securities” shall mean the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors.
(i)
“Compensation” shall mean the sum of base compensation and annual bonus
compensation payable in cash to Employee during the twelve months preceding any
date of determination under this Agreement.
(j)
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
(k)
“Good Reason Termination” shall mean a Termination of Employment initiated by
Employee following a Change of Control and the occurrence of one or more of the
following events, without the consent of Employee:
(i)
any action or inaction that constitutes a material breach by the Company of this
Agreement, including but not limited to a breach of Section 6 hereof;
(ii) any material
reduction by the Company of the authority, duties or responsibilities of
Employee’s principal assignment with the Company;
(iii) any material reduction
in Employee's base compensation;
(iv) any removal by the
Company of Employee from the employment grade or officer positions which
Employee holds as of the effective date hereof except in connection with
promotions to higher office; provided, however, that such removal results in a
diminution in Employee's authority, duties or responsibilities; or
(v) a material
change in the geographic location at which Employee must perform services;
provided that a transfer of Employee to a location that is more than 50 miles
from his principal place of business immediately preceding the Change of Control
shall constitute a material change in the geographic location.
Notwithstanding the
preceding definition of Good Reason Termination, Employee shall only have a Good
Reason Termination for purposes of this Agreement if he provides written notice
to the Company identifying the event or omission constituting the reason for the
Good Reason Termination not more than 30 days following the occurrence of such
event. Within 30 days after notice has been provided, the Company shall
have the opportunity, but shall have no obligation, to cure such events or
conditions that give rise to the Good Reason Termination. If the Company
fails to cure the events or conditions giving rise to Employee’s Good Reason
Termination, Employee must actually terminate within 60 days thereafter for the
termination to be a Good Reason Termination.
(l)
“Incumbent Board” shall mean those individuals who, as of any date of
determination under the Agreement, are individuals who have constituted the
Board during the preceding 12-month period.
(m)
“Outstanding Company Common Stock” shall mean the then outstanding shares of
common stock of the Company.
(n)
“Person” shall mean any natural person, business trust, corporation,
partnership, limited liability company, joint stock company, proprietorship,
association, trust, joint venture, unincorporated association or any other legal
entity of whatever nature.
(o)
“Phase Out Date” shall mean the first day of the calendar month coincident with
or next following Employee’s 65th birthday.
(p)
“Subsidiary” shall mean any corporation in which the Company, directly or
indirectly, owns at least a 50 percent interest or an unincorporated entity of
which the Company, directly or indirectly, owns at least 50 percent of the
profits or capital interests.
(q)
“Termination Date” shall mean the date of Employee’s Termination of
Employment.
(r)
“Termination of Employment” shall mean Employee’s “separation from service”
within the meaning of such term under Section 409A of the Code) with the
Company.
2.
Notice of Termination. Any Termination of Employment shall be communicated
by a Notice of Termination in accordance with Section 17 hereof. For purposes of
this Agreement, a “Notice of Termination” means a written notice which, in the
case of a Good Reason Termination by Employee (a) indicates the specific reasons
for the termination, (b) briefly summarizes the facts and circumstances deemed
to provide a basis for termination of Employee’s employment, and (c) if the
Termination Date is other than the date of receipt of such notice, specifies the
Termination Date (which date shall not be more than 15 days after the giving of
such notice).
3.
Severance Compensation upon Termination; Bonus Payments upon Certain
Circumstances.
(a)
In the event of (i) an involuntary Termination of Employment for any reason
other than Cause or (ii) a Good Reason Termination, in either case within one
year following a Change of Control or six months prior to a Change of Control,
the Company shall pay to Employee, within 60 days after the later of the
Termination Date or the date of the Change of Control, a single sum cash payment
equal to _____ multiplied by Employee’s Compensation and on the first payroll
date of the seventh month following Employee’s Termination Date with the
Company, in accordance with the requirements set forth in Section 14(c), an
additional single sum cash payment equal to one-fourth (25 percent) multiplied
by Employee’s Compensation, both payments subject to Employee’s execution and
non-revocation of a release in form and substance reasonably satisfactory to the
Chairman of the Board and customary employment taxes and statutory
deductions.
(b)
In the event of Employee’s voluntary Termination of Employment for any reason
other than a Good Reason Termination, within (i) three months after a Change of
Control, Employee shall not be entitled to any payment; or (ii) three months and
one day to 12 months following a Change of Control, the Company shall pay to
Employee on the first payroll date of the seventh month following Employee’s
Termination Date with the Company, in accordance with the requirements set forth
in Section 14(c), subject to Employee’s execution and non-revocation of a
release in form and substance reasonably satisfactory to the Chairman of the
Board, a single sum cash payment equal to one-fourth (25 percent) of Employee’s
Compensation, subject to customary employment taxes and statutory
deductions.
(c)
If on the date 12 months and one day following a Change of Control there has not
been a Termination of Employment, then the Company shall pay to Employee, within
60 days after such date, a single sum in cash equal to one-half (50 percent)
multiplied by Employee’s Compensation, subject to customary employment taxes and
statutory deductions; provided that the foregoing amount shall only be paid if
the transaction constituting a Change of Control hereunder also constitutes a
“change in control event” as such term is defined in Section 409A of the Code.
(d)
Notwithstanding paragraph (a) or (b) above and without regard to the fact that
payment is to be made in a single sum, until the earlier of the Phase Out Date
or 36 months after the Termination Date, Employee shall be entitled to continued
coverage under the Company’s medical, dental and other welfare benefit plans at
the same level of coverage (and required employee contributions, if any) as
Employee was receiving at the time of his Termination Date, subject to the
Company’s right to make changes to such plans for all of its executive level
employees generally; provided, however, that this obligation of the Company
shall cease upon Employee’s obtaining new employment that provides Employee with
eligibility for comparable medical benefits without a pre-existing condition
limitation; and, provided, further, that such extended coverage shall be in
addition to, and not as a substitute for, Employee’s COBRA rights which shall
apply at the end of such extended coverage. All other benefit plan
coverages, retirement benefit accruals and fringe benefit eligibility shall
cease on the Termination Date subject to applicable rights under ERISA and
COBRA.
4.
Other Payments. The payment due under Section 3 hereof shall be in
addition to and not in lieu of any payments or benefits accrued for Employee
through the Termination Date under any plan, policy or program of the Company,
including the Supplemental Retirement Plan and the Deferred Compensation
Agreement, except that no payments shall be due to Employee under any severance
pay plan for the Company’s employees.
5.
Enforcement.
(a)
In the event that the Company shall fail or refuse to make payment of any
amounts due Employee under Sections 3 and 4 hereof within the respective time
periods provided therein, the Company shall pay to an escrow agent, who shall
invest such sum with interest to be paid to the prevailing party, any amount
remaining unpaid under Section 3 or 4. In such event, the parties shall
engage in arbitration in the City of Harrisburg, Pennsylvania, in accordance
with the National Rules for the Resolution of Employment Disputes then in effect
of the American Arbitration Association, before a panel of three arbitrators,
one of whom shall be selected by the Company and one by Employee, and the third
of whom shall be selected by the other two arbitrators. Any award entered
by the arbitrators shall be final, binding and nonappealable and judgment may be
entered thereon by either party in accordance with applicable law in any court
of competent jurisdiction. This arbitration provision shall be
specifically enforceable. The arbitrators shall have no authority to
modify any provision of this Agreement or to award a remedy for a dispute
involving this Agreement other than a benefit specifically provided under or by
virtue of the Agreement. The delayed payment will be treated as paid on
the date specified under this Agreement if Employee accepts any portion of the
payment that the Company is willing to make, Employee makes prompt and
reasonable, good faith efforts to collect the remaining portion of the payment
and the remainder of the payment is made no later than the end of the Company’s
first taxable year in which the arbitrators reach a decision, the Company and
Employee enter into a legally binding settlement of the dispute over the payment
or the date the Company concedes the payment is due to Employee. For
Employee’s efforts to collect payment to be considered prompt, reasonable and in
good faith, Employee must provide notice to the Company within 90 days of the
latest date that payment could have been made in accordance with the terms of
this Agreement and, if not paid, Employee must take further enforcement measures
within 180 days after such date.
(b)
The Company shall pay Employee on demand the amount necessary to reimburse
Employee in full for all reasonable expenses (including reasonable attorneys’
fees and expenses) incurred by Employee in enforcing any of the obligations of
the Company under this Agreement subject to Employee’s duty to repay such sums
to the Company in the event that Employee does not prevail on any material issue
which is the subject of such arbitration. If Employee prevails on at least
one material issue which is the subject of such arbitration, the Company shall
be responsible for all of the fees of the American Arbitration Association and
the arbitrators and any expenses relating to the conduct of the arbitration
(including Employee’s reasonable attorneys’ fees and expenses). Otherwise,
each party shall be responsible for his or its own expenses relating to the
conduct of the arbitration (including reasonable attorneys’ fees and expenses)
and shall equally share the fees of the American Arbitration Association.
Any reimbursement or in-kind benefits under this Section 5 shall be paid or
provided to Employee within 30 days of the date Employee is finally determined
to have prevailed on at least one material issue, which was the subject of the
arbitration.
6.
Material Breach. The parties agree that it shall constitute a material
breach of this agreement by the Company if Employee’s annual bonus compensation
opportunity is significantly reduced from the level effective as of the date the
parties enter into this Agreement.
7.
No Mitigation. Employee shall not be required to mitigate the amount of
any payment or benefit provided for in this Agreement by seeking other
employment or otherwise, nor shall the amount of any payment or benefit provided
for herein be reduced by any compensation earned by other employment or
otherwise.
8.
Non-exclusivity of Rights. Nothing in this Agreement shall prevent or
limit Employee’s continuing or future participation in or rights under any
benefit, bonus, incentive or other plan or program provided by the Company or
any of its Subsidiaries or Affiliates and for which Employee may qualify, from
the date hereof through the Termination Date.
9.
No Set-Off. The Company’s obligation to make the payments provided for in
this Agreement and otherwise to perform its obligations hereunder shall not be
affected by any circumstances, including, without limitation, any set-off,
counterclaim, recoupment, defense or other right which the Company may have
against Employee or others.
10.
Taxes. Any payment required under this Agreement shall be subject to all
requirements of law with regard to the withholding of taxes, filing, making of
reports and the like, and the Company shall use its best efforts to satisfy
promptly all such requirements.
11.
Confidential Information. Employee recognizes and acknowledges that, by
reason of his employment by and service to the Company, he has had and will
continue to have access to confidential information of the Company, including,
without limitation, information and knowledge pertaining to products and
services offered, innovations, designs, ideas, plans, trade secrets, proprietary
information, distribution and sales methods and systems, sales and profit
figures, customer and client lists, and relationships between the Company and
its Subsidiaries and Affiliates and other distributors, customers, clients,
suppliers and others who have business dealings with the Company (“Confidential
Information”). Employee acknowledges that such Confidential Information is
a valuable and unique asset and covenants that he will not, either during or
after his employment by the Company, disclose or use any such Confidential
Information to any person for any reason whatsoever without the prior written
authorization of the Board, unless such information is in the public domain
through no fault of Employee or except as may be required by law.
12.
Non-Competition.
(a)
During his employment by the Company and for a period of one year thereafter,
Employee will not, unless acting with the prior written consent of the Board,
directly or indirectly, own, manage, operate, join, control, finance or
participate in the ownership, management, operation, control or financing of, or
be connected as an officer, director, employee, partner, principal, agent,
representative, consultant or otherwise with or use or permit his name to be
used in connection with, any business or enterprise engaged in by the Company or
any of its Affiliates, either during his employment by the Company or on the
Termination Date, as applicable, in the geographic area comprising the Company’s
franchised service territory (the “Geographic Area”). It is recognized by
Employee that the business of the Company and its Affiliates and Employee’s
connection therewith is or will be involved in activity throughout the
Geographic Area, and that more limited geographical limitations on this
non-competition covenant would not be appropriate. Employee also shall
not, directly or indirectly, during such one year period (a) solicit or attempt
to convert any account or customer of the Company or its Affiliates existing on
the Termination Date to another supplier, or (b) following Employee’s
employment, solicit or attempt to hire any then employee of the Company or its
Affiliates.
(b)
The foregoing restriction shall not be construed to prohibit the ownership by
Employee of less than five percent of any class of securities of any corporation
which is engaged in any of the foregoing businesses having a class of securities
registered pursuant to the Exchange Act, provided that such ownership represents
a passive investment and that neither Employee nor any group of persons
including Employee, either directly or indirectly, manages or exercises control
of any such corporation, guarantees any of its financial obligations, otherwise
takes any part in its business, other than exercising his rights as a
shareholder, or seeks to do any of the foregoing.
13.
Equitable Relief.
(a)
Employee acknowledges that the restrictions contained in Sections 11 and 12
hereof are reasonable and necessary to protect the legitimate interests of the
Company and its Affiliates, that the Company would not have entered into this
Agreement in the absence of such restrictions, and that any violation of any
provision of those Sections will result in irreparable injury to the Company.
Employee represents that his experience and capabilities are such that the
restrictions contained in Section 12 hereof will not prevent Employee from
obtaining employment or otherwise earning a living at the same general level of
economic benefit as anticipated by this Agreement. Employee further
represents and acknowledges that (i) he has been advised by the Company to
consult his own legal counsel in respect of this Agreement, and (ii) that he has
had full opportunity, prior to execution of this Agreement, to review thoroughly
this Agreement and understands its terms and conditions.
(b)
Employee agrees that the Company shall be entitled to preliminary and permanent
injunctive relief, without the necessity of proving actual damages, as well as
an equitable accounting of all earnings, profits and other benefits arising from
any violation of Sections 11 or 12 hereof, which rights shall be cumulative and
in addition to any other rights or remedies to which the Company may be
entitled. In the event that any of the provisions of Sections 11 or 12
hereof should ever be adjudicated to exceed the time, geographic, service, or
other limitations permitted by applicable law in any jurisdiction, then such
provisions shall be deemed reformed in such jurisdiction to the maximum time,
geographic, service, or other limitations permitted by applicable law.
(c)
Employee irrevocably and unconditionally (i) agrees that any suit, action or
other legal proceeding arising out of Section 11 or 12 hereof, including,
without limitation, any action commenced by the Company for preliminary and
permanent injunctive relief or other equitable relief, may be brought in the
United States District Court for the Middle District of Pennsylvania, or if such
court does not have jurisdiction or will not accept jurisdiction, in any court
of general jurisdiction in York County, Pennsylvania, consents to the
non-exclusive jurisdiction of any such court in any such suit, action or
proceeding, and (iii) waives any objection which Employee may have to the laying
of venue of any such suit, action or proceeding in any such court.
Employee also irrevocably and unconditionally consents to the service of
any process, pleadings, notices or other papers in a manner permitted by the
notice provisions of Section 17 hereof.
(d)
Employee agrees that he will provide, and that the Company may similarly
provide, a copy of Sections 11 and 12 hereof to any business or enterprise (i)
which he may directly or indirectly own, manage, operate, finance, join, control
or participate in the ownership, management, operation, financing, control or
control of, or (ii) with which he may be connected as an officer, director,
employee, partner, principal, agent, representative, consultant or otherwise, or
in connection with which he may use or permit his name to be used; provided,
however, that this provision shall not apply in respect of Section 13 hereof
after expiration of the time period set forth therein.
14.
Application of Section 409A.
(a)
This Agreement is intended to comply with the applicable provisions of Section
409A of the Code and shall be interpreted to avoid any penalty sanctions under
Section 409A of the Code. If any payment or benefit cannot be provided or
made at the time specified herein without incurring sanctions under Section 409A
of the Code, then such benefit or payment shall be provided in full at the
earliest time thereafter when such sanctions will not be imposed. For
purposes of Section 409A of the Code, all payments to be made upon a termination
of employment under this Agreement may only be made upon Employee's “separation
from service” (within the meaning of such term under Section 409A of the
Code), each payment made under this Agreement shall be treated as a separate
payment and the right to a series of installment payments under this Agreement
shall be treated as a right to a series of separate payments. In no event
shall Employee, directly or indirectly, designate the calendar year of
payment.
(b)
All reimbursements and in kind benefits provided under this Agreement shall be
made or provided in accordance with the requirements of Section 409A of the
Code, including, where applicable, the requirement that (i) any reimbursement or
in kind benefit is for expenses incurred during Employee’s lifetime (or during a
shorter period of time specified in this Agreement), (ii) the amount of expenses
eligible for reimbursement, or in kind benefits provided, during a calendar year
may not affect the expenses eligible for reimbursement, or in kind benefits to
be provided, in any other calendar year, (iii) the reimbursement or payment of
an eligible expense will be made on or before the last day of the calendar year
following the year in which the expense is incurred, and (iv) the right to
reimbursement or in kind benefits is not subject to liquidation or exchange for
another benefit.
(c)
If, at the time of Employee’s termination of employment with the Company, the
Company has securities which are publicly traded on an established securities
market and Employee is a “specified employee” (as defined in Section 409A of the
Code) and it is necessary to postpone the commencement of any payments or
benefits otherwise payable pursuant to this Agreement as a result of such
termination of employment to prevent any accelerated or additional tax under
Section 409A of the Code, then the Company will postpone the commencement of the
payment of any such payments or benefits hereunder (without any reduction in
such payments or benefits ultimately paid or provided to Employee) that are not
otherwise paid within the short-term deferral exception under Treas. Reg.
§1.409A-1(b)(4), and the separation pay exception under Treas. Reg.
§1.409A-1(b)(9)(iii), until the first payroll date that occurs after the date
that is six months following Employee’s separation of service with the
Company. If any payments or benefits are postponed due to such
requirements, such amounts will be paid in a lump sum to Employee on the first
payroll date that occurs after the date that is six months following Employee’s
separation of service with the Company. If Employee dies during the
postponement period prior to the payment of the postponed amount, the amounts
withheld on account of Section 409A of the Code shall be paid to the personal
representative of Employee’s estate within 60 days after the date of Employee’s
death.
15.
Term of Agreement. The term of this Agreement shall be for five years
commencing on the date hereof and shall automatically be renewed for additional
periods of one year until the Company notifies Employee in writing, at least 90
days in advance of expiration, that this Agreement will not be renewed. If
any notice of non-renewal occurs within two years after a Change of Control,
such notice shall constitute an involuntary Termination of Employment for
purposes of Section 3 above. Notwithstanding anything herein to the contrary,
this Agreement (other than the provisions of Sections 11 through 12 hereof)
shall terminate on the Phase-Out Date or if the employment of Employee by the
Company shall terminate for any reason other than as provided herein.
16.
Successor Company. The Company shall require any successor or successors
(whether direct or indirect, by purchase, merger, consolidation or otherwise) to
all or substantially all of the business and/or assets of the Company, by
agreement in form and substance satisfactory to Employee, to acknowledge
expressly that this Agreement is binding upon and enforceable against the
Company in accordance with the terms hereof, and to become jointly and severally
obligated with the Company to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform if no such
succession or successions had taken place. Failure of the Company to obtain such
agreement prior to the effectiveness of any such succession shall be a breach of
this Agreement. As used in this Agreement, the Company shall mean the Company as
herein defined and any such successor or successors to its business and/or
assets, jointly and severally.
17.
Notice. All notices and other communications required or permitted hereunder or
necessary or convenient in connection herewith shall be in writing and shall be
delivered personally or mailed by registered or certified mail, return receipt
requested, or by overnight express courier service, as follows:
If to the Company, to:
The York Water
Company
000 Xxxx Xxxxxx
Xxxxxx
Xxxx, XX
00000-0000
Attention:
Chairman of the Board
If to Employee, to:
____________________
____________________
____________________
or to such other names or addresses as the
Company or Employee, as the case may be, shall designate by notice to the other
party hereto in the manner specified in this Section. Any such notice shall be
deemed delivered and effective when received in the case of personal delivery,
five days after deposit, postage prepaid, with the U.S. Postal Service in the
case of registered or certified mail, or on the next business day in the case of
overnight express courier service.
18.
Governing Law. This Agreement shall be governed by and interpreted under the
laws of the Commonwealth of Pennsylvania without giving effect to any conflict
of laws provisions.
19.
Contents of Agreement, Amendment and Assignment.
(a)
This Agreement supersedes all prior agreements, sets forth the entire
understanding between the parties hereto with respect to the subject matter
hereof and cannot be changed, modified, extended or terminated except upon
written amendment executed by Employee and the Company and only if approved by
the Board. The provisions of this Agreement may provide for payments to Employee
under certain compensation or bonus plans under circumstances where such plans
would not provide for payment thereof. It is the specific intention of the
parties that the provisions of this Agreement shall supersede any provisions to
the contrary in such plans, and such plans shall be deemed to have been amended
to correspond with this Agreement without further action by the Company.
(b)
Nothing in this Agreement shall be construed as giving Employee any right to be
retained in the employ of the Company.
(c)
All of the terms and provisions of this Agreement shall be binding upon, inure
to the benefit of, and be enforceable by the respective heirs, representatives,
successors and assigns of the parties hereto, except that the duties and
responsibilities of Employee and the Company hereunder shall not be assignable
in whole or in part.
20.
Severability. If any provision of this Agreement or application thereof to
anyone or under any circumstances shall be determined to be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other
provisions or applications of this Agreement, which can be given effect without
the invalid or unenforceable provision or application.
21.
Remedies Cumulative; No Waiver. No right conferred upon Employee by this
Agreement is intended to be exclusive of any other right or remedy, and each and
every such right or remedy shall be cumulative and shall be in addition to any
other right or remedy given hereunder or now or hereafter existing at law or in
equity. No delay or omission by Employee in exercising any right, remedy
or power hereunder or existing at law or in equity shall be construed as a
waiver thereof.
22.
Miscellaneous. All section headings are for convenience only. This
Agreement may be executed in several counterparts, each of which is an original.
It shall not be necessary in making proof of this Agreement or any
counterpart hereof to produce or account for any of the other
counterparts.
23.
Employee’s Acknowledgment. By executing this Agreement as of the date first
above written, Employee acknowledges that he has no grounds for asserting that a
Good Reason Termination exists as of that date and, therefore, that no
obligation under Section 3 exists at the current time.
IN WITNESS WHEREOF, the undersigned, intending
to be legally bound, have executed this Agreement as of the date first above
written.
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THE YORK WATER COMPANY
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By:
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Witness
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President and CEO
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Witness
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Employee
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Schedule 10.19
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Name
|
Original Agreement Date
|
Multiple of Base Pay for Involuntary Termination or Good Reason
Termination
|
|
Xxxxxxx X.
Xxxxx
|
January 26,
1999
|
2.74
|
|
Xxxxxxxx X.
Xxxxxx
|
December
15, 2003
|
.25
|
|
Xxxxxx X.
Xxxxxx
|
December
15, 2003
|
.25
|
|
Xxxxxx X.
Hand
|
November 5,
2008
|
.25
|
|
Xxxxx X.
XxXxxxxx
|
January 26,
1999
|
.25
|
