EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT is made and entered into this 3rd day of
February, 1997, but is effective for all purposes as of the date specified below
in Section 2, by and between ECHELON INTERNATIONAL CORPORATION, a Florida
corporation (the "Company"), and XXXXXXX X. XXXXXXXX, residing at 0000 Xxxx Xxxx
Xxxx, Xxxxxxxx Xxxxxx, Xxxxxxx 00000 (the "Executive").
W I T N E S S E T H:
1. EMPLOYMENT
The Company hereby employs the Executive, and the Executive hereby accepts
such employment, upon the terms and subject to the conditions set forth in this
Agreement.
2. TERM
Subject to the provisions for termination as hereinafter provided, the
term of employment under this Agreement shall begin as of January 1, 1997, and
shall continue through December 31, 1998, provided, however, that this
Employment Agreement shall automatically be renewed for successive one year
terms unless either party gives the other written notice of termination at least
ninety (90) days prior to the end of any such term.
3. COMPENSATION
(a) Base Salary. The Company shall pay to the Executive as basic
compensation for all services rendered by the Executive during the term of this
Agreement a basic annualized salary of $50,000 per year, or such other sum in
excess of that amount as the parties may agree on from time to time or as
provided in the next sentence (as in effect from time to time, the "Base
Salary"), payable monthly or in other more frequent installments, as determined
by the Company. The Board of Directors shall have no authority to reduce the
Executive's Base Salary in effect from time to time. In addition, the Board of
Directors, in its discretion, may award a bonus or bonuses to the Executive in
addition to the bonuses provided for in Section 3(b).
(b) Bonuses. In addition to the Base Salary to be paid pursuant to Section
3(a), for each of the Company's two fiscal years ending December 31, 1997 and
December 31, 1998 during the term of this Agreement, the Company shall pay as
incentive compensation the commissions, to the extent earned, specified on
Exhibit A to this Agreement. For each fiscal year ending after December 31,
1998, provided the Executive continues to be employed by the Company under this
Agreement, the Executive shall be eligible for incentive compensation annual
bonus plan(s) adopted by the Board of Directors of the Company from time to time
in accordance with the terms of such plans.
(c) Certain Plans and Initial Award. (i) It is anticipated that the
Company will adopt certain incentive compensation plans including a long term
incentive plan (the "LTIP"), providing for annual or other periodic awards to
key employees, among other things, of restricted stock and a stock option plan
(the "ISO/NSO Plan"), providing for the annual or other periodic issuance of
options to purchase the Company's common stock. The LTIP and ISO/NSO are
referred to collectively in this Agreement as the "Plans." The Executive will be
given an opportunity to participate in the Plans, in accordance with and subject
to the terms of the Plans as they may be adopted, amended and administered from
time to time.
(ii) In addition to the incentive compensation referred to in
Section 3(c)(i), the Company hereby agrees to issue to the Executive under the
LTIP, effective immediately following the completion of the Distribution, 8,084
shares of the Company's common stock (the "Restricted Stock") which Restricted
Stock shall be subject to a risk of forfeiture, which risk will lapse as to
one-fifth of the shares of the Restricted Stock on January 31, 1998, and as to
an additional one-fifth of the Initial Restricted Stock on each of January 31,
1999, January 31, 2000, January 31, 2001 and January 31, 2002.
(d) Reimbursement. The Company shall reimburse the Executive, in
accordance with the Company's policies and practices for senior management, for
all reasonable expenses incurred by the Executive in the performance of the
Executive's duties under this Agreement, provided, however, that the Executive
must furnish to the Company an itemized account, satisfactory to the Company, in
substantiation of such expenditures.
(e) Certain Benefits. The Executive shall be entitled to such fringe
benefits including, but not limited to, medical and other insurance benefits as
may be provided from time to time by the Company to other senior officers of the
Company. In addition, without restricting the foregoing, the Company shall
provide the Executive at the Company's sole cost and expense with (i) a policy
or policies of term life insurance (the "Basic Life Insurance") providing, among
other things, basic death benefits of the greater of $150,000 or two times the
Base Salary in effect from time to time, (ii) directors and officers liability
insurance with coverage, terms and limits suitable for a vice president of a New
York Stock Exchange listed company comparable in financial size and wherewithal
to that of the Company (iii) a monthly allowance of $400 cash to reimburse the
Executive for the use and maintenance of his automobile in furtherance of the
business and affairs of the Company, provided that the Executive shall at all
times insure the Executive and the Company in such amounts as may be reasonably
requested by the Company against claims for bodily injury, death and property
damages occurring as a result of its use and (iv) a portable and car based
cellular telephone for which the Company will pay for all business telephone
calls made by the Executive. The Company shall use its reasonable best efforts
to make available to the Executive in connection with providing and paying for
the Basic Life Insurance the opportunity to purchase at the Executive's sole
cost and expense additional life insurance with a basic death benefit (the
"Optional Life Insurance") equal to the greater of $150,000 or two times the
Executive's Base Salary in effect from time to time. The Company shall use its
reasonable best efforts to effect the transfer of the ownership to the Executive
of the policy or policies for the Basic Life Insurance and the Optional Life
Insurance, if any, upon the termination of the Executive's employment by the
Company. After the Executive's termination,ation of the Executive.
(f) Other Incentive and Benefit Plans. The Executive shall be eligible to
participate, in accordance with the terms of such plans as they may be adopted,
amended and administered from time to time, in incentive, bonus, benefit or
similar plans, including without limitation, any stock option, bonus or other
equity ownership plan, any short, mid or long term incentive plan and any other
bonus, pension or profit sharing plans established by the Company from time to
time.
4. DUTIES
(a) General. The Executive is engaged as a Vice President of the Company.
In addition, at the request of the Board of Directors, the Executive shall serve
in the same positions in any wholly owned subsidiary of the Company, without any
additional compensation. The Executive shall have such duties and hold such
other offices as may from time to time be reasonably assigned to him by the
Board of Directors of the Company.
(b) Indemnification. To the fullest extent permitted by law, the Company
shall indemnify and hold harmless the Executive for all liabilities, costs,
expenses and damages arising out of or in connection with the Executive's
service to the Company under this Agreement. In furtherance of this indemnity,
the Company shall enter into an indemnification agreement, in form and substance
reasonably satisfactory to the Executive and the Company. In addition, the
indemnity provided hereunder shall extend to service by the Executive as an
officer or director, or service in a similar capacity, for any civic, community
or charitable organization, provided such service is undertaken at the request
of or with the knowledge and acquiescence of the Company. The foregoing
indemnification shall be in addition to any rights or benefits the Executive may
have under statute, the Bylaws or Articles of Incorporation of the Company,
under a policy of insurance, or otherwise.
5. EXTENT OF SERVICES; VACATIONS AND DAYS OFF
(a) Extent of Services. During the term of the Executive's employment
under this Agreement, except during customary vacation periods and periods of
illness, the Executive shall devote full-time energy and attention during
regular business hours to the benefit and business of the Company as may be
reasonably necessary in performing the Executive's duties pursuant to this
Agreement.
(b) Vacations. The Executive shall be entitled to vacations with pay and
to such personal and sick leave with pay in accordance with the policy of the
Company as may be established from time to time by the Company and applied to
other senior officers of the Company. However, in no event shall the Executive
be entitled to less than three weeks vacation with pay. Unused vacation days may
be carried over from one year to the next for a period of up to two years. Any
vacation days which remain unused on the second anniversary of the end of the
fiscal year to which they originally related shall expire and shall thereafter
no longer be useable by the Executive.
6. FACILITIES
The Company shall provide the Executive with a fully furnished office, and
the facilities of the Company shall be generally available to the Executive in
the performance of the Executive's duties pursuant to this Agreement, it being
understood and contemplated by the parties that all equipment, supplies and
office personnel required in the performance of the Executive's duties under
this Agreement shall be supplied by and at the sole expense of the Company.
7. ILLNESS OR INCAPACITY, TERMINATION ON DEATH, ETC.
(a) Death. If the Executive dies during the term of the Executive's
employment, the Company shall pay to the estate of the Executive within 30 days
after the date of death such Base Salary and any cash bonus compensation earned
pursuant to the provisions of any incentive compensation plan then in effect but
not yet paid, as would otherwise have been payable to the Executive up to the
end of the month in which the Executive's death occurs. After receiving the
payments provided in this Section 7(a) the Executive and the Executive's estate
shall have no further rights under this Agreement (other than those rights
already accrued).
(b) Disability. (i) During any period of disability, illness or incapacity
during the term of this Agreement which renders the Executive temporarily unable
to perform the services required under this Agreement, the Executive shall
receive the Base Salary payable under Section 3(a) of this Agreement plus any
cash bonus compensation earned pursuant to the provisions of any incentive
compensation plan then in effect but not yet paid, less any cash benefits
received by him under any disability insurance carried by or provided by the
Company. Upon the Executive's "Permanent Disability" (as defined below),the
Executive shall receive the Base Salary payable under Section 3(a) of this
Agreement plus any cash bonus compensation earned pursuant to the provisions of
any incentive compensation plan then in effect but not yet paid, as would
otherwise have been payable to the Executive up to the end of the month in which
the Executive's Permanent Disability occurs. Upon "Permanent Disability" (as
that term is defined in Section 7(b)(ii) below) of the Executive, except as
provided in this Section 7(b), all rights of the Executive under this Agreement
(other than rights already accrued) shall terminate.
(ii) The term "Permanent Disability" as used in this Agreement shall
mean, in the event a disability insurance policy is maintained by the Company
covering the Executive at such time and is in full force and effect, the
definition of permanent disability set forth in such policy. In the event no
disability insurance policy is maintained at such time and in full force and
effect, "Permanent Disability" shall mean the inability of the Executive, as
determined by the Board of Directors of the Company, by reason of physical or
mental disability to perform the duties required of him under this Agreement for
a period of one hundred and eighty (180) days in any one-year period. Successive
periods of disability, illness or incapacity will be considered separate periods
unless the later period of disability, illness or incapacity is due to the same
or related cause and commences less than six months from the ending of the
previous period of disability. Upon such determination, the Board of Directors
may terminate the Executive's employment under this Agreement upon ten (10)
days' prior written notice. If any determination of the Board of Directors with
respect to permanent disability is disputed by the Executive, the parties hereto
agree to abide by the decision of a panel of three physicians. The Executive and
Company shall each appoint one member, and the third member of the panel shall
be appointed by the other two members. The Executive agrees to make himself
available for and submit to examinations by such physicians as may be directed
by the Company. Failure to submit to any such examination shall constitute a
breach of a material part of this Agreement.
8. OTHER TERMINATIONS
(a) By the Executive. (i) The Executive may terminate the Executive's
employment hereunder upon giving at least ninety (90) days' prior written
notice. In addition, the Executive
shall have the right to terminate the Executive's employment hereunder on the
conditions and at the times provided for in Section 8(d) of this Agreement.
(ii) If the Executive gives notice pursuant to Section 8(a)(i)
above, the Company shall have the right (but not the obligation) to relieve the
Executive, in whole or in part, of the Executive's duties under this Agreement,
or direct the Executive to no longer perform such duties, or direct that the
Executive should no longer report to work, or any combination of the foregoing.
In any such event, the Executive shall be entitled to receive only the Base
Salary not yet paid, as would otherwise have been payable to the Executive up to
the end of the month specified as the month of termination in the termination
notice. In the event the Executive gives notice pursuant to Section 8(a)(i)
above but specifies a termination date in excess of ninety (90) days from the
date of such notice, the Company shall have the right (but not the obligation)
to accelerate the termination date to any date prior to the date specified in
the notice that is in excess of ninety (90) days from the date of the notice,
and the Company shall have the right (but not the obligation) to relieve the
Executive, in whole or in part, of the Executive's duties under this Agreement,
or direct the Executive to no longer perform such duties, or direct that the
Executive should no longer report to work, or any combination of the foregoing;
provided, however, that in any such event the Executive shall be entitled to
receive the Base Salary, as would otherwise have been payable to the Executive
up to the end of the month of the termination date properly selected by the
Company. Upon receiving the payments provided for under this Section 8(a), all
rights of the Executive under this Agreement (other than rights already accrued)
shall terminate.
(b) Termination for "Good Cause". (i) Except as otherwise provided in this
Agreement, the Company may terminate the employment of the Executive hereunder
only for "good cause," which shall mean: (A) the Executive's conviction of
either a felony involving moral turpitude or any crime in connection with the
Executive's employment by the Company which causes the Company a substantial
detriment, but specifically shall not include traffic offenses; (B) actions by
the Executive as an executive officer of the Company which clearly are contrary
to the best interests of the Company; (C) the Executive's willful failure to
take actions permitted by law and necessary to implement policies of the
Company's Board of Directors which the Board of Directors has communicated to
him in writing, provided that minutes of a Board of Directors meeting attended
in its entirety by the Executive shall be deemed communicated to the Executive;
(D) the Executive's continued failure to attend to the Executive's duties as an
executive officer of the Company; or (E) any condition which either resulted
from the Executive's substantial dependence, as determined by the Board of
Directors of the Company, on alcohol, or any narcotic drug or other controlled
or illegal substance. If any determination of substantial dependence is disputed
by the Executive, the parties hereto agree to abide by the decision of a panel
of three physicians appointed in the manner and subject to the same penalties
for noncompliance as specified in Section 7(b)(ii) of this Agreement.
(ii) Notwithstanding the foregoing, each of the foregoing bases for
termination specified in (A) through (E) of Subsection 8(b)(i) shall constitute
"Good Cause" only if (1) the Executive has been provided with written notice of
any assertion that there is a basis for termination for good cause which notice
shall specify in reasonable detail specific facts regarding any such assertion
and the Executive has been given a reasonable period of time within which to
remedy r cure the problem or complaint, (2) such notice is provided to the
Executive a reasonable time before the Board of Directors meets to consider any
possible termination for cause, (3) at or prior to the meeting of the Board of
Directors to consider the matters described in the written notice, an
opportunity is provided to the Executive and his counsel to be heard by the
Board of Directors with respect to the matters described in the written notice,
before it acts with respect to such matter, (4) any resolution or other action
by the Board of Directors with respect to any deliberation regarding or decision
to terminate the Executive for good cause is duly adopted by a vote of a
majority of the entire Board of Directors of the Company at a meeting of the
Board duly called and held and (5) the Executive is promptly provided with a
copy of the resolution or other corporate action taken with respect to such
termination.
(iii) If the employment of the Executive is terminated for good
cause under Section 8(b)(i) of this Agreement, the Company shall pay to the
Executive any Base Salary earned prior to the effective date of termination but
not yet paid and any cash bonus compensation earned pursuant to the provisions
of any incentive compensation plan then in effect but not paid to the Executive
prior to the effective date of such termination. Under such circumstances, such
payments shall be in full and complete discharge of any and all liabilities or
obligations of the Company to the Executive hereunder, and the Executive shall
be entitled to no further benefits under this Agreement (other than rights
already accrued).
(iv) Termination of the employment of the Executive other than as
expressly specified above in this Section 8(b) for good cause shall be deemed to
be a termination of employment "Without Good Cause."
(c) Termination Without Good Cause. (i) Notwithstanding any other
provision of this Agreement, the Company shall have the right to terminate the
Executive's employment Without Good Cause pursuant to the provisions of this
Section 8(c). If the Company shall terminate the employment of the Executive
Without Good Cause effective on a date earlier than the termination date
provided for in Section 2 (with the effective date of termination as so
identified by the Company being referred to herein as the "Accelerated
Termination Date"), the Executive, until the end of the term of this Agreement
then in effect as provided for in Section 2, or until the date which is 12
months after the Accelerated Termination Date, whichever is greater, shall
continue to receive (1) the Base Salary, paid in the same monthly on other
periodic installments ad in effect prior to the Accelerated Termination Date and
(2) any other cash or other bonus compensation earned prior to the date of such
termination pursuant to the terms of all incentive compensation plans then in
effect other than under the Management Incentive; provided that, notwithstanding
such termination of employment, the Executive's covenants set forth in Section
10 and Section 11 are intended to and shall remain in full force and effect and
provided further that in the event of such termination, the Company shall have
the right (but not the obligation) to relieve the Executive, in whole or in
part, of the Executive's duties under this Agreement, or direct the Executive to
no longer perform such duties, or direct that the Executive no longer be
required to report to work, or any combination of the foregoing.
(ii) The parties agree that, because there can be no exact measure of the
damage that would occur to the Executive as a result of a termination by the
Company of the Executive's employment Without Good Cause, the payments and
benefits paid and provided pursuant to this Section 8(c) shall be deemed to
constitute liquidated damages and not a penalty for the Company's termination of
the Executive's employment Without Good Cause.
(d) Change of Control. (i) For purposes of this Agreement, a "Change in
Control" shall mean the first to occur of:
(1) a change in control of the Company of a nature that is required,
pursuant to the Securities Exchange Act of 1934 (the "1934 Act"), to be reported
in response to Item 1(a) of a Current Report on Form 8-K or Item 6(e) of
Schedule 14A under the 1934 Act (in each case under this Agreement, references
to provisions of the 1934 Act and the rules and regulations promulgated
thereunder being understood to refer to such law, rules and regulations as the
same are in effect on November 1, 1996); or
(2) the acquisition of "Beneficial Ownership" (as defined in Rule
13d-3 under the 0000 Xxx) of the Company's securities comprising 35% or more of
the combined voting power of the Company's outstanding securities by any
"person" (as that term is used in Sections 13(d) and 14(d)(2) of the 1934 Act
and the rules and regulations promulgated thereunder, but not including any
trustee or fiduciary acting in that capacity for an employee benefit plan
sponsored by the Company) and such person's "affiliates" and "associates" (as
those terms are defined under the 1934 Act), but excluding any ownership by the
Executive and his affiliates and associates; or
(3) the failure of the "Incumbent Directors" (as defined below) to
constitute at least a majority of all directors of the Company (for these
purposes, "Incumbent Directors" means individuals who were the directors of the
Company on November 1, 1996, and, after his or her election, any individual
becoming a director subsequent to November 1, 1996, whose election, or
nomination for election by the Company's stockholders, is approved by a vote of
at least two-thirds of the directors then comprising the Incumbent Directors,
except that no individual shall be considered an Incumbent Director who is not
recommended by management and whose initial assumption of office as a director
is in connection with an actual or threatened "election contest" relating to the
"election of directors" of the Company, as such terms are used in Rule 14a-11 of
Regulation 14A under the 0000 Xxx); or
(4) the closing of a sale of all or substantially all of the assets
of the Company;
(5) the Company's adoption of a plan of dissolution or liquidation;
or
(6) the closing of a merger or consolidation involving the Company
in which the Company is not the surviving corporation or if, immediately
following such merger or consolidation, less than seventy-five percent (75%) of
the surviving corporation's outstanding voting stock is held or is anticipated
to be held by persons who are stockholders of the Company immediately prior to
such merger or consolidation.
(ii) If a Change in Control of the Company occurs, the Executive
shall have the right, exercisable for a period of one year thereafter by
delivering a written statement to that effect to the Company, to immediately
terminate this Agreement and upon such a determination the Executive shall have
the right to receive and the Company shall be obligated to pay to Executive in
cash a lump sum payment in an amount equal to the sum of (1) two times the
annual Base Salary then in effect and (2) the additional payments necessary to
discharge certain tax liabilities (the "Gross Up") as that term is defined in
Section 13 of this Agreement (the sum of the foregoing amounts other than the
Gross Up being referred to as the "Change in Control Payment"). If the Executive
fails to exercise his rights under this Section 8(d) within one year following a
Change in Control, such rights shall expire and be of no further force or
effect.
(e) Intentions Regarding Certain Stock and Benefit Plans. Except as
otherwise provided herein, upon any termination of the Executive's employment
Without Good Cause, or upon the exercise by the Executive of his rights to
terminate his employment following a Change of Control, it is the intention of
the parties that any and all vesting or performance requirements or conditions
affecting any outstanding restricted stock, performance stock, stock option,
stock appreciation right, bonus, award, right, grant or any other incentive
compensation under any of the Plans, under this Agreement, or otherwise
received, shall be deemed to be fully satisfied and any risk of forfeiture with
respect thereto shall be deemed to have lapsed.
(f) Certain Rights Mutually Exclusive. The provisions of Section 8(c) and
Section 8(d) are mutually exclusive, provided, however, that if within one year
following commencement of an 8(c) payout there shall be a Change in Control as
defined in Section 8(d)(i), then the Executive shall be entitled to the amount
payable to the Executive under Section 8(d)(ii) and Section 8(d)(iii) reduced by
the amount that the Executive has received under Section 8(c) up to the date of
the change in control. The triggering of the lump sum payment requirement of
Section 8(d) shall cause the provisions of Section 8(c) to become inoperative.
9. DISCLOSURE
The Executive agrees that during the term of the Executive's employment by
the Company, the Executive will disclose and disclose only to the Company all
ideas, methods, plans, developments or improvements known by him which relate
directly or indirectly to the business of the Company, whether acquired by the
Executive before or during the Executive's employment by the Company. Nothing in
this Section 9 shall be construed as requiring any such communication where the
idea, plan, method or development is lawfully protected from disclosure as a
trade secret of a third party or by any other lawful prohibition against such
communication. The covenants of this Section 9 shall not be violated by ordinary
and customary communications with reporters, bankers and securities analysts and
other members of the investment community.
10. CONFIDENTIALITY
The Executive agrees to keep in strict secrecy and confidence any and all
information the Executive assimilates or to which the Executive has access
during the Executive's employment by the Company and which has not been publicly
disclosed and is not a matter of common knowledge in the fields of work of the
Company. The Executive agrees that both during and after the term of the
Executive's employment by the Company, the Executive will not, without the prior
written consent of the Company, disclose any such confidential information to
any third person, partnership, joint venture, company, corporation or other
organization. The foregoing covenants shall not be breached to the extent that
any such confidential information becomes a matter of general knowledge other
than through a breach by the Executive of the Executive's obligations under this
Section 10.
11. NONCOMPETITION AND NONSOLICITATION
(a) General. The Executive hereby acknowledges that, during and solely as
a result of the Executive's employment by the Company, the Executive has
received and shall continue to receive: (1) special training and education with
respect to the operations of the Company's real estate development and
management businesses and its leasing, lending and financing activities, and
other related matters, and (2) access to confidential information and business
and professional contacts. In consideration of the special and unique
opportunities afforded to the Executive by the Company as a result of the
Executive's employment, as outlined in the previous sentence, the Executive
hereby agrees to the restrictive covenants in this Section 11.
(b) Noncompetition. During the term of the Executive's employment, whether
pursuant to this Agreement, any automatic or other renewal hereof or otherwise,
and, except as may be otherwise herein provided, (i) for a period of one (1)
year after the termination of the Executive's employment with the Company,
regardless of the reason for such termination, the Executive shall not, directly
or indirectly, within Hillsborough or Pinellas County, Florida, enter into or
engage in any business with, be employed by or consult with any company listed
on Exhibit B attached hereto or any subsidiary or affiliate of such company and
(ii) for a period of two (2) years after the termination of the Executive's
employment with the Company, regardless of the reason for such termination, the
Executive shall not, directly or indirectly, with respect to any real estate
lending, leasing, financing, development or management business in Florida,
solicit, contract with or consult with (A) any person who, or entity which, is
at any time during the term of the Executive's employment a tenant of the
Company, (B) any third party for whom the Company manages or leases property or
(C) any tenants of any third party for whom the Company manages or leases
property; provided, however, notwithstanding anything contained herein to the
contrary, the provisions of this Section 11(b)(ii)(B) and (C) shall not apply to
the Executive if the Executive is terminated "Without Good Cause" (as defined in
this Agreement) or the Executive terminates this Agreement following the
substantial reduction by the Board of Directors of the bonus compensation that
may be earned by the Executive. The Executive shall not engage in such
prohibited activities, either as an individual, partner, officer, director,
stockholder, employee, advisor, independent contractor, joint venturer,
consultant, agent, or representative or salesman for any person, firm,
partnership, corporation or other entity. The restrictions of this Section 11
shall not be violated by (i) the ownership of no more than 2% of the outstanding
securities of any company whose stock is traded on a national securities
exchange or is quoted in the Automated Quotation System of the National
Association of Securities Dealers (NASDAQ), or (ii) other outside business
investments that do not in any manner conflict with the services to be rendered
by the Executive for the Company and that do not diminish or detract from the
Executive's ability to render the Executive's required attention to the business
of the Company.
(c) Nonsolicitation. During the Executive's employment with the Company
and, except as may be otherwise herein provided, for a period of two (2) years
following the termination of the Executive's employment with the Company,
regardless of the reason for such termination, the Executive agrees the
Executive will refrain from and will not, directly or indirectly, as an
individual, partner, officer, director, stockholder, employee, advisor,
independent contractor, joint venturer, consultant, agent, representative,
salesman or otherwise solicit any of the employees of the Company to terminate
their employment.
(d) Term Extended or Suspended. The period of time during which the
Executive is prohibited from engaging in certain business practices pursuant to
Sections 11(b) or (c) shall be extended by any length of time during which the
Executive is in breach of such covenants.
(e) Essential Element. It is understood by and between the parties hereto
that the foregoing restrictive covenants set forth in Sections 11(a) through (c)
are essential elements of this Agreement, and that, but for the agreement of the
Executive to comply with such covenants, the Company would not have agreed to
enter into this Agreement. Such covenants by the Executive shall be construed as
agreements independent of any other provision in this Agreement. The existence
of any claim or cause of action of the Executive against the Company, whether
predicated on this Agreement, or otherwise, shall not constitute a defense to
the enforcement by the Company of such covenants.
(f) Severability. It is agreed by the Company and Executive that if any
portion of the covenants set forth in this Section 11 are held to be invalid,
unreasonable, arbitrary or against public policy, then such portion of such
covenants shall be considered divisible both as to time and geographical area.
The Company and Executive agree that, if any court of competent jurisdiction
determines the specified time period or the specified geographical area
applicable to this Section 11 to be invalid, unreasonable, arbitrary or against
public policy, a lesser time period or geographical area which is determined to
be reasonable, non-arbitrary and not against public policy may be enforced
against the Executive. The Company and the Executive agree that the foregoing
covenants are appropriate and reasonable when considered in light of the nature
and extent of the business conducted by the Company.
12. SPECIFIC PERFORMANCE
The Executive agrees that damages at law will be an insufficient remedy to
the Company if the Executive violates the terms of Sections 9, 10 or 11 of this
Agreement and that the Company would suffer irreparable damage as a result of
such violation. Accordingly, it is agreed that the Company shall be entitled,
upon application to a court of competent jurisdiction, to obtain injunctive
relief to enforce the provisions of such Sections, which injunctive relief shall
be in addition to any other rights or remedies available to the Company. The
Executive agrees to pay to the Company all reasonable costs and expenses
incurred by the Company relating to the enforcement of the terms of Sections 9,
10 or 11 of this Agreement, including reasonable fees and reasonable
disbursements of counsel selected by the Company (during investigation and
before and at trial and in appellate proceedings).
13. PAYMENT OF EXCISE TAXES
(a) Payment of Excise Taxes. If the Executive is to receive any Change of
Control Payment under Section 8(d), or any benefit or payment under the Plans as
a result of a Change of Control, following the death of Permanent Disability of
the Executive or following the termination of employment hereunder Without Good
Cause (such sections being referred to as the "Covered Sections" and the
benefits and payments to be received thereunder being referred to as the
"Covered Payments"), the Executive shall be entitled to receive the amount
described below to the extent applicable: If any Covered Payment(s) under any of
the Covered Sections or by the Company under another plan or agreement
(collectively, the "Payments") are subject to the excise tax imposed by Section
4999 of the Internal Revenue Code of 1986 (as amended from time to time, the
"Code"), or any successor or similar provision of the Code (the "Excise Tax"),
the Company shall pay the Executive an additional amount (the "Gross Up") such
that the net amount retained by the Executive after deduction of any Excise Tax
on the Payments and the federal income tax on any amounts paid under this
Section 13 shall be equal to the Payments.
(b) Certain Adjustment Payments. For purposes of determining the Gross Up,
the Executive shall be deemed to pay the federal income tax at the highest
marginal rate of taxation (currently 39.5%) in the calendar year in which the
payment to which the Gross Up applies is to be made. The determination of
whether such Excise Tax is payable and the amount thereof shall be made upon the
opinion of tax counsel selected by the Company and reasonably acceptable to the
Executive. The Gross Up, if any, that is due as a result of such determination
shall be paid to the Executive in cash in a lump sum within thirty (30) days of
such computation. If such opinion is not finally accepted by the Internal
Revenue Service upon audit or otherwise, then appropriate adjustments shall be
computed (without interest but with Gross Up, if applicable) by such tax counsel
based upon the final amount of the Excise Tax so determined; any additional
amount due the Executive as a result of such adjustment shall be paid to the
Executive by his or her Company in cash in a lump sum within thirty (30) days of
such computation, or any amount due the Executive's Company as a result of such
adjustment shall be paid to the Company by the Executive in cash in a lump sum
within thirty (30) days of such computation.
14. MISCELLANEOUS
(a) Waiver of Breach. The waiver by either party to this Agreement of a
breach of any of the provisions of this Agreement by the other party shall not
be construed as a waiver of any subsequent breach by such other party.
(b) No Right to Continued Employment. Notwithstanding the fact that
certain provisions of this Agreement and/or Exhibit A reference a three year
cycle or provide for benefits upon a third year of employment, this Agreement
shall have a two year term with annual one year renewal terms subject to the
termination provisions contained herein.
(c) Compliance With Other Agreements. The Executive represents and
warrants that the execution of this Agreement by him and the Executive's
performance of the Executive's obligations hereunder will not conflict with,
result in the breach of any provision of or the termination of or constitute a
default under any Agreement to which the Executive is a party or by which the
Executive is or may be bound.
(d) Binding Effect; Assignment. The rights and obligations of the Company
under this Agreement shall inure to the benefit of and shall be binding upon the
successors and assigns of the Company. This Agreement is a personal employment
contract and the rights, obligations and interests of the Executive hereunder
may not be sold, assigned, transferred, pledged or hypothecated.
(e) Entire Agreement. This Agreement contains the entire agreement and
supersedes all prior agreements and understandings, oral or written, with
respect to the subject matter hereof. This Agreement may be changed only by an
agreement in writing signed by the party against whom any waiver, change,
amendment, modification or discharge is sought.
(f) No Duty to Mitigate. The Executive shall be under no duty to mitigate
any loss of income as result of the termination of his employment hereunder and
any payments due the Executive upon termination of employment shall not be
reduced in respect of any other employment compensation received by the
Executive following such termination.
(g) Florida Law. This Agreement shall be construed pursuant to and
governed by the substantive laws of the State of Florida (except that any
provision of Florida law shall not apply if the law of a state or jurisdiction
other than Florida would otherwise apply).
(h) Venue; Process. The parties to this Agreement agree that jurisdiction
and venue in any action brought pursuant to this Agreement to enforce its terms
or otherwise with respect to the relationships between the parties shall
properly lie in and only in the Circuit Court of the Sixth Judicial Circuit of
the State of Florida in and for Pinellas County (the "Circuit Court") and the
parties agree that jurisdiction shall not properly lie in any other jurisdiction
provided, however, if jurisdiction does not properly lie with the Circuit Court,
the parties agree that jurisdiction and venue shall properly lie in and only in
the United States District Court for the Middle District of Florida, Tampa
Division. The parties hereby waive any objections which they may now or
hereafter have based on venue and/or forum non conveniens and irrevocably submit
to the jurisdiction of any such court in any legal suit, action or proceeding
arising out of or relating to this Agreement. The parties further agree that the
mailing by certified or registered mail, return receipt requested, of any
process required by any such court shall constitute valid and lawful service of
process against them, without the necessity for service by any other means
provided by statute or rule of court.
(i) Headings. The headings of the various sections in this Agreement are
inserted for the convenience of the parties and shall not affect the meaning,
construction or interpretation of this Agreement.
(j) Severability. Any provision of this Agreement which is determined by a
court of competent jurisdiction to be prohibited, unenforceable or not
authorized in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition, unenforceability or non-authorization without
invalidating the remaining provisions hereof or affecting the validity,
enforceability or legality of such provision in any other jurisdiction. In any
such case, such determination shall not affect any other provision of this
Agreement, and the remaining provisions of this Agreement shall remain in full
force and effect. If any provision or term of this Agreement is susceptible to
two or more constructions or interpretations, one or more of which would render
the provision or term void or unenforceable, the parties agree that a
construction or interpretation which renders the term or provision valid shall
be favored.
(k) Deduction for Tax Purposes. The Company's obligations to make payments
under this Agreement are independent of whether any or all of such payments are
deductible expenses of the Company for federal income tax purposes.
(l) Enforcement. If, within 10 days after demand to comply with the
obligations of one of the parties to this Agreement served in writing on the
other, compliance or reasonable assurance of compliance is not forthcoming, and
the party demanding compliance engages the services of an attorney to enforce
rights under this Agreement, the prevailing party in any action shall be
entitled to recover all reasonable costs and expenses of enforcement (including
reasonable attorneys' fees and reasonable expenses during investigation, before
and at trial and in appellate proceedings). In addition, each of the parties
agrees to indemnify the other in respect of any and all claims, losses, costs,
liabilities and expenses, including reasonable fees and reasonable disbursements
of counsel (during investigation prior to initiation of litigation and at trial
and in appellate proceedings if litigation ensues), directly or indirectly
resulting from or arising out of a breach by the other party of their respective
obligations hereunder. The parties' costs of enforcing this Agreement shall
include prejudgment interest. Additionally, if any party incurs any
out-of-pocket expenses in connection with the enforcement of this Agreement, all
such amounts shall accrue interest at 18% per annum (or such lower rate as may
be required to avoid any limit imposed by applicable law) commencing 30 days
after any such expenses are incurred.
(m) Notices. All notices which are required or may be given under this
Agreement shall be in writing and shall be deemed to have been duly given when
received if personally delivered; when transmitted if transmitted by telecopy or
similar electronic transmission method; one working day after it is sent, if
sent by recognized expedited delivery service; and three days after it is sent,
if mailed, first class mail, certified mail, return receipt requested, with
postage prepaid. In each case notice shall be sent to:
To the Company: Echelon International Corporation
Xxx Xxxxxxxx Xxxxx
Xx. Xxxxxxxxxx, XX 00000
Attn:Chairman of the Board
Telecopy: (000) 000-0000
To the Executive at the Executive's address herein first above written, or
to such other address as either party may specify by written notice to the
other.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement the
day and year first above written.
ATTEST: ECHELON INTERNATIONAL
CORPORATION
(Corporate Seal)
________________________________ By:____________________________________
Secretary Xxxxxx X. XxXxxxx, President
Witnesses: EXECUTIVE
________________________________ _______________________________________
Xxxxxxx X. Xxxxxxxx
________________________________
As to Executive
EXHIBIT A
TO
EMPLOYMENT AGREEMENT WITH XXXXXXX X. XXXXXXX (MST)
DATED _________________, 1997
Commission Split - Third Party Properties
Gross Commission Paid to Echelon MST
$0 to $150,000 43%
$150,001 to $250,000 48%
$250,000+ 53%
Commission Paid Echelon Owned Properties
Lease Term Gross Lease Value
1-60 months 2%
61+ 1%
Construction Management Fee
Third Party 50% of fee paid to Echelon
Echelon Owned Properties 1.5% of Total Construction Value
Management Commission Override Echelon Owned 3rd Party
Properties Properties
---------- ----------
First Tier (MST is Agent Manager) .28% of Gross 7% of Gross
Lease Value Commission
Paid to Echelon
Second Tier (MST is NOT Agent Manager and there is a Manager receiving First
Tier Override)
.14% of Gross 3.5% of Gross
Gross Lease Commission
Value Paid to Echelon
Listing to MST
Highpoint Center - Tallahassee
Xxxxxxx Tower - St. Petersburg
Xxxxxxx Center - Sarasota
XxXxxxx Xxxxxxx - Xx. Xxxxxxxxxx
000 Xxxxxxxx - Xx. Xxxxxxxxxx
Centres at Feathersound - Clearwater
Any 3rd party property secured or development opportunity created by MST will
become an MST listing.
Current TRS Deals and MST related Commission Splits:
To MST
------
Mercantile Bank- 3,436 XXX, 0 year 4% of GLV
Xxxxxxx Xxxxx 65,000 RSF, 5 year 2% of GLV
EnVision 3,704 RSF, 5 year 4% of GLV
Xxxxxxxx Consulting 3,206 XXX, 00 months 4% of GLV
Allstate Renewal- Xxxxxxx Tower 2% of GLV
Florida Power- Tenant Rep. Assignment 50% of Gross
Commission Earned
Xxxxxxxx Consulting Construction Management 45%of Total
Construction Value
KPMG Construction Management 1.5% of Total
Construction Value
Xxxxx Bldg Sale or Lease 2% of Gross Sales Price 4% of GLV
Centres at Feathersound
Building sale $4,850,000 60% of Gross
Commission Earned
ML Direct 2218 RSF 36 months 4% of Gross
Commission Earned
Xxxxxxx Center
Riscorp Parking Lease $128,290 100% of Gross
Commission Earned
Xxxx Xxxxxx expansion 1,634 RSF 100% of Gross
Commission Earned
Xxxxx Secmond Xxxx Lease 3,100 RSF, 5 year 100% of Gross
Commission Earned
Parking Garage Restoration $95,000 100% of Gross
Fee Earned
Building Exterior Paint $45,000 100% of Gross
Fee Earned
Highpoint Center - Tallahassee
Florida Power Lease 1% of GLV
GSA 673 RSF, 50 months 3% of GLV
Signed
ICUF expiration 525 RSF 48 months 3% of GLV
Letter of Intent
Xxxxxx Xxxxxxxx 521 RSF 36 months 4% of GLV
Letter of Intent
Xxxxxxxxx expansion 6366 RSF 3% of GLV
& Renewal
ndhf*
EXHIBIT B
1. Xxxxxxx & Xxxxxxxxx of Florida, Inc.
2. Xxxxxx & Associates, Inc.
3. Colliers Xxxxxx
4. CLW Realty Group, Inc.
5. Insignia Commercial Group, Inc.
6. CB Commercial Real Estate Management Services, Inc.
