EXHIBIT 10.13
EMPLOYMENT AGREEMENT
THIS AGREEMENT, effective as of January 1, 1998, is entered into by and
between Union Bank of California, N.A., a National Banking Association (the
"Bank"), and Xxxxx X. Xxxxxx ("Xx. Xxxxxx"), an individual.
WHEREAS, Xx. Xxxxxx is currently employed by the Bank as Executive Vice
President and Chief Financial Officer ("CFO");
WHEREAS, Xx. Xxxxxx has been designated a policy making officer of the
Bank and UnionBanCal Corporation ("UNBC");
WHEREAS, the parties wish to terminate and supersede the existing terms
and conditions of Xx. Xxxxxx'x employment with the Bank; and
WHEREAS, the Bank desires to continue to secure the services of Xx.
Xxxxxx and Xx. Xxxxxx desires to perform services for the Bank on the terms and
conditions set forth in this Agreement;
NOW THEREFORE, in consideration of the foregoing and of the material
promises and conditions contained in this Agreement, the parties agree as
follows:
1. REPRESENTATIONS AND WARRANTIES.
The Bank represents that it is fully authorized to enter into this
Agreement. Xx. Xxxxxx warrants that he is under no employment contract, bond,
confidentiality agreement, or any other obligation which would violate or be in
conflict with the terms and conditions of this Agreement or encumber his
performance of duties assigned to him by the Bank. Xx. Xxxxxx further warrants
that he has not signed or committed to any employment or consultant duties or
other obligations which would divert his attention from the duties assigned to
him by the Bank under this Agreement. The parties do not intend to include
within the meaning of this paragraph Xx. Xxxxxx'x service at the request of the
Bank's Deputy Chairman, Credit and Administration ("Deputy Chairman"), or with
the concurrence of the Deputy Chairman and/or the Bank's Chief Executive
Officer, for nonprofit, charitable, or trade associations or on the boards of
directors or other governing bodies of business enterprises unrelated to the
Bank and not in a business competitive with a business of the Bank.
2. EMPLOYMENT AND DUTIES.
The Bank will continue to employ Xx. Xxxxxx as its CFO. Xx. Xxxxxx
hereby accepts such employment with the Bank. Xx. Xxxxxx shall devote his time,
ability, attention, energy, knowledge and skill solely and exclusively to
performing all reasonable duties as CFO of the Bank as assigned to him by the
Bank's Deputy Chairman and/or Chief Executive Officer.
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3. BASE SALARY.
In consideration for Xx. Xxxxxx'x services to the Bank during the time
period in which this Agreement is effective, Xx. Xxxxxx is receiving a base
salary of Two Hundred Twenty-Five Thousand Dollars ($225,000.00) per annum to be
paid in equal installments as per the Bank's salary administration program every
two (2) weeks, and subject to annual review and increases at the discretion of
the Executive Compensation and Benefits Committee of the Board, the Board or any
other committee constituted by the Board for this purpose (as applicable, the
"Committee"). Annual base salary shall be competitive with the annual base
salaries for comparable executive positions at banks of similar size and focus,
as determined at the discretion of the Committee.
4. ADDITIONAL BENEFITS.
During his employment under this Agreement:
a. BONUS. Xx. Xxxxxx shall be entitled to participate in
the Bank's Senior Management Bonus Plan or its successor, subject to
the eligibility requirements and other terms and conditions of such
Plan and the determinations of the administrator of such Plan. Xx.
Xxxxxx'x target bonus under the Senior Management Bonus Plan shall be
thirty-five percent (35%) of base salary, subject to annual review and
increases or decreases at the discretion of the Committee, based on the
median annual bonus targets for comparable executive positions at banks
of similar size and focus (as determined at the discretion of the
Committee).
b. LONG TERM INCENTIVES. Xx. Xxxxxx shall be eligible for
long term incentive awards available to policy making officers. Awards
may consist of one or more types of long term incentives, including the
grant of stock options and restricted stock under the UNBC Management
Stock Plan or its successor and the award of performance shares under
the UNBC Performance Share Plan or its successor. Xx. Xxxxxx'x target
award shall be valued at fifty percent (50%) of base salary.
Notwithstanding the preceding sentence, determinations of the amount of
any award to Xx. Xxxxxx shall be made at the discretion of the
Committee, subject to annual review and increases or decreases, based
on the median long term incentive targets for comparable executive
positions at banks of similar size and focus (as determined at the
discretion of the Committee).
c. RETIREMENT AND 401(K) PLAN. Xx. Xxxxxx shall be
entitled to participate in the Bank retirement and 401(k) plans that
are now or hereafter will be in effect, subject to the eligibility
requirements and other terms and conditions of such plans and the
determinations of the administrator of such plans.
d. SUPPLEMENTAL RETIREMENT BENEFITS. During his employment
under this Agreement Xx. Xxxxxx shall be a participant under the Bank's
Supplemental Executive Retirement Plan (the "SERP") and under the Union
Bank Executive Supplemental Benefit Plan; the latter of which is a plan
of a predecessor of the Bank and copies of each
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plan are attached hereto as Exhibit D. The supplemental plans referred
to in the preceding sentence, together with the Bank's retirement plans
now or hereafter in effect, shall collectively be referred to
hereinafter as the "Retirement Plans."
e. INSURANCE AND WELFARE PLANS. Xx. Xxxxxx and his
eligible dependents shall be eligible to receive such other benefits or
rights as may be provided under any employee benefit plan provided by
the Bank that is now or hereafter will be in effect (including
participation in life, medical, disability, dental and vision insurance
plans), subject to eligibility requirements and other terms and
conditions of such plans and the determinations of administrators of
such plans.
f. OTHER BENEFITS. The Bank shall provide other benefits
such as a car allowance, luncheon and country club expenses, and other
perquisites as determined by the Committee for similarly situated
executives.
g. BUSINESS EXPENSES. Xx. Xxxxxx shall be entitled to
reimbursement by the Bank for such customary, ordinary and necessary
business expenses as are incurred by him in the performance of his
duties and activities associated with promoting or maintaining the
business of the Bank. All expenses as described in this subparagraph
4(g) will be reimbursed only upon presentation by Xx. Xxxxxx of such
documentation in accordance with Bank policy and as may be reasonably
necessary to substantiate that all such expenses were incurred in
performance of his duties.
h. VACATION AND SICK LEAVE. Xx. Xxxxxx shall be entitled
to earn (i) four (4) weeks' paid vacation each year of employment under
this Agreement and (ii) sick leave on the same basis as other Bank
employees and subject to all accrual or accumulated maximum entitlement
limitations which currently or may hereafter exist under the Bank's
vacation and sick leave policies.
i. RELOCATION EXPENSES. If, during the term of this
Agreement and with the concurrence of the Bank, Xx. Xxxxxx relocates
his principal residence from the Los Angeles area to the San Francisco
area, Xx. Xxxxxx shall be entitled to:
(i) a monthly housing cost differential payment of One
Thousand Five Hundred Dollars ($1,500.00), commencing upon
such relocation and continuing until the earlier of Xx.
Xxxxxx'x 60th birthday or the termination of his employment
with the Bank; and
(ii) reimbursement, up to a maximum of seven and
one-half percent (7-1/2%) of the sale price, for actual
non-recurring, non-negotiated costs incurred in the sale of
Xx. Xxxxxx'x principal residence, including licensed real
estate agent fees at the prevailing rate for the area, closing
costs that are typical for the area, mortgage prepayment
penalties (if any), and termite inspections; and
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(iii) reimbursement, up to a maximum of three percent
(3%) of the purchase price, for actual non-recurring,
non-negotiated costs incurred in the purchase of Xx. Xxxxxx'x
new principal residence, including closing costs that are
typical for the area (and excluding origination fees and loan
points); and
(iv) reimbursement for other reasonable expenses in
connection with Xx. Xxxxxx'x relocation from the Los Angeles
area to the San Francisco area, in accordance with Bank policy
for similarly situated executives.
5. OUTSIDE ACTIVITIES AND NON-COMPETITION.
During the term of this Agreement, and subject to paragraph 1, Xx.
Xxxxxx shall devote his time, ability, attention, energy, knowledge and skill to
the business of the Bank. During the term of this Agreement, Xx. Xxxxxx shall
not, directly or indirectly, either as an employee, employer, consultant, agent,
principal, partner, shareholder, corporate officer, director, or in any other
capacity, engage or assist any third party in engaging in any business
competitive with the business of the Bank, UNBC or their subsidiaries, without
the written approval of the Bank's Chief Executive Officer. Investments in
publicly traded corporations through brokerage accounts or in mutual funds, or
depositor/borrower relationships with other financial institutions are not
intended to be covered by this paragraph. Following his employment with the
Bank, Xx. Xxxxxx shall not engage in unfair competition with the Bank or aid
others in any unfair competition with the Bank, unfair competition having the
meaning ascribed in the "Competition and Business Promotion" section of the
Bank's April 1996 revision of the Business Standards of Conduct (except that the
object of the prohibition shall be read as the Bank rather than a competitor).
Following his employment with the Bank, Xx. Xxxxxx shall not in any way breach
the confidence that the Bank has placed in him or misappropriate any proprietary
information of the Bank, as such prohibitions are described in the Bank's April
1996 revision of the Business Standards of Conduct.
6. TERMINATION OF EMPLOYMENT.
This Agreement shall terminate as follows:
a. BY DEATH. This Agreement shall be terminated upon the
death of Xx. Xxxxxx. The Bank's total liability to Xx. Xxxxxx in the
event of termination of Xx. Xxxxxx'x employment under this subparagraph
shall be limited to the payment (on his behalf) of Xx. Xxxxxx'x salary
and benefits as set forth in paragraphs 3 and 4 of this Agreement
through the effective date of termination, except that if Xx. Xxxxxx
has not attained age 60 at the time of his death, his spouse shall
receive pre-retirement death benefits under the Retirement Plans as if
Xx. Xxxxxx had continued to work for the Bank for an additional period
of time such that he would have reached age 60 at the time of death.
b. BY DISABILITY. If, in the sole opinion of the Bank's
Chief Executive Officer, governed by the exercise of good faith and
supported by competent medical
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opinion, Xx. Xxxxxx is prevented from properly performing his duties
hereunder by reason of any physical or mental incapacity, for a period
of more than ninety (90) days in the aggregate in any twelve (12) month
period, then, to the extent permitted by law, his employment with the
Bank shall terminate. The Bank's total liability to Xx. Xxxxxx in the
event of termination of Xx. Xxxxxx'x employment under this subparagraph
shall be limited to (i) the payment of Xx. Xxxxxx'x salary and benefits
as set forth in paragraphs 3 and 4 of this Agreement through the
effective date of termination, except that if Xx. Xxxxxx has not
attained age 60 at the time of his disability, he also shall receive
retirement benefits under the Retirement Plans equal to the additional
amounts he would have earned if he continued to work for the Bank for
an additional period of time such that he would have reached age 60 at
the time of disability. Nothing in this paragraph 6 is intended to
preclude Xx. Xxxxxx from exercising any rights he may have under the
Bank's Short Term Disability Plan or Long Term Disability Plan, in
accordance with the eligibility requirements and other terms and
conditions of those respective plans, or their respective successors.
c. FOR CAUSE. The Bank reserves the right to terminate this
Agreement immediately, at any time, if, in the opinion of the Bank's
Chief Executive Officer: Xx. Xxxxxx materially and/or habitually
breaches or neglects the duties which he is required to perform under
the terms of this Agreement; commits any material act of dishonesty,
fraud, misrepresentation, or other material act which would violate the
Bank's Business Standards of Conduct; is guilty of gross carelessness
or misconduct; fails to obey the lawful direction of the Bank's Chief
Executive Officer or the Board; or acts in any way that has a direct,
substantial and adverse effect on the Bank's reputation. Nothing in the
phrase "acts in any way that has a direct, substantial and adverse
effect on the Bank's reputation" as used in the preceding sentence is
intended to include legally required or other reporting or disclosure
by Xx. Xxxxxx of financial information regarding the Bank in the
ordinary course of his employment as CFO. The Bank's total liability to
Xx. Xxxxxx in the event of termination of Xx. Xxxxxx'x employment under
this subparagraph shall be limited to the payment of Xx. Xxxxxx'x
salary and benefits as set forth in paragraphs 3 and 4 of this
Agreement through the effective date of termination.
d. WITHOUT CAUSE. The Bank reserves the right to terminate
this Agreement without cause, for any reason and at any time, by
written notice to Xx. Xxxxxx from the Bank's Chief Executive Officer.
Xx. Xxxxxx hereby agrees that the Bank may dismiss him under this
subparagraph 6(d) without regard to (i) any general or specific
policies (whether written or oral) of the Bank relating to the
employment or termination of its employees, or (ii) any statements made
to Xx. Xxxxxx, whether made orally or contained in any document,
pertaining to Xx. Xxxxxx'x relationship with the Bank. In the event of
termination under this subparagraph 6(d), and subject to the conditions
set forth herein, Xx. Xxxxxx shall be entitled to receive the payments
described in (i) and (ii) below.
(i) If Xx. Xxxxxx has not yet attained age 65 at the
time of his termination of employment, and provided Xx. Xxxxxx
has, at the time of his termination of employment, previously
executed the "General and Special
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Release" (attached hereto as Exhibit A), then in consideration
for such Release, the Bank will provide Xx. Xxxxxx with:
(A) The greater of (I) two years of separation pay
payable as salary continuation on a payroll by payroll
basis, in an amount equal to Xx. Xxxxxx'x base salary at
the time of his termination, plus a prorated bonus
amount each payroll period equal to the average of Xx.
Xxxxxx'x annual bonus (excluding any amount that
represents an award of long term incentive by the Bank)
for the three (3) most recent bonus determination years
divided by the number of payroll periods in the year, or
(II) the salary continuation amount payable under the
Bank's then existing separation pay plan; and
(B) Benefits (other than salary continuation)
available and/or payable to participants at or above the
level of Executive Vice Presidents for the salary
continuation period under the Bank's Separation Pay Plan
in effect on the date of this Agreement, or, if better,
under the Bank's separation pay plan in effect at the
time of his termination of employment. A true and
correct copy of the Plan as in effect on the date of
this Agreement is attached hereto as Exhibit B; and
(C) In the event that Xx. Xxxxxx has not attained
age 60 at the time of termination, he also shall receive
retirement benefits under the Union Bank of California
Retirement Plan and the Union Bank of California
Executive Supplemental Retirement Plan equal to the
additional amounts he would have earned if he continued
to work for the Bank for an additional period of time
such that he would have reached age 60 at the time of
termination; and
(D) In the event Xx. Xxxxxx'x employment is
terminated pursuant to subparagraph 6(d) within
twenty-four (24) months of Xx. Xxxxxx'x relocation of
his personal residence from the Los Angeles area to the
San Francisco area, reimbursement for usual and
customary expenses in connection with Xx. Xxxxxx'x
relocation from the San Francisco area to the Los
Angeles area, in accordance with Bank policy for
similarly situated executives; and
(E) Full and immediate vesting, upon Xx. Xxxxxx'x
termination of employment, in the target award amount
under his outstanding grant(s) of performance shares
under the UNBC Performance Share Plan, and payment of
such vested shares within 120 days following his
termination of employment (without giving effect to any
deferral election that would have applied had the shares
become an earned award), such payment to be made in cash
equal to the number of shares times the average
month-end closing price of UNBC common stock (as
published in the Western
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Edition of the Wall Street Journal) for the six months
immediately preceding Xx. Xxxxxx'x date of termination
of employment; and
(ii) The Bank will provide Xx. Xxxxxx with salary and
benefits as set forth in paragraphs 3 and 4 of this Agreement
through the effective date of termination.
A termination of this Agreement on account of Xx. Xxxxxx'x
disability shall be governed by subparagraph 6(b) and not this
subparagraph 6(d). In addition, in the event Xx. Xxxxxx dies while
receiving salary continuation benefits under subparagraph 6(d)(i)(A)
above, then Xx. Xxxxxx shall have the remaining salary continuation, if
any, paid to his Designated Beneficiary under Exhibit C attached
hereto.
e. BY XX. XXXXXX WITHOUT CAUSE. Xx. Xxxxxx reserves the
right to terminate this Agreement for any reason (other than the reason
set forth in subparagraph 6(f)) upon reasonable written notice to the
Bank. The Bank's total liability to Xx. Xxxxxx in the event of
termination of Xx. Xxxxxx'x employment under this subparagraph shall be
limited to the payment of Xx. Xxxxxx'x salary and benefits as set forth
in paragraphs 3 and 4 of this Agreement through the effective date of
termination.
f. BY XX. XXXXXX FOR CAUSE. Subject to the further
conditions next described, Xx. Xxxxxx may terminate this Agreement by
giving sixty (60) days' written notice to the Bank if he has incurred a
material reduction of his duties, title or responsibility (including
Xx. Xxxxxx no longer serving in the capacity or under the title of
Executive Vice President and/or Chief Financial Officer), a reduction
in his annual base salary or a reduction in his overall compensation
package below the median package for comparable executive positions at
banks of similar size and focus (this peer group to be determined at
the discretion of the Committee). In order to elect to terminate this
Agreement pursuant to this subparagraph 6(f), Xx. Xxxxxx must submit
the written notice to the Bank within sixty (60) days of the reduction.
Xx. Xxxxxx shall not be entitled to elect to terminate this Agreement
pursuant to this subparagraph 6(f) if prior to Xx. Xxxxxx'x termination
date the Bank corrects the deficiency upon which Xx. Xxxxxx'x
resignation is based. In the event that Xx. Xxxxxx is entitled to and
elects to terminate this Agreement pursuant to this subparagraph 6(f),
(i) he shall be entitled to receive salary and benefits as set forth in
paragraphs 3 and 4 of this Agreement through the effective date of
termination, and (ii) if he has not yet attained age 65 at the time of
his termination of employment and further has, at the time of his
termination of employment, previously executed the "General and Special
Release" (attached hereto as Exhibit A), then in consideration for such
Release, the Bank will provide Xx. Xxxxxx with the salary continuation
and benefits set forth in subparagraphs 6(d)(i)(A), (B), (C), (D) and
(E). In the event Xx. Xxxxxx dies while receiving salary continuation
benefits described in subparagraph 6(d)(i)(A) above, then Xx. Xxxxxx
shall have the remaining salary continuation, if any, paid to his
Designated Beneficiary under Exhibit C attached hereto.
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g. RESIGNATION OF POSITIONS. Upon termination of
employment for any reason whatsoever, Xx. Xxxxxx shall be deemed to
have resigned from all offices and positions with the Bank, UNBC, and
their subsidiaries. Xx. Xxxxxx agrees that, in connection with his
termination under this Agreement, he will sign such written
resignations as required by the Bank.
7. PROHIBITION OF ASSIGNMENT.
This Agreement is personal to Xx. Xxxxxx and he may not assign or
delegate any of his rights or obligations hereunder without first obtaining the
written consent of the Bank.
8. UNBC OR BANK SUCCESSOR.
For all purposes under this Agreement, the term "UNBC" shall include
any successor to UNBC's business and/or assets, by purchase, merger,
consolidation, reorganization, liquidation or otherwise. For all purposes under
this Agreement, the term "Bank" shall include any successor to the Bank's
business and/or assets, by purchase, merger, consolidation, reorganization,
liquidation or otherwise, and, in such an event, for all purposes under this
Agreement, the term "UNBC" also shall mean the U.S. parent company to such
successor (and, if there is no such U.S. parent company, the successor itself).
This Agreement shall inure to the benefit of and be binding upon any such
successor to UNBC and the Bank to which Xx. Xxxxxx'x employment is transferred.
9. ARBITRATION.
Any controversy between the Bank, UNBC or their parent companies,
subsidiaries and affiliates and Xx. Xxxxxx or between any employee of the Bank,
UNBC or their parent companies, subsidiaries and affiliates and Xx. Xxxxxx,
including, but not limited to, any controversy arising out of Xx. Xxxxxx'x
employment or the termination thereof, involving the construction or application
of any of the terms, provisions or conditions of this Agreement, or otherwise
arising out of or relating to this Agreement and any controversy arising out of
or relating to Exhibit A to this Agreement (the "General and Special Release")
or involving a claim of race, sex, religious, age, disability, veteran status,
sexual orientation or national origin discrimination, shall be settled by
arbitration in accordance with the then current employment dispute resolution
rules of the American Arbitration Association determined by the Committee to
most closely resemble the California Employment Dispute Resolution Rules in
effect on January 1, 1998, and judgment on the award rendered by the
arbitrator(s) may be entered by any court having jurisdiction thereof.
Reasonable limited discovery will be permitted in the form of the right of each
party to take the deposition of one individual and any expert witness designated
by the other party. Each party shall also have the right to make requests for
discovery of relevant documents to the other party. Additional discovery may be
had only where the arbitrator so orders, upon a showing of substantial need. The
Bank and Xx. Xxxxxx each shall bear their own costs and legal fees associated
with the arbitration, except that the arbitrator shall have the right in his
discretion to award reasonable legal fees to the prevailing party in the
arbitration. Further, the Bank shall bear the cost of the arbitrator (including
the costs of establishing a facility for and
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otherwise administering the arbitration). The location of the arbitration shall
be in San Francisco, California, and the arbitration shall be conducted so as to
result in the rendering of the arbitrator's decision within ninety (90) days
after the original demand for arbitration.
In the event of a breach by Xx. Xxxxxx of any of the covenants
contained in paragraph 5 of this Agreement, it is recognized that in addition to
any other remedy available to it, the Bank shall be entitled to institute or
prosecute proceedings in any court of competent jurisdiction, either in law or
in equity, to obtain damages for any breach of this Agreement or to xxx for
specific performance, or an injunction against performance of any acts, or to
seek any other available remedy.
This paragraph 9 of this Agreement and the obligations provided for
herein shall survive the termination of this Agreement and remain in full force
and effect following the termination of Xx. Xxxxxx'x employment with the Bank.
10. LIMITATION ON PAYMENTS.
a. BASIC RULE. In the event Xx. Xxxxxx becomes entitled to
payments under this Agreement in connection with his termination of
employment at a time when the Bank's Auditors determine that the
payments result in "excess parachute payments" under section 280G of
the Internal Revenue Code (the "Code"), then instead of the amounts
payable under this Agreement, Xx. Xxxxxx shall receive aggregate
payments equal to the Reduced Amount, if such Reduced Amount would
result in net after-tax payments to Xx. Xxxxxx that are greater than
the net after-tax payments he would have received without regard to
this paragraph. For purposes of this paragraph 10, the "Reduced Amount"
shall be the amount, expressed as a present value, that maximizes the
aggregate present value of the payments without causing any payment to
be nondeductible by the Bank under section 280G of the Code. All
calculations required by this paragraph 10 shall be performed by the
Bank's independent auditors retained most recently prior to the
transaction implicating section 280G of the Code (the "Auditors"),
based on information supplied by the Bank and Xx. Xxxxxx, and shall be
binding on the Bank and Xx. Xxxxxx. All fees and expenses of the
Auditors shall be paid by the Bank.
b. REDUCTIONS. If the amount of the aggregate payments to
Xx. Xxxxxx must be reduced under this paragraph 10, then Xx. Xxxxxx
shall direct in which order the payments are to be reduced, but no
change in the timing of any payment shall be made without the Bank's
consent. As a result of uncertainty in the application of sections 280G
and 4999 of the Code at the time of an initial determination by the
Auditors hereunder, it is possible that a payment will have been made
by the Bank that should not have been made (an "Overpayment") or that
an additional payment that will not have been made by the Bank could
have been made (an "Underpayment"). In the event that the Auditors,
based upon the assertion of a deficiency by the Internal Revenue
Service against the Bank or Xx. Xxxxxx that the Auditors believe has a
high probability of success, determine that an Overpayment has been
made, such Overpayment shall be treated for all purposes as a loan to
Xx. Xxxxxx that he shall repay to the Bank, together with interest at
the applicable
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federal rate specified in section 7872(f)(2) of the Code; provided,
however, that no amount shall be payable by Xx. Xxxxxx to the Bank if
and to the extent that such payment would not reduce the amount that is
nondeductible under section 280G of the Code or is subject to an excise
tax under section 4999 of the Code. In the event that the Auditors
determine that an Underpayment has occurred, such Underpayment shall
promptly be paid or transferred by the Bank to, or for the benefit of,
Xx. Xxxxxx, together with interest at the applicable federal rate
specified in section 7872(f)(2) of the Code.
11. MODIFICATION.
Any modification of this Agreement will be effective only if it is in
writing and signed by the parties to be bound thereby.
12. ENTIRE AGREEMENT.
This Agreement constitutes the entire agreement between the Bank and
Xx. Xxxxxx pertaining to the subject matter hereof, and supersedes all prior or
contemporaneous written or verbal agreements and understandings with Xx. Xxxxxx
in connection with the subject matter hereof.
13. GOVERNING LAW.
This Agreement and the rights and obligations hereunder shall
be governed by the laws of the State of California, and the parties to this
Agreement specifically consent to the jurisdiction of the courts of California
over any action arising out of or related to this Agreement.
14. SEVERABILITY.
If any provision of this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable, the remaining provisions
shall, nevertheless, continue in full force and effect without being impaired or
invalidated in any way.
15. WAIVER.
The parties hereto shall not be deemed to have waived any of their
respective rights under this Agreement unless the waiver is in writing and
signed by such waiving party. No delay in exercising any right shall be a waiver
nor shall a waiver on one occasion operate as a waiver of such right on a future
occasion.
16. NOTICES.
All notices provided for herein shall be in writing and shall be deemed
to have been given when delivered personally, when deposited in the United
States mail, registered or certified, postage prepaid, or when delivered to a
messenger service, addressed as follows:
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To the Bank: Xxxx Xxxxxx
Executive Vice President
Union Bank of California, N.A.
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
To Xx. Xxxxxx: Xxxxx X. Xxxxxx
Chief Financial Officer
Union Bank of California, N.A.
000 Xxxxxxxxxx Xxxxxx
Xxx Xxxxxxxxx, XX 00000
17. EXECUTIVE COMPENSATION AND BENEFITS COMMITTEE.
If at the time of a determination under this Agreement no Committee is
in existence, references to the Committee under this Agreement shall be deemed
to be references to the Board.
18. WITHHOLDING TAXES.
The Bank shall withhold and deduct all applicable federal and local
taxes, as required by applicable laws, from any payments made under this
Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement by their
duly authorized officers or agents.
Dated: _______________ UNION BANK OF CALIFORNIA, N.A.
By_________________________________
Xxxx Xxxxxx
Executive Vice President
Dated: _______________ ____________________________________
Xxxxx X. Xxxxxx
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EXHIBIT A
GENERAL AND SPECIAL RELEASE
1. In return for the benefits provided for in subparagraphs 6(d)
(i) or 6(f)(ii) of the Employment Agreement entered into as of January 1, 1998
(the "Agreement"), the adequacy of which as consideration is hereby
acknowledged, Xxxxx X. Xxxxxx (hereinafter "Xx. Xxxxxx") hereby fully releases
and forever discharges Union Bank of California, N.A., its parent, affiliated,
and subsidiary corporations, its and their successors and assigns, and the past
and present officers, directors, employees, shareholders, agents and employee
benefit plans of each (hereinafter collectively the "Bank") from any and all
actions, causes of action, claims, demands, damages, and liabilities of
whatsoever kind or character, in law or in equity, now known or unknown,
suspected or unsuspected, past or present, that he has ever had or currently may
have against them or any of them including, but not limited to, claims of race,
sex, religious, age, disability, medical condition (in and as defined under
California law), marital status, veteran status, sexual orientation or national
origin discrimination under Title VII of the Civil Rights Act of 1964, as
amended, the Americans with Disabilities Act of 1990, as amended, the Age
Discrimination in Employment Act, as amended, the Family and Medical Leave Act,
the California Fair Employment and Housing Act, and any other federal, state or
local laws, arising out of or in any way related to Xx. Xxxxxx'x employment with
the Bank or the termination of that employment. Xx. Xxxxxx further agrees not to
institute in any state or federal court any action or claim of any kind against
the Bank. Execution of this document by Xx. Xxxxxx operates as a complete bar
and defense against any and all current claims of any type that may be made by
Xx. Xxxxxx against the Bank, provided, however, that nothing in this release is
intended to affect Xx. Xxxxxx'x right to seek a remedy in arbitration to resolve
any controversy arising out of the construction or application of the terms,
provisions or conditions of the Agreement.
2. Xx. Xxxxxx and the Bank understand and expressly agree that
the release granted in Paragraph 1 extends to all claims of every nature and
kind, known or unknown, suspected or unsuspected, past or present, which Xx.
Xxxxxx may have against the Bank arising from or related to his employment with
the Bank or the termination of that employment and that any and all rights
granted to Xx. Xxxxxx under Section 1542 of the California Civil Code or any
analogous state law, federal law, or regulation are hereby expressly waived.
Section 1542 of the California Civil Code provides that:
A general release does not extend to claims which the creditor does not
know or suspect to exist in his favor at the time of executing the
release, which if known by him must have materially affected his
settlement with the debtor.
3. Xx. Xxxxxx has read this instrument, has had the opportunity
of consulting with an attorney regarding it, and signs it voluntarily and with
the intention of being bound by it. Xx. Xxxxxx understands that he is waiving
legal rights by signing this Release.
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4. Xx. Xxxxxx acknowledges that he has been given at least
twenty-one (21) days within which to consider this Release. Xx. Xxxxxx
understands that he may revoke this Release upon written notice to the Bank
within seven (7) days after execution of it and that this Release will not
become effective or unenforceable until the eighth (8th) day after its
execution.
Dated: _______________ ____________________________________
Xxxxx X. Xxxxxx
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