Exhibit (e)(14)
SERVICE AGREEMENT FOR
MEMBERS OF THE BOARD OF MANAGEMENT
between
CELANESE XX
Xxxxxxxxxxx Xxxxxxx 000
00000 Xxxxxxxx i. Ts.
represented by the Chairman of the Supervisory Board of Celanese AG,
Xx. Xxxxxx Xxxx
- hereinafter referred to as "CELANESE AG" or the "COMPANY" -
and
XX. XXXXX X. XXXXXXX
- hereinafter Xx. Xxxxxxx and the Company together referred to as the "PARTIES"
or each of them individually referred to as the "PARTY" -
Xx. Xxxxxxx has been re-appointed a Member of the Board of Management of
Celanese AG by a resolution of the Supervisory Board on May 15, 2002. With
effect as of October 22, 2002, the following service agreement (hereinafter
referred to as the "SERVICE AGREEMENT" or the "AGREEMENT") shall be agreed
between the Company and Xx. Xxxxxxx by replacing at
Service Agreement of Xx. Xxxxx X. Xxxxxxx 2
the same time all earlier agreements, except agreements regarding already
existing Long Term Incentive Plans:
I. DUTIES OF THE MEMBER OF THE BOARD OF MANAGEMENT
1. Xx. Xxxxxxx will perform his activity as a Member of the Board of
Management in accordance with the provisions of the law, the Articles of
Association of the Company and the Rules of Procedure for the Board of
Management. Xx. Xxxxxxx will devote his professional energies exclusively
to the Company. The following provisions of this Section of this Agreement
do not affect legally justified restrictions of other activities Xx.
Xxxxxxx may perform.
2. The acceptance of any other activity outside the private area (privater
Bereich) - irrespective of whether it is paid or pro xxxx - requires the
prior approval of the Chairman of the Supervisory Board which may be
withdrawn at anytime. This applies in particular to the acceptance of
mandates to other supervisory boards, managing director activities
(Geschaftsfuhrungstatigkeiten) and similar positions, as well as regarding
expert reports, publications and lectures to the extent that the Company's
interests may be affected.
3. Should the Supervisory Board wish so, Xx. Xxxxxxx will accept supervisory
board mandates and similar positions without any remuneration in companies
in which Celanese AG is directly or indirectly participated, as well as any
activity in associations and similar bodies to which Celanese belongs owing
to the nature of its business activity. Xx. Xxxxxxx undertakes, that on the
termination of this Service Agreement or, in case the Supervisory Board
wishes at an earlier time, Xx. Xxxxxxx will retire from aforementioned
mandates that he has accepted in the interest of the Company.
4. During the appointment Xx. Xxxxxxx will not participate in any company that
competes with Celanese AG or which maintains essential business relations
with Celanese AG. A shareholding which allows no influence regarding the
executive bodies of the relevant company is not considered as participation
within the meaning of this clause. A possibility to influence listed
companies shall be understood for purposes of this Agreement when having
reached 5% of the voting rights.
5. Xx. Xxxxxxx is obliged not to use any knowledge he obtains as a result of
his Board of Management activity for stock exchange or other speculative
transactions.
Service Agreement of Xx. Xxxxx X. Xxxxxxx 3
6. Xx. Xxxxxxx is further obliged to assign to the Company the entire results
of his work as the exclusive property of the Company without special
remuneration.
7. The confidentiality obligation of Section 93 of the German Stock
Corporation Act (Aktiengesetz) applies after the end of Xx. Xxxxxxx'x
service term.
8. Xx. Xxxxxxx will treat all documentation relating to the Company, as well
as all business memoranda including electronic data as the Company's
property. Xx. Xxxxxxx will preserve them carefully and at the termination
of his service term Xx. Xxxxxxx will hand them over to the Chairman of the
Supervisory Board or his appointee or delete them without being specially
requested to do so. In reasonable cases the Supervisory Board may release
Xx. Xxxxxxx from this obligation, e.g. in case he needs such documentation
as regards governmental or other regulatory inquiries.
II. COMPENSATION
1. From October 22, 2002 onwards, Xx. Xxxxxxx receives the following income:
a) a fixed annual salary of EUR 627.000,-- gross (in words: Euro
sixhundredtwentyseventhousand), to be paid monthly in arrears;
b) an annual bonus which is subject to reaching the economic and personal
objectives agreed by the Personnel and Compensation Committee of the
Supervisory Board with Xx. Xxxxxxx and which amounts to 80% of the
annual salary at target performance. The bonus is to be paid once a
year according to a separate regulation to be resolved by the
Personnel and Compensation Committee of the Supervisory Board in each
case. Should Xx. Xxxxxxx leave during a year, a pro-rata bonus payment
will be made for the period served.
2. In view of Xx. Xxxxxxx'x split activities for Celanese AG in Germany
(approx. 25% of his working time) and for the U.S. Subsidiary of Celanese
AG (approx. 75% of his working time) 75% of the total compensation
payable to Xx. Xxxxxxx under this Agreement will be paid by the U.S.
Subsidiary and charged to its own account. Payments have to be made in U.S.
Dollars to an account to be nominated by Xx. Xxxxxxx via the U.S.
Subsidiary, Celanese Chemicals. Xx. Xxxxxxx will arrange for his
remuneration to be taxed according to the German tax regulations.
3. In order to provide a compensation for incremental tax liabilities (i.e.
liabilities that would not have been incurred, had Xx. Xxxxxxx been subject
to taxation solely in the U.S.) due to the split payroll according to
Section II.2. of this Agreement, Xx. Xxxxxxx will receive
Service Agreement of Xx. Xxxxx X. Xxxxxxx 4
an additional annual payment equal to the amount of actual German income
tax on regular income (i.e. without tax equalization payments) which are
not credited against U.S. Federal Income Taxes. If any of the excess German
taxes are taken as a credit and reduce U.S. Federal Tax in a subsequent tax
year, the amount credited in the subsequent year will reduce the
reimbursement under this Section II. for that subsequent year. To the
extent that there is no reimbursement due under this Section in the
subsequent year, the credit taken will be refunded to Celanese AG. The
resulting tax reimbursement will paid net (i.e. will be grossed-up for tax
purposes).
4. Should Xx. Xxxxxxx die during the term of this Service Agreement, his widow
and his unmarried legitimate children, if and as long as they have not
reached the age of 21 or if and as long as they are in education and have
not reached the age of 27, have a right as joint and several creditors to
an unreduced granting of monthly installments of the annual salary
according to Section II.1.a.) of this Agreement for the three months
following the month in which the death occurred, however, at the latest
until the planned end of the Service Agreement; and in addition a pro rata
amount of the annual bonus earned according to Section II.1.b.) of this
Agreement.
5. Xx. Xxxxxxx'x xxxxx compensation shall be reduced by the amount of the
gross income Xx. Xxxxxxx receives in respect of supervisory board mandates
or similar positions in companies in which the Company has a direct or
indirect holding.
6. Xx. Xxxxxxx will participate in the existing Long Term Incentive Plans of
the Company, which have been or will be introduced in the form of stock
appreciation rights/stock options. The scale of the rights/options granted
to Xx. Xxxxxxx will be determined by the Supervisory Board periodically.
III. DURATION OF THE CONTRACT
1. The Service Agreement becomes effective on October 22, 2002 and shall apply
until October 31, 2005.
2. During this term the Agreement may be terminated by either Party only for
cause. However, Xx. Xxxxxxx may terminate the Agreement with a 6 months'
notice when having reached the age of 60.
3. No later than 10 months prior to the end of his Service Agreement it shall
be discussed with Xx. Xxxxxxx whether and under which conditions the
contractual relationship and the activity as Member of the Board of
Management will be continued. At least 6 months
Service Agreement of Xx. Xxxxx X. Xxxxxxx 5
prior to the expiry of the Service Agreement, a statement regarding the
reappointment of Xx. Xxxxxxx as Member of the Board of Management shall be
made to Xx. Xxxxxxx by the Chairman of the Supervisory Board.
4. In case the appointment of Xx. Xxxxxxx is withdrawn prior to October 31,
2005, the Service Agreement with Xx. Xxxxxxx ends at the same time with the
expiry of the appointment. In this case Xx. Xxxxxxx'x claims are governed
by Section IV. of this Agreement. In case the Service Agreement due to
expiry on October 31, 2005 is not extended, the claims of Xx. Xxxxxxx are
likewise governed by Section IV. of this Agreement. Following the
revocation of the appointment, the Supervisory Board is entitled to release
Xx. Xxxxxxx.
IV. SEVERANCE
1. SEVERANCE PAYMENT
a.) In the event that
the Service Agreement with Xx. Xxxxxxx is not extended by the
Supervisory Board of the Company without Xx. Xxxxxxx being entitled to
retirement benefits (Ruhestandsbezuge) or pension payments (Pensionen)
after reaching the age of 60,
or the Service Agreement with Xx. Xxxxxxx is terminated prematurely by
revocation of Xx. Xxxxxxx'x appointment as Member of the Board of
Management without cause,
or Xx. Xxxxxxx is entitled to terminate the Service Agreement for cause,
the Company shall pay Xx. Xxxxxxx a gross severance sum equivalent to two
total annual remuneration payments (hereinafter referred to as the
"SEVERANCE").
b.) In case Xx. Xxxxxxx is required to relocate in order to perform his
activity as Member of the Board of Management in the interest of the
Company during the term of this Agreement and this leads to an unreasonable
hardship for his personal, family or financial situation (hereinafter
referred to as "HARDSHIP") the Company will consider under good faith a
relocation or transferal to his original office. In case the Parties are
unable to find a solution for this Hardship, such Hardship shall be
considered as cause under the termination provision of this Section
IV.1.a.).
Service Agreement of Xx. Xxxxx X. Xxxxxxx 6
c.) The total annual remuneration used to determine Severance consists of the
sum of the fixed annual remuneration applicable to the year of Xx.
Xxxxxxx'x leaving, the annual Bonus calculated at Target for the business
year in which the Service Agreement is terminated and the value of the most
recently granted Long Term Incentives (hereinafter referred to as the
"LONG TERM INCENTIVES"). Value of Long Term Incentives in the meaning of
this Section IV.1.c.) shall be determined as the net present value
according to the Black Scholes methodology and calculated at the date of
termination on a pro rata 12 months basis.
d.) If the non-prolongation or the premature termination of the Service
Agreement with Xx. Xxxxxxx occurs after him having reached the age of 60
but prior to him having reached the age of 62, the severance payment shall
amount to one total annual remuneration; if Xx. Xxxxxxx'x leaving from the
employment as a Member of the Board of Management occurs after having
reached the age of 62, no severance payment shall be made.
e.) Sums which shall be set off against the Severance are payment obligations
arising out of the Service Agreement with Xx. Xxxxxxx until the originally
agreed expiration of this Service Agreement, benefits from the Pension
Scheme for the Board of Management to be paid over a 2-year period
following the leaving of Xx. Xxxxxxx prior to reaching the age of 60,
respectively over a period of one year following the leaving after reaching
the age of 60, as well as benefits from any other compensation and
severance payments arising from any other employment with any company of
the Celanese Group. However, the voluntary deferred compensation, exercise
of vested SARs or SOPs or medical benefits of Xx. Xxxxxxx shall not be
offset against the severance payment.
f.) The annual bonus for the business year in which the termination of the
Service Agreement occurs shall be paid in addition to the Severance on a
pro rata basis for the lapsed period of time of the corresponding year.
Remuneration claims according to Section II.1.b.) stay untouched until
the leave.
g.) Claims arising out of the Long Term Incentives that are taken into account
in the calculation of the Severance expire as soon as a severance payment
is made under this Section IV.1.
Service Agreement of Xx. Xxxxx X. Xxxxxxx 7
2. CHANGE IN CONTROL
a.) In the event that
a person other than a person holding already at least 25% of the
shares in the Company at the time of signing this Service Agreement
takes over the Company by reaching the actual, on the basis of the
last General Meeting determined majority in the General Meeting,
or a person other than a person holding already at least 25% of the
shares in the Company at the time of signing this Service Agreement
takes over 30% or more of the shares in the Company,
or the General Meeting of the Company approves the merger with another
company outside of the Celanese Group
(all events together hereinafter referred to as the "CHANGE IN CONTROL
- EVENT")
and due to the Change in Control - Event
the Service Agreement is not extended by the Supervisory Board of the
Company without Xx. Xxxxxxx being entitled to retirement benefits
(Ruhestandsbezuge) or pension payments (Pensionen) after reaching the
age of 60,
or the Service Agreement is terminated prematurely by revocation of Xx.
Xxxxxxx'x appointment as Member of the Board of Management without
cause,
or Xx. Xxxxxxx is entitled to terminate the Service Agreement for cause
the Company is obliged to pay Xx. Xxxxxxx a Change in Control-Severance.
b.) In case of a Change in Control - Event "cause" shall apply regarding a
termination by Xx. Xxxxxxx if the conditions change unreasonably, in
particular if his place of employment is relocated, if his remuneration is
reduced or if his scope of duties are limited.
c.) In this respect the Change in Control-Severance shall be measured and
included in a separate Cancellation Agreement as follows:
(1) At the time of Xx. Xxxxxxx'x leaving the Company, Xx. Xxxxxxx receives
in a Change in Control -Event a lump-sum gross severance payment in
the amount of three times his total annual cash remuneration for the
loss of his mandate as Member of the Board of Management. The total
annual cash remuneration consists of the average of the fixed annual
remuneration paid over the last three years and the average of the
Service Agreement of Xx. Xxxxx X. Xxxxxxx 8
bonus payments paid over the last three years. In case the total
period of service as a Member of the Board of Management of Celanese
AG of Xx. Xxxxxxx exists less than three years, only the lapsed time
of the term(s) of the Service Agreement(s) covering Xx. Xxxxxxx'x
period of time as a Member of the Board of Management of Celanese AG
will be considered for the calculation of the annual average. The same
shall apply in case Xx. Xxxxxxx was employed with Celanese AG or its
affiliated companies on another contract's basis prior to being
appointed Member of the Board of Management. The payment of this
amount shall be made after tax deductions according to the tax
regulations in force at that time. The claims arising out of the
current Long Term Incentives, as long as they have not yet been
exercised, shall be made according to the regulations in the
corresponding Long Term Incentive Plan Documents. Whether a Change in
Control - Event applies shall be governed according to this Service
Agreement for the Long Term Incentives as well. The exercise, however,
shall be governed by the Long Term Incentive Plan Documents.
(2) Should Xx. Xxxxxxx, after having been notified of the intention to not
extend this Service Agreement, wish to prematurely withdraw from his
employment prior to expiration of this Service Agreement, Xx. Xxxxxxx
may terminate his employment with giving a six weeks' notice to the
end of the month. No payment shall be made for the remaining term of
the of the Service Agreement which was originally agreed.
(3) Section IV.2.a.) of this Service Agreement shall not apply, in case
Xx. Xxxxxxx enters an employment with an affiliated company of the
Celanese Group.
(4) Any bonus Xx. Xxxxxxx is entitled to according to this Service
Agreement shall be paid on a pro-rata basis in case of a termination
of his employment prior to the end of the calendar year. The payment
shall be made at the time when bonus payments usually are made for the
lapsed business year according to Section II.1.b).
(5) If the non-prolongation or the premature termination of Xx. Xxxxxxx'x
Service Agreement occurs after Xx. Xxxxxxx having reached the age of
60 but prior to him having reached the age of 62, the severance
payment shall amount to two times the total annual remuneration; if
his leaving from the employment as a Member of the Board of Management
occurs after Xx. Xxxxxxx'x having reached the age of 62, no severance
payments shall be made.
(6) Sums which shall be set off against the severance payment are payment
obligations arising out of Xx. Xxxxxxx'x Service Agreement until the
originally agreed expiration of his Service Agreement, benefits from
the Company Pension Scheme applicable to
Service Agreement of Xx. Xxxxx X. Xxxxxxx 9
Xx. Xxxxxxx that are to be paid over a 2-year period following his
leaving prior to having reached the age of 60, respectively over a
period of one year following his leaving after having reached the age
of 60, as well as benefits from any other compensation and severance
payments arising from any other employment with any company of the
Celanese Group. However, the voluntary deferred compensation, exercise
of vested SARs or SOPs or medical benefits of Xx. Xxxxxxx shall not be
offset against the severance payment.
(7) Any claims for entering a Cancellation Agreement with the above
mentioned basic regulations can only be asserted within a period of
180 days following the Change in Control - Event as described under
Section IV.2.
(8) The remaining provisions of the Cancellation Agreement to be entered
into are subject to this separate agreement.
(9) Any claims against the Company are compensated with the Cancellation
Agreement.
3. OTHER PROVISIONS REGARDING SEVERANCE PAYMENTS
a.) Provisions under Section IV. of this Agreement expire one day following the
termination of Xx. Xxxxxxx'x Service Agreement at the latest. Any claims
arising from Section IV. shall remain unaffected.
b.) In case the preconditions defined under Section IV.1. regarding Severance
Payment and the preconditions defined under Section IV.2. regarding Change
in Control occur simultaneously, Xx. Xxxxxxx is entitled to the higher
compensation. The other claim becomes extinct. Insofar neither Party shall
have a right to choose.
c.) The Company reserves the right to pay with Xx. Xxxxxxx'x consent a part of
the payment resulting out of this Agreement by way of compensation for a
post-contractual competition ban (nachvertragliches Wettbewerbsverbot) or
for subsequent consultancy services. In these cases a separate agreement
will be agreed with Xx. Xxxxxxx.
d.) The Company will try to achieve an arrangement which, complying with all
statutory regulations, contains favorable tax provisions for Xx. Xxxxxxx.
V. INVENTIONS / UNDERTAKING TO REFRAIN FROM COMPETITIVE ACTIVITY
1. Xx. Xxxxxxx will report to and offer to the Company his inventions
attributable to work following his appointment to the Board of Management
as long as he is receiving a salary
Service Agreement of Xx. Xxxxx X. Xxxxxxx 10
or benefits (Versorgungsleistungen) from the Company. The inventions will
be treated by the Company in accordance with the regulations of the law on
employee inventions.
2. The Company reserves the right to agree with Xx. Xxxxxxx post-contractual
competition ban (nachvertragliches Wettbewerbsverbot).
VI. EQUITY PARTICIPATION
Xx. Xxxxxxx is obliged to acquire shares in Celanese AG to a value equivalent to
his gross annual base salary and not to dispose of these shares in accordance
with the provisions of the Equity Participation Plan of the Company. More
detailed particulars on arrangements are to be found in the Company's Equity
Participation concept under observing Insider rules.
VII. PENSION
Xx. Xxxxxxx will not participate in the U.S. Executive Pension Plan. Therefore,
the following provisions shall apply for Xx. Xxxxxxx:
1. The start of Xx. Xxxxxxx'x service period qualifying for pension shall be
fixed for September 1, 2000. The employer financed parts of the 401 K-Plan
will be offset against the board pension.
2. The promised company pension (Firmenpension) is paid in full after the
Member of the Board of Management leaves the Board and reaches the age of
60.
3. The amount of the company pension is calculated as the product of the
escalation factor of 1.8%, the number of qualifying years of service and
the pensionable income. In this calculation the number of qualifying years
of service is limited to 30. Consequently, the maximum figure is 54% of
the pensionable income.
The pensionable income is calculated as the sum of
- the average basic annual salary of the last three calendar years
prior to retirement and
- the average annual bonus of the last three calendar years prior
to retirement
insofar as these shall be qualifying years of service.
4. The following are offset against this company pension:
a.) social security pensions acquired during qualified years of service at
a rate of 50% while in case the beneficiary was exempt from social
security pension insurance
Service Agreement of Xx. Xxxxx X. Xxxxxxx 11
(Rentenversicherung), the claims for social security insurance
regarding missing years of contribution within the qualifying years of
service shall be projected for the time of beginning of the pension
payments according to the then applicable approaching proceedings;
b.) all claims which have been gained during the service years regarding
the company pension scheme (betriebliche Altersvorsorge) which has
been financed by the Company;
c.) equivalent annuities (Altersrenten) for capital payments from company
or supra-company savings schemes or pension schemes to the extent that
they are financed by the Company and are in respect of qualifying
years of service. Capital payments deferring from the start of pension
payments are adjusted upwards until the beginning of pension payments
by applying an appropriate rate of interest geared to the capital
market.
5. In the event of an early disability, which must be confirmed by a medical
practitioner nominated by the Supervisory Board of the Company, the company
pension is paid as from the occurance of disability and for as long as it
continues. From the age of 60 onwards, the payment is continued at the same
level as an old-age pension in case the disability persists.
The amount of the benefit is calculated by the same formula as for the
company pension (see Section VII.2.). However, the time remaining until
the completion of the age of 60 shall be added to the qualifying years of
service. All other Company-financed benefits granted in this instance - not
only the benefits mentioned in Point 3 but also in particular insurance
benefits in the form of pension or capital - are offset against this
company pension.
6. In the event of death, survivors' pensions are paid to the spouse and
unmarried children entitled to maintenance, provided that the latter have
not yet reached the age of 21 or as long as they are undergoing education
and have not yet reached the age of 27.
In the event of death of a pensioned Member of the Board of Management the
spouse's pension is 60%, the pension for half-orphans is 15% and the
pension for orphans (those with neither parent still living) is 30% of the
company pension last paid, subject to the provision that the sum of the
spouse's pension and the orphans' pension shall not exceed 80% of the full
company pension. In case the pension payments jointly amount to a larger
sum, they shall be proportionally reduced. When any of these pensions
ceases during the period of payment the remaining pensions are increased
again to the maximum sum.
Service Agreement of Xx. Xxxxx X. Xxxxxxx 12
The spouse is not entitled to a pension if the marriage takes place only
after the beneficiary's retirement or only after the beneficiary reaches
the age of 60 and
- if the marriage existed for less than five years or
- if the spouse is more than 20 years younger than the beneficiary.
No claim for a spouse's pension shall exist in case it can be concluded
from the circumstances that the marriage was entered into solely in order
to procure a pension for the survivor.
In the event of a remarriage of the surviving spouse the claim to a
spouse's pension ceases at the end of the month in which remarriage takes
place.
In the event of death of the Member of the Board of Management during
Service Agreement, survivors' pensions are provided according to the same
principles as those applying on the death of a pensioned Member of the
Board of Management. The starting basis for calculating the survivors'
pensions, however, is the company pension which would have been paid if the
beneficiary had suffered disability at the time of death (see Section
IV.4.).
All other Company-financed benefits granted in this case - in addition to
the benefits stated under Section IV.3. and, in particular, insurance
benefits in the form of pension or capital sum - are offset against this
survivors' pension.
7. The pension payments are paid in monthly installments in arrears, starting
at the end of the time for which the salary has been paid or the
transitional payment under Section II.2 has been made.
The pension is adjusted annually, the adjustment being based on the
cost-of-living index in the country from which the pension payment is made.
The annual adjustment rate is the change in the cost-of-living index,
maximum 5% per annum. The basis taken for the cost-of-living index in
Germany is the index for a household of four persons on a medium income; in
the US the Consumer Price Index - All Urban Consumers.
8. A vested right to a pension is granted in the case of premature termination
of employment according to Section 1 of the Law for Improving Company
Old-Age Benefits (Gesetz zur Verbesserung der betrieblichen
Altersversorgung) but no longer than 10 countable service years. The level
of the acquired right is determined in accordance with the terms and
conditions of Section 2 of the Law for Improving Company Old-Age Benefits.
Service Agreement of Xx. Xxxxx X. Xxxxxxx 13
The vested benefits are due to be paid as an old age pension after the
beneficiary reaches the age of 60, as a disability pension
(Sozialversicherungstrager) if the requirements of the social security
disability pension are met or as survivor pension at the death of the
beneficiary according to Section VII.5. of this Agreement .
9. In case of termination of the Agreement by the Company prior to the
beneficiary having reached age 60 and without due cause for immediate
dismissal or if no offer has been made to extend the Agreement is made, the
pension becomes payable upon reaching age 55 instead of 60. The company
pension, however, will be reduced linearly by 0.5% for each month which is
at the beginning of the pension payments prior to the date at which the age
60 has been fulfilled or the requirements of the "85-points-rule" are met.
The lower shortening shall be applicable. The conditions of "85-points
rule" are met when
- the 55th birthday is reached and at the same time
- the person's age in years plus the number of years' service totals at
least 85 (when calculated precisely in terms of months).
IX. MISCELLANEOUS
1. For the duration of his employment the Company will provide Xx. Xxxxxxx
with an upper-range BMW/Mercedes or equivalent make of company car, and
will pay the tax chargeable for providing this as a benefit with monetary
value.
2. The Company will pay the costs of Xx. Xxxxxxx'x tax consultant.
3. The Company concludes for the Members of the Board of Management a
Directors & Officers Insurance and bears the costs of this insurance. This
insurance covers the activity of Xx. Xxxxxxx as Member of the Board of
Management of Celanese AG as well as further activities, which Xx. Xxxxxxx
performs in the interest of the Company. Such activities of Xx. Xxxxxxx
could be e.g. board memberships in companies of the group or activities in
other companies in the meaning of Section I.3., in associations or a
service in an honorary capacity (ehrenamtliche Tatigkeit).
4. For the duration of the Service Agreement the Company will conclude an
accident insurance for Xx. Xxxxxxx with the following insured sums:
EUR 1.022.583,76 for death
EUR 1.022.583,76 for invalidity
EUR 10.225,84 for medical treatment costs
Service Agreement of Xx. Xxxxx X. Xxxxxxx 14
X. CONCLUDING PROVISIONS
1. If any provision of this Agreement should be partly or wholly invalid or
subsequently loose its legal validity, this shall not affect the validity
of the remaining provisions. The invalid provision shall, as far as legally
permissible, be replaced by another, appropriate, provision whose economic
effect comes closest to what the Parties wished or would have wished if
they had taken into consideration the invalidity of the original provision.
2. Amendments and additions to this Agreement need to be in writing. This
requirement cannot be replaced by oral agreements. The German version of
this Agreement shall be authoritative for interpreting this Agreement.
3. This Agreement shall be governed by German law.
4. The place of fulfillment for all performances deriving out of this
Agreement is the seat of the Company. The seat of the Company under Section
38 Subsec. 3 No. 2 of the German Civil Procedure Code (Zivilprozessordnung)
shall be agreed as the place of jurisdiction.
Xxxxxxxx i. Ts., September 5, 2002
Celanese AG
/s/ Xx. Xxxxxx Xxxx /s/ Xxxxx X. Xxxxxxx
-------------------------------- --------------------------------
Xx. Xxxxxx Xxxx Xxxxx X. Xxxxxxx
(Chairman of the Supervisory Board)
