BENEFITS CONTINUATION AGREEMENT
Exhibit 10.3
This BENEFITS CONTINUATION AGREEMENT (this “Agreement”) is made and entered into to be
effective as of November 2, 2010 (the “Effective Date”) by and among Xxxxxx Industries plc, an
Irish corporation (“Xxxxxx” or the “Company”), Xxxxxx U.S., Inc. and Xxxx X. Xxxxxxxxx
(“Executive”). Certain capitalized terms used in this Agreement are defined in Section 5 hereof.
RECITAL
WHEREAS, Executive is employed as the Chairman and Chief Executive Officer of Xxxxxx; and
WHEREAS Executive previously has entered into an employment agreement dated as of February 8,
2009 (the “Employment Agreement”) and a Management Continuity Agreement dated as of November 30,
2009 (the “Continuity Agreement”); and
WHEREAS, Xxxxxx and Executive wish to document certain terms of employment of Executive in
such capacity.
AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
Section 1. Benefits During Term of Employment.
(a) Certain Benefits During Term of Employment. During the term of Executive’s
employment, the Executive and, to the extent applicable, the Executive’s family, dependents and
beneficiaries, shall be allowed to participate, subject to applicable eligibility requirements, in
all benefits, plans and programs, including improvements or modifications of the same, which are
now, or may hereafter be, available to executive employees of the Company. Such benefits, plans
and programs may include, without limitation, pension, profit sharing, savings and other retirement
plans or programs, medical, dental, hospitalization, short-term and long-term disability plans,
life insurance plans, accidental death and dismemberment protection, travel accident insurance, and
any other pension or retirement plans or programs and any other executive welfare benefit plans or
programs that may be sponsored by the Company from time to time, including any plans that
supplement the above-listed types of plans or programs, whether funded or unfunded. Executive
shall be entitled to participate on a basis no less favorable than any other executive of the
Company. The Company shall not, however, by reason of this paragraph be obligated to institute,
maintain, or refrain from changing, amending or
discontinuing, any such benefit plan or program as it applies to the Executive, so long as
such changes are similarly applicable to all executive employees of the Company.
(b) Business and Entertainment Expenses. Subject to the Company’s standard policies
and procedures with respect to expense reimbursement as applied to its executive employees, the
Executive is authorized to incur reasonable expenses as determined in his judgment in carrying out
his duties and responsibilities under this Agreement and the Company shall promptly reimburse him
for all such business expenses incurred in connection with carrying out the business of the
Company. All expenses reimbursed shall be subject to documentation, review, and reimbursement in
accordance with the Company’s policies.
(c) Other Expenses; Perquisites. Executive shall be entitled to participate in the
Company’s executive fringe benefits, if any, in accordance with the terms and conditions of such
arrangements as are made available from time to time for the Company’s executives on a basis no
less favorable than any other executive. In particular, the Executive shall continue to be
entitled to receive, at his discretion, the executive fringe benefits he was entitled to receive as
of November 2, 2010.
(d) Vacation. The Executive shall be entitled to vacation in accordance with the
Company’s policies in effect from time to time, but not less than four (4) weeks paid vacation per
year.
Section 2. Effect of Termination of Employment on Benefits.
(a) Termination for Cause or Voluntary Written Resignation. In the event the
Executive’s employment is terminated for Cause (as defined below) or if the Executive voluntarily
submits his resignation in writing, subject to the provisions of Section 4(a), Xxxxxx shall pay or
provide, as applicable, to the Executive, within (60) days, upon occurrence of such event (or
earlier to the extent required by law or provided below), the following:
(i) the Executive’s base salary in effect at the time through the date of the
termination; and
(ii) any amounts previously earned, accrued or owing to the Executive but not yet paid,
including any earned but unpaid base salary, any outstanding expense reimbursements and any
other compensation owed (but, for sake of clarity, not including any amounts owed pursuant
to the terms of any employee benefit plan, program or agreement, the payment of which shall
be subject to the specific terms thereof); and
(iii) Other or additional benefits in accordance with applicable plans or programs of
the Company in effect at the time of termination.
(b) Termination in the Event of Death or Disability. In the event that the
Executive’s employment is terminated because of the Executive’s death or Disability (as defined
below), subject to the provisions of Section 4(a), Xxxxxx shall pay or provide, as applicable, to
the
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Executive, Executive’s estate or his designated beneficiaries, as the case may be, within
thirty (30) days of his death or Disability (or such earlier date provided below), the following:
(i) Any amounts previously earned, accrued or owing to the Executive but not yet paid,
including a prorated portion of Executive’s annual bonus up to the date of termination, any
earned but unpaid base salary, any outstanding expense reimbursements and any other
compensation owed (but, for sake of clarity, not including any amounts owed pursuant to the
terms of any employee benefit plan, program or agreement, the payment of which shall be
subject to the specific terms thereof); and
(ii) All restricted stock outstanding and any awards under the Company’s long-term
incentive programs, whether or not vested, shall become immediately and fully vested and
transferable to the fullest extent possible at the time of termination, subject to any
limitations set forth in the applicable plan(s) governing the award of such restricted
stock; and
(iii) All outstanding stock options of any kind whatsoever shall become immediately and
fully vested and transferable to the fullest extent possible at the time of termination
without regard to any contingencies or conditions specified therein, for the remainder of
the original term of the option, subject to any limitations set forth in the applicable
plan(s) governing the award of such stock options; and
(iv) Other or additional benefits in accordance with the applicable plans or programs
of the Company in effect at the time of termination; and
(v) Continued participation for the Executive (in the case of his Disability) and
Executive’s spouse and children, to the extent that they were covered at the time of
Executive’s death or Disability, in the Company’s medical, dental and life insurance
programs until such time as the Executive or his spouse, as applicable, receives equivalent
coverage and benefits under the plans and programs of a subsequent employer (such coverage
and benefits to be determined on a coverage-by-coverage or benefit-by-benefit basis) or
death, or in the case of Executive’s children, until they attain age 26;
provided, however, that costs related to such continued participation shall be subject
to the Fair Market Value Payment Requirement set forth in Section 4(a) below and that the
persons covered under this provision will pay the “employee cost of participation” in the
plan on a monthly basis.
(c) Termination of Executive by the Company Without Cause or by the Executive for
Constructive Termination Without Cause. In the event that the Executive’s employment is
terminated by the Company without Cause or by the Executive for Constructive Termination Without
Cause (as defined below), subject to the provisions of Section 4(a), Xxxxxx shall pay or provide,
as applicable, to the Executive within thirty (30) days after the occurrence of such event (or such
earlier date provided below), the following:
(i) Any amounts previously earned, accrued or owing to the Executive but not yet paid,
including a prorated portion of Executive’s annual bonus up to the date of
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termination, any earned but unpaid base salary, any outstanding expense reimbursements
and any other compensation owed (but, for sake of clarity, not including any amounts owed
pursuant to the terms of any employee benefit plan, program or agreement, the payment of
which shall be subject to the specific terms thereof); and
(ii) All restricted stock outstanding and any awards under the Company’s long-term
incentive programs, whether or not vested, shall become immediately and fully vested and
transferable to the fullest extent possible at the time of termination, subject to any
limitations set forth in the applicable plan(s) governing the award of such restricted
stock; and
(iii) All outstanding stock options of any kind whatsoever shall become immediately and
fully vested and transferable to the fullest extent possible at the time of termination
without regard to any contingencies or conditions specified therein, for the remainder of
the original term of the option, subject to any limitations set forth in the applicable
plan(s) governing the award of such stock options; and
(iv) Other or additional benefits in accordance with the applicable plans or programs
of the Company in effect at the time of termination; and
(v) Continued participation for the Executive and Executive’s spouse and children, to
the extent that they were covered at the time of Executive’s death or Disability, in the
Company’s medical, dental and life insurance programs for a period of three (3) years from
the date of termination; provided, however, that costs related to such continued
participation shall be subject to the Fair Market Value Payment Requirement set forth in
Section 4(a) below and that the persons covered under this provision will pay the “employee
cost of participation” in the plan on a monthly basis .
(d) Termination in the Event of a Qualifying Retirement. In the event that the
Executive’s employment is terminated because of the Executive’s Qualifying Retirement (as defined
below), subject to the provisions of Section 4(a), Xxxxxx shall pay or provide, as applicable, to
the Executive within thirty (30) days of such Qualifying Retirement (or such earlier date provided
below), the following:
(i) Any amounts previously earned, accrued or owing to the Executive but not yet paid,
including a prorated portion of the Annual Bonus up to the date of termination, any earned
but unpaid Base Salary, any outstanding expense reimbursements and any other compensation
owed (but, for sake of clarity, not including any amounts owed pursuant to the terms of any
employee benefit plan, program or agreement, the payment of which shall be subject to the
specific terms thereof); and
(ii) All restricted stock outstanding and any awards under the Company’s long-term
incentive programs, whether or not vested, shall become immediately and fully vested and
transferable to the fullest extent possible at the time of termination, subject to any
limitations set forth in the applicable plan(s) governing the award of such restricted
stock; and
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(iii) All outstanding stock options of any kind whatsoever shall become immediately and
fully vested and transferable to the fullest extent possible at the time of termination
without regard to any contingencies or conditions specified therein, for the remainder of
the original term of the option, subject to any limitations set forth in the applicable
plan(s) governing the award of such stock options; and
(iv) Continued participation for the Executive and Executive’s spouse and children, to
the extent that they were covered at the time of Executive’s Qualifying Retirement, in the
Company’s medical, dental and life insurance programs until such time as the Executive or
his spouse, as applicable, receives equivalent coverage and benefits under the plans and
programs of a subsequent employer (such coverage and benefits to be determined on a
coverage-by-coverage or benefit-by-benefit basis) or death, or in the case of Executive’s
children, until they attain age 26; provided, however, that costs related to such
continued participation shall be subject to the Fair Market Value Payment Requirement set
forth in Section 4(a) below and that the persons covered under this provision will pay the
“employee cost of participation” in the plan on a monthly basis; and
(v) For a period of one (1) year following the effective date of Executive’s Qualifying
Retirement, the Company will provide Executive at the Company’s sole expense with an office
(not to exceed 1,000 square feet, and at a location chosen by Executive), supplies, and the
services of an administrative assistant (at an annual salary not to exceed the salary of
Executive’s administrative assistant as of the date of Executive’s Qualifying Retirement);
and
(vi) For a period of one (1) year following the effective date of Executive’s
Qualifying Retirement, the Company will pay or reimburse Executive for his membership in
those clubs to which he belonged immediately prior to his Qualifying Retirement (to the
extent that Executive paid such membership dues through his annual perquisite allowance in
the year preceding his Qualifying Retirement) and, if the club membership is titled in the
Company’s name, the Company will transfer or assign the membership to Executive, at no cost
to Executive; and
(vii) Other or additional benefits in accordance with the applicable plans or programs
of the Company in effect at the time of termination; and
Section 3. Covenants by Executive.
The parties acknowledge that, pursuant to sections 10, 11, and 12 of Executive’s Employment
Agreement, Executive has made certain covenants relating to noncompetition with the Company,
nonsolicitation of employees of the Company, and nonsolicitation of the Company’s customers, all
for a period of one (1) year following Executive’s termination of employment. By this Agreement,
Executive agrees to extend the time period for each such covenant to a period of two (2) years
following termination of employment.
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Section 4. Tax Provisions.
| (a) | Application of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”). |
(i) General. To the extent applicable, it is intended that this Agreement
comply with the provisions of Section 409A of the Code, so as to prevent inclusion in gross
income of any amounts payable or benefits provided hereunder in a taxable year that is prior
to the taxable year or years in which such amounts or benefits would otherwise actually be
distributed, provided or otherwise made available to the Executive. This Agreement shall be
construed, administered, and governed in a manner consistent with this intent and the
following provisions of this Section 4(a) shall, with respect to timing of payments owed
under this Agreement, control over any contrary provisions of the Agreement. Nothing in
this Section 4(a) shall reduce or diminish the amounts otherwise owed under this Agreement.
(ii) Delayed Payment Restriction. Notwithstanding any provision in this
Agreement to the contrary, if any payment or benefit provided for herein or pursuant to any
other agreement or plan of the Company to which the Executive is entitled to any payment or
benefit would be subject to additional taxes and interest under Section 409A of the Code if
the Executive’s receipt of such payment or benefit is not delayed until the Section 409A
Payment Date, then such payment or benefit shall not be provided to the Executive (or the
Executive’s estate, if applicable) until the Section 409A Payment Date (and, at that time,
the Executive shall also receive interest thereon from the date such payment or benefit
would have been provided in the absence of this paragraph until the date of receipt of such
payment or benefit at the short term applicable federal rate as in effect as of the
termination date). The payment and benefit delay requirement described in this paragraph
(the “Delayed Payment Restriction”) shall not apply to any payment or benefit otherwise
described in the first sentence of this paragraph if another provision of this Agreement is
intended to cause the Executive’s receipt of such payment or benefit to satisfy the
requirements of Section 409A(a)(2)(B)(i) of the Code. For purposes of this Agreement,
“Section 409A Payment Date” shall mean the earlier of (1) the date of the Executive’s death
or (2) the date which is six months after the date of termination of the Executive’s
employment with the Company.
(iii) Separation from Service. Amounts payable hereunder upon the Executive’s
termination of employment with the Company that constitute deferred compensation under
Section 409A of the Code shall be paid upon the Executive’s “separation from service” within
the meaning of Section 409A of the Code.
(iv) Separate Payment and Benefits. Any rights to payments and benefits under
this Agreement shall be treated as rights to separate payments for purposes of Section 409A
of the Code.
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(v) Reimbursements and In-Kind Benefits. With respect to any rights to
reimbursements or in-kind benefits that are triggered by the Executive’s separation from
service and are subject to Section 409A of the Code, except any in-kind benefits to which
the Fair Market Value Payment Requirement applies, such reimbursements or in-kind benefits
shall also be subject to the Delayed Payment Restriction to the extent applicable under
Section 4(a).
(vi) Fair Market Value Payment Requirement. To the extent that any benefits
required to be continued pursuant to Section 2 that are provided to the Executive and his
spouse during the first six months following the Executive’s termination of employment have
an aggregate value in excess of the applicable dollar amount under Section 402(g)(1)(B) of
the Code for the year in which such termination occurs, the Executive shall pay to the
Company, at the time such benefits are provided, the fair market value of such benefits
(such payment obligation of the Executive, the “Fair Market Value Payment Requirement”) and
the Company shall reimburse the Executive (with interest thereon at the short term
applicable federal rate in effect as of the termination date) for any such payment(s) not
later than the thirtieth (30th) day following the expiration of such six month
period.
(vii) Period of Payment. In the event that a payment under this Agreement is
due within a period of time following a stated event, the Executive shall not be permitted,
directly or indirectly, to designate the taxable year of payment.
(viii) Restricted Stock Dividends. Notwithstanding anything to the contrary in
any agreement relating to awards of restricted Stock, any dividends relating to shares of
restricted Stock that are subject to vesting requirements shall be paid by the
15th day of the third month following the date that the right to such dividends
vests.
(ix) References to Section 409A. References in this Agreement to Section 409A
of the Code include both that section of the Code itself and any regulations and
authoritative guidance promulgated thereunder.
(b) Section 457A of the Code. Notwithstanding that Xxxxxx is a party to this
Agreement, certain portions of the Executive’s compensation provided under this Agreement, as
specifically identified within the provisions of this Agreement (the “Xxxxxx U.S. Compensation”),
are solely provided by Xxxxxx U.S., Inc. as compensation for the Executive’s services to Xxxxxx
U.S., Inc., with the intent that Xxxxxx U.S., Inc. be the sole “sponsor” of such compensation
within the meaning of Section 457A of the Code and the authoritative guidance promulgated
thereunder. The Xxxxxx U.S. Compensation shall be solely the obligation of Xxxxxx U.S., Inc. and
Xxxxxx shall not be obligated to provide, nor shall it be the guarantor of or otherwise responsible
for, any of the Xxxxxx U.S., Inc. Compensation. Further, notwithstanding anything to the contrary
in this Agreement, any compensation that would potentially be subject to Section 457A of the Code
were such compensation to be provided by Xxxxxx or any entity that is a nonqualified entity within
the meaning of Section 457A of the Code shall be provided solely by Xxxxxx U.S., Inc. and, if
necessary to support an allocation of such compensation to
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Xxxxxx U.S., Inc. for U.S. federal income tax principles, Xxxxxx U.S., Inc. shall be allocated
and become obligated to provide a portion of compensation otherwise payable by Xxxxxx under this
Agreement that does not constitute nonqualified deferred compensation within the meaning of Section
457A of the Code, which has a value equal to the value of the benefit that Xxxxxx would otherwise
have provided. Xxxxxx shall cooperate to conform the allocation for tax purposes of the
compensation payable pursuant to this Agreement to the intent described in this Section 4(b).
Section 5. Definitions.
As used in this Agreement, the following terms have the following meanings:
“Cause” shall mean a good faith determination by the vote of at least seventy-five percent
(75%) of the independent members of the Xxxxxx Board of Directors that one or more of the following
events exists or has occurred:
| (a) | The Executive is convicted of (or enters a plea of guilty or nolo contendere to) a felony or a crime involving moral turpitude, which conviction has become final and non-appealable; or | ||
| (b) | There are facts and applicable law showing demonstrably that Executive has materially breached a material obligation under an agreement with the Company; provided however, that (i) a breach shall be considered material only if it causes substantial harm to the Company; (ii) upon becoming aware of any alleged breach, the Company shall first provide written notice to the Executive of the basis of the alleged breach in reasonable detail and shall allow the Executive ninety (90) days following such written notice to cure, correct, or mitigate the event so that it does not become a basis for termination for cause; (iii) if the alleged breach has been cured or corrected by the Executive within ninety (90) days of such written notice, no “cause” shall be found; and (iv) in all events, prior to the board of directors making any good faith vote on the matter, Executive shall be afforded the opportunity upon reasonable notice, with counsel of his choosing, to be heard before the board on such matter. |
“Constructive Termination Without Cause” shall mean termination of the Executive’s employment
at his election following the occurrence, without the Executive’s written consent, of one or more
of the following events:
(a) a reduction in the Executive’s then current base salary, the termination or material
reduction of any executive benefit or perquisite enjoyed by him, unless a plan or program providing
substantially similar benefits or perquisites is substituted;
(b) the failure to elect or reelect the Executive as Chief Executive Officer of the Company or
the removal of him from any such position, other than upon the voluntary request of the Executive;
(c) a Material Diminution in the Executive’s duties or the assignment to the Executive of
duties which are materially inconsistent with his duties or which materially impair
the Executive’s ability to function as the Chief Executive Officer of the Company;
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(d) the failure to continue the Executive’s participation in any incentive compensation plan
unless a plan providing a substantially similar compensation is substituted;
(d) the relocation of the Company’s principal office to a location more than fifty (50) miles
from Houston, Texas;
(e) the failure of the Company to obtain the assumption in writing of its obligations to
perform this Agreement by any successor (or, the ultimate parent of any successor where applicable)
to all or substantially all of the assets of the Company within fifteen (15) days after a merger,
consolidation, sale or similar transaction;
(f) any act or failure to act by Xxxxxx’x board or directors, other than upon the Executive’s
voluntary request, which would cause the Executive (x) not to be reelected or to be removed from
the position of Chief Executive Officer of Xxxxxx or the position of Chairman of the Board of
Directors of Xxxxxx or (y) not to be elected or reelected as a director by the shareholders of the
Company at any meeting held for that purpose or by written ballot of shareholders of the Company;
or
(g) the failure of Xxxxxx (or by any successor-in-interest) to perform, or the breach by
Xxxxxx (or by any successor-in-interest) of, any of their material obligations under this
Agreement.
Notwithstanding the foregoing, the Executive cannot terminate his employment hereunder for
Constructive Termination Without Cause unless he (i) first notifies the Company’s Board or
Compensation Committee in writing of the event (or events) which the Executive believes constitutes
a basis for Constructive Termination Without Cause within ninety (90) days from the date of such
event, and (ii) provides the Company with at least thirty (30) days to cure, correct or mitigate
the event so that it either (1) does not constitute a basis for a Constructive Termination Without
Cause hereunder or (2) the Executive agrees, in writing, that after any such modification or
accommodation made by the Company that such event shall not constitute a basis for Constructive
Termination Without Cause hereunder.
“Disability” shall mean the Executive’s physical or mental inability to perform substantially
his duties and responsibilities under this Agreement (“Inability”) for a period of one hundred
eighty (180) consecutive days as determined by an approved medical doctor. For this purpose an
approved medical doctor shall mean a medical doctor selected by the Compensation Committee of the
Company’s board of directors and the Executive. If the Compensation Committee and the Executive
cannot agree on a medical doctor, they shall each select a medical doctor and the two doctors shall
select another medical doctor who shall be the sole medical doctor for this purpose.
“Material Diminution” means a material diminution by Xxxxxx of Executive’s duties, powers,
authority, functions or responsibilities without Executive’s consent, such that Executive is left
with such duties, powers, authority, functions and responsibilities (when viewed in the
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aggregate) that are materially diminished compared to both (i) those duties, powers,
authority, functions and responsibilities conferred upon Executive at the Effective Date and (ii)
those duties, powers, authority, functions and responsibilities that are most typically conferred
upon individuals having the same title as Executive with companies having revenues comparable to
Xxxxxx on a consolidated basis (based on the revenues of Xxxxxx on a consolidated basis at the time
of determination). In addition, a material diminution by Xxxxxx of Executive’s title without
Executive’s consent also shall constitute a “Material Diminution” for purposes of this Agreement.
“Qualifying Retirement” means a voluntary retirement by Executive at any time after June 29,
2015, provided that Executive has given at least one year advance written notice of his intended
retirement to the Company’s board of directors.
Section 6. Miscellaneous.
(a) Assignment; Binding Nature. This Agreement shall be binding upon and inure
to the benefit of the Parties and their respective successors, heirs (in the case of the
Executive), and assigns. No rights or obligations of Xxxxxx or Xxxxxx U.S., Inc. under this
Agreement may be assigned or transferred by Xxxxxx or Xxxxxx U.S., Inc., except that such
rights or obligations may be assigned or transferred pursuant to a merger or consolidation
in which Xxxxxx and/or Xxxxxx U.S., Inc., as applicable, is not the continuing entity, or
the sale or liquidation of all or substantially all of the assets of Xxxxxx or Xxxxxx U.S.,
Inc., provided that the assignee or transferee is the successor to all or substantially all
of the assets of Xxxxxx or Xxxxxx U.S., Inc., as applicable, and such assignee or transferee
assumes the liabilities, obligations and duties of Xxxxxx and Xxxxxx U.S., Inc., as
contained in this Agreement, by written contract. Xxxxxx and Xxxxxx U.S., Inc. each further
agree that, in the event of a sale of assets or liquidation as described in the preceding
sentence, they shall take whatever action it legally can in order to cause such assignee or
transferee to expressly assume the liabilities, obligations and duties of each of Xxxxxx and
Xxxxxx U.S., Inc. hereunder. No rights or obligations of the Executive under this Agreement
may be assigned or transferred by the Executive other than his rights to compensation and
benefits.
(b) Entire Agreement. This Agreement, together with Executive’s Employment
Agreement, Continuation Agreement, various agreements entered into in connection with the
Company’s equity incentive plans, and agreements relating to indemnification of Executive in
his capacity as an officer and director of the Company, contain the entire understanding and
agreement between the parties concerning the subject matter hereof and supersede all prior
agreements, understandings, discussions, negotiations and undertakings, whether written or
oral, between the Parties with respect thereto. Nothing contained in this Agreement shall
be deemed to limit Xxxxxx’x obligations or diminish Executive’s rights under, or otherwise
affect, any such agreement to indemnify Executive.
(c) Amendment or Waiver. No provision in this Agreement may be amended
unless such amendment is agreed to in writing and signed by the Executive and an
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authorized officer of each of Xxxxxx and Xxxxxx U.S., Inc. No waiver by either Party of any
breach by the other Party of any condition or provision contained in this Agreement to be
performed by such other Party shall be deemed a waiver of a similar or dissimilar condition
or provision at the same or any prior or subsequent time. Any waiver must be in writing and
signed by the Executive or an authorized officer of each of Xxxxxx and Xxxxxx U.S., Inc., as
the case may be.
(d) Severability. In the event that any provision or portion of this Agreement
shall be determined to be invalid or unenforceable for any reason, in whole or in part, the
remaining provisions of this Agreement shall be unaffected thereby and shall remain in full
force and effect to the fullest extent permitted by law.
(e) Survivorship. The respective rights and obligations of the Parties
hereunder shall survive any termination of this Agreement pursuant to their terms.
(f) Governing Law/Jurisdiction. This Agreement shall be governed by and
construed and interpreted in accordance with the laws of Texas without reference to
principles of conflict of laws.
(g) Resolution of Disputes. Any disputes arising under or in connection with
this Agreement (including any action by the Executive to enforce compliance or specific
performance with respect to this Agreement) shall at the election of the Executive or the
Company, be resolved by binding arbitration, to be held in Houston, Texas in accordance with
the rules and procedures of the American Arbitration Association before three arbitrators.
Judgment upon the award rendered by the arbitrators may be entered in any court having
jurisdiction thereof. Nothing herein shall preclude either party from seeking provisional
remedies in aid of arbitration, such as a temporary restraining order or preliminary
injunction, from a court of competent jurisdiction. Costs of the arbitration or litigation,
including, without limitation, reasonable attorneys’ fees of both parties, shall be borne
equally by the Company and the Executive. Pending the resolution of any arbitration or
court proceeding, the Company shall continue payment of all amounts due the Executive under
this Agreement consistent with past practice and all benefits to which the Executive is
entitled at the time the dispute arises.
(h) Cash Equivalent Payments in Event Benefits Not Permissible Under Plan. In
the event that the benefits contemplated pursuant to this Agreement would for any reason not
be permissible under any applicable plan maintained by the Company, the Company shall make
Executive whole by making a payment in cash to the Executive in an after-tax amount equal to
the value of the benefit intended to be provided pursuant to this Agreement.
(i) Headings. The headings of the sections contained in this Agreement are for
convenience only and shall not be deemed to control or affect the meaning or construction of
any provision of this Agreement.
(j) Counterparts. This Agreement may be executed in one or more
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counterparts,
each of which shall be deemed to be an original, but all of which together will constitute
one and the same Agreement.
(k) Withholding of Taxes and Other Items. The Company may withhold from any
compensation or benefits payable under this Agreement all federal, state, city or other
taxes as may be required pursuant to any law or governmental regulation or ruling.
(l) Notices. All notices and other communications under this Agreement shall
be in writing and shall be given by facsimile or first class mail, certified or registered
with return receipt requested, and shall be deemed to have been duly given three business
days after mailing or one business day after transmission of a facsimile (with confirmation
of receipt) to the respective persons named below:
If to Xxxxxx:
|
Xxxxxx U.S., Inc. 000 Xxxxxx Xxxxxx, Xxxxx 0000 Xxxxxxx, Xxxxx 00000 Attn: General Counsel |
|
If to Executive:
|
Notices to Executive shall be given at the most recent address of Executive on Xxxxxx’x records |
[Remainder of Page Intentionally Left Blank]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first above written.
| XXXXXX INDUSTRIES PLC |
||||
| By: | /s/ Xxxx X. Xxxxx | |||
| XXXXXX U.S., INC. |
||||
| By: | /s/ Xxxxx X. Xxxxx | |||
| EXECUTIVE |
||||
| /s/ Xxxx X. Xxxxxxxxx | ||||
| Xxxx X. Xxxxxxxxx, individually | ||||
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