EXHIBIT 10.50
AGREEMENT OF PRINCIPLES OF EMPLOYMENT
Dated July 6, 2005
By and among: XXXXX XXXXXXXX (hereinafter: "Xx. Xxxxxxxx")
And: ALON ISRAEL OIL COMPANY LTD. (hereinafter: "Alon Israel")
And: ALON USA ENERGY, INC. (hereinafter "Alon Energy")
WHEREAS, Xx. Xxxxxxxx and Alon Israel have entered into an Agreement of
Principles of Employment dated June 19, 2005 (the "Alon Israel Employment
Agreement");
WHEREAS, portions of the Alon Israel Employment Agreement relate to Xx.
Xxxxxxxx'x services to Alon Energy and its subsidiaries;
WHEREAS, Alon Energy has agreed to assume from Alon Israel and to be responsible
for the compensation and other benefits set forth in the Alon Israel Employment
Agreement which pertain to Xx. Xxxxxxxx'x services to Alon Energy and its
subsidiaries;
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:
1. The term of this agreement will be for 5 (five) years
commencing on 1/1/05 (hereinafter: "THE TERM OF THE
AGREEMENT").
2. During the term of this agreement, Xx. Xxxxxxxx through DW
OPERATING, LLC, will render his services to Alon Energy in the
USA and will serve as Executive Chairman of the Board of Alon
Energy and as chairman or an executive officer (as the case
may be) in all of the subsidiaries of Alon Energy.
3. The monthly remuneration to be paid by Alon Energy to Xx.
Xxxxxxxx for rendering his services to Alon Energy in
accordance with section 2 above will be: $24,000 (twenty-four
thousand dollars) ("THE REMUNERATION"). Xx. Xxxxxxxx will be
entitled to participate in the bonus plan of Alon Energy and
its subsidiaries at an executive level. Xx. Xxxxxxxx will be
entitled to a 5% fee increase at the end of each of the
second, third and fourth year of the agreement.
4. Alon Energy or Alon Israel will be entitled to bring this
agreement to an early end, upon a prior written notice to Xx.
Xxxxxxxx of 6 (six) months.
5. In case of termination of this agreement according to section
4 above, for any reason whatsoever, then the following
provisions will apply:
a. During the 6 (six) months prior notice
period given to Xx. Xxxxxxxx he will be
entitled to receive full remuneration in
accordance with section 3 herein.
b. Xx. Xxxxxxxx will be entitled to a 12
(twelve) month adaptation period commencing
at the end of the prior notice period.
During the adaptation period Xx. Xxxxxxxx
will be entitled to receive his full
remuneration according to this agreement.
c. Alon Energy will pay Xx. Xxxxxxxx all
remuneration Xx. Xxxxxxxx is entitled to up
to the date of termination of his
employment, including the prior notice
period, to which Alon Energy shall add a
compensation fee equal to the amount of 200%
of the monthly remuneration paid to Xx.
Xxxxxxxx according to this agreement for
each year in which he rendered his services
to Alon Energy.
6. During the term of this Agreement, Alon Energy shall provide
the following benefits to Xx. Xxxxxxxx:
a. Alon Energy will rent or lease a car for the
use of Xx. Xxxxxxxx during his stays in the
U.S. The car will be in a standard and level
suitable to the position Xx. Xxxxxxxx is
filling.
b. Alon Energy will participate in the costs of
Xx. Xxxxxxxx'x apartment maintenance in the
U.S as customary for an Israeli employee
employed by Alon Energy in the U.S.
c. Alon Energy shall provide medical insurance
to Xx. Xxxxxxxx as customary for Alon Energy
employees in the U.S.
d. Alon Energy shall provide flight tickets to
the U.S for Xx. Xxxxxxxx'x family members
(up to 8 tickets a year).
IN WITNESS WHEREOF, the parties have signed this agreement as of the date first
above written.
Alon USA Energy, Inc. Alon Israel Oil Company Ltd.
/s/ XXXXXX XXXX /s/ XXXXXX XXXXX
------------------------------ --------------------------------
Xxxxxx Xxxx, Vice President Xxxxxx Xxxxx, Chairman
/s/ XXXXX XXXXXXXX
-----------------------------
Xxxxx Xxxxxxxx
