EXHIBIT 10.1
SEPARATION AGREEMENT
It is hereby agreed by and between Xxxxxxx X. Xxxxxxx ("Watford") and his
former employer, Nuevo Energy Company (hereinafter "Nuevo"), that Watford has
terminated his employment with Nuevo effective August 31, 1997. In connection
with the termination of Watford's employment, and the payment to Watford of
severance benefits provided for under his January 1, 1997 Employment Agreement
with Nuevo, and in consideration of their mutual promises and other
consideration itemized below, Watford and Nuevo agree to the following:
1. Watford shall be paid his salary, less standard deductions, through August
31, 1997.
2. Nuevo agrees that upon execution of this Agreement, Nuevo will xxxxx
Xxxxxxx an extension in the deadline for exercising Nuevo Energy Company Stock
options which had previously been granted to him, and that all options and bonus
stock previously granted him are fully vested as of the date of this agreement.
All options must be exercised by August 31, 1999, at which time the options will
terminate.
3. Watford's rights under his 401K and Deferred Compensation Plan with Nuevo
shall be fully vested on August 31, 1997.
4. Watford shall be entitled to continue participation in the Nuevo medical
plan, dental plan and vision plan for a total of eighteen (18) months from
August 31, 1997. Watford shall be entitled to no other employee benefits from
Nuevo, including those described under Paragraph 3(D) of his Employment
Agreement. It is expressly understood, however, that this Agreement and this
language in particular has no effect on Watford's rights under the Torchmark
Corporation retirement/pension plan.
5. Watford shall be paid a 1997 bonus of $225,000.00 which shall be treated
in accordance with the existing deferred compensation plan. He shall also
receive a severance payment in the amount of $1,408,333.30, less applicable
withholding taxes.
6. Neuvo shall transfer the title to Watford's automobile to him, and shall
pay the title transfer costs and any applicable sales tax or fees. Taxes, if
any, due by reason of such transfer shall be paid by Watford.
7. Watford shall receive a lump sum payment of $17,200.00 to obtain and pay a
country club membership for two (2) years following his termination.
8. Watford shall be given possession of and title to his portable personal
computer.
9. Watford shall and hereby does resign his seat on Nuevo's Board of
Directors, and the Boards of any subsidiaries of Nuevo, and the Boards of The
Los Angeles Oil Company and Xxxxxxxxx Oil & Gas Company.
10. Watford and Nuevo agree that other than the payments and other
consideration provided for above, there shall be no further compensation due
Watford by reason of his employment with and termination by Nuevo.
IN WITNESS HEREOF, the parties to this Agreement have executed this instrument
on the dates set forth below.
Date: ___________________________ ______________________________________
XXXXXXX X. XXXXXXX
NUEVO ENERGY COMPANY
Date: ________________________ By: _________________________________________
Name: ______________________________________
Title: ______________________________________
