EMPLOYMENT AGREEMENT
Exhibit
10.1
Execution
Copy
AGREEMENT
dated as
of August 20, 2007 (this “Agreement”)
by and
between MDC
PARTNERS INC., a
corporation existing under the laws of Canada (the “Company”),
and
XXXXXXX
XXXXXX (the
“Executive”).
W
I T N E S S E T H:
WHEREAS,
Executive
currently serves as a “Consultant” of the Company pursuant to an agreement dated
January 12, 2007 (the “Consulting
Agreement”),
and
the parties wish to specify certain new employment terms and conditions with
respect to Executive, as hereinafter set forth;
NOW,
THEREFORE,
in
consideration of the premises and other good and valuable consideration, receipt
of which is hereby acknowledged, the parties hereto agree as
follows:
1. Employment
Effective
as of the date hereof, the Company will employ the Executive during the Term
specified in paragraph 2, and the Executive agrees to accept such employment,
upon the terms and conditions hereinafter set forth. Effective as of the date
hereof, (i) the Executive’s Consulting Agreement with the Company shall
terminate and be of no further force and effect, and the remaining balance
of
fees due thereunder for 2007 shall be promptly paid to Executive; and (ii)
Executive shall not be entitled to receive any fees as a non-employee director
of the Company.
2. Term
Subject
to the provisions contained in paragraphs 6 and 7, the Executive's employment
by
the Company shall continue for a term expiring on the close of business on
June
30, 2010 (the “Initial
Term”);
provided, however, the term of the Executive’s employment by the Company shall
continue for additional one-year periods thereafter unless and until either
party shall give to the other 30 days advance written notice of expiration
of
the term (a “Notice
of Termination”)
(the
Initial Term and the period, if any, thereafter, during which the Executive’s
employment shall continue are collectively referred to as the “Term”).
Any
Notice of Termination given under this paragraph 2 shall specify the date of
termination. The Company shall have the right at any time during such 30 day
notice period, to relieve the Executive of his offices, duties and
responsibilities and to place him on a paid leave-of-absence status, provided
that during such notice period the Executive shall remain a full-time employee
of the Company and shall continue to receive his then current salary
compensation, bonus and other benefits as provided in this Agreement. The date
on which the Executive ceases to be employed by the Company, regardless of
the
reason therefor, is referred to in this Agreement as the “Date
of Termination.”
3. Duties
and Responsibilities
(a) Title.
During
the Term, the Executive shall have the position of Vice Chairman of the Company.
(b) Duties.
The
Executive shall report directly to the Company’s Board of Directors and Chief
Executive Officer or such other person with the role and responsibilities of
such executive (the "MDC
Executive"),
at
such times and in such detail as the Board of Directors or MDC Executive shall
reasonably require. The Executive shall perform such duties consistent with
his
position as designated in Schedule 1 hereto and as may be assigned to him from
time to time by the Board of Directors or MDC Executive.
(c) Scope
of Employment.
The
Executive's employment by the Company shall be as described herein, and during
the Term, the Executive agrees that he will (i) devote his business time and
attention, his reasonable best efforts, and all his skill and ability to promote
the interests of the Company; and (ii) carry out his duties in a competent
manner and serve the Company faithfully and diligently under the direction
of
the MDC Executive. Notwithstanding the foregoing, the Executive shall be
permitted to (A) upon prior written consent of the MDC Executive, serve on
the
board of directors of two companies unaffiliated with the Company; provided
that
such companies are not engaged in any activity which is competitive with the
Company or its subsidiaries and affiliates (collectively, the “MDC
Group”),
and
(B) engage in charitable and civic activities and manage his personal passive
investments, provided that such passive investments are not in a company which
transacts business with the Company or its affiliates or engages in business
competitive with that conducted by the Company (or, if such company does
transact business with the Company, or does engage in a competitive business,
it
is a publicly held corporation and the Executive's participation is limited
to
owning less than 1% of its outstanding shares), and further provided that such
activities (individually or collectively) do not materially interfere with
the
performance of his duties or responsibilities under this Agreement.
(d) Office
Location.
During
the Term, the Executive's services hereunder shall be performed at the offices
of the Company, which shall be within a twenty five (25) mile radius of Xxxxxxx,
Xxxxxxx, subject to necessary travel requirements to the Company’s offices in
New York City and other MDC Group company locations in order to carry out his
duties in connection with his position hereunder.
4. Compensation
(a) Base
Salary.
As
compensation for his services hereunder, during the Term, the Company shall
pay
the Executive in accordance with its normal payroll practices, an annualized
base salary of Cdn $250,000, subject to periodic review by the Human Resources
& Compensation Committee of the Board of Directors of the Company (the
“Compensation
Committee”)
to
determine appropriate increases, if any, in accordance with the Company’s
practices and policies for other senior executives (“Base
Salary”).
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(b) Annual
Discretionary Bonus.
During
the Term, in respect of all calendar years beginning January 1, 2007 (pro-rated
for the period of time employed in 2007 pursuant to this Agreement), the
Executive shall be eligible to receive an annual Discretionary Bonus in an
amount equal to up to 100% of the then current Base Salary, based upon criteria
determined by the MDC Executive and the Compensation Committee, which criteria
shall include the Executive’s performance, the overall financial performance of
the Company and such other factors as the MDC Executive and the Compensation
Committee shall deem reasonable and appropriate (the “Annual
Discretionary Bonus”).
The
MDC Executive shall communicate the criteria for the Annual Discretionary Bonus
to the Executive within a reasonable period of time after such criteria have
been established. The Annual Discretionary Bonus will be paid in accordance
with
the Company’s normal bonus payment procedures.
(c) MDC
Stock Options.
As of
the date of this Agreement, the parties acknowledge that the Executive has
been
granted options to acquire Class A subordinate voting shares of the Company
(the
“Existing
Stock Options”)
pursuant to the Company’s Stock Option Plan (as amended from time to time, the
“Stock
Option Plan”)
in
accordance with and subject to the terms and conditions of separate Stock Option
agreements entered into between the Company and the Executive (the “Existing Stock
Option Agreements”).
A
schedule of the applicable terms of such Options, as corrected in August 2006,
is set forth as Schedule 2 hereto.
(d) Participation
in Equity Incentive Programs.
The
Executive shall also be eligible to ongoing participation in all current and
future equity incentive plans of the Company, including but not limited to
potential awards of stock options, stock appreciation rights and/or awards
of
restricted shares of the Company. Such additional equity-based grants will
be
calculated and made at such times and in a manner consistent with the
Corporation’s practices for its other senior executives.
5. Expenses;
Fringe Benefits
(a) Expenses.
The
Company agrees to pay or to reimburse the Executive for all reasonable,
ordinary, necessary and documented business or entertainment expenses incurred
during the Term in the performance of his services hereunder in accordance
with
the policy of the Company as from time to time in effect. The Executive, as
a
condition precedent to obtaining such payment or reimbursement, shall provide
to
the Company any and all statements, bills or receipts evidencing the travel
or
out-of-pocket expenses for which the Executive seeks payment or reimbursement,
and any other information or materials, as the Company may from time to time
reasonably require.
(b) Benefit
Plans.
During
the Term, the Executive and, to the extent eligible, his dependents, shall
be
eligible to participate in and receive all benefits under any group health
plans, welfare benefit plans and programs (including without limitation,
disability, group life (including accidental death and dismemberment) and
business travel insurance plans and programs) provided by the Company to its
senior executives and, without duplication, its employees generally, subject,
however, to the generally applicable eligibility and other provisions of the
various plans and programs in effect from time to time.
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(c) Retirement
Plans.
During
the Term, the Executive shall be eligible to participate in all retirement
plans
and programs (including without limitation any profit sharing plan) provided
by
the Company to its senior executives generally and, without duplication, its
employees generally, subject, however, to the generally applicable eligibility
and other provisions of the various plans and programs in effect from time
to
time. In addition, during the Term, the Executive shall be eligible to receive
fringe benefits and perquisites in accordance with the plans, practices,
programs and policies of the Company from time to time in effect which are
made
available to the senior executives of the Company generally and, without
duplication, to its employees generally.
(d) Vacation.
The
Executive shall be entitled to four weeks vacation in accordance with the
Company's policies, with no right of carry over, to be taken at such times
as
shall not materially interfere with the Executive's fulfillment of his duties
hereunder, and shall be entitled to as many holidays, sick days and personal
days as are in accordance with the Company's policy then in effect generally
for
its employees.
6. Termination
(a) Termination
for Cause.
The
Company, by direction of the Compensation Committee, the Board of Directors
or
the MDC Executive, shall be entitled to terminate the Term and to discharge
the
Executive for “Cause”
effective upon the giving of written notice to the Executive. For purposes
of
this Agreement, the term “Cause” shall mean:
(i) the
Executive's failure or refusal to materially perform his duties and
responsibilities as set forth in paragraph 3 hereof (other than as a result
of a
Disability (as defined in paragraph 6(d) hereof), provided that the Executive
or
a representative on his behalf has provided notice to the Company not more
than
20 days following the onset of Executive’s illness or physical or mental
incapacity or disability) or abide by the reasonable directives of the MDC
Executive, or the failure of the Executive to devote all of his business time
and attention exclusively to the business and affairs of the Company in
accordance with the terms hereof, in each case if such failure or refusal is
not
cured (if curable) within 20 days after written notice thereof to the Executive
by the Company;
(ii) the
willful and unauthorized misappropriation of the funds or property of the
Company;
(iii) the
use
of alcohol or illegal drugs, interfering with the performance of the Executive's
obligations under this Agreement, continuing after written warning;
(iv) the
conviction in a court of law of, or entering a plea of guilty or no contest
to,
any felony or any crime involving moral turpitude, dishonesty or
theft;
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(v) the
material nonconformance with the Company's policies against racial or sexual
discrimination or harassment, which nonconformance is not cured (if curable)
within 10 days after written notice to the Executive by the
Company;
(vi) the
commission in bad faith by the Executive of any act which materially injures
or
could reasonably be expected to materially injure the reputation, business
or
business relationships of the Company;
(vii) the
resignation by the Executive on his own initiative (other than pursuant to
a
termination by the Executive for "Good Reason" (as defined in paragraph 6(b)
hereof);
(viii) any
breach (not covered by any of the clauses (i) through (vii) above) of paragraphs
8, 9, 11 and 24, if such breach is not cured (if curable) within 20 days after
written notice thereof to the Executive by the Company.
Any
notice required to be given by the Company pursuant to clause (i), (v) or (viii)
above shall specify the nature of the claimed breach and the manner in which
the
Company requires such breach to be cured (if curable). In the event that the
Executive is purportedly terminated for Cause and the arbitrator appointed
pursuant to paragraph 18 determines that Cause as defined herein was not
present, then such purported termination for Cause shall be deemed a termination
without Cause pursuant to paragraph 6(c) and the Executive's rights and remedies
will be governed by paragraph 7(b), in full satisfaction and in lieu of any
and
all other or further remedies the Executive may have under this
Agreement.
(b) Termination
for Good Reason.
Provided that a Cause event has not occurred and has not been cured (if
curable), the Executive shall be entitled to terminate this Agreement and the
Term hereunder for Good Reason (as defined below) at any time during the Term
by
written notice to the Company not more than 20 days after the occurrence of
the
event constituting such Good Reason. For purposes of this Agreement,
“Good
Reason”
shall
be limited to (i) a breach by the Company of a material provision of this
Agreement, which breach remains uncured (if curable) for a period of 20 days
after written notice of such breach from the Executive to the Company (such
notice to specify the nature of the claimed breach and the manner in which
the
Executive requires such breach to be cured), (ii) the Company’s failure to pay
any compensation or benefits, as set forth in paragraphs 4 or 5, which action
is
not reversed within 10 days after written notice of the breach from the
Executive to the Company, (iii) a material diminution of the Executive’s duties
and responsibilities as set forth in paragraph 3, without his prior written
consent, which breach remains uncured (if curable) for a period of 20 days
after
written notice of such breach from the Executive to the Company (such notice
to
specify the nature of the claimed breach and the manner in which the Executive
requires such breach to be cured). In the event that the Executive purportedly
terminates his employment for Good Reason and the arbitrator appointed pursuant
to paragraph 18 determines that Good Reason as defined herein was not present,
then such purported termination for Good Reason shall be deemed a termination
for Cause pursuant to paragraph 6(a)(vii) and the Executive’s rights and
remedies will be governed by paragraph 7(a), in full satisfaction and in lieu
of
any and all other or further remedies the Executive may have under this
Agreement.
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(c) Termination
without Cause.
The
Company, by direction of the Board or the MDC Executive, shall have the right
at
any time during the Term to terminate the employment of the Executive without
Cause by giving written notice to the Executive setting forth a Date of
Termination.
(d) Termination
for Death or Disability.
In the
event of the Executive's death, the Date of Termination shall be the date of
the
Executive's death. In the event the Executive shall be unable to perform his
duties hereunder by virtue of illness or physical or mental incapacity or
disability (from any cause or causes whatsoever) in substantially the manner
and
to the extent required hereunder prior to the commencement of such disability
and the Executive shall fail to perform such duties for periods aggregating
120
days, whether or not continuous, in any continuous period of 360 days (such
causes being herein referred to as “Disability”),
the
Company shall have the right to terminate the Executive's employment hereunder
as at the end of any calendar month during the continuance of such Disability
upon at least 30 days' prior written notice to him.
7. Effect
of Termination of Employment.
(a) Termination
by the Company for Cause; by the Executive without Good Reason; by Death or
Disability; or pursuant to a Notice of Termination delivered by the Executive
pursuant to paragraph 2 above.
In the
event of the termination of the employment of the Executive (1) by the Company
for Cause; (2) by the Executive without Good Reason; (3) by reason of death
or
Disability pursuant to paragraph 6(d); or (4) pursuant to a Notice of
Termination delivered by the Executive pursuant to paragraph 2 above, the
Executive shall be entitled to the following, subject to any appropriate
offsets, as permitted by applicable law, for debts or money due and payable
by
the Executive to the Company or an affiliate thereof (collectively,
“Offsets”):
(i) unpaid
Base Salary through, and any unpaid reimbursable expenses outstanding as of,
the
Date of Termination;
(ii) all
benefits, if any, that had accrued to the Executive through the Date of
Termination under the plans and programs described in paragraphs 5(b) and (c)
above, or any other applicable plans and programs in which he participated
as an
employee of the Company, in the manner and in accordance with the terms of
such
plans and programs; it being understood that any and all rights that the
Executive may have to severance payments by the Company shall be determined
and
solely based on the terms and conditions of this Agreement and not based on
the
Company's severance policy then in effect, if any; and
(iii) notwithstanding
anything to the contrary in any of the Existing Stock Option Agreements, the
Executive will be entitled to exercise all Existing Stock Options which are
vested as at the time of the Date of Termination under this section 7(a) for
a
period ending on a date which is the earlier of: (i) three (3) months from
the
Date of Termination and (ii) the expiration of such Existing Stock
Options.
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In
the
event of termination of the employment of Executive in the circumstances
described in this paragraph 7(a), except as expressly provided in this
paragraph, the Company shall have no further liability to the Executive or
the
Executive's heirs, beneficiaries or estate for damages, compensation, benefits,
severance or other amounts of whatever nature, directly or indirectly, arising
out of or otherwise related to this Agreement and the Executive's employment
or
cessation of employment with the Company, provided that the foregoing shall
not
apply to any outstanding indemnification obligations of the Company in respect
of the Executive’s good faith actions in his capacity as a member, director or
officer thereof arising on or prior to the Date of Termination (“Outstanding
Indemnification Obligations”).
(b) Termination
by the Company without Cause; by the Company pursuant to a Notice of Termination
delivered pursuant to paragraph 2 above; or by the Executive for Good
Reason.
In the
event of a termination (1) by the Company without Cause; (2) by the Executive
for Good Reason; or (3) by the Company pursuant to a Notice of Termination
delivered pursuant to paragraph 2 above, the Executive shall be entitled to
the
following payments and benefits, subject to any Offsets:
(i)
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a
severance payment (the “
Severance Amount”)
in an amount equal to the product of 1.5 multiplied by the Executive’s
“Total Remuneration”. For purposes of this Agreement, “Total
Remuneration”
shall mean the sum of the Executive’s current Base Salary, plus the
highest Annual Discretionary Bonus earned by the Executive in the
three
(3) years ending December 31 of the year immediately preceding the
Date of
Termination. The Severance Amount described in this Section 7(b)(i),
less
applicable withholding of any tax amounts, shall be paid by the Company
to
the Executive not later than 10 business days after the applicable
Date of
Termination.
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(ii)
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his
Annual Discretionary Bonus with respect to the calendar year prior
to the
Date of Termination, when otherwise payable, but only to the extent
not
already paid;
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(iii)
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eligibility
for a pro-rata portion of his Annual Discretionary Bonus with respect
to
the calendar year in which the Date of Termination occurs, when otherwise
payable, (such pro-rata amount to be equal to the product of (A)
the
amount of the Annual Discretionary Bonus for such calendar year,
times (B)
a fraction, (x) the numerator of which shall be the number of calendar
days commencing January 1 of such year and ending on the Date of
Termination, and (y) the denominator of which shall equal
365;
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7
(iv)
|
unpaid
Base Salary through, and any unpaid reimbursable expenses outstanding
as
of, the Date of Termination;
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(v)
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all
benefits, if any, that had accrued to the Executive through the Date
of
Termination under the plans and programs described in paragraphs
5(b) and
(c) above, or any other applicable benefit plans and programs in
which the
Executive participated as an employee of the Company, in the manner
and in
accordance with the terms of such plans and programs; it being understood
that any and all rights that the Executive may have to severance
payments
by the Company shall be determined and solely based on the terms
and
conditions of this Agreement (without duplication) and not based
on the
Company's severance policy then in effect, if
any;
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(vi)
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continued
participation on the same basis in the plans and programs set forth
in
paragraph 5(b) and to the extent permitted under applicable law,
paragraph
5(c) (such benefits collectively called the "Continued
Plans")
in which the Executive was participating on the Date of Termination
(as
such Continued Plans are from time to time in effect at the Company)
for a
period to end on the earlier of (A) the one-year anniversary of the
Date
of Termination and (B) the date on which the Executive is eligible
to
receive coverage and benefits under the same type of plan of a subsequent
employer; provided, however, if the Executive is precluded from continuing
his participation in any Continued Plan, then the Company will be
obligated to pay him the economic equivalent of the benefits provided
under the Continued Plan in which he is unable to participate, for
the
period specified above, it being understood that the economic equivalent
of a benefit foregone shall be deemed the lowest cost in the Province
of
Ontario that would be incurred by the Executive in obtaining such
benefit
himself on an individual basis;
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(vii)
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notwithstanding
anything to the contrary in any of the Existing Stock Option Agreements.
if the Executive is terminated pursuant to this paragraph 7(b), any
and
all unvested Existing Stock Options shall be deemed to have vested
immediately prior to the Date of Termination; and
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(viii)
|
notwithstanding
anything to the contrary in any of the Existing Stock Option Agreements,
the Executive will be entitled to exercise all Existing Stock Options
which are vested (or deemed to be vested pursuant to paragraph 7(b)(vii))
as at the time of the Date of Termination under this section 7(b)
for a
period ending on a date which is the earlier of: (i) three (3) months
from
the Date of Termination and (ii) the expiration of such Existing
Stock
Options.
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8
In
the
event of termination of this Agreement in the circumstances described in this
paragraph 7(b), except as expressly provided in this paragraph, the Company
shall have no further liability to the Executive or the Executive’s heirs,
beneficiaries or estate for damages, compensation, benefits, severance or other
amounts of whatever nature, directly or indirectly, arising out of or otherwise
related to this Agreement and the Executive’s employment or cessation of
employment with the Company, provided that the foregoing shall not apply to
any
Outstanding Indemnification Obligations.
The
Executive shall be under no duty to mitigate damages hereunder. The making
of
any severance payments and providing the other benefits as provided in this
paragraph 7(b) is conditioned upon the Executive signing and not revoking a
separation agreement in the form attached hereto as Exhibit
A
(the
"Separation
Agreement").
In
the
event the Executive breaches any provisions of the Separation Agreement or
the
provisions of paragraph 8 of this Agreement, in addition to any other remedies
at law or in equity available to it, the Company may cease making any further
payments and providing the other benefits provided for in this paragraph 7(b),
without affecting its rights under this Agreement or the Separation
Agreement.
(c) Termination
by the Company without Cause; by the Executive for Good Reason; or by the
Company pursuant to a Notice of Termination delivered pursuant to paragraph
2
above, following a Change of Control.
If
within one (1) year after the closing date of any Change of Control transaction,
the Executive’s employment is terminated: (1) by the Company without Cause; (2)
by the Executive for Good Reason; or (3) by the Company pursuant to a Notice
of
Termination delivered pursuant to paragraph 2 above, the Executive shall be
entitled to the following payments and benefits, subject to any
Offsets:
(i)
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a
severance payment (the “Change
in Control Severance Amount”)
in an amount equal to the product of two (2) multiplied by the Executive’s
Total Remuneration. The Change in Control Severance Amount described
in
this Section 7(c)(i), less applicable withholding of any tax amounts,
shall be paid by the Company to the Executive not later than 10 business
days after the applicable Date of
Termination.
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(ii)
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his
Annual Discretionary Bonus with respect to the calendar year prior
to the
Date of Termination, when otherwise payable, but only to the extent
not
already paid;
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(iii)
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eligibility
for a pro-rata portion of his Annual Discretionary Bonus with respect
to
the calendar year in which the Date of Termination occurs, when otherwise
payable, (such pro-rata amount to be equal to the product of (A)
the
amount of the Annual Discretionary Bonus for such calendar year,
times (B)
a fraction, (x) the numerator of which shall be the number of calendar
days commencing January 1 of such year and ending on the Date of
Termination, and (y) the denominator of which shall equal
365;
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9
(iv)
|
unpaid
Base Salary through, and any unpaid reimbursable expenses outstanding as
of, the Date of Termination;
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(v)
|
all
benefits, if any, that had accrued to the Executive through the Date
of
Termination under the plans and programs described in paragraphs
5(b) and
(c) above, or any other applicable benefit plans and programs in
which the
Executive participated as an employee of the Company, in the manner
and in
accordance with the terms of such plans and programs; it being understood
that any and all rights that the Executive may have to severance
payments
by the Company shall be determined and solely based on the terms
and
conditions of this Agreement (without duplication) and not based
on the
Company's severance policy then in effect, if
any;
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(vi)
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continued
participation on the same basis in the Continued Plans in which the
Executive was participating on the Date of Termination (as such Continued
Plans are from time to time in effect at the Company) for a period
to end
on the earlier of (A) the one-year anniversary of the Date of Termination
and (B) the date on which the Executive is eligible to receive coverage
and benefits under the same type of plan of a subsequent employer;
provided, however, if the Executive is precluded from continuing
his
participation in any Continued Plan, then the Company will be obligated
to
pay him the economic equivalent of the benefits provided under the
Continued Plan in which he is unable to participate, for the period
specified above, it being understood that the economic equivalent
of a
benefit foregone shall be deemed the lowest cost in the Province
of
Ontario that would be incurred by the Executive in obtaining such
benefit
himself on an individual basis;
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(vii)
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notwithstanding
anything to the contrary in any of the Existing Stock Option Agreements
,
if the Executive is terminated pursuant to this paragraph 7(c), any
and
all unvested Existing Stock Options shall be deemed to have vested
immediately prior to the Date of Termination; and
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(viii)
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notwithstanding
anything to the contrary in any of the Existing Stock Option Agreements,
the Executive will be entitled to exercise all Existing Stock Options
are
vested (or deemed to be vested pursuant to paragraph 7(c)(vii)) as
at the
time of the Date of Termination under this section 7(c) for a period
ending on a date which is the earlier of: (i) three (3) months from
the
Date of Termination and (ii) the expiration of such Existing Stock
Options.
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For
the
purposes of this Agreement, a “Change
of Control”
shall
be limited to the closing of a transaction which results in (i) any person(s)
or
company(ies) acting jointly or in concert owning, directly or indirectly, equity
of the Company representing greater than 50% of the voting power of the
Company's outstanding securities, or (ii) the Company selling all or
substantially all of its assets (in each instance other than any transfer by
the
Company or any of its affiliates of their respective interest in the Company
to
another wholly-owned subsidiary of another MDC Group company).
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In
the
event of termination of this Agreement in the circumstances described in this
paragraph 7(c), except as expressly provided in this paragraph, the Company
shall have no further liability to the Executive or the Executive's heirs,
beneficiaries or estate for damages, compensation, benefits, severance or other
amounts of whatever nature, directly or indirectly, arising out of or otherwise
related to this Agreement and the Executive's employment or cessation of
employment with the Company, provided that the foregoing shall not apply to
any
Outstanding Indemnification Obligations.
The
Executive shall be under no duty to mitigate damages hereunder. The making
of
any severance payments and providing the other benefits as provided in this
paragraph 7(c) is conditioned upon the Executive signing and not revoking a
Separation Agreement. In the event the Executive breaches any provisions of
the
Separation Agreement or the provisions of paragraph 8 of this Agreement, in
addition to any other remedies at law or in equity available to it, the Company
may cease making any further payments and providing the other benefits provided
for in this paragraph 7(c), without affecting its rights under this Agreement
or
the Separation Agreement.
The
Company represents and warrants to the Executive that the provisions set forth
in Sections 7(a)(iii), 7(b)(vii), 7(b)(viii), 7(c)(vii) and 7(c)(viii) of this
Agreement, have been approved by the Company’s Compensation
Committee.
8. Non-Solicitation/Non-Servicing
Agreement and Protection of Confidential Information
(a) Non-Solicitation/Non-Servicing.
The
parties hereto agree that the covenants given in this paragraph 8 are being
given incident to the agreements and transactions described herein, and that
such covenants are being given for the benefit of the Company. Accordingly,
the
Executive acknowledges (i) that the business and the industry in which the
Company competes is highly competitive; (ii) that as a key executive of the
Company he has participated in and will continue to participate in the servicing
of current clients and/or the solicitation of prospective clients, through
which, among other things, the Executive has obtained and will continue to
obtain knowledge of the "know-how" and business practices of the Company, in
which matters the Company has a substantial proprietary interest; (iii) that
his
employment hereunder requires the performance of services which are special,
unique, extraordinary and intellectual in character, and his position with
the
Company places and placed him in a position of confidence and trust with the
clients and employees of the Company; and (iv) that his rendering of services
to
the clients of the Company necessarily required and will continue to require
the
disclosure to the Executive of confidential information (as defined in paragraph
8(b) hereof) of the Company. In the course of the Executive's employment with
the Company, the Executive has and will continue to develop a personal
relationship with the clients of the Company and a knowledge of those clients'
affairs and requirements, and the relationship of the Company with its
established clientele will therefore be placed in the Executive's hands in
confidence and trust. The Executive consequently agrees that it is a legitimate
interest of the Company, and reasonable and necessary for the protection of
the
confidential information, goodwill and business of the Company, which is
valuable to the Company, that the Executive make the covenants contained herein
and that the Company would not have entered into this Agreement unless the
covenants set forth in this paragraph 8 were contained in this Agreement.
Accordingly, the Executive agrees that during the period that he is employed
by
the Company and for a period of eighteen (18) months thereafter (such period
being referred to as the "Restricted
Period"),
he
shall not, as an individual, employee, consultant, independent contractor,
partner, shareholder, or in association with any other person, business or
enterprise, except on behalf of the Company, directly or indirectly, and
regardless of the reason for his ceasing to be employed by the
Company:
11
(i) attempt
in any manner to solicit or accept from any client business of the type
performed by the Company or to persuade any client to cease to do business
or to
reduce the amount of business which any such client has customarily done or
is
reasonably expected to do with the Company, whether or not the relationship
between the Company and such client was originally established in whole or
in
part through the Executive’s efforts; or
(ii) employ
as
an employee or retain as a consultant any person, firm or entity who is then
or
at any time during the preceding twelve months was an employee of or exclusive
consultant to the Company, or persuade or attempt to persuade any employee
of or
exclusive consultant to the Company to leave the employ of the Company or to
become employed as an employee or retained as a consultant by any person, firm
or entity other than the Company.
As
used
in this paragraph 8, the term "Company"
shall
include any subsidiaries of the Company and the term "client"
shall
mean (1) anyone who is a client of the Company on the Date of Termination,
or if
the Executive's employment shall not have terminated, at the time of the alleged
prohibited conduct (any such applicable date being called the "Determination
Date");
(2)
anyone who was a client of the Company at any time during the one year period
immediately preceding the Determination Date; (3) any prospective client to
whom
the Company had made a new business presentation (or similar offering of
services) at any time during the one year period immediately preceding the
Date
of Termination; and (4) any prospective client to whom the Company made a new
business presentation (or similar offering of services) at any time within
six
months after the Date of Termination (but only if initial discussions between
the Company and such prospective client relating to the rendering of services
occurred prior to the Date of Termination, and only if the Executive
participated in or supervised such discussions). For purposes of this clause,
it
is agreed that a general mailing or an incidental contact shall not be deemed
a
"new business presentation or similar offering of services" or a "discussion".
In addition, "client" shall also include any clients of other companies
operating within the MDC group of companies to whom the Executive rendered
services (including supervisory services) at any time during the six-month
period prior to the Determination Date. In addition, if the client is part
of a
group of companies which conducts business through more than one entity,
division or operating unit, whether or not separately incorporated (a
"Client
Group"),
the
term "client" as used herein shall also include each entity, division and
operating unit of the Client Group where the same management group of the Client
Group has the decision making authority or significant influence with respect
to
contracting for services of the type rendered by the Company.
12
(b) Confidential
Information.
In the
course of the Executive's employment with the Company (and its predecessor),
he
has acquired and will continue to acquire and have access to confidential or
proprietary information about the Company and/or its clients, including but
not
limited to, trade secrets, methods, models, passwords, access to computer files,
financial information and records, computer software programs, agreements and/or
contracts between the Company and its clients, client contacts, client
preferences, creative policies and ideas, advertising campaigns, creative and
media materials, graphic design materials, sales promotions and campaigns,
sales
presentation materials, budgets, practices, concepts, strategies, methods of
operation, financial or business projections of the Company and information
about or received from clients and other companies with which the Company does
business. The foregoing shall be collectively referred to as "confidential
information".
The
Executive is aware that the confidential information is not readily available
to
the public and accordingly, the Executive also agrees that he will not at any
time (whether during the Term or after termination of this Agreement), disclose
to anyone (other than his counsel in the course of a dispute arising from the
alleged disclosure of confidential information or as required by law) any
confidential information, or utilize such confidential information for his
own
benefit, or for the benefit of third parties. The Executive agrees that the
foregoing restrictions shall apply whether or not any such information is marked
"confidential" and regardless of the form of the information. The term
"confidential information" does not include information which (i) is or becomes
generally available to the public other than by breach of this provision or
(ii)
the Executive learns from a third party who is not under an obligation of
confidence to the Company or a client of the Company. In the event that the
Executive becomes legally required to disclose any confidential information,
he
will provide the Company with prompt notice thereof so that the Company may
seek
a protective order or other appropriate remedy and/or waive compliance with
the
provisions of this paragraph 8(b) to permit a particular disclosure. In the
event that such protective order or other remedy is not obtained, or that the
Company waives compliance with the provisions of this paragraph 8(b) to permit
a
particular disclosure, the Executive will furnish only that portion of the
confidential information which he is legally required to disclose and, at the
Company's expense, will cooperate with the efforts of the Company to obtain
a
protective order or other reliable assurance that confidential treatment will
be
accorded the confidential information. The Executive further agrees that all
memoranda, disks, files, notes, records or other documents, whether in
electronic form or hard copy (collectively, the "material")
compiled by him or made available to him during his employment with the Company
(whether or not the material constitutes or contains confidential information),
and in connection with the performance of his duties hereunder, shall be the
property of the Company and shall be delivered to the Company on the termination
of the Executive's employment with the Company or at any other time upon
request. Except in connection with the Executive's employment with the Company,
the Executive agrees that he will not make or retain copies or excerpts of
the
material; provided that the Executive shall be entitled to retain his personal
files.
(c) Remedies.
If the
Executive commits or threatens to commit a breach of any of the provisions
of
paragraphs 8(a) or (b), the Company shall have the right to have the provisions
of this Agreement specifically enforced by the arbitrator appointed under
paragraph 18 or by any court having jurisdiction without being required to
post
bond or other security and without having to prove the inadequacy of the
available remedies at law, it being acknowledged and agreed that any such breach
or threatened breach will cause irreparable injury to the Company and that
money
damages will not provide an adequate remedy to the Company. In addition, the
Company may take all such other actions and remedies available to it under
law
or in equity and shall be entitled to such damages as it can show it has
sustained by reason of such breach.
13
(d) Acknowledgements.
The
parties acknowledge that (i) the type and periods of restriction imposed in
the
provisions of paragraphs 8(a) and (b) are fair and reasonable and are reasonably
required in order to protect and maintain the proprietary interests of the
Company described above, other legitimate business interests and the goodwill
associated with the business of the Company; (ii) the time, scope and other
provisions of this paragraph 8 have been specifically negotiated by
sophisticated commercial parties, represented by legal counsel, and are given
as
an integral part of the transactions contemplated by this Agreement; and (iii)
because of the nature of the business engaged in by the Company and the fact
that clients can be and are serviced by the Company wherever they are located,
it is impractical and unreasonable to place a geographic limitation on the
agreements made by the Executive herein. The Executive specifically acknowledges
that his being restricted from soliciting and servicing clients and prospective
clients as contemplated by this Agreement will not prevent him from being
employed or earning a livelihood in the type of business conducted by the
Company. If any of the covenants contained in paragraphs 8(a) or (b), or any
part thereof, is held to be unenforceable by reason of it extending for too
great a period of time or over too great a geographic area or by reason of
it
being too extensive in any other respect, the parties agree (x) such covenant
shall be interpreted to extend only over the maximum period of time for which
it
may be enforceable and/or over the maximum geographic areas as to which it
may
be enforceable and/or over the maximum extent in all other respects as to which
it may be enforceable, all as determined by the court or arbitration panel
making such determination and (y) in its reduced form, such covenant shall
then
be enforceable, but such reduced form of covenant shall only apply with respect
to the operation of such covenant in the particular jurisdiction in or for
which
such adjudication is made. Each of the covenants and agreements contained in
this paragraph 8 (collectively, the "Protective
Covenants")
is
separate, distinct and severable. All rights, remedies and benefits expressly
provided for in this Agreement are cumulative and are not exclusive of any
rights, remedies or benefits provided for by law or in this Agreement, and
the
exercise of any remedy by a party hereto shall not be deemed an election to
the
exclusion of any other remedy (any such claim by the other party being hereby
waived). The existence of any claim, demand, action or cause of action of the
Executive against the Company, whether predicated on this Agreement or
otherwise, shall not constitute a defense to the enforcement by the Company
of
each Protective Covenant. The unenforceability of any Protective Covenant shall
not affect the validity or enforceability of any other Protective Covenant
or
any other provision or provisions of this Agreement.
(e) Notification
of Restrictive Covenants.
Prior
to accepting employment with any person, firm or entity during the Restricted
Period, the Executive shall notify the prospective employer in writing of his
obligations pursuant to this paragraph 8 and shall simultaneously provide a
copy
of such notice to the Company (it being agreed by the Company that such
notification required under this paragraph 8(e) shall not be deemed a breach
of
the confidentiality provisions of this Agreement).
14
(f) Tolling.
The
temporal duration of the non-solicitation/non-servicing covenants set forth
in
this Agreement shall not expire, and shall be tolled, during any period in
which
the Executive is in violation of any of the non-solicitation/non-servicing
covenants set forth herein, and all restrictions shall automatically be extended
by the period of the Executive's violation of any such
restrictions.
9. Intellectual
Property
During
the Term, the Executive will disclose to the Company all ideas, inventions
and
business plans developed by him during such period which relate directly or
indirectly to the business of the Company, including without limitation, any
design, logo, slogan, advertising campaign or any process, operation, product
or
improvement which may be patentable or copyrightable. The Executive agrees
that
all patents, licenses, copyrights, tradenames, trademarks, service marks,
planning, marketing and/or creative policies and ideas, advertising campaigns,
promotional campaigns, media campaigns, budgets, practices, concepts,
strategies, methods of operation, financial or business projections, designs,
logos, slogans and business plans developed or created by the Executive in
the
course of his employment hereunder, either individually or in collaboration
with
others, will be deemed works for hire and the sole and absolute property of
the
Company. The Executive agrees, that at the Company's request and expense, he
will take all steps necessary to secure the rights thereto to the Company by
patent, copyright or otherwise.
10. Enforceability
The
failure of any party at any time to require performance by another party of
any
provision hereunder shall in no way affect the right of that party thereafter
to
enforce the same, nor shall it affect any other party's right to enforce the
same, or to enforce any of the other provisions in this Agreement; nor shall
the
waiver by any party of the breach of any provision hereof be taken or held
to be
a waiver of any subsequent breach of such provision or as a waiver of the
provision itself.
11. Assignment
The
Company and the Executive agree that the Company shall have the right to assign
this Agreement in connection with any asset assignment of all or substantially
all of the Company’s assets, stock sale, merger, consolidation or other
corporate reorganization involving the Company and, accordingly, this Agreement
shall inure to the benefit of, be binding upon and may be enforced by, any
and
all successors and such assigns of the Company. The Company and Executive agree
that Executive's rights and obligations under this Agreement are personal to
the
Executive, and the Executive shall not have the right to assign or otherwise
transfer his rights or obligations under this Agreement, and any purported
assignment or transfer shall be void and ineffective, provided that the rights
of the Executive to receive certain benefits upon death as expressly set forth
under paragraph 7(a) of this Agreement shall inure to the Executive’s estate and
heirs. The rights and obligations of the Company hereunder shall be binding
upon
and run in favor of the successors and assigns of the Company.
15
12. Modification
This
Agreement may not be orally canceled, changed, modified or amended, and no
cancellation, change, modification or amendment shall be effective or binding,
unless in writing and signed by the parties to this Agreement, and approved
in
writing by the MDC Executive.
13. Severability;
Survival
In
the
event any provision or portion of this Agreement is determined to be invalid
or
unenforceable for any reason, in whole or in part, the remaining provisions
of
this Agreement shall nevertheless be binding upon the parties with the same
effect as though the invalid or unenforceable part had been severed and deleted
or reformed to be enforceable. The respective rights and obligations of the
parties hereunder shall survive the termination of the Executive's employment
to
the extent necessary to the intended preservation of such rights and
obligations, specifically paragraphs 7, 8, 9, 10, 11, 12, 13, 14, 15, 18, 23
and
24.
14. Notice
Any
notice, request, instruction or other document to be given hereunder by any
party hereto to another party shall be in writing and shall be deemed effective
(a) upon personal delivery, if delivered by hand, or (b) three days after the
date of deposit in the mails, postage prepaid if mailed by certified or
registered mail, or (c) on the next business day, if sent by prepaid overnight
courier service or facsimile transmission (if electronically confirmed), and
in
each case, addressed as follows:
If
to
the Executive:
Xx.
Xxxxxxx Xxxxxx
0
Xxxxxxxx Xxxxxx
Xxxxxxx,
XX X0X 0X0
If
to
the Company:
c/o
MDC
Partners Inc.
000
Xxxxx
Xxxxxx
Xxx
Xxxx,
XX 00000
Attention:
General Counsel
Fax:
(000) 000-0000
16
Any
party
may change the address to which notices are to be sent by giving notice of
such
change of address to the other party in the manner herein provided for giving
notice.
15. Applicable
Law
This
Agreement shall be governed by, enforced under, and construed in accordance
with
the laws of the Province of Ontario and the federal laws of Canada applicable
therein.
16. No
Conflict
The
Executive represents and warrants that he is not subject to any agreement,
instrument, order, judgment or decree of any kind, or any other restrictive
agreement of any character, which would prevent him from entering into this
Agreement or which would be breached by the Executive upon his performance
of
his duties pursuant to this Agreement.
17. Entire
Agreement
This
Agreement and the documents referenced herein represent the entire agreement
between the Company and the Executive with respect to the employment of the
Executive by the Company, and all prior agreements (including, without
limitation, the Original Employment Agreement), plans and arrangements relating
to the employment of the Executive by the Company are nullified and superseded
hereby.
18. Arbitration
(a) The
parties hereto agree that any dispute, controversy or claim arising out of,
relating to, or in connection with this Agreement (including, without
limitation, any claim regarding or related to the interpretation, scope, effect,
enforcement, termination, extension, breach, legality, remedies and other
aspects of this Agreement or the conduct and communications of the parties
regarding this Agreement and the subject matter of this Agreement) shall be
settled in private by arbitration pursuant to the Arbitrations
Act
(Ontario) in Toronto, Ontario by a single arbitrator selected by the parties
or,
if the parties cannot agree, by a single arbitrator appointed by the Ontario
Superior Court of Justice. The arbitrator may grant injunctions or other relief
in such dispute or controversy. All awards of the arbitrator shall be binding
and non-appealable. Judgment upon the award of the arbitrator may be entered
in
any court having jurisdiction. The arbitrator shall apply Ontario law to the
merits of any dispute or claims, without reference to the rules of conflicts
of
law applicable therein. Suits to compel or enjoin arbitration or to determine
the applicability or legality of arbitration shall be brought in the Ontario
Superior Court of Justice in the City of Toronto. Notwithstanding the foregoing,
no party to this Agreement shall be precluded from applying to a proper court
for injunctive relief by reason of the prior or subsequent commencement of
an
arbitration proceeding as herein provided. No party or arbitrator shall disclose
in whole or in part to any other person, firm or entity any confidential
information submitted in connection with the arbitration proceedings, except
to
the extent reasonably necessary to assist counsel in the arbitration or
preparation for arbitration of the dispute. Confidential Information may be
disclosed to (i) attorneys, (ii) parties, and (iii) outside experts requested
by
either party’s counsel to furnish technical or expert services or to give
testimony at the arbitration proceedings, subject, in the case of such experts,
to execution of a legally binding written statement that such expert is fully
familiar with the terms of this provision, agree to comply with the
confidentiality terms of this provision, and will not use any confidential
information disclosed to such expert for personal or business
advantage.
17
(b) The
Executive has read and understands this paragraph 18. The Executive understands
that by signing this Agreement, the Executive agrees to submit any claims
arising out of, relating to, or in connection with this Agreement, or the
interpretation, validity, construction, performance, breach or termination
thereof, or his employment or the termination thereof, to binding arbitration,
and that this arbitration provision constitutes a waiver of the Executive’s
right to a jury trial and relates to the resolution of all disputes relating
to
all aspects of the employer/employee relationship.
(c) To
the
extent that any part of this paragraph 18 is found to be legally unenforceable
for any reason, that part shall be modified or deleted in such a manner as
to
render this paragraph 18 (or the remainder of this paragraph 18) legally
enforceable and as to ensure that except as otherwise provided in clause (a)
of
this paragraph 18, all conflicts between the Company and the Executive shall
be
resolved by neutral, binding arbitration. The remainder of this paragraph 18
shall not be affected by any such modification or deletion but shall be
construed as severable and independent. If a court finds that the arbitration
procedures of this paragraph 18 are not absolutely binding, then the parties
hereto intend any arbitration decision to be fully admissible in evidence,
given
great weight by any finder of fact, and treated as determinative to the maximum
extent permitted by law.
19. Headings
The
headings contained in this Agreement are for reference purposes only, and shall
not affect the meaning or interpretation of this Agreement.
20. Withholdings
The
Company may withhold from any amounts payable under this Agreement such federal,
state or local taxes as shall be required to be withheld pursuant to any
applicable law or regulation.
21. Counterparts
This
Agreement may be executed in two counterparts or by facsimile transmission,
both
of which taken together shall constitute one instrument.
22. No
Strict Construction
The
language used in this Agreement will be deemed to be the language chosen by
the
Company and the Executive to express their mutual intent, and no rule of law
or
contract interpretation that provides that in the case of ambiguity or
uncertainty a provision should be construed against the draftsman will be
applied against any party hereto.
18
23. Publicity
Subject
to the provisions of the next sentence, no party to this Agreement shall issue
any press release or other public document or make any public statement relating
to this Agreement or the matters contained herein without obtaining the prior
approval of the Company and the Executive. Notwithstanding the foregoing, the
foregoing provision shall not apply to the extent that the Company is required
to make any announcement relating to or arising out of this Agreement by virtue
of applicable securities laws or other stock exchange rules, or any announcement
by any party pursuant to applicable law or regulations.
24. Non-
Disparagement
Following
the date hereof, the Executive and the Company shall each use their reasonable
best efforts not to disparage, criticize or make statements to the detriment
of
the other.
* * * * *
19
IN
WITNESS WHEREOF,
the
parties have executed this Employment Agreement as of the day and year first
above written.
MDC PARTNERS INC. | ||
|
|
|
By: | ||
Name: |
||
Title: | ||
Xxxxxxx
Xxxxxx
|
20
Schedule
1 to Employment Agreement
OFFICE
OF THE CHAIRMAN
B. POSITION
DESCRIPTION (XXXXX
XXXXXX)
1.0 PURPOSE
OF THE POSITION
The
position is to fulfill two significant roles:
a)
|
In
close coordination with the Lead Director and the CEO, to efficiently
and
effectively manage the information flow and decision-making of the
Board
of Directors and its Committees
|
b)
|
To
support the CEO by ensuring that the day-to-day operations of the
company
transpire in an organized, objective and transparent
manner
|
2.0 KEY
RESPONSIBILITIES
1.
|
The
Efficiency (how things get done) and the Effectiveness (the right
things
get done) of the Board of Directors and its
Committees
|
|
Reports
and information flow
|
o
|
Board
and Committee meetings discussion and
decision-making
|
21
2.
|
The
Annual Planning Process
|
2.1
|
The
process for developing and getting Board approval of the Corporate
Strategic Plan
|
2.2
|
The
process for developing and getting Board approval of the annual Profit
Plan and Performance Agreements
|
The
process will cover all:
o
|
schedules
and timelines
|
o
|
guidelines
and instructions
|
o
|
templates
and formats
|
The
process will ensure integration and alignment between:
o
|
the
Partner companies
|
o
|
senior
management
|
o
|
the
Board of Directors
|
3.
|
The
Corporate Organization Structure and the hiring and termination of
key
staff
|
4.
|
Day-to-day
Coaching of key staff and Communicating to all
staff
|
5.
|
The
Performance Management Process:
|
o
|
Weekly
update meetings
|
o
|
Monthly
actual results compared to the Key Performance Indicator
targets
|
o
|
Quarterly
Strategic Plan review meetings
|
o
|
Quarterly,
formalized manager checkpoint
meetings
|
o
|
Annual
performance appraisals and reviews
|
6.
|
The
Total Compensation for all staff
|
o
|
Base
pay levels
|
o
|
Incentive
bonus allocation
|
22
Exhibit
A to Employment Agreement
__________
[Insert Date]
Xxxxxxx
Xxxxxx
Re: Separation
Agreement and General Release
Dear
__________:
1. Your
employment with MDC Partners Inc. (the "Company")
pursuant to the Employment Agreement between the Company and you dated December
26 , 2005 (the "Employment
Agreement"),
or
otherwise, shall terminate effective on the close of business on (the
"Termination
Date").
You
hereby confirm your removal as of the Termination Date from any position you
held as an employee, officer, Director or Manager of the Company or any Company
operating within the MDC Group of companies (the “Group”).
2. The
Company agrees to pay you severance compensation and benefits in accordance
with
the applicable clause of paragraph 7 of the Employment Agreement.
3. You
shall
submit to the Company your reimbursement request in accordance with Company
policy for any unpaid business or entertainment expenses incurred by you through
the Termination Date in respect of which you are entitled to be reimbursed
under
Company policy.
4. From
and
after the Termination Date, except for such rights under this Agreement or
the
Employment Agreement, you shall no longer be entitled to receive any further
payments, compensation or other monies (including severance compensation) from
the Company or any of its affiliates or to receive any of the benefits or
participate in any benefit plan or program of the Company or any of its
affiliates, including without limitation, any salary payment, bonus payment,
severance payment, salary continuation payment, accrued vacation or unused
personal days and expense reimbursements or other benefits referred to in the
Employment Agreement.
5. You
hereby acknowledge and affirm your obligations under the provisions of paragraph
8 of the Employment Agreement.
6. Notwithstanding
your termination of employment as provided in this Agreement, the parties hereto
agree that the provisions of paragraphs 8 through 24 of the Employment Agreement
shall survive such termination to the extent necessary to the intended
preservation of the rights and obligations set forth in such
paragraphs.
23
7. (a) You,
for
yourself, your heirs, executors,
administrators,
agents,
representatives, successors and assigns, hereby irrevocably and unconditionally
release the Company and its affiliates, and each of their respective employees,
shareholders, agents, officers, directors, attorneys, representatives,
successors and assigns of the Company and its affiliates (collectively, the
"Releasees"),
from
any and all charges,
complaints, claims, liabilities, obligations, promises, agreements, causes
of
action, rights, costs, losses, debts and expenses of any nature whatsoever,
known or unknown, (collectively, the “Claims”),
which
you, your heirs, executors, administrators,
representatives,
successors and assigns ever had, now have or hereafter may have (either directly
or indirectly, derivatively or in any other representative capacity) by reason
of any matter, fact or cause whatsoever from the beginning of time to the date
of this Agreement, including without limitation, any and all claims based
upon or arising out of your Employment Agreement, your employment with the
Company or your termination of employment with the Company; provided, however,
the foregoing shall not apply to or release any of your rights under the terms
of this agreement, or any existing rights which by their express terms survive
the termination of the Employment Agreement (collectively, the “Outstanding
Rights”).
(b) You
represent that you have not filed or permitted to be filed against the Company
(or the other Releasees), individually or collectively, any lawsuits and you
covenant and agree that you will not do so at any time hereafter with respect
to
the subject matter of this Agreement and claims released pursuant to this
Agreement (including, without limitation, any claims relating to the termination
of your employment), except as may be necessary to enforce this Agreement or
any
of the Outstanding Rights, to obtain benefits described in or granted under
this
Agreement or any of the Outstanding Rights, or to seek a determination of the
validity of the waiver of your rights under applicable law.
(c) You
agree
to cooperate on a reasonable basis with the Company and its counsel in
connection with any investigations, administrative proceedings or litigation
relating to any matter in which you were involved or of which you had knowledge
as a result of your employment with the Company.
(d) You
agree
that you will not encourage or voluntarily cooperate with any other current
or
former employee of the Company (or their affiliates) or any other potential
plaintiff, to commence any legal action or make any claim against the Company
(or any affiliate) in respect of such person’s employment or termination of
employment with or by the Company (or any affiliate thereof) or
otherwise.
(e) You
agree
that on and after the Termination Date you will not apply or seek employment
with the Company or any of its affiliates at any location or facility, and
you
hereby waive and release any right to be considered for such
employment.
(f) This
Agreement does not constitute an admission by the Company of any violation
of
any federal, state, or local law or any contractual or other obligations, or
of
any wrongdoing whatsoever.
8. For
good
and valuable consideration, the Company, on its behalf and on behalf of each
of
its affiliates and their respective successors and assigns, hereby irrevocably
and unconditionally release you from any and all Claims which any of them ever
had, now have or hereafter may have (either directly or indirectly, derivatively
or in any other representative capacity) by reason of any matter, fact or cause
from the beginning of time to the date of this Agreement arising out of your
performance of duties as an employee or officer of the Company or another member
of the Group or your termination of employment with the Company, except if
a
Claim arises out of your fraudulent conduct, your misappropriation or
embezzlement of funds, or any other unlawful conduct; provided, however, the
foregoing release shall not apply to or release any rights of the Company under
the terms of this Agreement.
24
9. You
agree
to keep secret and strictly confidential the existence of this Agreement and
further agree not to disclose, make known, discuss or relay any information
concerning this Agreement, or any of the discussions regarding the terms of
this
Agreement, leading up to the execution of it, to anyone other than your tax
advisor, accountant, attorney, spouse or members of your immediate family,
provided that any such party to whom you make such disclosure agrees to keep
such information confidential and not disclose it to others. The foregoing
shall
also not prohibit disclosure (i) as may be ordered by any regulatory agency
or court or as required by other lawful process, or (ii) as may be
necessary for the prosecution of claims relating to the performance or
enforcement of this Agreement or (iii) as may become generally available to
the
public other than by breach of this provision or (iv) you learn from a third
party who is not under an obligation of confidence to the Company.
10. In
the
event of a breach of the terms of this Agreement by any party, the non-breaching
party shall be entitled to all damages allowed under applicable law.
11. (a) As
used
in this Agreement (i) "affiliate"
of any
Person (as defined below) shall mean any Person that directly, or indirectly,
through one or more intermediaries, controls, or is controlled by, or is under
common control with such Person, and (ii) a "Person"
shall
mean or include an individual, a company, a limited liability company, a
corporation or any other form of business entity.
(b) All
prior
negotiations and discussions between the parties with respect to the subject
matter hereof are merged into this Agreement. No representations by or on behalf
of any party were made or relied upon except as set forth herein. This Agreement
may not be changed, amended or modified, except by a writing signed by the
party
affected by such change, amendment or modification.
(c) In
the
event any provision of this Agreement is found to be void and unenforceable
by a
court or other tribunal of competent jurisdiction, the remaining provisions
of
this Agreement shall nevertheless be binding upon the parties hereto with the
same effect as though the void or unenforceable part had been severed and
deleted or reformed to be enforceable.
(d) The
failure of any party at any time to require performance by another party of
any
provision hereunder shall in no way affect the right of that party thereafter
to
enforce the same, nor shall it affect any other party's right to enforce the
same, or to enforce any of the other provisions in this Agreement; nor shall
the
waiver by any party of the breach of any provision hereof be taken or held
to be
a waiver of any subsequent breach of such provision or as a waiver of the
provision itself. This Agreement shall be binding upon, and inure to the benefit
of, you and your heirs, executors, administrators, successors and assignors,
and
MDC Partners, the Company and their respective successors and assignors.
25
IN
WITNESS WHEREOF,
the
parties hereto have set their hands as of the date first above set
forth.
MDC Partners Inc. | ||
|
|
|
By: | ||
Name: |
||
Title: | ||
Xxxxxxx
Xxxxxx
|
Dated:
_________________________
26