AMENDED AND RESTATED EMPLOYMENT AGREEMENT
AMENDED
AND RESTATED
THIS
AGREEMENT, dated this _____ day of December, 2008, is made by and between The
Connecticut Water Company, a Connecticut corporation having its principal place
of business in Clinton, Connecticut, ("Company"), Connecticut Water Service,
Inc., a Connecticut corporation and holder of all of the outstanding capital
stock of Company ("Parent") and __________, a resident of __________,
("Employee").
WITNESSETH:
WHEREAS,
Company and Parent desire to reward Employee for Employee's valuable, dedicated
service to Company and Parent should Employee's service be terminated under
circumstances hereinafter described; and
WHEREAS, Employee, Company and Parent
entered into an amended and restated Employment Agreement dated January 24,
2008; and
WHEREAS, the parties wish to amend the
Agreement to comply with Section 409A of the Internal Revenue Code of 1986, as
amended and regulations issued thereunder (collectively the “Code”);
and
WHEREAS,
Employee, Company and Parent are willing to enter into this Amended and Restated
Employment Agreement ("Agreement") on the terms herein set forth;
NOW,
THEREFORE, to assure Company and Parent of Employee's continued dedication and
the availability of Employee's advice and counsel in the event of any such
proposal, to induce Employee to remain in the employ of Company and Parent and
to reward Employee for Employee's valuable dedicated service to Company and
Parent should Employee's service be terminated under circumstances hereinafter
described, and for other good and valuable consideration, the receipt and
adequacy of which each party acknowledges, effective January 1, 2009,
Company, Parent and Employee agree as follows:
1. Definitions. For
purposes of this Agreement, the following terms shall have the following
meanings:
(a) "Cause"
shall mean Employee's serious, willful misconduct in respect of Employee's
duties under this Agreement, including conviction for a felony or perpetration
by Employee of a common law fraud upon Company or Parent which has resulted or
is likely to result in material economic damage to Company or Parent, as
determined by a vote of at least seventy-five percent (75%) of all of the
Directors (excluding Employee) of each of Company’s and Parent’s Board of
Directors;
(b) "Change-in-Control"
shall be deemed to have occurred if after the date hereof (i) a public
announcement shall be made or a report on Schedule 13D shall be filed
with
the
Securities and Exchange Commission pursuant to Section 13(d) of the Securities
Exchange Act of 1934 (the "Act") disclosing that any Person (as defined below),
other than Company or Parent or any employee benefit plan sponsored by Company
or Parent, is the beneficial owner (as the term is defined in Rule 13d-3 under
the Act) directly or indirectly, of twenty percent (20%) or more of the total
voting power represented by Company's or Parent's then outstanding voting common
stock (calculated as provided in paragraph (d) of Rule 13d-3 under the Act in
the case of rights to acquire voting common stock); or (ii) any Person, other
than Company or Parent or any employee benefit plan sponsored by Company or
Parent, shall purchase shares pursuant to a tender offer or exchange offer to
acquire any voting common stock of Company or Parent (or securities convertible
into such voting common stock) for cash, securities or any other consideration,
provided that after consummation of the offer, the Person in question is the
beneficial owner directly or indirectly, of twenty percent (20%) or more of the
total voting power represented by Company's or Parent's then outstanding voting
common stock (all as calculated under clause (i)); or (iii) the stockholders of
Company or Parent shall approve (A) any consolidation or merger of Company or
Parent in which Company or Parent is not the continuing or surviving corporation
(other than a merger of Company or Parent in which holders of the outstanding
capital stock of Company or Parent immediately prior to the merger have the same
proportionate ownership of the outstanding capital stock of the surviving
corporation immediately after the merger as immediately before), or pursuant to
which the outstanding capital stock of Company or Parent would be converted into
cash, securities or other property, or (B) any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all or
substantially all the assets of Company or Parent; or (iv) there shall have been
a change in the composition of the Board of Directors of Company or Parent at
any time during any consecutive twenty-four (24) month period such that
"continuing directors" cease for any reason to constitute at least a majority of
the Board unless the election, or the nomination for election of each new
Director was approved by a vote of at least two-thirds (2/3) of the Directors
then still in office who were Directors at the beginning of such period; or (v)
the Board of Directors of Company or Parent, by a vote of a majority of all the
Directors (excluding Employee) adopts a resolution to the effect that a
"Change-in-Control" has occurred for purposes of this Agreement.
(c) "Disability"
shall mean the incapacity of Employee by illness or any other cause as
determined under the long-term disability insurance plan of Company in effect at
the time in question, or if no such plan is in effect, then such incapacity of
Employee as prevents Employee from performing the essential functions of
Employee's position with or without reasonable accommodation for a period in
excess of two hundred forty (240) days (whether or not consecutive), or one
hundred eighty (180) days consecutively, as the case may be, during any twelve
(12) month period.
(d) "Effective
Date" shall be the date on which a Change-in-Control occurs. Anything
in this Agreement to the contrary notwithstanding, if Employee's employment is
terminated prior to the date on which a Change-in-Control occurs, and it is
reasonably demonstrated that such termination (i) was at the request of a third
party who has taken steps reasonably calculated to effect a Change-in-Control or
(ii) otherwise arose in connection with or anticipation of a Change-in-Control,
then for all purposes of this Agreement the "Effective Date" shall mean the date
immediately prior to the date of such termination.
(e) "Good
Reason" shall mean the occurrence of any action which (i) removes or changes
Employee's title or reduces Employee's job responsibilities or base salary; (ii)
results in a significant worsening of Employee's work conditions; or (iii) moves
Employee's place of employment to a location that increases Employee's commute
by more than thirty (30) miles over the length of Employee's commute from
Employee's place of principal residence at the time the move is
requested. For purposes of this subparagraph (e), any good faith
determination by Employee that any such action has occurred shall be
conclusive.
(f) "Person"
shall mean any individual, corporation, partnership, company or other entity,
and shall include a "group" as defined in Section 13(d)(3) of the Securities
Exchange Act of 1934.
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2.
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Employment.
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(a) As of the
Effective Date, Company hereby agrees to continue to employ Employee and
Employee agrees to remain in the employ of Company for the Term of this
Agreement upon the terms and conditions hereinafter set
forth. Subject to the provisions of subparagraph (b) of this
Paragraph 2, and to the provisions of Paragraph 6 below, "Term" shall mean a
continuously renewing period of three (3) years commencing on the Effective
Date.
(b) At any
time during the Term, the Board of Directors of Company and Parent may, by
written notice to Employee, advise Employee of their desire to modify or amend
any of the terms or provisions of this Agreement or to delete or add any terms
or provisions. Any such notice ("Notice") shall describe the proposed
modifications in reasonable detail. In the event a Notice shall be
given to Employee, then Company, Parent and Employee agree to discuss the
proposed modification(s) and to attempt in good faith to reach agreement with
respect thereto and to reduce such agreement to writing in an amendment to be
executed by all the parties ("Amendment"). If a Notice is given
hereunder and an Amendment shall not have been executed on or before the
sixtieth (60th) day following the date on which Notice is given, then the Term
shall thereupon be automatically converted to a fixed period ending three (3)
years after the expiration of such sixty (60) days.
3. Duties of
Employment.
(a) During
the Term, Employee's position (including status, offices, titles and reporting
requirements), authority, duties and responsibilities shall be at least
commensurate in all material respects with the most significant of those held,
exercised and assigned at any time during the ninety (90)-day period immediately
preceding the Effective Date and Employee's services shall be performed at such
location as Employee shall determine.
(b) During
the Term, Employee will serve Company faithfully, diligently and competently and
will devote full-time to Employee's employment and will hold, in addition to the
offices held on the Effective Date, such other Employee offices of Company or
Parent, or their respective subsidiaries and affiliates, to which Employee may
be elected, appointed or assigned by the Boards of Directors of Company or
Parent from time to time and will discharge
such
Employee duties in connection therewith. Nothing in this Agreement
shall preclude Employee, with the prior approval of the Board of Directors of
Company, from devoting reasonable periods of time required for (i) serving as a
director or member of a committee of any organization involving no conflict of
interest with Company or Parent, or (ii) engaging in charitable, religious and
community activities, provided, that such
directorships, memberships or activities do not materially interfere with the
performance of Employee's duties hereunder.
4. Compensation. During
the Term, Company shall pay to Employee as compensation for the services to be
rendered by Employee hereunder the following:
(a) A
base salary at a rate equal to the highest base salary paid or payable to
Employee by Company during the twelve (12)-month period immediately preceding
the month in which the Effective Date occurs, or such larger sum as the Company
may from time to time determine in connection with regular periodic performance
reviews pursuant to Company's policies and practices. Such
compensation shall be payable in accordance with the normal payroll practices of
Company. Employee shall receive an annual increase in base salary at
each normal pay adjustment date during the Term, but no later than one (1) year
after the date of Employee's last increase and annually thereafter during the
Term, of not less than the percentage increase in the cost-of-living since
Employee's last pay adjustment, as measured by the Consumer Price Index-All
Urban Consumers of the U.S. Bureau of Labor Statistics.
(b) In addition, Company shall pay to
Employee an annual award under the Company’s Performance Stock Program (or other
bonus program in effect at the time the Effective Date occurs) payable in cash
or other form of compensation, for which he would have been eligible in
accordance with the Company's practice or plan in effect at that time for annual
bonuses for said employee for the year preceding the fiscal year in which the
Effective Date occurs.
5. Benefits. During
the Term, Employee shall be entitled to the following benefits:
(a) Incentive, Savings and
Retirement Plans. In addition to base salary and bonus payable
as hereinabove provided, Employee shall be entitled to participate during the
Term in all savings and retirement plans, practices, policies and programs
applicable to employees of Company as may be in effect from time to
time. Such plans, practices, policies and programs, in the aggregate,
shall provide Employee with compensation, benefits and reward opportunities at
least as favorable as the most favorable of such compensation, benefits and
reward opportunities provided by Company for Employee under such plans,
practices, policies and programs as in effect at any time during the ninety
(90)-day period immediately preceding the Effective Date or, if more favorable
to Employee, as provided at any time thereafter with respect to other key
employees of Company or Parent.
(b) Welfare Benefit
Plans. During the Term, Employee and/or Employee's family, as
the case may be, shall be eligible for participation in and shall receive all
benefits under welfare benefit plans, practices, policies and programs
applicable to employees of Company (including, without limitation, medical,
prescription, dental, disability, salary continuance, employee life, group
life,) at least as favorable as the most favorable of such plans,
practices,
policies and programs in effect at any time during the ninety (90)-day period
immediately preceding the Effective Date or, if more favorable to Employee
and/or Employee's family, as in effect at any time thereafter with respect to
other key employees of Company or Parent.
(c) Expenses. During
the Term, Employee shall be entitled to receive prompt reimbursement for all
reasonable expenses incurred by Employee in accordance with the most favorable
policies, practices and procedures of Company in effect at any time during the
ninety (90)-day period immediately preceding the Effective Date or, if more
favorable to Employee, as in effect at any time thereafter with respect to other
key employees of Company or Parent.
(d) Fringe
Benefits. During the Term, Employee shall be entitled to
fringe benefits, including use of an automobile and payment of related expenses
or payment of an allowance for automobile related expenses, in accordance with
the most favorable plans, practices, programs and policies of Company in effect
at any time during the ninety (90)-day period immediately preceding the
Effective Date or, if more favorable to Employee, as in effect at any time
thereafter with respect to other key employees of Company or
Parent.
(e) Office and Support
Staff. During the Term, Employee shall be entitled to an
office or offices of a size and with furnishings and other appointments, and to
secretarial and other assistance, at least equal to the most favorable of the
foregoing provided to Employee by Company at any time during the ninety (90)-day
period immediately preceding the Effective Date or, if more favorable to
Employee, as provided at any time thereafter with respect to other key employees
of Company or Parent.
(f) Vacation. During
the Term, Employee shall be entitled to paid vacation in accordance with the
most favorable plans, policies, programs and practices of Company as in effect
at any time during the ninety (90)-day period immediately preceding the
Effective Date or, if more favorable to Employee, as in effect at any time
thereafter with respect to other key employees of Company or
Parent.
6. End of Term and Notice of
Termination.
(a) End of
Term. The Term shall end upon the occurrence of any of the
following events:
(i) Termination
of Employee's employment by Company for Cause.
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(ii)
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The
voluntary termination of Employee's employment by Employee other than for
Good Reason.
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(iii) The death
of Employee.
(iv) Employee's
attainment of age sixty-five (65).
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(v)
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Full
compliance by Company with the provisions of Paragraph 7(e) below, if
Employee's employment shall have been terminated by Company during the
Term for any reason other than
Cause, or if Employee's employment shall have been terminated by reason of
Employee's Disability, or if Employee shall have voluntarily terminated
Employee's employment during the Term for Good
Reason.
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(b) Notice of
Termination. Any termination by Company for Cause or by
Employee for Good Reason or on account of Employee's Disability shall be
communicated by notice to the other party hereto given in accordance with
Section 15 of this Agreement. For purposes of this Agreement, a
"notice" means a written notice which (i) indicates the specific termination
provision in this Agreement relied upon, (ii) sets forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of
Employee's employment under the provision so indicated and (iii) if the date of
termination (as defined below) is other than the date of receipt of such notice,
specifies the termination date (which date shall be not more than fifteen (15)
days after the giving of such notice).
(c) Date of
Termination. The date of termination means the date of receipt
of the notice of termination or any later date specified therein, as the case
may be; provided, however, that (i) if
Employee's employment is terminated by Company other than for Cause or on
account of Employee's Disability, the date of termination shall be the date on
which Company notifies Employee of such termination and (ii) if Employee's
employment is terminated by reason of death, the date of termination shall be
the date of death of Employee.
(d) Termination of
Employment. In order for the Employee to be considered to have
terminated employment with the Company, the Employee must have incurred a
separation from service from the Company (and all related companies) within the
meaning of Section 409A of the Code, and regulations promulgated thereunder, and
the term termination of employment and the like as used in this Agreement shall
be construed to mean separation from service as so defined under Section 409A of
the Code.
7. Payment Upon
Termination.
(a) If
Employee's employment is terminated by Company for Cause, as defined in
Paragraph 1(a), the obligations of Company under this Agreement shall cease and
Employee shall forfeit all right to receive any compensation or other benefits
under this Agreement except only compensation or benefits accrued or earned and
vested (if applicable) by Employee as of the date of termination, including base
salary through the date of termination, benefits payable under the terms of any
qualified or nonqualified retirement plans or deferred compensation plans
maintained by Company, any accrued vacation pay as of the date of termination
not yet paid by Company and any benefits required to be paid by law such as
continued health care coverage pursuant to the Consolidated Omnibus Budget
Reconciliation Act of 1985 ("COBRA") (collectively, the "Accrued
Obligations").
(b) If
Employee shall voluntarily terminate Employee's employment during the Term,
other than for Good Reason, as defined in Paragraph 1(e), the obligations of
Company under this Agreement shall cease and Employee shall forfeit all right to
receive any compensation or other benefits under this Agreement except only the
Accrued Obligations.
(c) In the
event of the death of Employee during the Term, then, in addition to the Accrued
Obligations and any other benefits which may be payable by Company in respect of
the death of Employee, the base salary then payable hereunder shall continue to
be paid at the then current rate for a period of six (6) months after such death
to such beneficiary as shall have been designated in writing by Employee, or if
no effective designation exists, then to the estate of Employee. Such
payment shall be made on the first (1st) and
fifteenth (15th) of
each month, beginning on the first day of the first month following Employee’s
death.
(d) If
Employee's employment is terminated by reason of Employee's attainment of age
sixty-five (65), the obligations of Company under this Agreement shall cease and
Employee shall forfeit all right to receive any compensation or other benefits
under this Agreement except the Accrued Obligations.
(e) If
Employee's employment is terminated by Company during the Term for any reason
other than for
Cause, or Employee's death, or Employee's attainment of age sixty-five (65), or
if Employee's employment is terminated during the Term by reason of Employee's
Disability, or if Employee shall voluntarily terminate Employee's employment
during the Term for Good Reason, Employee shall be entitled to receive, and
Company shall be obligated to pay and provide Employee, the following
amounts:
(i) An amount
in consideration of the covenants by Executive set forth in Paragraphs 8
and 9 below to be determined by a nationally recognized independent certified
public accounting firm selected and retained by Company to be the reasonable
value of said covenants as of the date of termination of Employee’s employment,
but in no event shall such amount be greater than the aggregate value of the
benefits provided in subparagraphs (e)(ii), (iii), (iv), (v) and (viii)
hereinbelow. The benefits otherwise payable to Executive pursuant to
said subparagraphs shall be offset by the amount, if any, payable to Executive
in respect of the covenants by Employee set forth in Paragraphs 8 and 9
below. Said amount paid in consideration of the covenants by
Executive set forth in Paragraphs 8 and 9 below shall be paid in accordance
with subparagraphs (e)(ii), (iii), (iv), (v) and (viii) below, and this
subparagraph (i) shall not alter the time or form of payment of such
amounts.
(ii) An amount
equal to three (3) times the base salary of Employee, at the rate in effect
immediately prior to the date of termination, plus an amount equal to three (3)
times the target percentage of the midpoint of Employee's salary grade under the
Company's Officers Incentive Program for the year in which termination occurs if
the employee is a participant in such plan at the time of the
Change-in-Control. Such amount so determined shall be divided into
thirty-six (36) equal amounts. If the Employee is not a “specified
employee” as defined under Section 409A of the Code at the time of termination,
payment of such equal amounts shall be made on the first day of each month,
commencing with the first day of the first
month
following termination. If the Employee is a “specified employee” as
that term is defined under Section 409A of the Code on the date of termination,
seven (7) such equal amounts shall be paid to the Employee on the date which is
the first day of the seventh (7th) month
following the date of termination of employment, and the twenty-nine (29)
remaining equal amounts shall be payable on the first day of each month
subsequent to the date of the first payment (one payment per month) until the
payments are completed. Payments shall be treated as supplemental
wage payments under applicable Treasury Regulations subject to federal tax
withholding at the flat percentage rate applicable thereto.
(iii) An amount
equal to the aggregate amounts that Company would have contributed on behalf of
Employee under Company's qualified defined contribution retirement plan(s), if
any such plan(s) shall be in effect (other than amounts attributable to
Employee's before-tax contributions to such plan(s)) plus estimated earnings
thereon had Employee continued in the employ of Company for the three (3)-year
period commencing on the date of termination and made contributions under said
plan(s) equal to the maximum amount that the Employee could have contributed
under the terms of such plan(s) for the plan year immediately preceding
Employee's termination, to be payable in a lump sum to Employee on the second
anniversary of the Employee’s termination of employment, provided that Employee
shall not have breached said non-competition provisions.
(iv) An amount
equal to the additional Interest Equivalent which would have been earned under
any deferred compensation agreement between Company and Employee, if any such
agreement shall be in effect, had Employee continued in the employ of Company
for the three (3)-year period commencing on the date of termination, received
compensation at least equal to that specified in Paragraph 4 of this Agreement
during such time, and deferred pursuant to said deferred compensation agreement
the amount of compensation specified therein; such amount to be payable in a
lump sum to Employee on the second anniversary of the Employee’s termination of
employment, provided that Employee shall not have breached said non-competition
provisions.
(v) Additional
retirement benefits equal to the additional annual pension benefits that would
have been payable to Employee under Company's qualified defined benefit
retirement plan (the "Plan") and under any nonqualified supplemental Employee
retirement plan covering Employee (the "Supplemental Plan"), if any such Plan or
Supplemental Plan shall be in effect, if Employee had been continued in the
employ of Company for the three (3)-year period commencing on the date of
termination and had received compensation at least equal to that specified in
Paragraph 4(a) of this Agreement during such time and had been fully vested in
the benefits payable under any such Plan and Supplemental Plan. The
discounted present value of such additional benefits, shall be payable to
Employee in a lump sum, as calculated by the independent actuary for the Plan
using the assumptions specified in the Plan, on the second anniversary of the
Employee’s termination of employment, provided that Employee shall not have
breached said non-competition provisions.
(vi) At the
date of termination of Employee's employment, Employee shall be fully vested in
any form of compensation previously granted to Employee (other than
benefits
payable under a qualified retirement plan), such as, by way of example only,
restricted stock, stock options, and performance share awards.
(vii) If
Employee's employment is terminated by reason of Employee's Disability, Employee
shall be entitled to receive, in addition to the other benefits provided under
this Paragraph 7(e), disability benefits payable in accordance with any bona
fide disability plan maintained by Company or Parent, to the extent Employee
qualifies for benefits under the terms of such bona fide disability
plan.
(viii) A lump
sum cash payment equal to three (3) times the sum of the average of the annual
contributions, payments, credits or allocations made by the Company on behalf of
the Employee for coverage under all life, health, disability and similar welfare
benefit plans and programs and other perquisites maintained by the Company
during the three (3) calendar year period preceding his termination of
employment. Such payment shall be made on the first day of the
seventh (7th) month
following the Employee’s termination of employment, if the Employee is a
“specified employee” as defined under Section 409A of the Code on the date of
termination. If the Employee is not a specified employee on the date
of termination, payment shall be made on the first day of the month following
the Employee’s termination of employment.
(ix) Company
shall reimburse Employee for the amount of any reasonable legal or accounting
fees and expenses incurred by Employee to obtain or enforce any right or benefit
provided to Employee by Company hereunder or as confirmed or acknowledged
hereunder, provided that no such reimbursement shall be made earlier than seven
(7) months following the Employee’s termination, if the Employee is a “specified
employee” as that term is defined under Section 409A of the Code on the date of
termination, and in no event shall any reimbursement be made any later than
December 31 of the calendar year following the year in which the expense is
incurred by the Employee.
(x) Company
shall provide the Employee with reasonable outplacement services from a firm
selected by the Company for a period of one (1) year commencing on the date of
termination, or until Employee accepts other employment, if
earlier.
8. Confidential
Information. Employee understands that in the course of
Employee's employment by Company, Employee will receive or have access to
confidential information concerning the business or purposes of Company and
Parent, and which Company and Parent desire to protect. Such
confidential information shall be deemed to include, but not be limited to,
Company's customer lists and information, and employee lists, including, if
known, personnel information and data. Employee agrees that Employee
will not, at any time during the period ending two (2) years after the date of
termination of Employee's employment, reveal to anyone outside Company or Parent
or use for Employee's own benefit any such information without specific written
authorization by Company or Parent. Employee further agrees not to
use any such confidential information or trade secrets in competing with Company
or Parent at any time during or in the two (2) year period immediately following
the date of termination of Employee's employment with Company.
9. Covenants by Employee Not to
Compete With Company or Parent.
(a) Upon
the date of termination of Employee's employment with Company for any reason,
Employee covenants and agrees that Employee will not at any time during the
period of two (2) years from and after such date of termination directly or
indirectly in any manner or under any circumstances or conditions whatsoever be
or become interested, as an individual, partner, principal, agent, clerk,
employee, stockholder, officer, director, trustee, or in any other capacity
whatsoever, except as a nominal owner of stock of a public corporation, in any
other business which, at the date of Employee's termination, is a Competitor (as
defined herein), either directly or indirectly, with Company or Parent, or
engage or participate in, directly or indirectly (whether as an officer,
director, employee, partner, consultant, holder of an equity or debt investment,
lender or in any other manner or capacity), or lend Employee's name (or any part
or variant thereof) to, any business which, at the date of Employee's
termination, is a Competitor, either directly or indirectly, with Company or
Parent, or as a result of Employee's engagement or participation would become, a
Competitor, either directly or indirectly, with any aspect of the business of
Company or Parent as it exists at the time of Employee's termination, or solicit
any officer, director, employee or agent of Company or Parent or any subsidiary
or affiliate of Company or Parent to become an officer, director, employee or
agent of Employee, Employee's respective affiliates or anyone
else. Ownership, in the aggregate, of less than one percent (1 %) of
the outstanding shares of capital stock of any corporation with one or more
classes of its capital stock listed on a national securities exchange or
publicly traded in the over-the-counter market shall not constitute a violation
of the foregoing provision. For the purposes of this Agreement, a
Competitor is any business which is similar to the business of Company or Parent
or in any way in competition with the business of Company or Parent within any
of the then-existing water utility service areas of Company.
(b) Employee
hereby acknowledges that Employee's services are unique and extraordinary, and
are not readily replaceable, and hereby expressly agrees that Company and
Parent, in enforcing the covenants contained in Paragraphs 8 and 9 herein, in
addition to any other remedies provided for herein or otherwise available at
law, shall be entitled in any court of equity having jurisdiction to an
injunction restraining Employee in the event of a breach, actual or threatened,
of the agreements and covenants contained in these Paragraphs.
(c) The
parties hereto believe that the restrictive covenants of these Paragraphs are
reasonable. However, if at any time it shall be determined by any
court of competent jurisdiction that these Paragraphs or any portion of them as
written, are unenforceable because the restrictions are unreasonable, the
parties hereto agree that such portions as shall have been determined to be
unreasonably restrictive shall thereupon be deemed so amended as to make such
restrictions reasonable in the determination of such court, and the said
covenants, as so modified, shall be enforceable between the parties to the same
extent as if such amendments had been made prior to the date of any alleged
breach of said covenants.
10. No Obligation to
Mitigate. So long as Employee shall not be in breach of any
provision of Paragraph 8 or 9, Employee shall have no duty to mitigate damages
in the event of a termination and if Employee voluntarily obtains other
employment (including self-employment), any compensation or profits received or
accrued, directly or indirectly, from such other
employment
shall not reduce or otherwise affect the obligations of Company and Parent to
make payments hereunder.
11. Resignation. In
the event that Employee's services hereunder are terminated under any of the
provisions of this Agreement (except by death), Employee agrees that Employee
will deliver Employee's written resignation as an officer of Company or Parent,
or their subsidiaries and affiliates, to the Board of Directors, such
resignation to become effective immediately, or, at the option of the Board of
Directors, on a later date as specified by the Board.
12. Insurance. Company
shall have the right at its own cost and expense to apply for and to secure in
its own name, or otherwise, life, health or accident insurance or any or all of
them covering Employee, and Employee agrees to submit to the usual and customary
medical examination and otherwise to cooperate with Company in connection with
the procurement of any such insurance, and any claims thereunder.
13. Release. As
a condition of receiving payments or benefits provided for in this Agreement, at
the request of Company or Parent, Employee shall execute and deliver for the
benefit of Company and Parent, and any subsidiary or affiliate of Company or
Parent, a general release in the form set forth in Attachment A, and such
release shall become effective in accordance with its terms. The
failure or refusal of Employee to sign such a release or the revocation of such
a release shall cause the termination of any and all obligations of Company and
Parent to make payments or provide benefits hereunder, and the forfeiture of the
right of Employee to receive any such payments and benefits. Employee
acknowledges that Company and Parent have advised Employee to consult with an
attorney prior to signing this Agreement and that Employee has had an
opportunity to do so.
14. Notices. All
notices under this Agreement shall be in writing and shall be deemed effective
when delivered in person to Employee or to the Secretary of Company and Parent,
or if mailed, postage prepaid, registered or certified mail, addressed, in the
case of Employee, to Employee's last known address as carried on the personnel
records of Company, and, in the case of Company and Parent, to the corporate
headquarters, attention of the Secretary, or to such other address as the party
to be notified may specify by notice to the other party.
15. Successors and Binding
Agreement.
(a)
Company and Parent will require any successor, whether direct or indirect, by
purchase, merger, consolidation or otherwise to all or substantially all of the
business and/or assets of Company and/or Parent, as the case may be, expressly
to assume and agree to perform this Agreement in the same manner and to the same
extent that Company and Parent are required to perform it. Failure of
Company and Parent to obtain such assumption and agreement prior to the
effectiveness of any such succession shall be a breach of this
Agreement. As used in this Agreement, "Company" and "Parent" shall
include any successor to Company's and/or Parent's, as the case may be, business
and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.
(b) This
Agreement shall inure to the benefit of, and be enforceable by, Employee's
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If Employee dies while any
amount is still payable hereunder, all such amounts shall be paid in accordance
with the terms of this Agreement to Employee's devisee, legatee or other
designee or, if there is no such designee, to Employee's estate.
16. Arbitration. Any
dispute which may arise between the parties hereto may, if both parties agree,
be submitted to binding arbitration in the State of Connecticut in accordance
with the Rules of the American Arbitration Association; provided that any such
dispute shall first be submitted to Company's Board of Directors in an effort to
resolve such dispute without resort to arbitration.
17. Severability. If
any of the terms or conditions of this Agreement shall be declared void or
unenforceable by any court or administrative body of competent jurisdiction,
such term or condition shall be deemed severable from the remainder of this
Agreement, and the other terms and conditions of this Agreement shall continue
to be valid and enforceable.
18. Amendment. This
Agreement may be modified or amended only by an instrument in writing executed
by the parties hereto.
19. Construction. This
Agreement shall supersede and replace all prior agreements and understandings
between the parties hereto on the subject-matter
covered hereby. This Agreement shall be governed and construed under
the laws of the State of Connecticut. Words of the masculine gender
mean and include correlative words of the feminine gender. Paragraph
headings are for convenience only and shall not be considered a part of the
terms and provisions of the Agreement.
20. Deferred
Compensation. This Agreement has been prepared with reference
to Section 409A of the Internal Revenue Code and shall be interpreted and
administered in a manner consistent with Section 409A.
21. Assignment
Prohibited. Benefits hereunder shall not be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, attachment or garnishment by creditors of the Employee, the
Employee’s beneficiary, or estate, and any attempt to anticipate, alienate,
transfer, assign or attach the same shall be void. The Employee, the
Employee’s beneficiary or estate shall only have a contractual right to benefits
hereunder and shall have the status of general unsecured creditors.
* * * * *
*
IN
WITNESS WHEREOF, Company and Parent have caused this Agreement to be executed by
an authorized officer, and Employee has hereunto set Employee's
hand.
The Connecticut Water
Company
December ,
2008 By
Date
Connecticut Water Service,
Inc.
December ,
2008 By
Date
December ,
2008
Date
ATTACHMENT
A
RELEASE
We advise
you to consult an attorney before you sign this Release. You have
until the date which is seven (7) days after the Release is signed and returned
to ________________ ("Company") to change your mind and revoke your
Release. Your Release shall not become effective or enforceable until
after that date.
In
consideration for the benefits provided under your Employment Agreement dated
________________ with
Company and ________________ ("Parent"), and more specifically enumerated in
Exhibit 1 hereto, by your signature below you agree to accept such benefits and
not to make any claims of any kind against Company, its past and present and
future parent corporations, subsidiaries, divisions, subdivisions, affiliates
and related companies or their successors and assigns, including without
limitation Parent, or any and all past, present and future Directors, officers,
fiduciaries or employees of any of the foregoing (all parties referred to in the
foregoing are hereinafter referred to as the "Releasees") before any agency,
court or other forum, and you agree to release the Releasees from all claims,
known or unknown, arising in any way from any actions taken by the Releasees up
to the date of this Release, including, without limiting the foregoing, any
claim for wrongful discharge or breach of contract or any claims arising under
the Age Discrimination in Employment Act of 1967, Title VII of the Civil Rights
Act of 1964, the Americans with Disabilities Act of 1990, the Employee
Retirement Income Security Act of 1974, Connecticut's Fair Employment Practices
Act or any other federal, state or local statute or regulation and any claim for
attorneys' fees, expenses or costs of litigation.
THE
PRECEDING PARAGRAPH MEANS THAT BY SIGNING THIS RELEASE YOU WILL HAVE WAIVED ANY
RIGHT YOU MAY HAVE TO BRING A LAWSUIT OR MAKE ANY LEGAL CLAIM AGAINST THE
RELEASEES BASED ON ANY ACTIONS TAKEN BY THE RELEASEES UP TO THE DATE OF THIS
RELEASE.
By
signing this Release, you further agree as follows:
1. You have
read this Release carefully and fully understand its terms;
2. You have
had at least twenty-one (21) days to consider the terms of the
Release;
3. You have
seven (7) days from the date you sign this Release to revoke it by written
notification to Company. After this seven (7) day period, this
Release is final and binding and may not be revoked;
4. You have
been advised to seek legal counsel and have had an opportunity to do
so;
5. You would
not otherwise be entitled to the benefits provided under your Employment
Agreement with Company and Parent had you not agreed to waive any right you have
to bring a lawsuit or legal claim against the Releasees; and
6. Your
agreement to the terms set forth above is voluntary.
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Name:
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Signature:
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Date:
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Received
by:
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Date:
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EXHIBIT
1
1.
2.
3.
4.
5.
etc.
NOTE:
THIS EXHIBIT IS TO BE COMPLETED AT THE TIME OF TERMINATION TO REFLECT ALL
BENEFITS AND PAYMENTS MADE UNDER THE EMPLOYMENT AGREEMENT.
Acknowledged
and Agreed:
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THE
CONNECTICUT WATER COMPANY
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EMPLOYEE
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By
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Its
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CONNECTICUT
WATER SERVICE, INC.
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By
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Its
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