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Exhibit 10.24
EMPLOYMENT AGREEMENT
This Agreement is entered into this day of , 1998,
by and between Dominion Homes, Inc. (hereinafter called the "Company") and Xxxxx
X. X'Xxxxxx (hereinafter called the "Employee").
WHEREAS, the Company desires to employ Employee, and Employee desires
employment with the Company, as Vice President and Chief Financial Officer; and
WHEREAS, the Company and the Employee desire to enter into an
employment agreement to establish the rights and obligations of the Employee and
the Company in such employment relationship;
NOW, THEREFORE, and in consideration of the mutual covenants herein
contained, the Company and the Employee hereby mutually agree as follows:
1. EMPLOYMENT AND DUTIES. The Company hereby agrees to employ the
Employee, and the Employee hereby accepts employment with the Company upon the
terms and conditions hereinafter set forth. The Employee shall serve the Company
as Vice President and Chief Financial Officer. In such capacity, the Employee
shall have all powers, duties, and obligations as are normally associated with
such position. The Employee shall further perform such other duties related to
the business of the Company as may from time to time be reasonably requested of
him by the President/CEO. The Employee shall devote all of his skills, time, and
attention solely and exclusively to said position and in furtherance of the
business and interests of the Company.
2. TERM OF EMPLOYMENT. This Agreement shall be effective upon execution
by both parties and approval by the Compensation Committee of the Company's
Board of Directors. The term of employment shall begin, or be deemed to have
begun, on June 1, 1998 (the "Effective Date"). It shall continue through the
period ending on December 31, 2000, subject, however, to prior termination or to
extension, as herein provided.
3. COMPENSATION. For such services, the Employee shall receive an
initial annual base salary of One Hundred Forty Thousand Dollars ($140,000.00),
which may be increased, but not decreased, by the Company during the term of
this Agreement. In the event that the Company increases the Employee's initial
base salary, the amount of the initial base salary, together with any
increase(s), shall be his base salary. Said base salary shall be payable in
equal installments in accordance with the Company's regular payroll practices.
In addition, the Employee shall be included in the Company's incentive
compensation program, as such program has been established and from time to time
amended.
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4. FRINGE BENEFITS. The Company shall further provide the Employee
with all health and life insurance coverages, sick leave and disability
programs, tax-qualified retirement plans, stock option plans, paid holidays and
vacations, perquisites, and such other fringe benefits of employment as the
Company may provide from time to time to actively employed executives of the
Company who are similarly situated. Notwithstanding the preceding provisions of
this Paragraph 4, during the term of this Agreement (including extensions
thereof), the Employee shall be entitled to a minimum of three (3) weeks of
vacation per year.
5. EXTENSION OF TERM OF AGREEMENT. The Company and the Employee agree
that the Company's Board of Directors shall, based upon recommendations of the
Company's President/CEO, review the Employee's performance with the intent that,
if the Employee's performance so warrants, the Board may extend the term of this
Agreement for additional three-year periods. By the day preceding the first
anniversary date of the Effective Date, the Board shall notify the Employee of
its decision whether to grant an extension of this Agreement for an additional
three-year period. To the extent that the Board fails to notify the Employee, on
or before the date described in the preceding sentence, of the extension of the
term of this Agreement, the term of this Agreement shall be automatically
extended for an additional three-year period. By way of illustration of this
Paragraph 5, if, by December 31, 1998, the Board notifies the Employee that it
intends to grant an extension of the term of this Agreement (or, if by such
date, the Board fails to notify the Employee that it does not intend to grant
such an extension), the term of this Agreement shall be extended for an
additional three-year period beginning on January 1, 1999 and ending on December
31, 2001. This Agreement shall be subject to extension in the manner set forth
in this paragraph for additional three-year periods on the first anniversary
date of the Effective Date of the immediately preceding extension.
6. TERMINATION OF EMPLOYMENT.
a. Termination of Employment Other Than by Employee. The
Employee's employment hereunder may be terminated by the
Company. However, the Company shall be deemed to have
terminated the employment for "cause" only upon the following:
i. Any unauthorized material disclosure by the
Employee of the Company's business practices
or accounts to a competitor which results in
serious damage to the Company.
ii. Willful and wrongful misappropriation by the
Employee of funds, property, or rights of
the Company which results in serious damage
to the Company.
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iii. Willful and wrongful destruction of business
records or other property by the Employee,
which results in serious damage to the
Company.
iv. Conviction of the Employee of a felony
involving moral turpitude, or, as the result
of a plea bargain, conviction of the
Employee of a misdemeanor; provided, the
Employee was originally charged (prior to
the plea bargain) with a felony involving
moral turpitude.
x. Xxxxx and willful misconduct by the Employee
which results in serious damage to the
Company.
vi. The Employee's material breach of, or
inability to perform his obligations under,
this Agreement other than by reason of
Disability.
b. Termination of Employment by Employee. The Employee may
terminate his employment at any time. However, he shall be
deemed to have terminated his employment for "Good Reason"
only if he terminates his employment by giving Notice of
Termination pursuant to Paragraphs 6(d) and 6(e)(iii) within
ninety (90) days after the occurrence of any of the following
events (provided the Company does not cure such event within
ten (10) days following its receipt of the Employee's Notice
of Termination):
i. The Employee's base salary is reduced for any reason
other than in connection with the termination of his
employment.
ii. For any reason other than in connection with the
termination of the Employee's employment, the Company
materially reduces any fringe benefit provided to the
Employee under Paragraph 4 below the level of such
fringe benefit provided generally to other actively
employed similarly situated executives of the
Company, unless the Company agrees to fully
compensate the Employee for any such material
reduction.
iii. The Company assigns the Employee to duties
inconsistent in any respect with his position
(including, without limitation, his status, office,
and title), authority, duties or responsibilities as
set forth by Paragraph 1, or takes any other action
that results in a material diminution in such
position, authority, duties, or responsibilities.
iv. The Company otherwise materially breaches, or is
unable to perform its obligations under this
Agreement.
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c. Termination of Employment Upon Death or Disability of the
Employee. The Employee's employment hereunder shall terminate
upon his death, and may be terminated by the Company in the
event of his Disability. For purposes of this Agreement,
"Disability" means the inability of the Employee due to
illness, accident, or otherwise, to perform his duties for the
period of time during which benefits are payable to the
Employee under the Company's Short-Term Disability Plan, as
determined by an independent physician selected by the Company
and reasonably acceptable to the Employee (or his legal
representative), provided that the Employee does not return to
work on a substantially full-time basis within thirty (30)
days after Notice of Termination is given by the Company
pursuant to the provisions of Paragraphs 6(d) and 6(e)(ii).
d. Notice of Termination. Any termination of the Employee's
employment by the Company hereunder, or by the Employee other
than termination upon the Employee's death, shall be
communicated by written Notice of Termination to the other
party. For purposes of this Agreement, a "Notice of
Termination" means a notice that shall indicate the specific
termination provision in this Agreement relied upon, and shall
set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Employee's
employment under the provision so indicated.
e. Date of Termination. "Date of Termination" means:
i. If the Employee's employment is terminated by his
death, the date of his death.
ii. If the Employee's employment is terminated by the
Company as a result of Disability pursuant to
Paragraph 6(c), the date that is thirty (30) days
after Notice of Termination is given; provided the
Employee shall not have returned to the performance
of his duties on a full-time basis during such
thirty- (30-) day period.
iii. If the Employee terminates his employment for Good
Reason pursuant to Paragraph 6(b), the date that is
ten (10) days after Notice of Termination is given
(provided that the Company does not cure such event
during that ten- (10-) day period).
iv. If the Employee terminates his employment other than
for Good Reason, the date that is two (2) weeks after
Notice of Termination is given; provided, in the sole
discretion of the Company, such date may be any
earlier date after Notice of Termination is given.
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v. If the Employee's employment is terminated by the
Company either for Cause pursuant to Paragraph 6(a)
or other than for Cause, the date on which the Notice
of Termination is given.
7. AMOUNTS PAYABLE UPON TERMINATION OF EMPLOYMENT OR DURING
DISABILITY.
a. Death. If the Employee's employment is terminated by his
death, the Employee's beneficiary (as designated by the
Employee in writing with the Company prior to his death) shall
be entitled to the following payments and benefits: (i) any
base salary that is accrued but unpaid, any vacation that is
accrued but unused, and any business expenses that are
unreimbursed -- all, as of the Date of Termination; (ii) a pro
rata award under the bonus program described in Appendix A
which is applicable to the Employee at the time of his death,
with proration based on service completed during the calendar
year for which the award is determined, and payable when the
award would have been paid had the Employee's employment not
terminated; and (iii) any benefit following termination of
employment which may be provided under the fringe benefit
plans, policies and programs described in Paragraph 4. In the
absence of a beneficiary designation by the Employee, or, if
the Employee's designated beneficiary does not survive the
Employee, benefits described in this Paragraph 7(a) shall be
paid to the Employee's estate.
b. Disability.
i. During any period that the Employee fails to perform
his duties hereunder as a result of incapacity due to
physical or mental illness ("Disability Period"), the
Employee shall continue to receive his base salary at
the rate then in effect for such period until his
employment is terminated pursuant to Paragraph 6(c);
provided, however, that payments of base salary so
made to the Employee shall be reduced by the sum of
the amounts, if any, that were payable to the
Employee at or before the time of any such salary
payment under any disability benefit plan or plans of
the Company and that were not previously applied to
reduce any payment of base salary.
ii. Upon his termination of employment because of
Disability [as described in Paragraph 6(c)], the
Employee shall be entitled to the payments and
benefits described in Paragraph 7(a) as if the
Employee had died on his Date of Termination. In the
event of the Employee's death prior to the time that
all payments described in Paragraph 7(a) have been
completed, such payments and benefits shall be paid
to the Employee's beneficiary [as designated pursuant
to Paragraph 7(a)], or, in the absence of a
beneficiary designation or
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if the designated beneficiary does not survive the
Employee, to the Employee's estate.
c. Termination by Company Without Cause, or Termination by
Employee for Good Reason. In the event that the Company
terminates the Employee's employment without Cause or the
Employee terminates his employment for Good Reason before the
expiration of the term of this Agreement, including any
extension thereof, the Employee shall be entitled to the
following payments and benefits:
i. Those described in Paragraph 7(a) as if the Employee
had died on his Date of Termination
ii. Within thirty (30) days after the Date of
Termination, a lump sum cash payment equal to one (1)
year of the base salary applicable to the Employee on
the Date of Termination.
iii. Within thirty (30) days after the Date of
Termination, a lump sum cash payment equal to
eighteen (18) months of the premium applicable to the
Employee on the Date of Termination for the Employee
and his family (provided the Employee had family
coverage on the Date of Termination) under the
Company's group health plan.
d. Termination by Employee Other Than for Good Reason, or
Termination by Company for Cause. In the event that the
Employee terminates his employment other than for Good Reason
or the Company terminates his employment for Cause, the
Employee shall not be entitled to any compensation except as
set forth below:
i. Any base salary (but not bonus) that is accrued but
unpaid, any vacation that is accrued but unused, and
any business expenses that are unreimbursed -- all,
as of the Date of Termination.
ii. Any other rights and benefits (if any) provided under
plans and programs of the Company (excluding any
bonus program), determined in accordance with the
applicable terms and provisions of such plans and
programs.
e. No Duty to Mitigate Damages. After any Date of Termination,
the Employee shall have no obligation to seek other
employment, but shall have the right to be otherwise employed,
and any compensation of any type whatsoever received by the
Employee in connection with such employment shall not be
offset by the Company against any of the obligations of the
Company under this Agreement.
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8. CHANGE IN CONTROL.
a. Occurrence of Change in Control. Immediately upon the
occurrence of a "Change in Control," the Employee shall become
fully vested in all employee benefit programs (other than any
tax qualified retirement plan, the Employee's interest in
which shall vest in accordance with such plan's terms),
including without limitation, all stock options and grants of
restricted shares under the Company's Incentive Stock Plan in
which he was a participant at the time of the Change in
Control. For purposes of this Agreement, the term "Change in
Control" shall mean the occurrence of any event which results
in either (a) Xxxxxx Realty Company's failing to own at least
thirty percent (30%) of the combined voting power of the then
outstanding voting securities of the Company entitled to vote
generally in the election of directors, or (b) both Xxx Xxxxxx
and Xxxx Xxxxxx ceasing to be directors and officers of the
Company.
b. Termination of Employment. If, at any time within two (2)
years following a Change in Control, the Company terminates
the Employee's employment without Cause or the Employee
terminates his employment for Good Reason, the provisions of
this Paragraph 8(b) shall be applicable, instead of the
provisions of Paragraph 7(c). To the extent that the
provisions of this Paragraph 8(b) are applicable, the Employee
shall be entitled to the following payments and benefits:
i. Those described in Paragraph 7(a) as if the Employee
had died on his Date of Termination; provided all
cash payments required under such paragraph shall be
made within five (5) calendar days of the Date of
Termination;
ii. The lump sum payment, as described in Paragraph
7(c)(iii); provided, such cash payment shall be made
within five (5) calendar days of the Date of
Termination;
iii. A single lump sum payment, payable within five (5)
calendar days of the Date of Termination, equal to
two (2) times the Employee's annual base salary in
effect upon the Date of Termination; and
iv. Reimbursement of all expenses incurred by the
Employee through the use of any executive
out-placement services to assist him to seek other
employment, which shall include, but not be limited
to (A) secretarial services, use of an office, phone,
office supplies and office services comparable to the
level of such services and supplies available to the
Employee prior to the Date of Termination and (B) all
unreimbursed travel expenses incurred by the Employee
to seek other employment up to a maximum amount of
Five Thousand Dollars ($5,000).
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9. NONEXCLUSIVITY OF RIGHTS. Nothing in this Agreement shall prevent
or limit the Employee's continuing or future participation in any incentive,
fringe benefit, deferred compensation, or other plan or program provided by the
Company and for which the Employee may qualify, nor shall anything herein limit
or otherwise affect such rights as the Employee may have under any other
agreements with the Company. Amounts that are vested benefits or that the
Employee is otherwise entitled to receive under any plan or program of the
Company at or after the Date of Termination, shall be payable in accordance with
such plan or program.
10. NONCOMPETITION COVENANT. The Employee agrees that, during the term
of this Agreement, including any extension thereof, and for a period of one (1)
year thereafter, he shall not:
a. Anywhere in the State of Ohio or in any other state in which
the Company is then conducting business, without the written
consent of the Company, provide advice with respect to, engage
in or directly or indirectly supervise or assist the provision
of any service or sale of any product which competes with any
service or product of the Company; or
b. Anywhere in any state, accept employment with, provide advice
to, or engage in or directly or indirectly supervise or assist
the provision of any service or sale of any product by any
person, company, partnership, corporation or other entity
which builds homes, develops land, or otherwise competes with
the Company in any market, city or area in which the Company
then conducts business.
Any breach of these Covenants shall be treated the same as a termination by the
Company for Cause.
The restrictions on competition provided herein may be enforced by the
Company and/or any successor thereto, by an action to recover payments made
under this Agreement, an action for injunction, and/or an action for damages.
The provisions of this Paragraph 10 constitute an essential element of this
Agreement, without which the Company would not have entered into this Agreement.
Notwithstanding any other remedy available to the Company at law or at equity,
the parties hereto agree that the Company or any successor thereto, shall have
the right, at any and all times, to seek injunctive relief in order to enforce
the terms and conditions of this Paragraph 10.
If the scope of any restriction contained in this Paragraph 10 is too
broad to permit enforcement of such restriction to its fullest extent, then such
restriction shall be enforced to the maximum extent permitted by law, and the
Employee hereby consents and agrees that such scope may be judicially modified
accordingly in any proceeding brought to enforce such restriction.
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11. CONFIDENTIAL INFORMATION. The Employee shall hold in a fiduciary
capacity, for the benefit of the Company, all secret or confidential
information, knowledge, and data relating to the Company, that shall have been
obtained by the Employee during his employment with the Company and that is not
public knowledge (other than by acts by the Employee or his representatives in
violation of this Agreement). During and after termination of the Employee's
employment with the Company, the Employee shall not, without the prior written
consent of the Company, communicate or divulge any such information, knowledge,
or data to anyone other than the Company or those designated by it, unless the
communication of such information, knowledge or data is required pursuant to a
compulsory proceeding in which the Employee's failure to provide such
information, knowledge, or data would subject the Employee to criminal or civil
sanctions.
12. INTELLECTUAL PROPERTY. The Employee agrees to communicate to the
Company, promptly and fully, and to assign to the Company all intellectual
property developed or conceived solely by the Employee, or jointly with others,
during the term of his employment, which are within the scope of the Company's
business, or which utilized Company materials or information. For purposes of
this Agreement, "intellectual property" means inventions, discoveries, business
or technical innovations, creative or professional work product, or works of
authorship. The Employee further agrees to execute all necessary papers and
otherwise to assist the Company, at the Company's sole expense, to obtain
patents, copyrights or other legal protection as the Company deems fit. Any such
intellectual property is to be the property of the Company whether or not
patented, copyrighted or published.
13. ASSIGNMENT AND SURVIVORSHIP OF BENEFITS. The rights and obligations
of the Company under this Agreement shall inure to the benefit of, and shall be
binding upon, the successors and assigns of the Company. If the Company shall at
any time be merged or consolidated into, or with, any other company, or if
substantially all of the assets of the Company are transferred to another
company, then the provisions of this Agreement shall be binding upon and inure
to the benefit of the company resulting from such merger or consolidation or to
which such assets have been transferred, and this provision shall apply in the
event of any subsequent merger, consolidation, or transfer.
14. NOTICES. Any notice given to either party to this Agreement shall
be in writing, and shall be deemed to have been given when delivered personally
or sent by certified mail, postage prepaid, return receipt requested, duly
addressed to the party concerned, at the address indicated below or to such
changed address as such party may subsequently give notice of:
If to the Company: Dominion Homes, Inc.
0000 Xxxxxx Xxxx
Xxxxxx, Xxxx 00000
Attn: President/CEO
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If to the Employee: Xxxxx X. X'Xxxxxx
000 Xxxxxxxxx Xxxx
Xxxxxxx, Xxxxxxx 00000
15. INDEMNIFICATION. The Employee shall be indemnified by the Company,
to the extent provided in the case of officers under the Company's Articles of
Incorporation or Regulations, to the maximum extent permitted under applicable
law.
16. TAXES. Anything in this Agreement to the contrary notwithstanding,
all payments required to be made hereunder by the Company to the Employee shall
be subject to withholding of such amounts relating to taxes as the Company may
reasonably determine that it should withhold pursuant to any applicable law or
regulations. In lieu of withholding such amounts, in whole or in part, however,
the Company may, in its sole discretion, accept other provision for payment of
taxes, provided that it is satisfied that all requirements of the law affecting
its responsibilities to withhold such taxes have been satisfied.
17. ARBITRATION; ENFORCEMENT OF RIGHTS. Any controversy or claim
arising out of, or relating to this Agreement, or the breach thereof, shall be
settled by arbitration in the city of Columbus, Ohio, in accordance with the
Rules of the American Arbitration Association, and judgment upon the award
rendered by the arbitrator or arbitrators may be entered in any court having
jurisdiction thereof.
All legal and other fees and expenses, including, without limitation,
any arbitration expenses, incurred by the Employee in connection with seeking to
obtain or enforce any right or benefit provided for in this Agreement, or in
otherwise pursuing any right or claim, shall be paid by the Company, to the
extent permitted by law, provided that the Employee is successful in whole or in
part as to such claims as the result of litigation, arbitration, or settlement.
In the event that the Company refuses or otherwise fails to make a
payment when due and is ultimately decided that the Employee is entitled to such
payment, such payment shall be increased to reflect an interest equivalent for
the period of delay, compounded annually, equal to the prime or base lending
rate used by The Huntington National Bank, and in effect as of the date the
payment was first due.
18. GOVERNING LAW/CAPTIONS/SEVERANCE. This Agreement shall be construed
in accordance with, and pursuant to, the laws of the State of Ohio. The captions
of this Agreement shall not be part of the provisions hereof, and shall have no
force or effect. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement. Except as otherwise specifically provided in this paragraph,
the failure of either party to insist in any instance on the strict performance
of any provision of this Agreement or to exercise any right hereunder shall not
constitute a waiver of such provision or right in any other instance.
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19. ENTIRE AGREEMENT/AMENDMENT. This instrument contains the entire
agreement of the parties relating to the subject matter hereof, and the parties
have made no agreement, representations, or warranties relating to the subject
matter of this Agreement that are not set forth herein. This Agreement may be
amended at any time by written agreement of both parties, but it shall not be
amended by oral agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement on the
date first above written.
DOMINION HOMES, INC.
By:*/s/ XXXXXX X. XXXXX, XX.
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Xxxxxx X. Xxxxx, Xx.
Senior Vice President
*/s/ XXXXX X. X'XXXXXX
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Xxxxx X. X'Xxxxxx
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