Relocation Agreement
AVX
Corporation (the “Company“) and ______________ (the “Employee”) agree to the
following arrangement in connection with the Employee’s relocation near the
Company’s facility in Fountain Inn, South Carolina (the
“Facility”).
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1.
Based on the average of three independent appraisals of the Employee’s
current residence near Myrtle Beach (the “Prior Residence”) arranged by
the Company and the Employee, the Company agrees to purchase the Prior
Residence for $_____________ (the “Purchase Price” – based on appraisal
average). The Company agrees to purchase the Prior Residence and pay the
Purchase Price to the Employee up to three weeks prior to the Employee’s
purchase of a residence near the Facility (the “New Residence”), but no
later than ______________, 2010.
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2.
The Employee agrees within a reasonable time following the date the
Purchase Price is paid by the Company to vacate the Prior Residence and
settle any outstanding debts and any accrued but unpaid obligations in
connection with the Prior Residence and cooperate with the Company to take
any steps necessary to complete the transaction and its
documentation.
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3.
Up to three weeks prior to the Employee purchasing a home near the
Facility, the Company agrees to pay the Employee a $___________ incidental
allowance (the “Incidental
Allowance”).
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4.
If the Employee voluntarily leaves the employment of the Company prior to
the later of relocating to the New Residence or completion of the Company
purchase of the Prior Residence and its documentation, Employee shall
immediately repurchase the Prior Residence for an amount equal to the
Purchase Price and shall repay the Incidental
Allowance.
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5.
The Company agrees to pay for all costs (excluding costs in connection
with the repayment of any outstanding debts and any accrued but unpaid
obligations in connection with the Prior Residence) related to the
transfer of the title to the Prior Residence to the Company or the closing
costs related to the Employee sale of the Prior Residence to a third
party. All such expenses must be documented to the satisfaction of the
Company.
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6.
The Company agrees to reimburse the Employee for reasonable costs related
to a reasonable number of house hunting trips, and closing costs
(excluding costs related to the Employee’s financing of the New Residence)
in connection with the purchase of the New Residence. All such expenses
must be documented to the satisfaction of the
Company.
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7.
The Company agrees to pay for the reasonable expenses of packing and
moving of the Employee’s household goods and related family travel costs
from the Prior Residence
to the New Residence. All such expenses must be documented to the
satisfaction of the Company.
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8.
The Company agrees to reimburse, on a fully grossed up basis, the Employee
for the incremental Federal, State and Local income tax costs incurred by
the Employee as a result of such reimbursements or payments becoming
taxable to the Employee. All such tax liabilities must be documented to
the satisfaction of the Company.
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9.
If the Employee voluntarily leaves the employment of the Company within
one year of the later of the Company purchasing the Prior Residence or the
Employee purchasing the New Residence, the Employee shall repay the
Incidental Allowance and any and all reimbursements and/or payments
received under this Agreement.
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10.
If Employee is entitled to be paid or reimbursed for any expenses under
Sections 5, 6, 7 or 8 of this Agreement, and such payments or
reimbursements are includable in Employee's federal gross taxable income,
the amount of such expenses reimbursable or payable in one calendar year
shall not affect the amount reimbursable or payable in any other calendar
year, and the reimbursement or payment of an eligible expense shall be
paid promptly after Employee provides the Company with documentation of
such expense reasonably acceptable to the Company, but in no event later
than December 31 of the year after the year in which the expense was
incurred. Employee's rights to payment or reimbursement of expenses under
this Agreement shall expire at the end of two years after the date of this
Agreement.
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11.
If Employee is entitled to any tax gross-up payment under Section 8 of
this Agreement, such payment shall be paid by Company to the Employee
promptly after Employee provides the Company with documentation of the
amount and payment of the tax liability, but in no event later than
December 31 of the year after the year in which the related taxes are
remitted to the applicable taxing authorities.
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12.
The Employee agrees that if the Employee voluntarily leaves the employment
of the Company, the Employee shall not, directly or indirectly, either for
himself or for any other Person, participate in any business or enterprise
which is in competition with the Business as conducted or proposed to be
conducted by the Company or a subsidiary as of the date the Employee’s
employment with the Company ends for a two year period from such date
(such period is referred to as the “Non-Competition Period”). “Business”
means, as of the date hereof, the business of developing, manufacturing,
marketing, or selling ______________________________and shall include any
other business engaged in or proposed to be engaged in by the Company or a
subsidiary as of the date the Employee’s employment with the Company ends.
This restriction includes, but is not limited to
_____________________________, or any of their affiliates or subsidiaries.
For purposes of this Agreement, the term “Participate” includes any direct
or indirect interest in any enterprise, whether as an officer, director,
employee, partner, sole proprietor, agent, representative, independent
contractor, consultant, franchisor, franchisee, creditor, owner or
otherwise; provided that the term “Participate” shall not include
ownership of less than one percent of the stock of a publicly held
corporation whose stock is traded on a national securities exchange or in
the over-the-counter market. Employee agrees that this non-competition
covenant is reasonable with respect to its duration, geographical area and
scope.
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________________________________ _______________________________
Employee/Date On behalf
of AVX Corporation/Title/Date
