EXHIBIT 10.3
EMPLOYMENT AGREEMENT
EFFECTIVE AS OF SEPTEMBER 1, 2005 BETWEEN
AFC ENTERPRISES, INC. (THE "COMPANY") AND
XXXXXX X. XXXXX ("EMPLOYEE")
WHEREAS, the Company desires to continue the employment of Employee and
to enter into an agreement embodying the terms of such employment; and
WHEREAS, Employee desires to accept such employment and to enter into
such agreement;
NOW, THEREFORE, in consideration of the promises and mutual covenants
contained herein and for other good and valuable consideration, the parties
agree as follows:
1. Term of Agreement.
This Agreement shall be effective as of the date hereof and, unless
earlier terminated pursuant to Section 8 or Section 9 hereof, shall be for an
initial term of one (1) year (the "Term"). The Term of this Agreement and
Employee's employment hereunder will automatically be extended for an additional
one-year period following the expiration of each year of employment hereunder
(the "Renewal Date"), without further action by Employee or the Company. Such
automatic one-year renewal shall continue from year to year unless and until
either the Company or Employee gives to the other written notice not less than
thirty (30) days prior to the applicable Renewal Date of its decision not to
renew for an additional one year.
For purposes of this Section 1 only, the first "year" of the Term shall
be deemed to begin as of the date hereof and end on December 25, 2005, and each
one (1) year period thereafter shall coincide with the Company's fiscal year.
2. Employment.
2.01 Position. Employee shall serve as Senior Vice
President--Legal Affairs, General Counsel and Secretary of the Company and shall
perform such duties consistent with his position as may be assigned to him from
time to time by the Chief Executive Officer or the Board of Directors of the
Company.
2.02 Time and Efforts. Employee, so long as he is employed
hereunder, shall devote his full business time and attention to the services
required of him hereunder, except as otherwise agreed and for vacation time and
reasonable periods of absence due to sickness or personal injury, and shall use
his best efforts, judgment and energy to perform, improve and advance the
business and interests of the Company in a manner consistent with the duties of
his position.
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3. Base Salary.
The Company shall pay Employee, in equal installments no less
frequently than monthly, a base salary at the rate of no less than Two Hundred
Twenty Thousand Dollars ($220,000 U.S.) per annum (the "Base Salary") during the
term hereof. The Employee's Base Salary shall be reviewed by the Chief Executive
Officer or the Board of Directors of the Company on an annual basis.
4. Incentive Pay.
4.01 Annual Plan. The Board of Directors of the Company, acting in
its sole discretion, shall annually, at the beginning of each fiscal year of the
Company, approve an annual incentive plan (the "Annual Incentive Plan") for
Employee, which Plan shall contain such terms and provisions as the Board of
Directors shall determine. Any amounts payable to Employee pursuant to the
Annual Incentive Plan is hereinafter referred to as "Incentive Pay".
4.02 Target Incentive Pay. The target Incentive Pay ("Target
Incentive Pay") for Employee for the 2005 fiscal year of the Company shall be as
follows: One Hundred Ten Thousand Dollars (U.S. $110,000); provided, however,
that the Target Incentive Pay with respect to any fiscal year is subject to, and
may be modified by, the Annual Incentive Plan approved by the Board of Directors
pursuant to Section 4.01 above and this Section 4.02 shall be read accordingly.
After 2005, the Target Incentive Pay for Employee will be set by the Chief
Executive Officer or the Board of Directors of the Company for each fiscal year
and will be included in the Annual Incentive Plan for such year.
4.03 Payment of Incentive Pay. If Employee is entitled to payment of
any Incentive Pay for any fiscal year, an accounting will be furnished and
payment will be made to Employee as set forth in the Annual Incentive Plan, but
in no event later than two and one-half months following the end of each fiscal
year.
4.04 Termination of Employment. If Employee's employment hereunder
shall terminate other than pursuant to Sections 8.03 or 8.04, Employee shall
receive, at the time contemplated by the Annual Incentive Plan, such Incentive
Pay, if any, to which he would have been entitled under the terms of the Annual
Incentive Plan had Employee remained in the employ of the Company for the entire
fiscal year in which such termination occurs. If Employee's employment hereunder
shall terminate pursuant to (a) Section 8.03, the provisions of Section 8.03
shall determine the amount of Incentive Pay payable to Employee; or (b) Section
8.04, no Incentive Pay shall be payable to Employee after such termination.
5. Stock Options.
As part of the Employee's compensation, Employee may be granted
stock options in the future based upon Employee's performance as determined in
the sole discretion of the Board of Directors of the Company.
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6. Employee Benefits.
6.01 Executive Flex Perk. Employee shall be entitled to participate
in the Company's Executive Flex Perk Plan subject to the terms, conditions and
limitations thereof. Subject to Section 6.07 below and the terms of the Plan,
the Company will pay to, or for the benefit of Employee, an amount equal to
$15,000.00 per year payable in the same manner as Employee's Base Salary is
paid.
(a) 6.02 Life Insurance. During the term, Executive shall be
entitled to life insurance coverage in an amount not less than $1,100,000.
6.03 Disability Insurance.
(a) During the Term, Executive shall be entitled to disability
insurance coverage in an amount not less than his disability coverage on the
date of this Agreement and the Company shall maintain in full force and effect
during the Term a Supplemental Disability Policy which will supplement the
benefits payable under any disability benefit provided to Employee by the
Company under its basic employee health care benefit program, so that, subject
to Section 6.07 below, with respect to a disability as defined in the
Supplemental Disability Policy occurring after the Company has obtained the
Supplemental Disability Policy, the total monthly disability benefit (the
"Disability Benefit") payable to Employee under all disability policies
maintained by the Company, after a maximum elimination period of ninety (90)
days, shall equal 70% of the sum of Employee's Base Compensation and Incentive
Pay for the year immediately preceding the year in which the termination for
Disability occurs.
(b) Notwithstanding anything herein to the contrary, if the
premiums for the Supplemental Disability Income Policy for Employee shall exceed
regular, non-rated premiums, the Company may, but shall have no obligation to,
fund such excess. In the event the Company determines not to fund such excess it
shall promptly notify Employee and Employee may, at his option, elect to pay the
excess. If Employee fails to pay such excess or if for any other reason the
Company, after reasonable efforts, is not able to obtain the Supplemental
Disability Income Policy required herein, then Employee shall not be entitled to
any Disability Benefit hereunder except as may otherwise be determined in the
discretion of the Company and set forth in writing.
6.04 Executive Medical Benefit. Subject to Section 6.07, the Company,
at its expense, shall provide Employee with an annual physical examination to be
conducted by a physician or physicians as determined by the Company, or by
Employee with the approval of the Company.
6.05 Other Benefits. Employee shall be provided additional employee
benefits, including health, accident and disability insurance under the
Company's regular and ongoing plans, policies and programs available, from time
to time, to senior officers of the Company, in accordance with the provisions of
such plans, policies and programs governing eligibility and participation;
provided, however, that such benefits may be modified, amended or rescinded by
the Board of Directors of the Company in its sole discretion.
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6.06 Vacation. Employee shall be entitled to four (4) weeks paid
vacation each year during the term hereof. Any vacation not used in any year
shall not accrue for use in subsequent years and shall be forfeited as of the
end of such year.
6.07 Paramount Provisions.
(a) Notwithstanding anything in Sections 6.02 and 6.03 above or
any other provision of this Agreement to the contrary, if the Company has met
all of its obligations under this Agreement (and the Insurance Agreement, if
applicable) with respect to obtaining and maintaining in force (i) the Life
Insurance Policy described in Section 6.02 hereof on the life of Employee to
fund the Death Benefit or (ii) the Supplemental Disability Policy maintained for
Employee pursuant to Section 6.03 hereof to fund such Employee's Disability
Benefit, but all or any portion of the proceeds under any such policy are not
actually received by the Company for any reason whatsoever, including without
limitation the insolvency of the insurer or any misrepresentation made by
Employee in the application for such insurance, then the right of Employee or
his designated beneficiary to receive a Disability Benefit or a Death Benefit,
as the case may be, shall be reduced (but not below zero) by the amount by which
the Disability Benefit or Death Benefit otherwise payable exceeds the insurance
proceeds actually received.
(b) Anything in Sections 6.01, 6.02, 6.03, and 6.04 to the
contrary notwithstanding, the amount of the benefits provided for in Section 6
are subject to adjustment as shall be provided for in the plan or insurance
contract, as the case may be, pursuant to which such benefit is being paid and
the Employee will be given written notice of any such change. Anything in this
Agreement to the contrary notwithstanding, the Chief Executive Officer or the
Board of Directors shall have full authority to make all determinations deemed
necessary or advisable for the administration of the benefits described in this
Section 6. The good faith interpretation and construction by the Chief Executive
Officer or the Board of Directors of the terms of this Section 6 or the benefit
programs described herein shall be final, conclusive and binding on Employee.
7. Business Expenses.
All reasonable and customary business expenses incurred by Employee in
the performance of his duties hereunder shall be paid or reimbursed by the
Company in accordance with the Company's policies in effect, from time to time.
8. Termination of Employment.
8.01 Definitions. For purposes of this Section 8, the following terms
shall have the following meanings:
(a) Cause. The term "Cause" shall mean (i) Employee commits
fraud or is convicted of a crime involving moral turpitude, (ii) Employee, in
carrying out his duties hereunder, has been guilty of gross neglect or gross
misconduct resulting in harm to the Company or any of its subsidiaries or
affiliates, (iii) Employee shall have failed to materially comply with the
policies of the Company or shall have refused to follow or comply with the duly
promulgated directives
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of the Chief Executive Officer or the Board of Directors of the Company, (iv)
Employee has breached any of the provisions of Section 10.02 through and
including 10.04 or (v) Employee otherwise materially breaches this Agreement.
(b) Disability. The term "Disability" shall mean the good faith
determination by the Chief Executive Officer or of the Board of Directors of the
Company that Employee has failed to or has been unable to perform his duties as
the result of any physical or mental disability for a period of ninety (90)
consecutive days during any one period of Disability.
8.02 Termination upon Death or Disability. If Employee's employment
is terminated due to his death or Disability, the Company shall pay to the
estate of the Employee or to the Employee, as the case may be, within fifteen
(15) days following Employee's death or upon his termination in the event of
Disability, all amounts then payable to Employee pro rated through the date of
termination pursuant to Sections 3, 6.01, and 7, and the amount of any accrued
but unused vacation under Section 6.06 for the year in which such termination
occurs. In addition, the Company shall pay to Employee any Incentive Pay payable
pursuant to Section 4.04 hereof in accordance with the terms thereof.
8.03 Termination by the Company for other than Death or Disability or
for Cause. The Company may terminate Employee's employment hereunder without
cause at any time, upon written notice. If upon expiration of the term of this
Agreement or if Employee's employment is terminated by the Company prior to the
expiration of the term of this Agreement without cause or other than (i) by
reason of Employee's death or Disability or (ii) for Cause, the Company shall
pay or provide to Employee, in lieu of all other amounts payable hereunder or
benefits to be provided hereunder the following: (a) a payment equal to the sum
of one (1) times Employee's Base Salary at the time of termination; (b) a
payment equal to one (1) times Employee's Target Incentive Pay for the year in
which such termination occurs (or, if no Target Incentive Pay has been
designated for such year, then the Target Incentive Pay for the last year in
which it was designated prior to such termination), and (c) the acceleration of
any unvested rights of Employee under any stock options or other equity
incentive programs such that they shall immediately vest under the terms of such
plans. As a condition precedent to the requirement of Company to make such
payments or grant such accelerated vesting, Employee shall not be in breach of
his obligations under Section 10 hereof and Employee shall execute and deliver
to Company a general release in favor of the Company in substantially the same
form as the general release then contained in the latest Severance Agreement
being used by the Company.
Any payments required to be made under this Section 8.03 shall be made
to Employee within thirty (30) days after the date of Employee's termination of
employment.
8.04 Voluntary Termination by Employee or Termination for Cause.
Employee may terminate his employment hereunder at any time whatsoever, with or
without cause, upon thirty (30) days prior written notice to the Company. The
Company may terminate Employee's employment hereunder at any time without notice
for Cause. In the event Employee's employment is terminated voluntarily by
Employee or by the Company for Cause:
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(a) The Company shall pay to Employee upon such termination all
amounts then due under sections 3, 4 (but only to the extent of earned but
unpaid Incentive Pay), 6, and 7, prorated, through the date of termination for
the year in which he is terminated; and
(b) The Company shall be under no obligation to make severance
payments to Employee or continue any benefits being provided to Employee beyond
the date of such termination.
9. Change of Control, Change in Responsibilities.
Upon the occurrence of both of the following events:
(a) The dissolution or liquidation of the Company, or a
reorganization, merger or consolidation of the Company with one or more
corporations as a result of which the owners of all of the outstanding shares of
Common Stock immediately prior to such reorganization, merger or consolidation
own in the aggregate, directly and indirectly, less than 50% of the outstanding
shares of Common Stock of the Company or any other entity into which the Company
shall be merged or consolidated immediately following the consummation thereof,
or the sale, transfer or other disposition of all or substantially all of the
assets or more than 50% of the then outstanding shares of Common Stock of the
Company in a single transaction or series of related transactions (a "Change in
Control"); and
(b) Within one (1) year of such Change in Control there is a
termination of employment without cause or a material diminution of or change in
Employee's responsibilities or duties, Employee may elect, in writing, within
ninety (90) days following the occurrence of such events, to terminate this
Agreement and his employment with the Company will terminate, effective thirty
(30) days after the Company's receipt of such notice. In such event Employee
shall be deemed to have been terminated by the Company other than for Cause and
all amounts payable to Employee pursuant to Section 8.03 shall become
immediately due and payable.
A Change in Control of the Company shall not be deemed to occur
by reason of any public offering of the Common Stock of the Company.
Except as expressly contemplated by this Agreement, or in any
other agreement referred to in Section 5 hereof, no merger, reorganization,
recapitalization, sale of stock, sale of assets or other change in the capital
structure of the Company or in the identity of the legal or beneficial owners of
the Company shall affect the rights or obligations of the Company or Employee
hereunder.
10. Confidentiality and Non-Competition.
10.01 Definitions. For purposes of this Section 10, the following
terms shall have the following meanings:
"Affiliate" means any corporation, limited liability company,
partnership or other entity of which the Company owns at least fifty percent
(50%) of the outstanding equity and
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voting rights, directly or indirectly, through any other corporation, limited
liability company, partnership or other entity.
"Businesses" means the businesses engaged in by the Company
directly or through its Affiliates immediately prior to termination of
employment.
"Confidential Information" means information which does not
rise to the level of a Trade Secret, but is valuable to the Company or any
Affiliate and provided in confidence to Employee.
"Proprietary Information" means, collectively, Trade Secrets and
Confidential Information.
"Restricted Period" means the period commencing as of the date
hereof and ending on that date two years (2) year after the termination of
Employee's employment with the Company for any reason, whether voluntary or
involuntary.
"Trade Secrets" means information which derives economic
value, actual or potential, from not being generally known to, and not being
readily ascertainable by proper means by, other persons who can obtain economic
value from its disclosure or use, and is the subject of efforts that are
reasonable under the circumstances to maintain its secrecy.
10.02 Covenant Not-To-Disclose. The Company and Employee recognize
that, during the course of Employee's employment with the Company, the Company
has disclosed and will continue to disclose to Employee Proprietary Information
concerning the Company and the Affiliates, their products, their franchisees,
their services and other matters concerning their Businesses, all of which
constitute valuable assets of the Company and the Affiliates. The Company and
Employee further acknowledge that the Company has, and will, invest considerable
amounts of time, effort and corporate resources in developing such valuable
assets and that disclosure by Employee of such assets to the public shall cause
irreparable harm, damage and loss to the Company and the Affiliates.
Accordingly, Employee acknowledges and agrees:
(a) that the Proprietary Information is and shall remain the
exclusive property of the Company (or the applicable Affiliate);
(b) to use the Proprietary Information exclusively for the
purpose of fulfilling the obligations under this Agreement;
(c) to return the Proprietary Information, and any copies
thereof, in his possession or under his control, to the Company (or the
applicable Affiliate) upon request of the Company (or the Affiliate), or
expiration or termination of Employee's employment hereunder for any reason; and
(d) to hold the Proprietary Information in confidence and not
copy, publish or disclose to others or allow any other party to copy, publish or
disclose to others in any form, any
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Proprietary Information without the prior written approval of an authorized
representative of the Company.
The obligations and restrictions set forth in this Section 10.02 shall
survive the expiration or termination of this Agreement, for any reason, and
shall remain in full force and effect as follows:
(a) as to Trade Secrets, indefinitely, and
(b) as to Confidential Information, for a period of two (2)
years after the expiration or termination of this Agreement for any reason.
The confidentiality, property, and proprietary rights protections
available in this Agreement are in addition to, and not exclusive of, any and
all other corporate rights, including those provided under copyright, corporate
officer or director fiduciary duties, and trade secret and confidential
information laws. The obligations set forth in this Section 10.02 shall not
apply or shall terminate with respect to any particular portion of the
Proprietary Information which (i) was in Employee's possession, free of any
obligation of confidence, prior to his receipt from the Company or its
Affiliate, (ii) Employee establishes the Proprietary Information is already in
the public domain at the time the Company or the Affiliate communicates it to
Employee, or becomes available to the public through no breach of this Agreement
by Employee, or (iii) Employee establishes that he received the Proprietary
Information independently and in good faith from a third party lawfully in
possession thereof and having no obligation to keep such information
confidential.
10.03 Covenant of Non-Disparagement and Cooperation. Employee agrees
that he shall not at any time during or following the term of this Agreement
make any remarks disparaging the conduct or character of the Company or the
Affiliates or any of the Company's or the Affiliates' current or former agents,
employees, officers, directors, successors or assigns (collectively the "Related
Parties"). In addition, Employee agrees to cooperate with the Related Parties,
at no extra cost, in any litigation or administrative proceedings (e.g., EEOC
charges) involving any matters with which Employee was involved during
Employee's employment with the Company. The Company shall reimburse Employee for
travel expenses approved by the Company or the Affiliates incurred in providing
such assistance.
10.04 Covenant Not-To-Induce. Employee covenants and agrees that
during the Restricted Period, he will not, directly or indirectly, on his own
behalf or in the service or on behalf of others, hire, solicit, take away or
attempt to hire, solicit or take away any person who is or was an employee of
the Company or any Affiliate during the one (1) year period preceding the
termination of Employee's employment.
10.05 Remedies. The Company and Employee expressly agree that a
violation of any of the covenants contained in subsections 10.02 through and
including 10.04 of this Section 10, or any provision thereof, shall cause
irreparable injury to the Company and that, accordingly, the Company shall be
entitled, in addition to any other rights and remedies it may have at law or in
equity, to an injunction enjoining and restraining Employee from doing or
continuing to do any
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such act and any other violation or threatened violation of said Sections 10.02
through and including 10.04 hereof.
10.06 Severability. In the event any provision of this Agreement shall
be found to be void, the remaining provisions of this Agreement shall
nevertheless be binding with the same effect as though the void part were
deleted; provided, however, if subsections 10.02 through and including 10.04 of
this Section 10 shall be declared invalid, in whole or in part, Employee shall
execute, as soon as possible, a supplemental agreement with the Company,
granting the Company, to the extent legally possible, the protection afforded by
said subsections. It is expressly understood and agreed by the parties hereto
that the Company shall not be barred from enforcing the restrictive covenants
contained in each of subsections 10.02 through and including 10.04, as each are
separate and distinct, so that the invalidity of any one or more of said
covenants shall not affect the enforceability and validity of the other
covenants.
10.07 Ownership of Property. Employee agrees and acknowledges that all
works of authorship and inventions, including but not limited to products,
goods, know-how, Trade Secrets and Confidential Information, and any revisions
thereof, in any form and in whatever stage of creation or development, arising
out of or resulting from, or in connection with, the services provided by
Employee to the Company or any Affiliate under this Agreement are works made for
hire and shall be the sole and exclusive property of the Company or such
Affiliate. Employee agrees to execute such documents as the Company may
reasonably request for the purpose of effectuating the rights of the Company or
the Affiliate in any such property.
10.08 No Defense. The existence of any claim, demand, action or cause
of action of the Employee against the Company shall not constitute a defense to
the enforcement by the Company of any of the covenants or agreements herein.
11. Gross Up Payment. The term "Gross Up Payment" as used in this
Agreement shall mean a payment to or on behalf of Employee which shall be
sufficient to pay (1) 100% of any excise tax described in this Section 11, (2)
100% of any federal, state and local income tax and social security and other
employment tax on the payment made to pay such excise tax as well as any
additional taxes on such payment and (3) 100% of any interest or penalties
assessed by the Internal Revenue Service on Employee which are related to the
timely payment of such excise tax (unless such interest or penalties are
attributable to Employee's willful misconduct or gross negligence with respect
to such timely payment). A Gross Up Payment shall be made by the Company
promptly after either the Company or the Company's independent accountants
determine that any payments and benefits called for under this Employment
Agreement together with any other payments and benefits made available to
Employee by the Company and any other person will result in Employee being
subject to an excise tax under Section 4999 of the Internal Revenue Code of
1986, as amended (which shall be referred to in this Section 11 as the "Code")
or such an excise tax is assessed against Employee as a result of any such
payments and other benefits if Employee takes such action (other than waiving
Employee's right to any payments or benefits in excess of the payments or
benefits which Executive has expressly agreed to waive under this Section 11) as
the Company reasonably requests under the circumstances to mitigate or challenge
such excise tax; provided, however, if the Company or the Company's independent
accountants make the determination described in this Section 11 and, further,
determine that
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Employee will not be subject to any such excise tax if Employee
waives Employee's right to receive a part of such payments or benefits and such
part does not exceed $10,000, Employee shall irrevocably waive Employee's right
to receive such part if an independent accountant or lawyer retained by Employee
and paid by the Company agrees with the determination made by the Company or the
Company's independent accountants with respect to the effect of such reduction
in payments or benefits. Any determinations under this Section 11 shall be made
in accordance with Section 280G of the Code and any applicable related
regulations (whether proposed, temporary or final) and any related Internal
Revenue Service rulings and any related case law and, if the Company reasonably
requests that Employee take action to mitigate or challenge, or to mitigate and
challenge, any such tax or assessment (other than waiving Employee's right to
any payments or benefits in excess of the payments or benefits which Employee
has expressly agreed to waive under this Section 11) and Employee complies with
such request, the Company shall provide Employee with such information and such
expert advice and assistance from the Company's independent accountants, lawyers
and other advisors as Employee may reasonably request and shall pay for all
expenses incurred in effecting such compliance and any related fines, penalties,
interest and other assessments.
12. Indemnification.
12.01 Company Obligations. The Company hereby indemnifies and agrees
to hold harmless Employee, to the extent allowed by applicable law, against all
liabilities, obligations, claims, demands, actions, causes of action, lawsuits,
judgments, expenses and costs, including but not limited to the reasonable costs
of investigation and attorney's fees, incurred by the Employee as a result of
any threat, demand, claim action or lawsuits, made, instituted or initiated
against the Employee, which arises out of, results from or relates to this
Agreement or any action taken by Employee in the course of performance of
Employee's duties hereunder, except for Employee's own gross negligence or
willful misconduct.
12.02 Notice and Defense of Claim. If any claim suit or other legal
proceeding shall be commenced, or any claim or demand be asserted against the
Employee and Employee desires indemnification pursuant to this paragraph, the
Company shall be notified to such effect with reasonable promptness and shall
have the right to assume at its full cost and expense the entire control of any
legal proceeding, subject to the right of the Employee to participate at his
full cost and expense and with counsel of his choice in the defense, compromise
or settlement thereof. The Employee shall cooperate fully in all respects with
the Company in any such defense, compromise or settlement, including, without
limitation, making available to the Company all pertinent information under the
control of the Employee. The Company may compromise or settle any such action,
suit, proceeding, claim or demand without Employee's approval so long as the
Company obtains for Employee's benefit a release of liability with respect to
such claim from the claimant and the Company assumes and agrees to pay any
amounts due with respect to such settlement. In no event shall the Company be
liable for any settlement entered into by the Employee without the Company's
prior written consent.
12.03 Survival. The provisions of this paragraph 12 shall survive the
termination of this Agreement for a period of four (4) years, unless Employee is
terminated for Cause, in which event the provisions of this Section 12 shall not
survive termination of this Agreement.
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13. Dispute Resolution.
13.01 Agreement to Arbitrate. In consideration for his continued
employment with the Company, and other consideration, the sufficiency of which
is hereby acknowledged, but subject to Section 6.07(b) above, Employee
acknowledges and agrees that any controversy or claim arising out of or relating
to Employees employment, termination of employment, or this Agreement including,
but not limited to, controversies and claims that are protected or covered by
any federal, state, or local statute, regulation or common law, shall be settled
by arbitration pursuant to the Federal Arbitration Act. This includes, but is
not limited to, violations or alleged violations of any federal or state statute
or common law (including, but not limited to, the laws of the United States or
of any state, or the Constitution of the United States or of any state), or of
any other law, statute, ordinance, including but not limited to, the Age
Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, as
amended, the Americans with Disabilities Act, the Equal Pay Act, the Employee
Retirement Income Security Act, the Rehabilitation Act of 1973, and any other
statute or common law. This provision shall not, however, preclude the Company
from seeking equitable relief as provided in Section 10.06 of this Agreement.
13.02 Procedure. The arbitration shall be conducted in accordance with
the Employment Arbitration Rules of the American Arbitration Association: a
single arbitrator who is experienced in employment law shall be selected under
those Rules, and the arbitration shall be initiated in Atlanta, Georgia, unless
the parties agree in writing to a different location or the Arbitrator directs
the arbitration to be held at a different location. Except for filing fees, all
costs of the arbitrator shall be allocated by the arbitrator. The award rendered
by the arbitrator shall be final and binding on the parties hereto and judgment
thereon may be entered in any court having jurisdiction thereof. In addition to
that provided for in the Employment Arbitration Rules, the arbitrator has sole
discretion to permit discovery consistent with the Federal Rules of Civil
Procedure and the judicial interpretation of those rules upon request by any
party; provided, however, it is the intent of the parties that the arbitrator
limit the time and scope of any such discovery to the greatest extent
practicable and provide a decision as rapidly as possible given the
circumstances of the claims to be determined. The arbitrator also shall have the
power and authority to grant injunctive relief for any violation of Sections
10.02 through and including 10.04 and the arbitrator's order granting such
relief may be entered in any court of competent jurisdiction. The agreement to
arbitrate any claim arising out of the employment relationship or termination of
employment shall not apply to those claims which cannot be made subject to this
provision by statute, regulation or common law. These include, but are not
limited to, any claims relating to work related injuries and claims for
unemployment benefits under applicable state laws.
13.03 Rights of Parties. Nothing in this clause shall be construed to
prevent the Company from asking a court of competent jurisdiction to enter
appropriate equitable relief to enjoin any violation of this Agreement by
Employee. The Company shall have the right to seek such relief in connection
with or apart from the parties' rights under this clause to arbitrate all
disputes. With respect to disputes arising under this Agreement that are
submitted to a court rather than an arbitrator, including actions to compel
arbitration or for equitable relief in aid of
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arbitration, the parties agree that venue and jurisdiction are proper in any
state or federal court lying within Atlanta, Georgia and specifically consent to
the jurisdiction and venue of such court for the purpose of any proceedings
contemplated by this paragraph. By entering into this Agreement the parties have
waived any right which may exist for a trial by jury and have expressly agreed
to resolve any disputes covered by this Agreement through the arbitration
process described herein.
14. Employee Acknowledgment.
By signing this Agreement, Employee acknowledges that the Company has
advised Employee of his right to consult with an attorney prior to executing
this Agreement; that he has the right to retain counsel of his own choosing
concerning the agreement to arbitrate or any waiver of rights or claims; that he
has read and fully understands the terms of this Agreement and/or has had the
right to have it reviewed and approved by counsel of choice, with adequate
opportunity and time for such review; and that he is fully aware of its contents
and of its legal effect. Accordingly, this Agreement shall not be construed
against any party on the grounds that the party drafted this Agreement. Instead,
this Agreement shall be interpreted as though drafted equally by all parties.
15. Amendments.
This Agreement may not be altered, modified or amended except by a
written instrument signed by each of the parties hereto.
16. Successors.
As used in this Agreement, the term the Company shall include any
successors to all or substantially all of the business and/or assets of the
Company which assumes and agrees to perform this Agreement.
17. Assignment.
Neither this Agreement nor any of the rights or obligations of either
party hereunder shall be assigned or delegated by any party hereto without the
prior written consent of the other party, except that the Company may without
the consent of Employee assign its rights and delegate its duties hereunder to
any successor to the business of the Company. In the event of the assignment by
the Company of its rights and the delegation of its duties to a successor to the
business of the Company and the assumption of such rights and obligations by
such successor, the Company shall, effective upon such assumption, be relieved
from any and all obligations whatsoever to Employee hereunder.
18. Waiver.
Waiver by any party hereto of any breach or default by any other party
of any of the terms of this Agreement shall not operate as a waiver of any other
breach or default, whether similar to or different from the breach or default
waived.
Employee's Initials: 12
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19. Severability.
In the event that any one or more of the provisions of this Agreement
shall be or become invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein shall not be affected thereby.
20. Survival.
Notwithstanding anything herein to the contrary, the provisions of
Sections 6.07, 7, 8.03, 9, 10, and 12 shall survive the termination of this
Agreement.
21. Entire Terms.
This Agreement contains the entire understanding of the parties with
respect to the employment of Employee by the Company. There are no restrictions,
agreements, promises, warranties, covenants or undertakings other than those
expressly set forth herein. This Agreement supersedes all prior agreements,
arrangements and understandings between the parties, whether oral or written,
with respect to the employment of Employee.
22. Notices.
Notices and all other communications provided for in this Agreement
shall be in writing and shall be deemed to have been duly given when personally
delivered or when mailed by United States registered mail, return receipt
requested, postage prepaid, addressed as follows:
If to Employee:
Xxxxxx X. Xxxxx
000 Xxxxx Xxxxx
Xxxxxxx, Xxxxxxx 00000
If to the Company to:
AFC Enterprises, Inc.
0000 Xxxxxxxxx Xxxxxxxxx XX
Xxxxx 000
Xxxxxxx, Xxxxxxx 00000
Attn: Chief Executive Officer
or to such other address or such other person as Employee or the Company shall
designate in writing in accordance with this Section 22 except that notices
regarding changes in notices shall be effective only upon receipt.
23. Headings.
Employee's Initials: 13
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Headings to Sections in this Agreement are for the convenience of the
parties only and are not intended to be a part of, or to affect the meaning or
interpretation of, this Agreement.
24. Governing Laws.
The Agreement shall be governed by the laws of the State of Georgia
without reference to the principles of conflict of laws.
Employee's Initials: 14
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IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed and Employee has hereunto set his hand as of the day and year first
above written.
COMPANY:
AFC ENTERPRISES, INC.
By: /s/ Xxxxx X. Xxxxxxx
-------------------------------
Xxxxx X. Xxxxxxx
Chairman of the Board
EMPLOYEE:
/s/ Xxxxxx X. Xxxxx
------------------------------------
Xxxxxx X. Xxxxx
Employee's Initials: 15
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