AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT
Exhibit 10.15
Xxxx X. Xxxxxxxxxxx
AMENDMENT TO EXECUTIVE EMPLOYMENT AGREEMENT
This Amendment to Executive Employment Agreement (this “Amendment”) is made effective as of
January 1, 2009, by and between Chesapeake Utilities Corporation, a Delaware corporation (the
“Company”), and Xxxx X. Xxxxxxxxxxx (the “Executive”).
Background Information
The parties to this Amendment (the “Parties”) entered into an Executive Employment Agreement
as of December 29, 2006 (the “Employment Agreement”), regarding the Executive’s employment
relationship with the Company. The Parties desire to amend the Employment Agreement pursuant to
Paragraphs 18 and 20 of the Employment Agreement in order to comply with the final Treasury
Regulations issued under Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”). The Employment Agreement, as amended by this Amendment, is hereinafter collectively
referred to as the “Agreement.”
Amendment of the Employment Agreement
The Parties hereby acknowledge the accuracy of the foregoing Background Information and hereby
agree as follows:
1. Definitions. All capitalized terms used in this Agreement but which are not
otherwise defined herein, shall have the respective meanings given those terms in the Employment
Agreement, as applicable.
2. Expenses. Paragraph 5(g) of the Agreement is hereby amended by adding the
following to the end thereof:
“If any reimbursements under this provision are taxable to the Executive, such reimbursements
shall be paid on or before the end of the calendar year following the calendar year in which the
reimbursable expense was incurred, and the Company shall not be obligated to pay any such
reimbursement amount for which Executive fails to submit an invoice or other documented
reimbursement request at least 10 business days before the end of the calendar year next following
the calendar year in which the expense was incurred. Such expenses shall be reimbursable only to
the extent they were incurred during the term of the Agreement. In addition, the amount of such
reimbursements that the Company is obligated to pay in any given calendar year shall not affect the
amount the Company is obligated to pay in any other calendar year. In addition, Executive may not
liquidate or exchange the right to reimbursement of such expenses for any other benefits.”
3. Payment Upon Termination During Extended Term. Paragraph 6(c) of the Agreement is
hereby amended by adding the following to the end thereof:
“In addition, and notwithstanding the foregoing provisions of this Paragraph 6(c), if the
Extended Termination Date occurs more than two (2) years after the occurrence of a Change in
Control, then the amount payable in cash under this provision shall be payable in substantially
equal installments over the one (1) year period following the Executive’s “separation from
service” within the meaning of Code Section 409A. The number of substantially equal installments
shall be equal to the number of regular payroll periods during said one (1) year period, with one
installment payable on each such payroll period. In addition, to the extent required in order to
comply with Code Section 409A, cash amounts that would otherwise be payable under this Paragraph
6(c) during the six-month period immediately following the Extended Termination Date (and which are
not eligible for the exception applicable to payments due to involuntary separation under Treas.
Reg. Section 1.409A-1(b)(9)(iii)) shall instead be paid, with interest on any delayed payment at
the applicable federal rate under Code Section 7872(f)(2)(A), on the first business day after the
date that is six (6) months following the Executive’s “separation from service” within the meaning
of Code Section 409A. Further, any taxable welfare benefits provided to Executive pursuant to this
Paragraph 6(c) that are not “disability pay” or “death benefits” within the meaning of Treas. Reg.
Section 1.409A-1(a)(5) (collectively, the “Applicable Benefits”) shall be subject to the following
requirements in order to comply with Code Section 409A. The amount of any Applicable Benefits
provided during one taxable year shall not affect the amount of the Applicable Benefits provided in
any other taxable year, except that with respect to any Applicable Benefits that consist of the
reimbursement of expenses referred to in Code Section 105(b), a limitation may be imposed on the
amount of such reimbursements over some or all of the Covered Period, as described in Treas. Reg.
Section 1.409A-3(i)(1)iv)(B). To the extent that any Applicable Benefits consist of the
reimbursement of eligible expenses, such reimbursement must be made on or before the last day of
the calendar year following the calendar year in which the expense was incurred. No Applicable
Benefits may be liquidated or exchanged for another benefit. During the period of six (6) months
immediately following Executive’s separation from service (within the meaning of Code Section
409A), Executive shall be obligated to pay the Company the full cost for any Applicable Benefits
that do not constitute health benefits of the type required to be provided under the health
continuation coverage requirements of Code Section 4980B, and the Company shall reimburse Executive
for any such payments on the first business day that is more than six (6) months after Executive’s
separation from service, together with interest on such amount from the date of separation from
service through the date of payment at the applicable federal rate under Code Section
7872(f)(2)(A).”
4. Maximum Payment Upon Termination. Paragraph 7(b) of the Agreement is hereby
amended by adding the following to the end thereof:
“Notwithstanding the foregoing, if the exercise of discretion reserved to the Executive in
determining the Notice of Application would violate Code Section 409A, then such discretion shall
be eliminated and the amounts payable under Paragraph 6(c) shall be reduced proportionately.”
5. Code Section 409A. Paragraph 20 of the Agreement, the existing text of which is
redundant of Xxxxxxxxx 00, xxxxx xx replaced with the following:
“Notwithstanding any provision of Paragraph 10 or 14 of the Employment Agreement to the
contrary, any legal fees and expenses to be paid by the Company pursuant to Paragraph 10 or 14
shall be subject to the following requirements in order to comply with Code Section 409A. Such
legal fees and expenses shall be paid by the Company only to the extent incurred during the Term of
the Agreement or for a period of ten (10) years after the Executive’s “separation from service” (as
defined in Code Section 409A). The Company shall pay such legal fees and expenses no later than
the end of the calendar year next following the calendar year in which such fees and expenses were
incurred, and the Company shall not be obligated to pay any such fees and expenses for which the
Executive fails to submit an invoice at least ten (10)
business days before the end of the calendar year next following the calendar year in which such
fees and expenses were incurred. The amount of such legal fees and expenses that the Company is
obligated to pay in any given calendar year shall not affect the legal fees and expenses that the
Company is obligated to pay in any other calendar year, and the Executive’s right to have the
Company pay such legal fees and expenses may not be liquidated or exchanged for any other benefit.”
6. Captions. The captions of the various sections of this Amendment are not part of
the context of this Amendment, but are only labels to assist in locating those sections, and shall
be ignored in construing this Amendment.
7. Construction. This document is an amendment to the Employment Agreement. In the
event of any inconsistencies between the provisions of the Employment Agreement and this Amendment,
the provisions of this Amendment shall control. Except as modified by this Amendment, the
Employment Agreement shall continue in full force and effect without change.
EXECUTIVE:
| Date: | ||||||||||
| Xxxx X. Xxxxxxxxxxx | ||||||||||
| CHESAPEAKE UTILITIES CORPORATION | ||||||||||
By:
|
Date: | |||||||||
| Its: | ||||||||||
