AMENDED AND RESTATED EMPLOYMENT AGREEMENT (Jeff Clarke; Executive Chairman)
Exhibit 10.1
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
(Xxxx Xxxxxx; Executive Chairman)
(Xxxx Xxxxxx; Executive Chairman)
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) dated May 27, 2011 by and
between Travelport Limited (formerly TDS Investor (Bermuda) Ltd.) (the “Company”), and Xxxx
Xxxxxx (the “Executive”).
WHEREAS, the Company and Executive previously entered into an Employment Agreement dated
August 3, 2009 (the “Prior Agreement”); and
WHEREAS, the Company and Executive wish to amend and restate the Prior Agreement as set forth
below.
NOW, THEREFORE, in consideration of the premises and mutual covenants herein and for other
good and valuable consideration, the sufficiency of which is acknowledged, the parties agree as
follows:
1. Term of Employment. Subject to the provisions of Section 8 of this Agreement, Executive
shall continue to be employed by the Company for a period commencing on June 1, 2011 and ending on
June 1, 2012 (the “Employment Term”) on the terms and subject to the conditions set forth
in this Agreement; provided, however, that commencing with June 1, 2012 and on each
June 1st thereafter (each an “Extension Date”), the Employment Term shall be
automatically extended for an additional one-year period, unless the Company or Executive provides
the other party hereto 120 days prior written notice before the next Extension Date that the
Employment Term shall not be so extended.
2. Position.
(a) Effective June 1, 2011, Executive shall serve as the Company’s Executive Chairman. In
such position, Executive shall have such duties and authority as shall be determined from time to
time by the Board of Directors of the Company (the “Board”) and which are typically associated with
the role of Executive Chairman.
(b) During the Employment Term, Executive will devote Executive’s business time and best
efforts to the performance of Executive’s duties hereunder and will not engage in any other
business, profession or occupation for compensation or otherwise which would conflict or interfere
with the rendition of such services either directly or indirectly, without the prior written
consent of the Board; provided that nothing herein shall preclude Executive, subject to the
prior approval of the Board, from accepting appointment to or continuing to serve on any board of
directors or trustees of any business corporation or any charitable organization;
provided in each case, and in the aggregate, that such activities do not conflict or interfere
with the performance of Executive’s duties hereunder or conflict with Section 9.
3. Base Salary. During the Employment Term, the Company shall pay Executive a base salary at the
annual rate of no less than $750,000, payable in regular
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installments in accordance with the
Company’s usual payment practices. Executive shall be entitled to such increases in Executive’s
base salary, if any, as may be determined from time to time in the sole discretion of the Board.
Executive’s annual base salary, as in effect from time to time, is hereinafter referred to as the
“Base Salary.”
4. Annual Bonus. With respect to each full fiscal year during the Employment Term, Executive
shall be eligible to earn an annual bonus award (an “Annual Bonus”) of up to one hundred
and fifty percent (150%) of Executive’s Base Salary (the “Target”) based upon the
achievement of an annual EBITDA target established by the Board within the first three months of
each fiscal year during the Employment Term. As the Annual Bonus award is subject to the
attainment of performance criteria, it may be paid, to the extent earned or not earned, at below
target levels, and above target levels (with a maximum of 350% of the above referenced target
level). The Annual Bonus, if any, shall be paid to Executive within two and one-half (2.5) months
after the end of the applicable fiscal year.
5. Special Bonus.
(a) As soon as practicable following the date hereof, in recognition of Executive’s
contribution to the sale of the GTA business, the Company or one of its subsidiaries shall pay to
Executive a bonus equal to $5,000,000.00, less applicable withholdings and deductions.
(b) In addition, in connection with Executive’s transition hereunder from President and Chief
Executive Officer of the Company to its Executive Chairman and in settlement of severance
obligations of the Company under the Prior Agreement, as soon as practicable following the date
hereof, the Company shall establish a secular trust and deposit into such trust an amount equal to
$2,605,104, less applicable withholdings and deductions (the “Trust Amount”). As soon as
practicable following the earliest to occur of (1) a Change in Control (as defined in the TDS
Investor (Cayman) L.P. Agreement of Exempted Limited Partnership, as amended and/or restated from
time to time); (2) the termination of Executive’s employment; and (3) May 26, 2012 (the earliest to
occur, the “Payment Date”), such trust shall pay to Executive the Trust Amount. Any
earnings accrued on the Trust Amount will be paid to Executive on the Payment Date; provided,
however, that if the Payment Date has not occurred prior to January 1, 2012, then earnings accrued
on the Trust Amount through December 31, 2011 shall be paid to Executive on or prior to January 31,
2012.
6. Employee Benefits. During the Employment Term, Executive shall be entitled to participate in
the Company’s employee benefit plans (other than annual bonus and incentive plans) as in effect
from time to time (collectively “Employee Benefits”), on the same basis as those benefits
are generally made available to other senior executives of the Company.
7. Business Expenses. During the Employment Term, reasonable business expenses incurred by
Executive in the performance of Executive’s duties hereunder shall be reimbursed by the Company in
accordance with Company policies.
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8. Termination. The Employment Term and Executive’s employment hereunder may be terminated by
either party at any time and for any reason; provided that Executive will be required to
give the Company at least 30 days advance written notice of any resignation of Executive’s
employment. Notwithstanding any other provision of this Agreement, the provisions of this Section
8 shall exclusively govern Executive’s rights upon termination of employment with the Company and
its affiliates.
(a) By the Company For Cause or By Executive Other Than as a Result of a Constructive
Termination.
(i) The Employment Term and Executive’s employment hereunder may be terminated by the Company
for Cause (as defined below) and shall terminate automatically upon Executive’s resignation other
than as a result of a Constructive Termination (as defined in Section 8(c)); provided that
Executive will be required to give the Company at least 30 days advance written notice of a
resignation other than as a result of a Constructive Termination.
(ii) For purposes of this Agreement, “Cause” means (A) Executive’s willful failure
substantially to perform Executive’s duties to the Company (other than as a result of total or
partial incapacity due to Disability) for a period of 10 days following receipt of written notice
from the Company by Executive of such failure; provided that it is understood that this clause (A)
shall not apply if a Company terminates Executive’s employment because of dissatisfaction with
actions taken by Executive in the good faith performance of Executive’s duties to the Company, (B)
theft or embezzlement of property of the Company or dishonesty in the performance of Executive’s
duties to the Company, other than de minimis conduct that would not typically result in sanction by
an employer of an executive in similar circumstances, (C) conviction which is not subject to
routine appeals of right or a plea of “no contest” for (x) a felony under the laws of the United
States or any state thereof or (y) a crime involving moral turpitude for which the potential
penalty includes imprisonment of at least one year, (D) Executive’s willful malfeasance or willful
misconduct in connection with Executive’s duties or any act or omission which is materially
injurious to the financial condition or business reputation of the Company or its
affiliates, (E) Executive purposefully or knowingly makes (or has been found to have made) a
false certification to the Company pertaining to its financial statements, (F) by reason of any
court or administrative order, arbitration award or other ruling, Executive’s ability to fully
perform his duties as President and Chief Executive Officer or as a member of the Board is
materially impaired or (G) Executive’s breach of the provisions of Sections 9 or 10 of this
Agreement (excluding a breach of Section 10(a) by a statement made by Executive in good faith in
Executive’s employment capacity). In the event that the Company asserts that grounds exist for
Termination for Cause, unless such grounds are egregious and have caused the Company plain material
harm, the Company shall so notify Executive and within no less than 5 days, nor more than 15 days,
afford Executive a hearing before the Board or, if the Company is publicly traded, a committee
consisting of the independent directors of the Board, at the Board’s option, regarding any disputed
facts. The Board or the committee of the Board, as the case may be, shall make a determination
regarding the existence of Cause upon completion of any such hearing; provided,
however, that any determination that Cause exists shall require an affirmative
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resolution
of the Board of Directors of the Company or the designated committee of the Board acted upon in
accordance with applicable Company By-laws and, if the Company is publicly traded, concurred in by
at least a majority of the independent directors (if any) of the Board. Notwithstanding the
foregoing, the Company shall be entitled to immediately and unilaterally restrict or suspend
Executive’s duties pending determination of the existence of Cause.
(iii) If Executive’s employment is terminated by the Company for Cause, or if Executive
resigns other than as a result of a Constructive Termination, Executive shall be entitled to
receive:
(A) the Base Salary through the date of termination;
(B) any Annual Bonus earned, but unpaid, as of the date of termination for the
immediately preceding fiscal year, paid in accordance with Section 4 (except to the
extent payment is otherwise deferred pursuant to any applicable deferred
compensation arrangement with the Company);
(C) reimbursement, within 60 days following submission by Executive to the
Company of appropriate supporting documentation) for any unreimbursed business
expenses properly incurred by Executive in accordance with Company policy prior to
the date of Executive’s termination; provided claims for such reimbursement
(accompanied by appropriate supporting documentation) are submitted to the Company
within 90 days following the date of Executive’s termination of employment; and
(D) such Employee Benefits, if any, as to which Executive may be entitled under
the employee benefit plans of the Company (the amounts described in clauses (A)
through (D) hereof being referred to as the “Accrued Rights”).
Following such termination of Executive’s employment by the Company for Cause or
resignation by Executive other than as a result of a Constructive
Termination, except as set forth in this Section 8(a)(iii), Executive shall have no
further rights to any compensation or any other benefits under this Agreement.
(b) Disability or Death.
(i) The Employment Term and Executive’s employment hereunder shall terminate upon Executive’s
death and may be terminated by the Company if Executive becomes physically or mentally
incapacitated and is therefore unable for a period of nine (9) consecutive months or for an
aggregate of twelve (12) months in any eighteen (18) consecutive month period to perform
Executive’s duties (such incapacity is hereinafter referred to as “Disability”). Any
question as to the existence of the Disability of Executive as to which Executive and the Company
cannot agree shall be determined in writing by a qualified independent physician mutually
acceptable to Executive and the Company. If Executive and the Company cannot agree as to a
qualified independent physician, each shall appoint such a physician and those two physicians shall select
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a third who shall make such determination in writing. The determination of Disability made
in writing to the Company and Executive shall be final and conclusive for all purposes of the
Agreement and any other agreement between any Company and Executive that incorporates the
definition of “Disability”.
(ii) Upon termination of Executive’s employment hereunder for either Disability or death,
Executive or Executive’s estate (as the case may be) shall be entitled to receive:
(A) the Accrued Rights;
(B) a pro rata portion of any Annual Bonus, if any, that Executive would have
been entitled to receive pursuant to Section 4 hereof in such year based upon the
percentage of the fiscal year that shall have elapsed through the date of
Executive’s termination of employment, payable when such Annual Bonus would have
otherwise been payable to Executive pursuant to Section 4 had Executive’s employment
not terminated; and
(C) vesting of any equity-based awards then held by Executive with respect to
the Company or its affiliates as, and to the extent, described in the definitive
documentation related to such awards.
Following Executive’s termination of employment due to death or Disability, except as set
forth in this Section 8(b)(ii), Executive shall have no further rights to any compensation or any
other benefits under this Agreement.
(c) By the Company Without Cause or Resignation by Executive as a Result of Constructive
Termination.
(i) The Employment Term and Executive’s employment hereunder may be terminated by the Company
without Cause or by Executive’s as a result of a Constructive Termination.
(ii) For purposes of this Agreement, a “Constructive Termination” shall be deemed to
have occurred upon (A) any material failure of the Company or its affiliates to fulfill its
obligations under this Agreement (including without limitation a reduction to the Base Salary, as
increased from time to time) or any agreement pursuant to which Executive holds or is granted
equity in the Company or its affiliates, (B) the failure to nominate Executive for election to the
Board, (C) a failure of Executive to be elected or re-elected to membership on the Board resulting
from the failure of the Company’s majority stockholder (so long as such a majority stockholder
exists) to vote shares (other than with respect to shares acquired in a public offering) entitled
to vote for the election of directors of the Company held by them in favor of election of Executive
as a member of the Board, (D) the failure of any successor to the business operations of the
Company to assume the obligations of the Company under this Agreement, (E) the primary business
office for Executive being relocated to any location which is more than 30 miles from the city
limits of Parsippany, New Jersey, New York, New York, Chicago, Illinois or
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San Francisco,
California, (G) the Company’s election not to renew the initial Employment Term or any subsequent
extension thereof (except as a result of Executive’s reaching retirement age, as determined by
Company policy) or (F) a material and sustained diminution to Executive’s duties and
responsibilities; provided that any of the events described in clauses (A) through (F) of
this Section 8(c)(ii) shall constitute a Constructive Termination only if the Company fails to cure
such event within 30 days after receipt from Executive of written notice of the event which
constitutes a Constructive Termination; provided, further, that a “Constructive
Termination” shall cease to exist for an event on the 60th day following the later of its
occurrence or Executive’s knowledge thereof, unless Executive has given the Company written notice
thereof prior to such date.
(iii) If Executive’s employment is terminated by the Company without Cause (other than by
reason of death or Disability) or if Executive resigns as a result of a Constructive Termination,
Executive shall be entitled to receive:
(A) | the Accrued Rights; |
(B) | a pro rata portion of any Annual Bonus, if any, that Executive would have been entitled to receive pursuant to Section 4 hereof in such year based upon the percentage of the fiscal year that shall have elapsed through the date of Executive’s termination of employment, payable when such Annual Bonus would have otherwise been payable to Executive pursuant to Section 4 had Executive’s employment not terminated; |
(C) | subject to Executive’s execution, delivery and non-revocation of a separation agreement and general release substantially in the form attached hereto as Exhibit A (“the General Release”) within forty-five (45) days following termination of employment, and further subject to Executive’s continued compliance with the provisions of Sections 9 and 10, Executive shall be eligible for continued participation in the health and welfare benefits of Travelport Inc. (or its successor), a subsidiary of Travelport Ltd., for thirty-six (36) months at active employee rates, in accordance with and subject to the terms of Executive’s this Agreement and the General Release; |
(D) | subject to Executive’s execution, delivery and non-revocation of the General Release within forty-five (45) days following termination of employment, vesting of any equity-based awards then held by Executive with respect to the Company or its affiliates as, and to the extent, described in the definitive documentation related to such awards. |
Following Executive’s termination of employment by the Company without Cause (other than by
reason of Executive’s death or Disability) or by Executive’s resignation as
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a result of a
Constructive Termination, except as set forth in this Section 8(c)(iii), Executive shall have no
further rights to any compensation or any other benefits under this Agreement.
(d) Deferred Compensation Payout. Upon Executive’s termination of employment,
Executive will be paid Executive’s account balance under the Travelport Officer Deferred
Compensation Plan (the “Deferred Compensation Plan”) in accordance with the terms of the Deferred
Compensation Plan.
(e) Expiration of Employment Term.
(i) Election Not to Extend the Employment Term. In the event either party elects not to
extend the Employment Term pursuant to Section 1, unless Executive’s employment is earlier
terminated pursuant to paragraphs (a), (b) or (c) of this Section 8 and except as set forth in
paragraph (c)(ii) of this Section 8, Executive’s termination of employment hereunder (whether or
not Executive continues as an employee of the Company thereafter) shall be deemed to occur on the
close of business on the day immediately preceding the next scheduled Extension Date and Executive
shall be entitled to receive the Accrued Rights. Following such termination of Executive’s
employment hereunder as a result of either party’s election not to extend the Employment Term,
except as set forth in this Section 8(e)(i), Executive shall have no further rights to any
compensation or any other benefits under this Agreement.
(ii) Continued Employment Beyond the Expiration of the Employment Term. Unless the parties
otherwise agree in writing, continuation of Executive’s employment with the Company beyond the
expiration of the Employment Term shall be deemed an employment at-will and shall not be deemed to
extend any of the provisions of this Agreement and Executive’s employment may thereafter be
terminated at will by either Executive or the Company; provided that the provisions of
Sections 9, 10, and 11 of this Agreement shall survive any termination of this Agreement or
Executive’s termination of employment hereunder.
(f) Notice of Termination. Any purported termination of employment by the Company or
by Executive (other than due to Executive’s death) shall be communicated by written Notice of
Termination to the other party hereto in accordance with Section 13(i) hereof.
For purposes of this Agreement, a “Notice of Termination” shall mean a notice which
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
employment under the provision so indicated.
(g) Board/Committee Resignation. Upon termination of Executive’s employment for any
reason, Executive agrees to resign, as of the date of such termination and to the extent
applicable, from the Board (and any committees thereof) and the Board of Directors (and any
committees thereof) of any of the Company’s affiliates.
9. Non-Competition.
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(a) From the date hereof while employed by the Company and for a two-year period following the
date Executive ceases to be employed by the Company (the “Restricted Period”), irrespective
of the cause, manner or time of any termination, Executive shall not use his status with the
Company or any of its affiliates to obtain loans, goods or services from another organization on
terms that would not be available to him in the absence of his relationship to the Company or any
of its affiliates.
(b) During the Restricted Period, Executive shall not make any statements or perform any acts
intended to or which may have the effect of advancing the interest of any Competitors of the
Company or any of its affiliates or in any way injuring the interests of the Company or any of its
affiliates and the Company and its affiliates shall not make or authorize any person to make any
statement that would in any way injure the personal or business reputation or interests of
Executive; provided however, that, subject to Section 10, nothing herein shall
preclude the Company and its affiliates or Executive from giving truthful testimony under oath in
response to a subpoena or other lawful process or truthful answers in response to questions from a
government investigation; provided, further, however, that nothing herein shall
prohibit the Company and its affiliates from disclosing the fact of any termination of Executive’s
employment or the circumstances for such a termination. For purposes of this Section 9(b), the
term “Competitor” means any enterprise or business that is engaged in, or has plans to
engage in, at any time during the Restricted Period, any activity that competes with the businesses
conducted during or at the termination of Executive’s employment, or then proposed to be conducted,
by the Company and its affiliates in a manner that is or would be material in relation to the
businesses of the Company or the prospects for the businesses of the Company (in each case, within
100 miles of any geographical area where the Company or its affiliates manufactures, produces,
sells, leases, rents, licenses or otherwise provides its products or services). During the
Restricted Period, Executive, without prior express written approval by the Board, shall not (A)
engage in, or directly or indirectly (whether for compensation or otherwise) manage, operate, or
control, or join or participate in the management, operation or control of a Competitor, in any
capacity (whether as an employee, officer, director, partner, consultant, agent, advisor, or
otherwise) or (B) develop, expand or promote, or assist in the development, expansion or promotion
of, any division of an enterprise or the business intended to become a
Competitor at any time after the end of the Restricted Period or (C) own or hold a Proprietary
Interest in, or directly furnish any capital to, any Competitor of the Company. Executive
acknowledges that the Company’s and its affiliates businesses are conducted nationally and
internationally and agrees that the provisions in the foregoing sentence shall operate throughout
the United States and the world (subject to the definition of “Competitor”).
(c) During the Restricted Period, Executive, without express prior written approval from the
Board, shall not solicit any members or the then current clients of the Company or any of its
affiliates for any existing business of the Company or any of its affiliates or discuss with any
employee of the Company or any of its affiliates information or operations of any business intended
to compete with the Company or any of its affiliates.
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(d) During the Restricted Period, Executive shall not interfere with the employees or affairs
of the Company or any of its affiliates or solicit or induce any person who is an employee of the
Company or any of its affiliates to terminate any relationship such person may have with the
Company or any of its affiliates, nor shall Executive during such period directly or indirectly
engage, employ or compensate, or cause or permit any person with which Executive may be affiliated,
to engage, employ or compensate, any employee of the Company or any of its affiliates.
(e) For the purposes of this Agreement, “Proprietary Interest” means any legal,
equitable or other ownership, whether through stock holding or otherwise, of an interest in a
business, firm or entity; provided, that ownership of less than 5% of any class of equity
interest in a publicly held company shall not be deemed a Proprietary Interest.
(f) The period of time during which the provisions of this Section 9 shall be in effect shall
be extended by the length of time during which Executive is in breach of the terms hereof as
determined by any court of competent jurisdiction on the Company’s application for injunctive
relief.
(g) Executive agrees that the restrictions contained in this Section 9 are an essential
element of the compensation Executive is granted hereunder and but for Executive’s agreement to
comply with such restrictions, the Company would not have entered into this Agreement.
(h) It is expressly understood and agreed that although Executive and the Company consider the
restrictions contained in this Section 9 to be reasonable, if a final judicial determination is
made by a court of competent jurisdiction that the time or territory or any other restriction
contained in this Agreement is an unenforceable restriction against Executive, the provisions of
this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum
time and territory and to such maximum extent as such court may judicially determine or indicate to
be enforceable. Alternatively, if any court of competent jurisdiction finds that any restriction
contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make
it enforceable, such finding shall not affect the enforceability of any of the other restrictions
contained herein.
10. Confidentiality; Intellectual Property.
(a) Confidentiality.
(i) Executive will not at any time (whether during or after Executive’s employment with the
Company) (x) retain or use for the benefit, purposes or account of Executive or any other person;
or (y) disclose, divulge, reveal, communicate, share, transfer or provide access to any person
outside the Company (other than its professional advisers who are bound by confidentiality
obligations), any non-public, proprietary or confidential information — including without
limitation trade secrets, know-how, research and development, software, databases, inventions,
processes, formulae, technology, designs and other intellectual property,
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information concerning
finances, investments, profits, pricing, costs, products, services, vendors, customers, clients,
partners, investors, personnel, compensation, recruiting, training, advertising, sales, marketing,
promotions, government and regulatory activities and approvals — concerning the past, current or
future business, activities and operations of the Company, its subsidiaries or affiliates and/or
any third party that has disclosed or provided any of same to the Company on a confidential basis
(“Confidential Information”) without the prior written authorization of the Board.
(ii) “Confidential Information” shall not include any information that is (a)
generally known to the industry or the public other than as a result of Executive’s breach of this
covenant or any breach of other confidentiality obligations by third parties; (b) made legitimately
available to Executive by a third party without breach of any confidentiality obligation; or (c)
required by law to be disclosed; provided that Executive shall give prompt written notice
to the Company of such requirement, disclose no more information than is so required, and
cooperate, at the Company’s cost, with any attempts by the Company to obtain a protective order or
similar treatment.
(iii) Except as required by law, Executive will not disclose to anyone, other than Executive’s
immediate family and legal or financial advisors, the existence or contents of this Agreement
(unless this Agreement shall be publicly available as a result of a regulatory filing made by the
Company or its affiliates); provided that Executive may disclose to any prospective future
employer the provisions of Sections 9 and 10 of this Agreement provided they agree to maintain the
confidentiality of such terms.
(iv) Upon termination of Executive’s employment with the Company for any reason, Executive
shall (x) cease and not thereafter commence use of any Confidential Information or intellectual
property (including without limitation, any patent, invention, copyright, trade secret, trademark,
trade name, logo, domain name or other source indicator) owned or used by the Company, its
subsidiaries or affiliates; (y) immediately destroy, delete, or return to the Company, at the
Company’s option, all originals and copies in any form or medium (including memoranda, books,
papers, plans, computer files, letters and other data) in Executive’s possession or control
(including any of the foregoing stored or located in
Executive’s office, home, laptop or other computer, whether or not Company property) that
contain Confidential Information or otherwise relate to the business of the Company, its affiliates
and subsidiaries, except that Executive may retain only those portions of any personal notes,
notebooks and diaries that do not contain any Confidential Information; and (z) notify and fully
cooperate with the Company regarding the delivery or destruction of any other Confidential
Information of which Executive is or becomes aware.
(b) Intellectual Property.
(i) If Executive has created, invented, designed, developed, contributed to or improved any
works of authorship, inventions, intellectual property, materials, documents or other work product
(including without limitation, research, reports, software, databases, systems, applications,
presentations, textual works, content, or audiovisual materials) (“Works”), either
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alone or
with third parties, prior to Executive’s employment by the Company, that are relevant to or
implicated by such employment (“Prior Works”), Executive hereby grants the Company a
perpetual, non-exclusive, royalty-free, worldwide, assignable, sublicensable license under all
rights and intellectual property rights (including rights under patent, industrial property,
copyright, trademark, trade secret, unfair competition and related laws) therein for all purposes
in connection with the Company’s current and future business.
(ii) If Executive creates, invents, designs, develops, contributes to or improves any Works,
either alone or with third parties, at any time during Executive’s employment by the Company and
within the scope of such employment and/or with the use of any the Company resources (“Company
Works”), Executive shall promptly and fully disclose same to the Company and hereby irrevocably
assigns, transfers and conveys, to the maximum extent permitted by applicable law, all rights and
intellectual property rights therein (including rights under patent, industrial property,
copyright, trademark, trade secret, unfair competition and related laws) to the Company to the
extent ownership of any such rights does not vest originally in the Company.
(iii) Executive agrees to keep and maintain adequate and current written records (in the form
of notes, sketches, drawings, and any other form or media requested by the Company) of all Company
Works. The records will be available to and remain the sole property and intellectual property of
the Company at all times.
(iv) Executive shall take all requested actions and execute all requested documents (including
any licenses or assignments required by a government contract) at the Company’s expense (but
without further remuneration) to assist the Company in validating, maintaining, protecting,
enforcing, perfecting, recording, patenting or registering any of the Company’s rights in the Prior
Works and Company Works. If the Company is unable for any other reason to secure Executive’s
signature on any document for this purpose, then Executive hereby irrevocably designates and
appoints the Company and its duly authorized officers and agents as Executive’s agent and attorney
in fact, to act for and in Executive’s behalf and stead to execute any documents and to do all
other lawfully permitted acts in connection with the foregoing.
(v) Executive shall not improperly use for the benefit of, bring to any premises of, divulge,
disclose, communicate, reveal, transfer or provide access to, or share with the Company any
confidential, proprietary or non-public information or intellectual property relating to a former
employer or other third party without the prior written permission of such third party. Executive
hereby indemnifies, holds harmless and agrees to defend the Company and its officers, directors,
partners, employees, agents and representatives from any breach of the foregoing covenant.
Executive shall comply with all relevant policies and guidelines of the Company, including
regarding the protection of confidential information and intellectual property and potential
conflicts of interest. Executive acknowledges that the Company may amend any such policies and
guidelines from time to time, and that Executive remains at all times bound by their most current
version.
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(vi) The provisions of Section 9 and 10 shall survive the termination of Executive’s
employment for any reason.
11. Specific Performance. Executive acknowledges and agrees that the Company’s remedies at law
for a breach or threatened breach of any of the provisions of Sections 9 or 10 would be inadequate
and the Company would suffer irreparable damages as a result of such breach or threatened breach.
In recognition of this fact, Executive agrees that, in the event of such a breach or threatened
breach, in addition to any remedies at law, the Company, without posting any bond, shall be
entitled to cease making any payments or providing any benefit otherwise required by this Agreement
and obtain equitable relief in the form of specific performance, temporary restraining order,
temporary or permanent injunction or any other equitable remedy which may then be available.
12. Excess Parachute Excise Tax Payments.
(a) If it is determined (as hereafter provided) that any payment or distribution by the
Company to or for the benefit of Executive, whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise pursuant to or by reason of any other
agreement, policy, plan, program or arrangement, including without limitation any stock option,
stock appreciation right or similar right, or the lapse or termination of any restriction on or the
vesting or exercisability of any of the foregoing (a “Payment”), would be subject to the
excise tax imposed by Section 4999 of the Code (or any successor provision thereto) by reason of
being “contingent on a change in ownership or control” of the Company, within the meaning of
Section 280G of the Code (or any successor provision thereto) or to any similar tax imposed by
state or local law, or any interest or penalties with respect to such excise tax (such tax or
taxes, together with any such interest and penalties, are hereafter collectively referred to as the
“Excise Tax”), then Executive shall be entitled to receive an additional payment or
payments (a “Gross-Up Payment”) in an amount such that, after payment by Executive of all
taxes (including any interest or penalties imposed with respect to such taxes), including any
Excise Tax, imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments; provided, however, if
Executive’s Payment is, when calculated on a net-after-tax basis, less than $50,000 in excess of
the amount of the Payment which could be paid to Executive under Section 280G of the Code without
causing the imposition of the Excise Tax, then the Payment shall be limited to the largest amount
payable (as described above) without resulting in the imposition of any Excise Tax (such amount,
the “Capped Amount”).
(b) Subject to the provisions of Section 12(a) hereof, all determinations required to be made
under this Section 12, including whether an Excise Tax is payable by Executive and the amount of
such Excise Tax and whether a Gross-Up Payment is required and the amount of such Gross-Up Payment,
shall be made by the nationally recognized firm of certified public accountants (the
“Accounting Firm”) used by the Company prior to the Change in Control (or, if such
Accounting Firm declines to serve, the Accounting Firm shall be a nationally recognized firm of
certified public accountants selected by Executive). The Accounting Firm shall be directed by the
Company or Executive to submit its preliminary determination and detailed
12
supporting calculations
to both the Company and Executive within 15 calendar days after the Termination Date, if
applicable, and any other such time or times as may be requested by the Company or Executive. If
the Accounting Firm determines that any Excise Tax is payable by Executive and that the criteria
for reducing the Payment to the Capped Amount (as described in Section 12(a) above) is met, then
the Company shall reduce the Payment by the amount which, based on the Accounting Firm’s
determination and calculations, would provide Executive with the Capped Amount, and pay to
Executive such reduced Payment. If the Accounting Firm determines that an Excise Tax is payable,
without reduction pursuant to Section 12(a), above, the Company shall pay the required Gross-Up
Payment to, or for the benefit of, Executive within five business days after receipt of such
determination and calculations. If the Accounting Firm determines that no Excise Tax is payable by
Executive, it shall, at the same time as it makes such determination, furnish Executive with an
opinion that he has substantial authority not to report any Excise Tax on his/her federal, state,
local income or other tax return. Any determination by the Accounting Firm as to the amount of the
Gross-Up Payment shall be binding upon the Company and Executive absent a contrary determination by
the Internal Revenue Services or a court of competent jurisdiction; provided,
however, that no such determination shall eliminate or reduce the Company’s obligation to
provide any Gross-Up Payment that shall be due as a result of such contrary determination. As a
result of the uncertainty in the application of Section 4999 of the Code (or any successor
provision thereto) and the possibility of similar uncertainty regarding state or local tax law at
the time of any determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments that will not have been made by the Company should have been made (an
“Underpayment”), consistent with the calculations required to be made hereunder. In the
event that the Company exhausts or fails to pursue its remedies pursuant to Section 12(a) hereof
and Executive thereafter is required to make a payment of any Excise Tax, Executive shall direct
the Accounting Firm to determine the amount of the Underpayment that has occurred and to submit its
determination and detailed supporting calculations to both the Company and Executive as promptly as
possible. Any such Underpayment shall be promptly
paid by the Company to, or for the benefit of, Executive within five business days after
receipt of such determination and calculations.
(c) The Company and Executive shall each provide the Accounting Firm access to and copies of
any books, records and documents in the possession of the Company or Executive, as the case may be,
reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in
connection with the preparation and issuance of the determination contemplated by Section 12(a)
hereof.
(d) The federal, state and local income or other tax returns filed by Executive (or any filing
made by a consolidated tax group which includes the Company) shall be prepared and filed on a
consistent basis with the determination of the Accounting Firm with respect to the Excise Tax
payable by Executive. Executive shall make proper payment of the amount of any Excise Tax, and at
the request of the Company, provide to the Company true and correct copies (with any amendments) of
his/her federal income tax return as filed with the Internal Revenue Service and corresponding
state and local tax returns, if relevant, as filed with the applicable taxing authority, and such
other documents reasonably requested by the Company, evidencing
13
such payment. If prior to the
filing of Executive’s federal income tax return, or corresponding state or local tax return, if
relevant, the Accounting Firm determines that the amount of the Gross-Up Payment should be reduced,
Executive shall within five business days pay to the Company the amount of such reduction.
(e) The fees and expenses of the Accounting Firm for its services in connection with the
determinations and calculations contemplated by Sections 12(b) and (d) hereof shall be borne by the
Company. If such fees and expenses are initially advanced by Executive, the Company shall
reimburse Executive the full amount of such fees and expenses within five business days after
receipt from Executive of a statement therefor and reasonable evidence of his/her payment thereof.
(f) In the event that the Internal Revenue Service claims that any payment or benefit received
under this Agreement constitutes an “excess parachute payment,” within the meaning of Section
280G(b)(1) of the Code, Executive shall notify the Company in writing of such claim. Such
notification shall be given as soon as practicable but no later than 10 business days after
Executive is informed in writing of such claim and shall apprise the Company of the nature of such
claim and the date on which such claim is requested to be paid. Executive shall not pay such claim
prior to the expiration of the 30 day period following the date on which Executive gives such
notice to the Company (or such shorter period ending on the date that any payment of taxes with
respect to such claim is due). If the Company notifies Executive in writing prior to the
expiration of such period that it desires to contest such claim, Executive shall (i) give the
Company any information reasonably requested by the Company relating to such claim; (ii) take such
action in connection with contesting such claim as the Company shall reasonably request in writing
from time to time, including without limitation, accepting legal representation with respect to
such claim by an attorney reasonably selected by the Company and reasonably satisfactory to
Executive; (iii) cooperate with the Company in good faith in order to effectively contest such
claim; and (iv) permit the Company to participate in any proceedings
relating to such claim; provided, however, that the Company shall bear and pay
directly all costs and expenses (including, but not limited to, additional interest and penalties
and related legal, consulting or other similar fees) incurred in connection with such contest and
shall indemnify and hold Executive harmless, on an after-tax basis, for and against any Excise Tax
or other tax (including interest and penalties with respect thereto) imposed as a result of such
representation and payment of costs and expenses.
(g) The Company shall control all proceedings taken in connection with such contest and, at
its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its sole option, either
direct Executive to pay the tax claimed and xxx for a refund or contest the claim in any
permissible manner, and Executive agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as
the Company shall determine; provided, however, that if the Company directs
Executive to pay such claim and xxx for a refund, the Company shall advance the amount of such
payment to Executive on an interest-free basis, and shall indemnify and hold Executive
14
harmless, on
an after-tax basis, from any Excise Tax or other tax (including interest and penalties with respect
thereto) imposed with respect to such advance or with respect to any imputed income with respect to
such advance; and provided, further, that if Executive is required to extend the
statute of limitations to enable the Company to contest such claim, Executive may limit this
extension solely to such contested amount. The Company’s control of the contest shall be limited
to issues with respect to which a corporate deduction would be disallowed pursuant to Section 280G
of the Code and Executive shall be entitled to settle or contest, as the case may be, any other
issue raised by the Internal Revenue Service or any other taxing authority. In addition, no
position may be taken nor any final resolution be agreed to by the Company without Executive’s
consent if such position or resolution could reasonably be expected to adversely affect Executive
(including any other tax position of Executive unrelated to matters covered hereby).
(h) If, after the receipt by Executive of an amount advanced by the Company in connection with
the contest of the Excise Tax claim, Executive becomes entitled to receive any refund with respect
to such claim, Executive shall promptly pay to the Company the amount of such refund (together with
any interest paid or credited thereon after taxes applicable thereto); provided,
however, if the amount of that refund exceeds the amount advanced by the Company or it is
otherwise determined for any reason that additional amounts could be paid to the Named Executive
without incurring any Excise Tax, any such amount will be promptly paid by the Company to the named
Executive. If, after the receipt by Executive of an amount advanced by the Company in connection
with an Excise Tax claim, a determination is made that Executive shall not be entitled to any
refund with respect to such claim and the Company does not notify Executive in writing of its
intent to contest the denial of such refund prior to the expiration of 30 days after such
determination, such advance shall be forgiven and shall not be required to be repaid and shall be
deemed to be in consideration for services rendered after the date of the Termination.
13. Miscellaneous.
(a) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York, without regard to conflicts of laws principles thereof.
(b) Entire Agreement/Amendments. Except as expressly set forth in this Agreement or
in any definitive documentation regarding Executive’s equity granted or purchased pursuant to the
TDS Investor (Cayman) L.P. 2006 Interest Plan, as amended and/or restated from time to time (“the
Equity Plan”), this Agreement contains the entire understanding of the parties with respect to the
employment of Executive by the Company. There are no restrictions, agreements, promises,
warranties, covenants or undertakings between the parties with respect to the subject matter herein
other than those expressly set forth herein. This Agreement may not be altered, modified, or
amended except by written instrument signed by the parties hereto.
(c) No Waiver. The failure of a party to insist upon strict adherence to any term of
this Agreement on any occasion shall not be considered a waiver of such party’s rights or
15
deprive
such party of the right thereafter to insist upon strict adherence to that term or any other term
of this Agreement.
(d) 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 of this Agreement shall not be affected
thereby.
(e) Assignment. This Agreement, and all of Executive’s rights and duties hereunder,
shall not be assignable or delegable by Executive. Any purported assignment or delegation by
Executive in violation of the foregoing shall be null and void ab initio and of no force and
effect. This Agreement may be assigned by the Company to a person or entity which is an affiliate
or a successor in interest to substantially all of the business operations of the Company. Upon
such assignment, the rights and obligations of the Company hereunder shall become the rights and
obligations of such affiliate or successor person or entity.
(f) Set Off; No Mitigation. The Company’s obligation to pay Executive the amounts
provided and to make the arrangements provided hereunder shall be subject to set-off, counterclaim
or recoupment of amounts owed by Executive to the Company or its affiliates. Executive shall not
be required to mitigate the amount of any payment provided for pursuant to this Agreement by
seeking other employment, taking into account the provisions of Section 10 of this Agreement.
(g) Compliance with IRC Section 409A. Notwithstanding anything herein to the
contrary, (i) if at the time of Executive’s termination of employment with the Company Executive is
a “specified employee” as defined in Section 409A of the Internal Revenue Code of
1986, as amended (the “Code”) and the deferral of the commencement of any payments or benefits
otherwise payable hereunder as a result of such termination of employment is necessary in order to
prevent any accelerated or additional tax under Section 409A of the Code, then the Company will
defer the commencement of the payment of any such payments or benefits hereunder (without any
reduction in such payments or benefits ultimately paid or provided to Executive) until the date
that is six months following Executive’s termination of employment with the Company (or the
earliest date as is permitted under Section 409A of the Code) and (ii) if any other payments of
money or other benefits due to Executive hereunder could cause the application of an accelerated or
additional tax under Section 409A of the Code, such payments or other benefits shall be deferred if
deferral will make such payment or other benefits compliant under Section 409A of the Code, or
otherwise such payment or other benefits shall be restructured, to the extent possible, in a
manner, determined by the Board, that does not cause such an accelerated or additional tax. The
Company shall consult with Executive in good faith regarding the implementation of the provisions
of this Section 13(g); provided that neither the Company nor any of its employees or
representatives shall have any liability to Executive with respect to thereto.
16
(h) Successors; Binding Agreement. This Agreement shall inure to the benefit of and
be binding upon personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees.
(i) Notice. For the purpose of this Agreement, notices and all other communications
provided for in the Agreement shall be in writing and shall be deemed to have been duly given when
delivered by hand or overnight courier or three days after it has been mailed by United States
registered mail, return receipt requested, postage prepaid, addressed to the respective addresses
set forth below in this Agreement, or to such other address as either party may have furnished to
the other in writing in accordance herewith, except that notice of change of address shall be
effective only upon receipt.
If to the Company, addressed to:
Travelport Limited
000 Xxxxxxxx Xxxxxxx
Xxxxxxx, XX 00000
Attention: Xxxx Xxxx, General Counsel
Fax: (000) 000-0000
000 Xxxxxxxx Xxxxxxx
Xxxxxxx, XX 00000
Attention: Xxxx Xxxx, General Counsel
Fax: (000) 000-0000
If to Executive, to the address set forth on the signature page of this Agreement or at the current
address listed in the Company’s records.
(j) Executive Representation. Executive hereby represents to the Company that the
execution and delivery of this Agreement by Executive and the Company and the performance by
Executive of Executive’s duties hereunder shall not constitute a breach of, or otherwise
contravene, the terms of any employment agreement or other agreement or policy to which Executive
is a party or otherwise bound.
(k) Prior Agreements. Upon the commencement of the Employment Term, this Agreement
supersedes all prior agreements and understandings (including verbal agreements) between Executive
and the Company and/or its affiliates regarding the terms and conditions of Executive’s employment
with the Company and/or its affiliates including, without limitation, the Prior Agreement;
provided, however that this Agreement does not supersede any prior written agreements with
Executive regarding his housing allowance and related benefits, which shall continue only until the
end of his current lease. The Prior Agreements are hereby terminated upon the commencement of the
Employment Term covered by this Agreement.
(l) Cooperation. Executive shall provide Executive’s reasonable cooperation in
connection with any action or proceeding (or any appeal from any action or proceeding) which
relates to events occurring during Executive’s employment hereunder. The Company will reimburse
Executive for any and all reasonable expenses reasonably incurred in connection with Executive’s
compliance with this Section 13(l). This provision shall survive any termination of this
Agreement.
17
(m) Release. Executive hereby acknowledges that no event or circumstance has occurred
on or prior to the date hereof that would constitute a Constructive Termination within the meaning
of the Prior Agreement or this Agreement and, by executing this Agreement, Executive hereby
releases the Company and its affiliates from any and all claims under or in connection with the
Prior Agreement or this Agreement arising from facts and circumstances occurring prior to
Executive’s execution of this Agreement.
(n) Withholding Taxes. The Company may withhold from any amounts payable under this
Agreement such Federal, state and local taxes as may be required to be withheld pursuant to any
applicable law or regulation.
(o) Counterparts. This Agreement may be signed in counterparts, each of which shall
be an original, with the same effect as if the signatures thereto and hereto were upon the same
instrument.
(p) Arbitration. Except as otherwise provided in Section 11 of this Agreement, any
controversy, dispute, or claim arising out of, in connection with, or in relation to, the
interpretation, performance or breach of this Agreement, including, without limitation, the
validity, scope, and enforceability of this section, may at the election of any party, be solely
and finally settled by arbitration conducted in New York, New York, by and in accordance with the
then existing rules for commercial arbitration of the American Arbitration Association, or any
successor organization and with the Expedited Procedures thereof (collectively, the
“Rules”). Each of the parties hereto agrees that such arbitration shall be conducted by a
single arbitrator selected in accordance with the Rules; provided that such arbitrator
shall be experienced in deciding cases concerning the matter which is the subject of the dispute.
Any of the parties may demand arbitration by written notice to the other and to the Arbitrator set
forth in this Section 1(o) (“Demand for Arbitration”). Each of the parties agrees that if
possible, the award shall be made in writing no more than 30 days following the end of the
proceeding. Any award rendered by the arbitrator(s) shall be final and binding and judgment may be
entered on it in any court of
competent jurisdiction. Each of the parties hereto agrees to treat as confidential the
results of any arbitration (including, without limitation, any findings of fact and/or law made by
the arbitrator) and not to disclose such results to any unauthorized person. The parties intend
that this agreement to arbitrate be valid, enforceable and irrevocable. In the event of any
arbitration with regard to this Agreement, each party shall pay its own legal fees and expenses,
provided, however, that the parties agree to share the cost of the Arbitrator’s
fees.
(q) Public Corporation. Executive represents that, as of the date of the filing of
the particular financial statement or other public filing referred to below, he had no knowledge of
any accounting irregularity with respect to, or any material misstatement or omission contained in,
any financial statement or other public filing made by any publicly-traded corporation on whose
board of directors Executive served as of such date (each such corporation being referred to as a
“Public Corporation”).
18
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and
year first above written.
TRAVELPORT LIMITED |
||||
By: | /s/ Xxxx X. Xxxx | |||
Name: | Xxxx X. Xxxx | |||
Title: | EVP & General Counsel | |||
EXECUTIVE |
||||
/s/ Xxxx Xxxxxx | ||||
Xxxx Xxxxxx | ||||
19
Exhibit A — Form of General Release
AGREEMENT AND GENERAL RELEASE
Travelport Limited (“Travelport”) and Travelport Operations, Inc. (collectively, the “Company”) and
[NAME OF EXECUTIVE] (hereinafter collectively with his heirs, executors, administrators, successors
and assigns, “EXECUTIVE”), mutually desire to enter into this Agreement and General Release
(“Agreement” or “Agreement and General Release”) and agree that:
The terms of this Agreement are the products of mutual negotiation and compromise between
EXECUTIVE and the Company; and
The meaning, effect and terms of this Agreement have been fully explained to EXECUTIVE; and
EXECUTIVE is hereby advised, in writing, by the Company that he should consult with an
attorney prior to executing this Agreement; and
EXECUTIVE is being afforded twenty-one (21) days from the date of this Agreement to consider
the meaning and effect of this Agreement; and
EXECUTIVE understands that he may revoke the general release contained in paragraph 4 of this
Agreement (“the General Release”) for a period of seven (7) calendar days following the day he
executes this Agreement and the General Release shall not become effective or enforceable until the
revocation period has expired, and no revocation has occurred. Any revocation within this
period must be submitted, in writing, to [NAME OF CONTACT] in the Company’s [NAME] Department and
state, “I hereby revoke my acceptance of the General Release.” Said revocation must be personally
delivered to [NAME OF CONTACT] in the Company’s [NAME] Department, or mailed to [NAME OF CONTACT]
in the Company’s [NAME] Department and postmarked within seven (7) calendar days of execution of
this Agreement. In the event of a revocation of the General Release, the remainder of this
Agreement shall remain in full force and effect; and
EXECUTIVE has carefully considered other alternatives to executing this Agreement and General
Release.
THEREFORE, EXECUTIVE and the Company, for the full and sufficient consideration set forth
below, agree as follows:
[EXECUTIVE] Agreement and General Release
[DATE]
Page 2 of 11
[DATE]
Page 2 of 11
1. EXECUTIVE’s employment shall be terminated effective on the Last Day of Employment.
Following his Last Day of Employment, other than as set forth below or in the attached Personal
Statement of Termination Benefits, EXECUTIVE shall not be eligible for any other payments from the
Company.
2. In full satisfaction of the Company’s obligations under Section 8(c)(iii) of the Employment
Agreement, the Company agrees to provide EXECUTIVE with the benefits set forth in the attached
Personal Statement of Termination Benefits under the captions “Accrued Rights”, “Pro Rata Portion
of [YEAR] BONUS”, “Severance Benefits”, and “Equity”. The Severance Benefits are subject to
EXECUTIVE’s continued compliance with the provisions of Section 9 and 10 of the Employment
Agreement. EXECUTIVE understands and agrees that he would not receive the Severance Benefits or
the Equity Acceleration, except for his execution of this Agreement and the fulfillment of the
promises contained herein, and that such consideration is greater than any amount to which he would
otherwise be entitled as an employee of the Company.
3. The Company will also provide EXECUTIVE with a neutral reference to any entity other than
the Released Parties. Upon inquiry to the Human Resources department, prospective employers (other
than the Released Parties) will be advised only as to the dates of EXECUTIVE’s employment and his
most recent job title. Last salary will be provided if EXECUTIVE has provided a written release
for the same.
4. Except as otherwise expressly provided by this Agreement or the right to enforce the terms
of this Agreement, EXECUTIVE, of his own free will knowingly and voluntarily releases and forever
discharges the Company, their current and former parents, and their shareholders, affiliates
(including without limitation Orbitz Worldwide, Inc. and its subsidiaries), subsidiaries,
divisions, predecessors, successors and assigns and the employees, officers, directors, advisors
and agents thereof (collectively referred to throughout this Agreement as the “Released Parties”,
or a “Released Party”) from any and all actions or causes of action, suits, claims, charges,
complaints, promises demands and contracts (whether oral or written, express or implied from any
source), or any nature whatsoever, known or unknown, suspected or unsuspected, which against the
Released Parties EXECUTIVE or EXECUTIVE’s heirs, executors, administrators, successors or assigns
ever had, now have or hereafter can shall or may have by reason of any matter, cause or thing
whatsoever arising any time prior to the time EXECUTIVE executes this Agreement, including, but not
limited to:
a. | any and all matters arising out of EXECUTIVE’s employment by the Company or any of the Released Parties and the termination of that |
[EXECUTIVE] Agreement and General Release
[DATE]
Page 3 of 11
[DATE]
Page 3 of 11
employment, and that includes but is not limited to any claims for salary, allegedly unpaid wages, bonuses, commissions, retention pay, severance pay, vacation pay, or any alleged violation of the National Labor Relations Act, any claims for discrimination of any kind under the Age Discrimination in Employment Act of 1967 as amended by the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, Sections 1981 through 1988 of Title 42 of the United States Code, any claims under the Employee Retirement Income Security Act of 1974 (except for benefits that are or become vested on or prior to the Last Day of Employment, which are not affected by this Agreement, including without limitation any benefits under the 401(k) Plan and the Deferred Compensation Plan, as each of such terms is defined in the attached Personal Statement of Termination Benefits, which the Company acknowledges are fully vested and which shall be paid in accordance with their respective terms and EXECUTIVE’s applicable payment elections), the Americans With Disabilities Act of 1990, the Fair Labor Standards Act (to the extent such claims can be released), the Occupational Safety and Health Act, the Consolidated Omnibus Budget Reconciliation Act of 1985, the Federal Family and Medical Leave Act (to the extent such claims can be released); and | |||
b. | [APPLICABLE STATE(S) PROVISIONS] | ||
c. | any other federal, state or local civil or human rights law, or any other alleged violation of any local, state or federal law, regulation or ordinance, and/or public policy, implied or expressed contract, fraud, negligence, estoppel, defamation, infliction of emotional distress or other tort or common-law claim having any bearing whatsoever on the terms and conditions and/or termination of his employment with the Company including, but not limited to, any statutes or claims providing for the award of costs, fees, or other expenses, including reasonable attorneys’ fees, incurred in these matters. |
Notwithstanding the foregoing release of claims in this paragraph of this Agreement:
• | Nothing in the release of claims in this paragraph shall impact EXECUTIVE’s equity granted or purchased pursuant to the TDS Investor (Cayman) L.P. 2006 Interest Plan, as amended and/or restated from time to time. | ||
• | EXECUTIVE has a right to indemnification and advancement from and by the Company, to the extent in existence as of the date hereof pursuant to the Company’s by- |
[EXECUTIVE] Agreement and General Release
[DATE]
Page 4 of 11
[DATE]
Page 4 of 11
laws, and such right to indemnification and advancement shall survive the termination of his employment in accordance with such by-laws and applicable law. | |||
• | The Company represents that it had Directors & Officers (“D&O”) insurance coverage, including “tail coverage”, during EXECUTIVE’s employment with the Company, and while he served as an officer for TDS Investor (Cayman) L.P and its subsidiaries, EXECUTIVE was covered under such D&O coverage for the period he served as an officer. EXECUTIVE shall continue to be entitled to the benefits of such coverage with respect to his services performed through the Last Day of Employment, subject to the applicable terms of the applicable policies. |
5. EXECUTIVE also acknowledges that he does not have any current charge, claim or lawsuit
against one or more of the Released Parties pending before any local, state or federal agency or
court regarding his employment and his separation from employment. EXECUTIVE understands that
nothing in this Agreement prevents him from filing a charge or complaint with or from participating
in an investigation or proceeding conducted by the Equal Employment Opportunity Commission (“EEOC”)
or any other federal, state or local agency charged with the enforcement of any employment or labor
laws, although by signing this Agreement EXECUTIVE is giving up any right to monetary recovery that
is based on any of the claims he has released. EXECUTIVE also understands that if he files such a
charge or complaint, he has, as part of this Agreement, waived the right to receive any
remuneration beyond what EXECUTIVE has received in this Agreement.
6. EXECUTIVE shall not seek or be entitled to any personal recovery, in any action or
proceeding that may be commenced on EXECUTIVE’s behalf in any way arising out of or relating to the
matters released under this Agreement.
7. EXECUTIVE represents that he has not and agrees that he will not in any way disparage the
Company or any Released Party, their current and former officers, directors and employees, or make
or solicit any comments, statements, or the like to the media or to others that may be considered
to be derogatory or detrimental to the good name or business reputation of any of the
aforementioned parties or entities. Following the full execution of and the effective date of this
Agreement, the Company will direct the then-current members of the Travelport Senior Leadership
Team (“the SLT”) not to disparage EXECUTIVE; provided, however, that the Company’s obligation under
this paragraph shall not be ongoing and will be fulfilled once the Company directs the SLT not to
disparage EXECUTIVE.
8. EXECUTIVE understands that if this Agreement were not signed, he would have the right to
voluntarily assist other individuals or entities in bringing claims against Released Parties.
EXECUTIVE hereby waives that right and agrees that he will not provide any such
[EXECUTIVE] Agreement and General Release
[DATE]
Page 5 of 11
[DATE]
Page 5 of 11
assistance other than assistance in an investigation or proceeding conducted by the United States
Equal Employment Opportunity Commission or other federal, state or local agency, or pursuant to a
valid subpoena or court order. EXECUTIVE agrees that if such a request for assistance if by any
agency of the federal, state or local government, or pursuant to a valid subpoena or court order,
he shall advise the Company in writing of such a request no later than three (3) days after receipt
of such request.
9. EXECUTIVE acknowledges and confirms that he has returned all Company property to the
Company, including his identification card, and computer hardware and software, all paper or
computer based files, business documents, and/or other records as well as all copies thereof,
credit cards, keys and any other Company supplies or equipment in his possession. Finally, any
amounts owed to the Company have been paid.
10. This Agreement is made in the State of [NAME OF STATE] and shall be interpreted under the
laws of said State. Its language shall be construed as a whole, according to its fair meaning, and
not strictly for or against either party. Should any provision of this Agreement be declared
illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be
enforceable, including the General Release (as defined herein), such provision shall immediately
become null and void, leaving the remainder of this Agreement in full force and effect. However,
if as a result of any action initiated by EXECUTIVE, any portion of the General Release (as defined
herein) were ruled to be unenforceable for any reason, EXECUTIVE shall return consideration equal
to the Severance Benefits and Equity Acceleration provided to EXECUTIVE under this Agreement.
11. EXECUTIVE agrees that neither this Agreement nor the furnishing of the consideration for
this Agreement shall be deemed or construed at any time for any purpose as an admission by the
Company of any liability or unlawful conduct of any kind, all of which the Company denies.
12. This Agreement may not be modified, altered or changed except upon express written consent
of both parties wherein specific reference is made to this Agreement.
13. This Agreement sets forth the entire agreement between the parties hereto, and fully
supersedes any prior agreements or understandings between the parties other than the Employment
Agreement and the Management Equity Award Agreements (including without limitation the
post-employment restrictive covenants contained in the Employment Agreement and the Management
Equity Award Agreements), which agreements shall continue to apply in
[EXECUTIVE] Agreement and General Release
[DATE]
Page 6 of 11
[DATE]
Page 6 of 11
accordance with their respective terms, except to the extent otherwise specifically provided
herein.
14. EXECUTIVE agrees to cooperate with and, consistent with his other employment obligations,
to make himself reasonably available to Travelport Limited and its General Counsel, the Company may
reasonably request, to assist it in any matter regarding Travelport or its affiliates,
subsidiaries, and predecessors, including giving truthful testimony in any potential or filed
litigation, arbitration, mediation or similar proceeding litigation involving Travelport and its
affiliates, subsidiaries, and their predecessors, over which EXECUTIVE has knowledge or
information. The Company will reimburse EXECUTIVE for any and all reasonable expenses reasonably
incurred in connection with EXECUTIVE’s compliance with this paragraph.
15. In consideration for the Severance Benefits and Equity Acceleration being provided to
EXECUTIVE pursuant to this Agreement, EXECUTIVE warrants and affirms to Travelport that he has at
all times conducted herself as a fiduciary of, and with sole regard to that which is in best
interests of, Travelport and its affiliates and their predecessors. He affirms that in conducting
business for Travelport and its affiliates and their predecessors, he has done so free from the
influence of any conflicting personal or professional interests, without favor for or regard of
personal considerations, and that he has not in any material respect violated the Travelport Code
of Business Conduct & Ethics (“Travelport Code”). Toward that end, EXECUTIVE understands that this
affirmation is a material provision of this Agreement, and, should the Company determine that
EXECUTIVE has engaged in business practices inconsistent with the affirmation set forth herein then
EXECUTIVE agrees that he shall have committed a material breach of this Agreement, and the
Severance Benefits provided to EXECUTIVE under this Agreement shall not have been earned. In that
case, EXECUTIVE shall be liable for the return of consideration equal to such payments and
benefits.
THE PARTIES HAVE READ AND FULLY CONSIDERED THIS AGREEMENT AND GENERAL RELEASE AND ARE MUTUALLY
DESIROUS OF ENTERING INTO SUCH AGREEMENT AND GENERAL RELEASE. EXECUTIVE UNDERSTANDS THAT THIS
DOCUMENT SETTLES, BARS AND WAIVES ANY AND ALL CLAIMS HE HAD OR MIGHT HAVE AGAINST THE COMPANY; AND
HE ACKNOWLEDGES THAT HE IS NOT RELYING ON ANY OTHER REPRESENTATIONS, WRITTEN OR ORAL, NOT SET FORTH
IN THIS DOCUMENT. HAVING ELECTED TO EXECUTE THIS AGREEMENT AND GENERAL RELEASE, TO FULFILL THE
PROMISES SET FORTH HEREIN, AND TO RECEIVE THEREBY THE SUMS AND BENEFITS SET FORTH IN PARAGRAPH 2
ABOVE, EXECUTIVE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT AND
GENERAL RELEASE. IF
[EXECUTIVE] Agreement and General Release
[DATE]
Page 7 of 11
[DATE]
Page 7 of 11
THIS DOCUMENT IS RETURNED EARLIER THAN 21 DAYS FROM THE LAST DATE OF EMPLOYMENT, THEN EXECUTIVE
ADDITIONALLY ACKNOWLEDGES AND WARRANTS THAT HE HAS VOLUNTARILY AND KNOWINGLY WAIVED THE 21 DAY
REVIEW PERIOD, AND THIS DECISION TO ACCEPT A SHORTENED PERIOD OF TIME IS NOT INDUCED BY THE COMPANY
THROUGH FRAUD,MISREPRESENTATION, A THREAT TO WITHDRAW OR ALTER THE OFFER PRIOR TO THE EXPIRATION OF
THE 21 DAYS, OR BY PROVIDING DIFFERENT TERMS TO EMPLOYEES WHO SIGN RELEASES PRIOR TO THE EXPIRATION
OF SUCH TIME PERIOD.
[EXECUTIVE] Agreement and General Release
[DATE]
Page 8 of 11
[DATE]
Page 8 of 11
THEREFORE, the parties to this Agreement and General Release now voluntarily and knowingly
execute this Agreement.
EXECUTIVE | ||
Signed and sworn before me
this __ day of ____, _____ |
||
TRAVELPORT LIMITED | ||
By: | ||
Name: | ||
Title: | ||
Signed and sworn to before me
this __ day of _____, ___ |
||
TRAVELPORT OPERATIONS, INC. | ||
By: | ||
Name: | ||
Title: | ||
Signed and sworn to before me
this __ day of ____, __ |
||
[EXECUTIVE] Agreement and General Release
[DATE]
Page 9 of 11
[DATE]
Page 9 of 11
PERSONAL STATEMENT OF TERMINATION BENEFITS
Date: MONTH DAY, YEAR
Date: MONTH DAY, YEAR
EXECUTIVE NAME:
|
NAME | |
(“you” or “EXECUTIVE”) | ||
LAST DAY OF EMPLOYMENT:
|
MONTH DAY, YEAR |
ACCRUED RIGHTS:
As set forth as Section 8(c)(iii)(A) and Section 8(a)(iii)(A)-(D) of the Employment Agreement and
subject to the conditions thereof, you will receive the following basic benefits following the
termination of your employment:
• | Base Salary through your Last Day of Employment; | ||
• | Any Annual Bonus earned, but unpaid, as of the date of termination for the immediately preceding fiscal year, paid in accordance with Section 4 of the Employment Agreement (except to the extent payment is otherwise deferred pursuant to any applicable deferred compensation arrangement with the Company); | ||
• | Reimbursement of unreimbursed business expenses pursuant to Travelport policy; and | ||
• | Employee Benefits pursuant to employee benefit plans of the Company through the Last Day of Employment. |
PRO RATA PORTION OF [YEAR/PORTION OF YEAR] BONUS:
Pursuant to Section 8(c)(iii)(B) of the Employment Agreement, you will receive the following
benefit following the termination of your employment:
A pro rata portion of any Annual Bonus, if any, that you would have been entitled to receive pursuant to Section 4 of the Employment Agreement in such year based upon the percentage of the fiscal year that shall have lapsed through the Last Day of Employment (and for which you have not already received an Annual Bonus), payable when the [YEAR/PORTION OF YEAR] bonus would have otherwise been payable to you pursuant to Section 4 of the Employment Agreement had your employment not been terminated. |
[EXECUTIVE] Agreement and General Release
[DATE]
Page 10 of 11
[DATE]
Page 10 of 11
SEVERANCE BENEFITS (“Severance Benefits”):
Pursuant to and subject to Section 8(c)(iii)(C) of the Employment Agreement, you will receive the
following payments and benefits following the termination of your employment:
HEALTH AND WELFARE BENEFITS:
Continued participation for thirty-six (36) months at active employee rates. This period shall run concurrently with COBRA. To the extent that these benefits are taxable to you under Section 105(h) of the Internal Revenue Code, the Company will provide a gross-up to you to cover any taxes due from you on such benefits. |
LAPTOP COMPUTER:
At your option, the sale to you, on or about the time of your Last Day of Employment, of the ownership interest in the [MAKE AND MODEL NUMBER] laptop computer that the Company has assigned to you, Serial Number [XXXXXXX], as of the date of this Agreement, (“the Laptop”), for fair market value pursuant to the Company’s policy. You shall provide the Company with reasonable advance written notice prior to your Last Day of Employment as to whether you wish to purchase the Laptop. The ownership interest in the Laptop shall be transferred only after the Company has removed all confidential and proprietary information from the computer and taken any other measures it deems necessary to protect its interests. |
Unless otherwise defined herein, all capitalized terms set forth above shall have the meaning set
forth in the Employment Agreement. In the event of Executive’s death or disability after the Last
Day of Employment, Executive’s estate and beneficiaries, as applicable, shall receive the pay and
benefits (or remaining portion thereof) the set forth in this Personal Statement of Termination
Benefits, subject to Executive’s (or his estate’s) execution, delivery, and non-revocation of the
General Release within the applicable time period.
POST-EMPLOYMENT RESTRICTIVE COVENANTS (as set forth in Employment Agreement and Management Equity Award Agreements):
Non-competition:
|
Two (2) years from Last Day of Employment | |
Non-solicitation of clients and employees:
|
Two (2) years from Last Day of Employment | |
Confidential Information:
|
No time limit | |
Intellectual Property:
|
No time limit |
[EXECUTIVE] Agreement and General Release
[DATE]
Page 11 of 11
[DATE]
Page 11 of 11
For the avoidance of doubt, the term “affiliates” in the post-employment restrictive covenants in
the Employment Agreement and your Management Equity Award Agreements only include entities owned by
The Blackstone Group to the extent such entities are engaged in the same businesses of Travelport
Limited and its subsidiaries as of the Last Day of Employment.
EQUITY (“Equity Acceleration”):
You will remain the owner of certain Class A-2 Interests, subject to the terms of the applicable
Management Equity Award Agreements (including any amendments thereto), the TDS Investor (Cayman)
L.P. Agreement of Limited Partnership (as amended and/or restated from time to time), the TDS
Investor (Cayman) Interest Plan (as amended and/or restated from time to time), and any other
definitive documentation entered into by you and TDS Investor (Cayman) L.P. regarding your
Travelport equity.
TAX ISSUES:
As set forth in Section 13(g) of the Employment Agreement, this Personal Statement of Termination
Benefits is intended to comply with the requirements of Section 409A of the Internal Revenue Code
(“Section 409A”) and regulations promulgated thereunder. To the extent that any provision
in this agreement is ambiguous as to its compliance with Section 409A, the provision shall be read
in such a manner so that all payments under this Agreement shall not be subject to an excise tax
under Section 409A. Notwithstanding anything contained in the agreement to the contrary, if
necessary to comply with the restriction in Section 409A(a)(2)(B) of the Code concerning payments
to “specified employees”, any payment on account of your separation from service that would
otherwise be due hereunder within six months after such separation shall nonetheless be delayed
until no later than the first full pay period following the first business day of the seventh month
following your separation from service. In addition, notwithstanding anything contained herein to
the contrary, you shall not be considered to have terminated employment with the Company for
purposes of causing any amount due under this agreement to be made unless you would be considered
to have incurred a “termination of employment” from the Company and its affiliates within the
meaning of Treasury Regulation §1.409A-1(h)(1)(ii). All amounts provided above will be subject to
applicable taxes, deductions and withholding.