EXHIBIT 10.32
EMPLOYMENT AND NONCOMPETITION AGREEMENT
This AGREEMENT (the "Agreement") is made as of December 18, 1998 (the
"Effective Date"), by and between Xxxxxx-American Company, Inc., a North
Carolina corporation (the "Employer"), and Xxxxxxx X. Xxxxxxxx (the
"Executive"). In consideration of the mutual covenants contained in this
Agreement, the Employer and the Executive agree as follows:
1. Employment. The Employer agrees to employ the Executive and the
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Executive agrees to be employed by the Employer on the terms and conditions set
forth in this Agreement.
2. Capacity. The Executive shall initially serve the Employer as
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President, subject to election by the Board of Directors of the Employer (the
"Board of Directors"). The Executive shall also serve the Employer in such
other or additional offices as the Executive may be requested to serve by the
Board of Directors or the Chief Executive Officer. In such capacity or
capacities, the Executive shall perform such services and duties in connection
with the business, affairs and operations of the Employer as may be assigned or
delegated to the Executive from time to time by or under the authority of the
Board of Directors or the Chief Executive Officer.
3. Term. Subject to the provisions of Section 6, the term of employment
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pursuant to this Agreement shall be three (3) years from the Effective Date (the
"Initial Term") and shall continue from month to month thereafter (the "Extended
Term"), subject to either party's thirty (30) day advance notice of non-renewal
(a "Non-renewal Notice").
4. Compensation and Benefits. The regular compensation and benefits
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payable to the Executive under this Agreement shall be as follows:
(a) Salary. For all services rendered by the Executive under this
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Agreement, the Employer shall pay the Executive a salary (the "Salary") at
the annual rate of THREE HUNDRED THOUSAND DOLLARS ($300,000), subject to
increase from time to time in the discretion of the Board of Directors or
the Compensation Committee of the Board of Directors (the "Compensation
Committee"). The Salary shall be payable in periodic installments in
accordance with the Employer's usual practice for its senior executives.
(b) Bonus. Beginning with the fiscal year ending December 31, 1998,
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the Executive shall be entitled to participate in an annual incentive
program established by the Board of Directors or the Compensation Committee
with such terms as may be established in the sole discretion of the Board
of Directors or Compensation Committee.
(c) Regular Benefits. From and after the commencement of the Initial
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Term, the Executive shall continue to participate in such employee benefit
plans of Xxxxxx-American Company, Inc. in which the Executive participated
prior to the acquisition of Xxxxxx-American Company, Inc. and which may
have been adopted or assumed by the Employer in its sole discretion (the
"Predecessor Plans"). The Executive may continue to participate in each
such Predecessor Plan, in accordance with and subject to each such
Predecessor Plan's terms and conditions, as may be modified or amended from
time to time by the Employer, until such time as the Employer terminates
any such Predecessor Plan. Thereafter, the Executive shall be entitled to
participate in any employee benefit plans, including, without limitation,
medical insurance plans, life insurance plans, disability income plans,
retirement plans, and other benefit plans, which the Employer may from time
to time have in effect for all or most of its senior executives. During
the Initial Term, the Employer shall provide the Executive with medical
insurance coverage that is substantially equivalent to the medical
insurance coverage applicable to the Executive immediately prior to the
acquisition of Xxxxxx-American Company, Inc. The Executive's participation
in any employee benefit plan shall at all times be subject to the terms of
the applicable plan documents, generally applicable policies of the
Employer, applicable law and the discretion of the Board of Directors, the
Compensation Committee or any administrative or other committee provided
for in or contemplated by any such plan. Nothing contained in this
Agreement shall be construed to create any obligation on the part of the
Employer to establish any such plan or to maintain the effectiveness of any
such plan which may be in effect from time to time.
(d) Other Benefits and Perquisites.
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(i) Expenses. The Employer shall reimburse the Executive for
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expenses reasonably incurred by the Executive in furtherance of
his duties for the Employer hereunder. The Employer's obligation
to reimburse the Executive for such expenses shall be subject to
the Employer's expense reimbursement policies, as established,
modified or amended by the Employer from time to time, and the
submission by the Executive of documentation in a form acceptable
to the Employer.
(ii) Automobile. During the Initial Term, the Executive shall be
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entitled to use an automobile supplied by the Employer and to
receive reimbursement from the Employer for business-related
automobile expenses to the extent that and subject to
substantially equivalent terms and conditions on which Xxxxxx-
American Company, Inc. provided such benefits to the Executive
immediately prior to the acquisition of Xxxxxx-American Company,
Inc.
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(iii) Vacation. The Executive shall be entitled to accrue on a
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pro rata basis up to four (4) weeks of paid vacation per year.
The Executive's entitlement to carry-over unused vacation from
year to year shall be subject to vacation policies established,
and as modified or amended, from time to time by the Employer;
provided, that nothing contained herein shall be construed to
require the Employer to permit the carry-over of unused vacation.
(e) Taxation of Payments and Benefits. The Employer shall undertake
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to make deductions, withholdings and tax reports with respect to payments
and benefits under this Agreement to the extent that it reasonably and in
good faith believes that it is required to make such deductions,
withholdings and tax reports. Payments under this Agreement shall be in
amounts net of any such deductions or withholdings. Nothing in this
Agreement shall be construed to require the Employer to make any payments
to compensate the Executive for any adverse tax effect associated with any
payments or benefits or for any deduction or withholding from any payment
or benefit.
(f) Exclusivity of Salary and Benefits. The Executive shall not be
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entitled to any payments or benefits other than those provided under this
Agreement.
5. Extent of Service. During the Executive's employment under this
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Agreement, the Executive shall, subject to the direction and supervision of the
Board of Directors or the Chief Executive Officer, devote the Executive's full
business time, best efforts and business judgment, skill and knowledge to the
advancement of the Employer's interests and to the discharge of the Executive's
duties and responsibilities under this Agreement. The Executive shall not
engage in any other business activity, except as may be approved by the Board of
Directors; provided that nothing in this Agreement shall be construed as
preventing the Executive from:
(a) investing the Executive's assets in any company or other entity in
a manner not prohibited by Section 7(d) and in such form or manner as shall
not require any material activities on the Executive's part in connection
with the operations or affairs of the companies or other entities in which
such investments are made; or
(b) engaging in religious, charitable or other community or non-profit
activities that do not impair the Executive's ability to fulfill the
Executive's duties and responsibilities under this Agreement.
6. Termination and Termination Benefits. Notwithstanding the provisions
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of Section 3, the Executive's employment under this Agreement shall terminate
under the following circumstances set forth in this Section 6.
(a) Termination by the Employer for Cause. The Executive's employment
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under this Agreement may be terminated for cause without further liability
on the part of the Employer effective immediately upon a vote of the Board
of Directors and written notice to the Executive. Only the following shall
constitute "cause" for such termination:
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(i) dishonest statements or acts of the Executive with respect to
the Employer or any affiliate of the Employer which constitute
material disloyalty or dishonesty toward the Employer or any affiliate
of the Employer or cause significant damage to the Employer or any
affiliate of the Employer, including damage to the business reputation
of the Employer or any affiliate of the Employer;
(ii) the commission by or indictment of the Executive for (A) a
felony or (B) any misdemeanor involving moral turpitude, deceit,
dishonesty or fraud ("indictment," for these purposes, meaning an
indictment, probable cause hearing or any other procedure pursuant to
which an initial determination of probable or reasonable cause with
respect to such offense is made);
(iii) failure to perform to the reasonable satisfaction of the
Board of Directors a substantial portion of the Executive's duties and
responsibilities reasonably assigned or delegated under this
Agreement, which failure continues, in the reasonable judgment of the
Board of Directors, after written notice given to the Executive by the
Board of Directors;
(iv) gross negligence, willful misconduct or insubordination of
the Executive with respect to the Employer or any affiliate of the
Employer which is repeated or continued by the Executive, in the
reasonable judgment of the Board of Directors, after written notice
given to the Executive by the Board of Directors; or
(v) material breach by the Executive of any of the Executive's
obligations under this Agreement, which breach is repeated or
continued by the Executive, in the reasonable judgment of the Board of
Directors, after written notice given to the Executive by the Board of
Directors.
Notwithstanding the foregoing, the Executive's employment may not be
terminated for cause as a result of the Executive's refusal to comply with any
request by the Employer to relocate the Executive's principal place of
employment to a new location that is beyond a fifty (50) mile radius from the
Executive's current principal place of employment.
(b) Termination by the Executive. The Executive's employment under
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this Agreement may be terminated by the Executive by written notice to the
Board of Directors at least thirty (30) days prior to such termination.
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(c) Termination by the Employer Without Cause. Subject to the payment
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of Termination Benefits pursuant to Section 6(d), the Executive's
employment under this Agreement may be terminated by the Employer without
cause upon written notice to the Executive by a vote of the Board of
Directors at least thirty (30) days prior to such termination, provided
that, the Employer, in its sole discretion, may elect to provide the
Executive with pay in lieu of all or a portion of such notice.
(d) Certain Termination Benefits. Unless otherwise specifically
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provided in this Agreement or otherwise required by law, all compensation
and benefits payable to the Executive under this Agreement shall terminate
on the date of termination of the Executive's employment under this
Agreement pursuant to this Section 6 or due to delivery of a Non-renewal
Notice from either party to the other. Notwithstanding the foregoing, in
the event of termination of the Executive's employment with the Employer
pursuant to Section 6(c) above, the Employer shall provide to the Executive
the following termination benefits ("Termination Benefits"):
(i) continuation of the Salary at the rate then in effect
pursuant to Section 4(a);
(ii) continuation of group health plan benefits, (A) if permitted
by Employer's health plan or if Employer self-insures (provided
that Employer shall have no obligation to self-insure), until the
expiration of the Initial Term, or (B) if not permitted by
Employer's health plan, to the extent authorized by and
consistent with 29 U.S.C (S) 1161 et seq. (commonly known as
"COBRA"), in either case with the cost of the regular premium for
such benefits shared in the same relative proportion by the
Employer and the Executive as in effect on the date of
termination; and
(iii) continuation of automobile benefits as in effect on the
date of termination pursuant to Section 4(d)(ii).
The Termination Benefits set forth in (i) above shall continue effective
until the later of (A) the expiration of the Initial Term or (B) for twelve
months from the date of termination of employment, provided that the Executive
shall not have breached, (1) as of the date of termination, any of his or her
covenants or agreements contained in Sections 7 and 8 of this Agreement or (2)
thereafter, any of his or her covenants or agreements contained in this
Agreement. The Termination Benefits set forth in (ii) and (iii) above shall
continue effective until the expiration of the Initial Term, provided that the
Executive shall not have breached, (x) as of the date of termination, any of his
or her covenants or agreements contained in Section 7 and 8 of this Agreement or
(y) thereafter, any of his or her covenants or agreements contained in this
Agreement. In the event that the Executive commences any employment or self-
employment during the period during which the Executive is entitled to receive
Termination Benefits (the "Termination Benefits Period"), the remaining amount
of Salary due
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for the period from the commencement of such employment or self-employment to
the end of the Termination Benefits Period shall be reduced by one-half and the
Termination Benefits provided under Sections 6(d)(ii) and (iii) shall cease
effective as of the date of commencement of such employment or self-employment.
The Employer's liability for Salary continuation pursuant to Section 6(d)(i)
shall be reduced by the amount of any severance pay due or otherwise paid to the
Executive pursuant to any severance pay plan or stay bonus plan of the Employer.
Notwithstanding the foregoing, nothing in this Section 6(d) shall be construed
to affect the Executive's right to receive COBRA continuation entirely at the
Executive's own cost to the extent that the Executive may continue to be
entitled to COBRA continuation after the Executive's right to cost sharing under
Section 6(d)(ii) ceases. The Executive shall be obligated to give prompt notice
of the date of commencement of any employment or self-employment during the
Termination Benefits Period and shall respond promptly to any reasonable
inquiries concerning any employment or self-employment in which the Executive
engages during the Termination Benefits Period.
(e) Disability. If the Executive shall be disabled so as to be unable
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to perform the essential functions of the Executive's then existing
position or positions under this Agreement with or without reasonable
accommodation, the Chief Executive Officer or the Board of Directors may
remove the Executive from any responsibilities and/or reassign the
Executive to another position with the Employer for the remainder of the
Initial Term or, if the Initial Term has expired, any Extended Term, or
during the period of such disability. Notwithstanding any such removal or
reassignment, the Executive shall continue to receive the Executive's full
Salary (less any disability pay or sick pay benefits to which the Executive
may be entitled under the Employer's policies) and benefits under Section 4
of this Agreement (except to the extent that the Executive may be
ineligible for one or more such benefits under applicable plan terms) for a
period of time equal to the remainder of the Initial Term or, if the
Initial Term has expired, any Extended Term, provided that the Executive
remains employed by the Employer during such period. In the event that the
Employer terminates the Executive's employment without cause pursuant to
Section 6(c) or the Employer delivers a Non-renewal Notice to the
Executive, in either case due to the Executive's continuing inability to
perform the essential functions of the Executive's then existing position
or positions, the Executive shall be eligible to receive Termination
Benefits subject to and in accordance with the terms and conditions of
Section 6(d), provided that the Executive's Termination Benefits
additionally shall be subject to reduction by the amount of any payments
the Executive receives under any disability benefit plan or plans or
insurance policies the Employer maintains for the Executive, or under
worker's compensation, or state or federal disability benefit programs. If
any question shall arise as to whether during any period the Executive is
disabled so as to be unable to perform the essential functions of the
Executive's then existing position or positions with or without reasonable
accommodation, the Executive may, and at the request of the Employer shall,
submit to the Employer a certification in reasonable detail by a physician
selected by the Employer to whom the Executive or the Executive's guardian
has no reasonable objection as to whether the Executive is so disabled or
how long such
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disability is expected to continue, and such certification shall for the
purposes of this Agreement be conclusive of the issue. The Executive shall
cooperate with any reasonable request of the physician in connection with
such certification. If such question shall arise and the Executive shall
fail to submit such certification, the Employer's determination of such
issue shall be binding on the Executive. Nothing in this Section 6(e) shall
be construed to waive the Executive's rights, if any, under existing law
including, without limitation, the Family and Medical Leave Act of 1993, 29
U.S.C. (S)2601 et seq. and the Americans with Disabilities Act, 42 U.S.C.
(S)12101 et seq.
(f) Deductibility of Payments. It is the intention of the Executive
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and of the Employer that no payments by the Employer to or for the benefit
of the Executive under this Agreement or any other agreement or plan, if
any, pursuant to which the Executive is entitled to receive payments or
benefits shall be nondeductible to the Employer by reason of the operation
of Section 280G of the Internal Revenue Code of 1986, as amended (the
"Code"), relating to parachute payments or any like statutory or regulatory
provision. Accordingly, and notwithstanding any other provision of this
Agreement or any such agreement or plan, if by reason of the operation of
said Section 280G or any like statutory or regulatory provision, any such
payments exceed the amount which can be deducted by the Employer, such
payments shall be reduced to the maximum amount which can be deducted by
the Employer. To the extent that payments exceeding such maximum
deductible amount have been made to or for the benefit of the Executive,
such excess payments shall be refunded to the Employer with interest
thereon at the applicable Federal rate determined under Section 1274(d) of
the Code, compounded annually, or at such other rate as may be required in
order that no such payments shall be nondeductible to the Employer by
reason of the operation of said Section 280G or any like statutory or
regulatory provision. To the extent that there is more than one method of
reducing the payments to bring them within the limitations of said Section
280G or any like statutory or regulatory provision, the Executive shall
determine which method shall be followed, provided that if the Executive
fails to make such determination within forty-five (45) days after the
Employer has given notice of the need for such reduction, the Employer may
determine the method of such reduction in its sole discretion.
7. Confidential Information, Noncompetition and Cooperation.
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(a) Confidential Information. As used in this Agreement,
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"Confidential Information" means information belonging to the Employer
which is of value to the Employer in the course of conducting its business
and the disclosure of which could result in a competitive or other
disadvantage to the Employer. Confidential Information includes, without
limitation, financial information, reports, and forecasts; market or sales
information, plans, methods and techniques; pricing policies; customer
lists; price lists; inventions, improvements and other intellectual
property; trade secrets; know-how; designs, processes or formulae;
software; and business plans, prospects and
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opportunities (such as possible acquisitions or dispositions of businesses
or facilities) which have been discussed or considered by the management of
the Employer. Confidential Information includes information developed by
the Executive in the course of the Executive's employment by the Employer,
as well as other information to which the Executive may have access in
connection with the Executive's employment. Confidential Information also
includes the confidential information of others with which the Employer has
a business relationship, including without limitation its principals,
packers and suppliers. Notwithstanding the foregoing, Confidential
Information does not include information in the public domain, unless due
to breach of the Executive's duties under Section 7(b).
(b) Confidentiality. The Executive understands and agrees that the
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Executive's employment creates a relationship of confidence and trust
between the Executive and the Employer with respect to all Confidential
Information. At all times, both during the Executive's employment with the
Employer and after its termination, the Executive will keep in confidence
and trust all such Confidential Information, and will not use or disclose
any such Confidential Information without the written consent of the
Employer, except as may be necessary in the ordinary course of performing
the Executive's duties to the Employer.
(c) Documents, Records, etc. All documents, records, data, apparatus,
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equipment and other physical property, whether or not pertaining to
Confidential Information, which are furnished to the Executive by the
Employer or are produced by the Executive in connection with the
Executive's employment will be and remain the sole property of the
Employer. The Executive will return to the Employer all such materials and
property as and when requested by the Employer. In any event, the
Executive will return all such materials and property immediately upon
termination of the Executive's employment for any reason. The Executive
will not retain with the Executive any such material or property or any
copies thereof after such termination.
(d) Noncompetition and Nonsolicitation. During the Initial Term and
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any Extended Term(s) and for one (1) year thereafter (or during the
Termination Benefits Period, if longer) (the "Restricted Period"), the
Executive (i) will not, directly or indirectly, whether as owner, partner,
shareholder, advisor, consultant, agent, employee, co-venturer, creditor,
officer, director, trustee or otherwise, engage, participate, assist or
invest in any Restricted Business within the Territory (as those terms are
hereinafter defined); (ii) will refrain from directly or indirectly
employing, attempting to employ, recruiting or otherwise soliciting,
inducing or influencing any person to leave employment with the Employer
(other than terminations of employment of subordinate employees undertaken
in the course of the Executive's employment with the Employer); and (iii)
will refrain from soliciting or encouraging any principal, customer or
supplier to terminate or otherwise modify adversely its business
relationship with the Employer. The Executive understands that the
restrictions set forth in this Section 7(d) are intended to protect the
Employer's interest in its Confidential Information and established
employee, customer and supplier relationships and goodwill, and agrees that
such restrictions are reasonable and appropriate for this purpose.
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For purposes of this Agreement, the term "Restricted Business" shall mean
any business which is competitive with:
(A) any business conducted by the Employer on the date of the
termination of Executive's employment with the Employer, and
(B) any business conducted by the Employer within the twelve (12)
month period immediately preceding the termination of Executive's
employment with the Employer, and
(C) any business the Employer actively considered entering within
twelve (12) months preceding the date of the termination of
Executive's employment with the Employer if the Executive had
knowledge of such consideration and the Employer in fact commences
conducting such business during the Restricted Period.
Notwithstanding the foregoing, the Executive may own up to one percent
(1%) of the outstanding stock of a publicly held corporation which
constitutes or is affiliated with a Restricted Business.
For purposes of this Agreement, the term "Territory" shall mean:
(A) any geographic area in which the Employer engaged in business and
for which the Executive had any responsibility at the time of the
termination of the Executive's employment or within the twelve (12)
month period preceding termination, and
(B) any geographic area in which the Employer engaged in business at
the time of the termination of the Executive's employment or within
the twelve (12) month period preceding termination, and
(C) any geographic area in which the Employer actively considered
conducting business within twelve (12) months preceding the date of
the termination of Executive's employment with the Employer if the
Executive had knowledge of such consideration and the Employer in fact
commences conducting business therein during the Restricted Period.
The parties acknowledge and agree that for purpose of this Section 7,
the term "Employer" includes the Employer, its related and affiliated
entities, and their respective predecessors, successors and assigns.
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(e) Principals and Customers. For purposes of construing the
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provisions of this Section 7, any and all persons, firms and entities for
whom the Employer performs services, to whom the Employer sells or from
whom the Employer solicits and obtains orders, in the course of its
business, are and shall be deemed the principals and/or customers of the
Employer (or its principals), both during and after the Term,
notwithstanding the fact that some or all of said persons, firms or
entities may have been induced to give their business to the Employer by
the solicitation by the Executive, or by someone on his or her behalf,
either during the usual working hours of the Executive or otherwise, and
notwithstanding the fact that all or some of such persons, firms or
entities may have previously been principals or customers of (i) the
Executive, (ii) any corporation or other entity with which the Executive
was formerly employed or which was controlled or owned, in whole or in
part, by the Executive, or (iii) any principal of such corporation or
entity.
(f) Third-Party Agreements and Rights. The Executive hereby confirms
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that the Executive is not bound by the terms of any agreement with any
previous employer or other party which restricts in any way the Executive's
use or disclosure of information or the Executive's engagement in any
business. The Executive represents to the Employer that the Executive's
execution of this Agreement, the Executive's employment with the Employer
and the performance of the Executive's proposed duties for the Employer
will not violate any obligations the Executive may have to any such
previous employer or other party. In the Executive's work for the
Employer, the Executive will not disclose or make use of any information in
violation of any agreements with or rights of any such previous employer or
other party, and the Executive will not bring to the premises of the
Employer any copies or other tangible embodiments of non-public information
belonging to or obtained from any such previous employment or other party.
(g) Litigation and Regulatory Cooperation. During and after the
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Executive's employment, the Executive shall cooperate fully with the
Employer in the defense or prosecution of any claims or actions now in
existence or which may be brought in the future against or on behalf of the
Employer which relate to events or occurrences that transpired while the
Executive was employed by the Employer. The Executive's full cooperation
in connection with such claims or actions shall include, but not be limited
to, being available to meet with counsel to prepare for discovery or trial
and to act as a witness on behalf of the Employer at mutually convenient
times. During and after the Executive's employment, the Executive also
shall cooperate fully with the Employer in connection with any
investigation or review of any federal, state or local regulatory authority
as any such investigation or review relates to events or occurrences that
transpired while the Executive was employed by the Employer. The Employer
shall reimburse the Executive for any reasonable out-of-pocket expenses
incurred in connection with the Executive's performance of obligations
pursuant to this Section 7(g).
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(h) Injunction. The Executive agrees that it would be difficult to
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measure any damages caused to the Employer which might result from any
breach by the Executive of the promises set forth in this Section 7, and
that in any event money damages would be an inadequate remedy for any such
breach. Accordingly, subject to Section 8 of this Agreement, the Executive
agrees that if the Executive breaches, or proposes to breach, any portion
of this Agreement, the Employer shall be entitled, in addition to all other
remedies that it may have, to an injunction or other appropriate equitable
relief to restrain any such breach without showing or proving any actual
damage to the Employer.
8. Arbitration of Disputes. Any controversy or claim arising out of or
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relating to this Agreement or the breach thereof or otherwise arising out of the
Executive's employment or the termination of that employment (including, without
limitation, any claims of unlawful employment discrimination whether based on
age or otherwise) shall, to the fullest extent permitted by law, be settled by
arbitration in any forum and form agreed upon by the parties or, in the absence
of such an agreement, under the auspices of the American Arbitration Association
("AAA") in Charlotte, North Carolina in accordance with the Employment Dispute
Resolution Rules of the AAA, including, but not limited to, the rules and
procedures applicable to the selection of arbitrators. In the event that any
person or entity other than the Executive or the Employer may be a party with
regard to any such controversy or claim, such controversy or claim shall be
submitted to arbitration subject to such other person or entity's agreement.
Judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof. This Section 8 shall be specifically enforceable.
Notwithstanding the foregoing, this Section 8 shall not preclude either party
from pursuing a court action for the sole purpose of obtaining a temporary
restraining order or a preliminary injunction in circumstances in which such
relief is appropriate; provided that any other relief shall be pursued through
an arbitration proceeding pursuant to this Section 8.
9. Consent to Jurisdiction. To the extent that any court action is
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permitted consistent with or to enforce Section 8 of this Agreement, the parties
hereby consent to the jurisdiction of the courts of the State of North Carolina
and (to the extent subject matter jurisdiction exists therefor) of the United
States District Court for the Western District of North Carolina. Accordingly,
with respect to any such court action, the Executive (a) submits to the personal
jurisdiction of such courts; (b) consents to service of process; and (c) waives
any other requirement (whether imposed by statute, rule of court, or otherwise)
with respect to personal jurisdiction or service of process.
10. Integration. This Agreement constitutes the entire agreement between
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the parties with respect to the subject matter hereof and supersedes all prior
agreements between the parties with respect to any related subject matter.
11. Assignment; Successors and Assigns, etc. Neither the Employer nor the
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Executive may make any assignment of this Agreement or any interest herein, by
operation of law or otherwise, without the prior written consent of the other
party; provided that the
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Employer may assign its rights under this Agreement without the consent of the
Executive in the event that the Employer shall effect a reorganization,
consolidate with or merge into any other corporation, partnership, organization
or other entity, or transfer all or substantially all of its properties or
assets to any other corporation, partnership, organization or other entity. This
Agreement shall inure to the benefit of and be binding upon the Employer and the
Executive and their respective successors, executors, administrators, heirs and
permitted assigns.
12. Enforceability. If any portion or provision of this Agreement
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(including, without limitation, any portion or provision of any section of this
Agreement) shall to any extent be declared illegal or unenforceable by a court
of competent jurisdiction, then the remainder of this Agreement, or the
application of such portion or provision in circumstances other than those as to
which it is so declared illegal or unenforceable, shall not be affected thereby,
and each portion and provision of this Agreement shall be valid and enforceable
to the fullest extent permitted by law.
13. Waiver. No waiver of any provision hereof shall be effective unless
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made in writing and signed by the waiving party. The failure of any party to
require the performance of any term or obligation of this Agreement, or the
waiver by any party of any breach of this Agreement, shall not prevent any
subsequent enforcement of such term or obligation or be deemed a waiver of any
subsequent breach.
14. Notices. Any notices, requests, demands and other communications
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provided for by this Agreement shall be sufficient if in writing and delivered
in person or sent by a nationally recognized overnight courier service or by
registered or certified mail, postage prepaid, return receipt requested, to the
Executive at the last address the Executive has filed in writing with the
Employer or, in the case of the Employer, at its main offices, attention of the
Chief Executive Officer, and shall be effective on the date of delivery in
person or by courier or three (3) days after the date mailed.
15. Amendment. This Agreement may be amended or modified only by a
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written instrument signed by the Executive and by a duly authorized
representative of the Employer.
16. Governing Law. This is a North Carolina contract and shall be
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construed under and be governed in all respects by the laws of the State of
North Carolina, without giving effect to the conflict of laws principles of such
State. With respect to any disputes concerning federal law, such disputes shall
be determined in accordance with the law as it would be interpreted and applied
by the United States Court of Appeals for the Fourth Circuit.
17. Counterparts. This Agreement may be executed in any number of
------------
counterparts, each of which when so executed and delivered shall be taken to be
an original; but such counterparts shall together constitute one and the same
document.
[End of text]
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IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument
by the Employer, by its duly authorized officer, and by the Executive, as of
the Effective Date.
EMPLOYER:
XXXXXX-AMERICAN COMPANY, INC.
By: /s/ Xxxxx X. Xxxxxx
---------------------------------
Xxxxx X. Xxxxxx
Chief Financial Officer
EXECUTIVE:
/s/ Xxxxxxx X. Xxxxxxxx
---------------------------------
Xxxxxxx X. Xxxxxxxx
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