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EXHIBIT 10.16
[AQUA-CHEM, INC. LOGO]
X.X. XXX 000, XXXXXXXXX, XXXXXXXXX 00000 - 000-000-0000 - FAX: 000-000-0000
XXXXXXX X. XXXXXX
CHAIRMAN and CHIEF EXECUTIVE OFFICER
June 23, 1998
Xx. Xxxxx X. Xxxxxxx
0000 Xxxxxxxxx
Xxxxxxx, Xxxxxxxx 00000
Dear Xxxxx:
This letter will set forth the terms of the consulting arrangement
between Aqua-Chem, Inc. ("AQM") and you, which are as follows:
1. TERM. The term of the agreement will commence on the closing date of
AQM's acquisition of National Development Corporation ("NDC") and
continue thereafter for such period as AQM determines to be necessary,
but in no event more than eighteen months.
2. DUTIES. Your duties shall consist of consulting with and advising
AQM management on a part time basis as requested by AQM with respect to
matters pertaining to the historic business of NDC and generally
assisting (in a manner consistent with your status as the prior senior
executive of NDC) with the transition and integration of that business
into AQM. As we have discussed, it is my intention to establish a
Boiler technical Advisory Group to provide overall guidance to all of
AQM's boiler and related businesses and, if and when that is
established, you would also serve as a member of the Boiler Technical
Advisory Group.
3. INDEPENDENT CONTRACTOR STATUS. During the term of the consulting
arrangement, you would be a part-time independent contractor and not an
employee of AQM. Accordingly, AQM will not withhold income, social
security or other taxes from the payments to be made to you and you
will be solely responsible for and indemnify AQM with respect thereto.
During the first two or three months of the consulting arrangement, I
would anticipate that your services would be required on a more or less
full time basis. For the next two or three months, the time required of
you will be no more than half-time. After the initial four to six month
period, the time commitment on your part will be minimal and your
duties during this period will be limited to consulting with respect to
specific questions that may arise from time to time. I am sure that
after the initial two to three month period we will be able to
coordinate the performance of consulting services at mutually
convenient times so as not to interfere with any travel or other
personal plans you may have.
4. COMPENSATION. During the initial four to six month period, you will
be compensated at the rate of $1000.00 per day for services requested
by AQM. Thereafter, you will be compensated at the rate of $125.00 per
hour for services requested by AQM. In addition, AQM will provide you
with an office and secretarial support at NDC's office and reimburse
you for any out of town travel and related expenses incurred by you at
AQM's request. In addition, you will be compensated for your duties
related to fulfilling your role with the ABMA. In the event you are
elected and agree to serve on the ABMA for a second one-year term, the
compensation terms of this arrangement will be extended to cover that
period.
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EXHIBIT 10.16
Xx. Xxxxx X. Xxxxxxx
June 23, 1998
Page Two
If you are in agreement with the preceding, pleased so indicate by
signing and returning the enclosed copy of this letter.
Very truly yours,
/s/ XX Xxxxxx
Xxxxxxx X. Xxxxxx
Agreed and accepted this 19 day of June, 1998.
/s/ Xxxxx X. Xxxxxxx
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Xxxxx X. Xxxxxxx
