EMPLOYMENT AGREEMENT
Exhibit 10.18
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (“Agreement”) dated as of January 1, 2008
between Validus Holdings, Ltd., a Bermuda corporation (the “Company”), and Xxxxxxx X.
Xxxxxxxx (the “Executive”).
WHEREAS, the Company and the Executive each desire that the Executive become employed by the
Company on the terms and conditions set forth herein.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto agree as follows:
ARTICLE 1
DEFINITIONS
DEFINITIONS
SECTION 1.01 Definitions. For purposes of this Agreement, the following terms have
the meanings set forth below:
“Base Salary” has the meaning set forth in Section 4.01.
“Cause” means (a) theft or embezzlement by the Executive with respect to the Company
or its Subsidiaries; (b) malfeasance or gross negligence in the performance of the Executive’s
duties; (c) the commission by the Executive of any felony or any crime involving moral turpitude;
(d) willful and prolonged absence from work by the Executive (other than by reason of disability
due to physical or mental illness or at the direction of the Company or its Subsidiaries) or
failure, neglect or refusal by the Executive to perform his duties and responsibilities without the
same being corrected within ten (10) days after being given written notice thereof; (e) failure by
the Executive to adequately perform his duties and responsibilities hereunder without the same
being corrected within thirty (30) days after being given written notice thereof, as determined by
the Company in good faith; (f) continued and habitual use of alcohol by the Executive to an extent
which materially impairs the Executive’s performance of his duties without the same being corrected
within ten (10) days after being given written notice thereof; (g) the Executive’s use of illegal
drugs without the same being corrected within ten (10) days after being given written notice
thereof; (h) the Executive’s failure to use his best efforts to obtain, maintain or renew the work
permit described in Section 3.02 below in a timely manner, without the same being corrected within
ten (10) days after being given written notice thereof; or (i) the material breach by the Executive
of any of the covenants contained in this Agreement without, in the case of any breach capable of
being corrected, the same being corrected within ten (10) days after being given written notice
thereof.
“Confidential Information” means information that is not generally known to the public
and that was or is used, developed or obtained by the Company or its Subsidiaries in connection
with their business. It shall not include information (a) required to be disclosed by court
or administrative order, (b) lawfully obtainable from other sources or which is in the public
domain through no fault of the Executive; or (c) the disclosure of which is consented to in writing
by the Company.
“Date of Termination” has the meaning set forth in Section 5.01.
“Employment Period” has the meaning set forth in Section 2.01.
“Good Reason” means, without the Executive’s written consent, (a) a material breach of
this Agreement by the Company without the same being corrected within thirty (30) days after being
given written notice thereof; (b) a material reduction, in the aggregate, in the Executive’s Base
Salary and his benefits set forth in Section 4.03 (b) below, without the same being corrected
within thirty (30) days after being given written notice thereof; or (c) a material and adverse
change by the Company in the Executive’s duties and responsibilities set forth in Section 3.01
hereof, other than due to the Executive’s failure to adequately perform such duties and
responsibilities as determined by the Board in good faith, without the same being corrected within
thirty (30) days after being given written notice thereof; provided, however, that,
notwithstanding any provision of this Agreement to the contrary, the Executive must give written
notice of his intention to terminate his employment for Good Reason within sixty (60) days after
the act or omission which constitutes Good Reason, and any failure to give such written notice
within such period will result in a waiver by the Executive of his right to terminate for Good
Reason as a result of such act or omission.
“Intellectual Property” has the meaning set forth in Section 7.01.
“Noncompetition Period” has the meaning set forth in Section 9.01.
“Notice of Termination” has the meaning set forth in Section 5.04.
“Permanent Disability” means those circumstances where the Executive is unable to
continue to perform the usual customary duties of his assigned job or as otherwise assigned in
accordance with the provisions of this Agreement for a period of six (6) months in any twelve (12)
month period because of physical, mental or emotional incapacity resulting from injury, sickness or
disease. Any questions as to the existence of a Permanent Disability shall be determined by a
qualified, independent physician selected by the Company and approved by the Executive (which
approval shall not be unreasonably withheld). The determination of any such physician shall be
final and conclusive for all purposes of this Agreement.
“Reimbursable Expenses” has the meaning set forth in Section 4.04.
“Person” means an individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, an estate, a trust, a joint venture, an
unincorporated organization or a governmental entity or any department, agency or political
subdivision thereof.
“Subsidiary” or “Subsidiaries” means, with respect to any Person, any
corporation, partnership, limited liability company, association or other business entity of which
(a) if a corporation, twenty (20) percent or more of the total voting power of shares of stock
entitled
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(without regard to the occurrence of any contingency) to vote in the election of directors,
managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that
Person or one or more of the other Subsidiaries of that Person or combination thereof; or (b) if a
partnership, limited liability company, association or other business entity, twenty (20) percent
or more of the partnership or other similar ownership interest thereof is at the time owned or
controlled, directly or indirectly, by any Person or one or more Subsidiaries of that Person or a
combination thereof. For purposes of this definition, a Person or Persons will be deemed to have a
twenty (20) percent or more ownership interest in a partnership, limited liability company,
association or other business entity if such Person or Persons are allocated twenty (20) percent or
more of partnership, limited liability company, association or other business entity gains or
losses or control the managing director or member or general partner of such partnership, limited
liability company, association or other business entity.
ARTICLE 2
EMPLOYMENT
EMPLOYMENT
SECTION 2.01 Employment Period. The Company shall employ the Executive, and the
Executive shall accept employment with the Company, upon the terms and conditions set forth in this
Agreement for the period beginning January 1, 2008 (the “Start Date”) and ending on the
Date of Termination as defined in Section 5.01 below (the “Employment Period”).
ARTICLE 3
POSITION AND DUTIES
POSITION AND DUTIES
SECTION 3.01 Position and Duties. The Executive shall serve as Executive Vice
President and Chief Actuary of the Company, and in such capacity he shall oversee the development
and adequacy of the reserves of, and assist in the development of pricing models for, the
Subsidiaries of the Company. The Executive will be involved in establishing general pricing
parameters and capital allocation for the Company. The Executive hereby agrees to follow in good
faith the applicable operating guidelines of the Company, as in effect from time to time, including
any supplemental guidelines relating to Executive’s position. The Executive will report directly
to the Chief Financial Officer of the Company. During the Employment Period the Executive shall
devote substantially all of his working time and efforts to the business and affairs of the
Company. The Executive shall not directly or indirectly render any services of a business,
commercial or professional nature to any other person or for-profit organization not related to the
business of the Company or its Subsidiaries, whether for compensation or otherwise, without prior
written consent of the Company.
SECTION 3.02 Work Permits. The Executive shall use his best efforts to assist the
Company in obtaining, maintaining and renewing a suitable (for the purposes of the Executive’s
contemplated employment by the Company) work permit by the Bermuda government authorities and any
other permits required by any Bermuda government authority. The Company shall be responsible for
permit fees.
SECTION 3.03 Work Location. While employed by the Company hereunder, the Executive’s
primary place of business will be at the offices of the Company in Bermuda, and
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he will be required to perform a portion of his duties in London. The Executive shall travel
on the business of the Company in such manner and on such occasions as the Company may from time to
time reasonably require.
ARTICLE 4
BASE SALARY AND BENEFITS
BASE SALARY AND BENEFITS
SECTION 4.01 Base Salary. During the Employment Period, the Executive’s base salary
will be $400,000 per annum (the “Base Salary”). The Base Salary will be payable monthly on
the last working day of each month in arrears in twelve (12) equal installments. Annually during
the Employment Period, the Company shall review with the Executive his job performance and
compensation, and if deemed appropriate by the Company, in its discretion, the Executive’s Base
Salary may be increased. Normal hours of employment are 8:30 a.m. to 5:00 p.m., Monday to Friday.
The Executive’s salary has been computed to reflect that his regular duties are likely, from time
to time, to require more than forty (40) hours per week and the Executive shall not be entitled to
receive any additional remuneration for any such additional hours.
SECTION 4.02 Bonuses. In addition to the Base Salary, the Executive shall be eligible
to participate in an annual bonus plan on terms set forth from time to time by the Company;
provided, however, that the Executive’s target annual bonus will be 115% of his Base
Salary; provided further, however, that, (i) the Executive shall be paid a $225,000 minimum
annual bonus on or before March 15, 2008, and (ii) so long as Executive is employed on December 31,
2008, the Executive’s minimum annual bonus for calendar year 2008 shall be 50% of his target annual
bonus for such year, and such minimum annual bonus shall be paid to the Executive on or before
March 15, 2009. The Company may, at any time and from time to time acting in its sole discretion,
pay to the Executive an additional bonus.
SECTION 4.03 Benefits. In addition to the Base Salary, and any bonuses payable to the
Executive pursuant to this Agreement, the Executive shall be entitled to the following benefits
during the Employment Period:
(a) such major medical, life insurance and disability insurance coverage as is, or may
during the Employment Period, be provided generally for the senior executive officers of the
Company as set forth from time to time in the applicable plan documents;
(b) in addition to the public holidays referenced in the Public Holidays Act of 1947
and fifteen (15) paid days off for sick leave, a maximum of four (4) weeks of paid vacation
annually during the term of the Employment Period;
(c) benefits under any plan or arrangement available generally for the senior executive
officers of the Company, subject to and consistent with the terms and conditions and overall
administration of such plans as set forth from time to time in the applicable plan
documents; and
(d) the Company will reimburse the Executive for any net additional United Kingdom
income tax imposed with respect to compensation paid to the Executive by the Company, which
income tax is owed by him to the United Kingdom as a result of his
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working in the United Kingdom pursuant to this Agreement, but only to the extent, if
any, that payment of such United Kingdom income tax results in a higher net overall income
tax liability to the Executive after taking into account tax credits, deductions or income
exclusions available in the United States for such United Kingdom income tax or United
Kingdom source income, such reimbursement to be made promptly following receipt by the
Company of notification of payment by Executive, but in any event not later than the end of
the calendar year next following the calendar year in which the Executive remits the related
United Kingdom income taxes.
Upon termination of the Employment Period, to the extent permitted under terms of the applicable
plan, the Executive may elect continuation of the benefits described in subclause (a) above through
the plans provided by the Company at the Executive’s own expense until such time as the Executive
commences participation in another employer’s comparable group plans. The Executive agrees to
immediately notify the Company at the time he commences participation in another such plan.
SECTION 4.04 Expenses. The Company shall reimburse the Executive for all reasonable
expenses incurred by him in the course of performing his duties under this Agreement which are
consistent with the Company’s policies in effect from time to time with respect to travel,
entertainment and other business expenses (“Reimbursable Expenses”), subject to the
Company’s requirements with respect to reporting and documentation of expenses.
SECTION 4.05 Restricted Shares. The Company shall grant to the Executive 15,000
restricted shares of the Company’s common stock on January 1, 2008 (the “2008 Restricted
Shares”). Except as otherwise provided below, the 2008 Restricted Shares will vest, provided
that the Executive’s employment continues through the applicable vesting dates, in five equal
annual installments, beginning on December 31, 2008 and continuing on December 31 of each of the
following four years, with the final installment vesting on December 31, 2012. The Company shall
also grant to the Executive 15,000 restricted shares of the Company’s common stock on January 1,
2009 (the “2009 Restricted Shares”). Except as otherwise provided below, the 2009
Restricted Shares will vest, provided that the Executive’s employment continues through the
applicable vesting dates, in five equal annual installments, beginning on December 31, 2009 and
continuing on December 31 of each of the following four years, with the final installment vesting
on December 31, 2013. The 2008 Restricted Shares and 2009 Restricted Shares shall also be subject
to the terms and conditions set forth in the Company’s 2005 Long Term Incentive Plan and the
applicable award agreements.
SECTION 4.06 Sign-up Bonus. The Company shall pay to the Executive $225,000 as a one
time sign-up bonus within thirty (30) days following the Start Date. If the Employment Period is
terminated within twelve (12) months after the Start Date (i) as a result of the Executive’s
resignation or leaving of his employment, other than for Good Reason, or (ii) by the Company for
Cause, then in either such case the Executive shall repay the sign-up bonus to the Company no later
than ten (10) business days after such termination of employment.
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ARTICLE 5
TERM AND TERMINATION
TERM AND TERMINATION
SECTION 5.01 Date of Termination. The Employment Period shall end on the Date of
Termination. For purposes of this Agreement, the “Date of Termination” shall mean the
first to occur of the following: (a) the six (6) month anniversary of the Company providing Notice
of Termination (as defined below) without Cause to the Executive; (b) immediately upon the Company
providing Notice of Termination for Cause to the Executive; (c) the six (6) month anniversary of
the Executive providing Notice of Termination specifying his resignation for Good Reason to the
Company; (d) the six (6) month anniversary of the Executive providing Notice of Termination by
Executive without Good Reason to the Company; and (e) the fifth (5th) day following the Company
providing Notice of Termination to the Executive as a result of the Executive’s Permanent
Disability; or (f) the date of Executive’s death. In the event that there are circumstances which
would give rise to a termination by the Company for Cause, the Company may, in its sole and
exclusive discretion, treat such termination as a termination without Cause.
SECTION 5.02 Resignation by the Executive Without Good Reason. If the Employment
Period shall be terminated as a result of the Executive’s resignation or leaving of his employment,
other than for Good Reason, Executive shall continue to: (a) receive Base Salary and benefits set
forth in Section 4.03 through the Date of Termination, except that any amount payable after the
Executive’s “separation from service” (within the meaning of Treas. Reg. Section 1.409A 1(h)) with
the Company will be subject to Section 12.14 below; and (b) receive reimbursement of all
Reimbursable Expenses incurred by the Executive prior to the Date of Termination. Notwithstanding
any provision of this Agreement or any applicable plan or other agreement to the contrary, no
shares of restricted stock of the Company or stock options of the Company granted to the Executive
shall vest on or following the date the Executive provides Notice of Termination without Good
Reason to the Company. The Executive’s entitlements under all other benefit plans and programs of
the Company shall be as determined thereunder.
SECTION 5.03 Termination for Other Reasons. If the Employment Period shall be
terminated by the Executive for Good Reason, by the Company with or without Cause, as a result of
the Executive’s Permanent Disability or upon the Executive’s death, the Executive (or his estate,
in the case of death) shall continue to: (a) receive Base Salary and benefits set forth in Section
4.03 above (i) in the case of termination by the Executive for Good Reason or by the Company with
or without Cause, through the Date of Termination, except that any amount payable after the
Executive’s separation from service with the Company will be subject to Section 12.14 below, and
(ii) in the case of termination due to the Executive’s Permanent Disability or death, through the
six (6) month anniversary of the Date of Termination, except that any amount payable after the
Executive’s separation from service with the Company will be subject to Section 12.14 below; (b)
vest in any shares of restricted stock of the Company and any Company stock options granted to the
Executive through the Date of Termination; and (c) receive reimbursement for all Reimbursable
Expenses incurred by the Executive prior to the Date of Termination. The Executive’s entitlements
under all other benefit plans and programs of the Company shall be as determined thereunder.
SECTION 5.04 Notice of Termination. Any termination by the Company for Permanent
Disability or Cause or without Cause or by the Executive for Good Reason or without
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Good Reason shall be communicated by written Notice of Termination to the other party hereto.
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, with respect to
termination by the Company for Permanent Disability or Cause or resignation by the Executive for
Good Reason, shall set forth in reasonable detail the facts and circumstances claimed to provide a
basis for termination of employment under the provision indicated.
SECTION 5.05 Garden Leave. Following the provision of a Notice of Termination either
by the Company or by the Executive, the Company may direct, in its sole and exclusive discretion,
that the Executive perform no duties, exercise no powers and resign from any office held in
connection with his employment with the Company or its Subsidiaries; provided, however,
that, following any such direction, the Executive will continue to be required to comply with his
other obligations under this Agreement (and will continue to have a duty of loyalty to the Company
as an employee) through the end of the Employment Period.
ARTICLE 6
CONFIDENTIAL INFORMATION
CONFIDENTIAL INFORMATION
SECTION 6.01 Nondisclosure and Nonuse of Confidential Information. The Executive will
not disclose or use at any time during or after the Employment Period any Confidential Information
of which the Executive is or becomes aware, whether or not such information is developed by him,
except to the extent that such disclosure or use is directly related to and required by the
Executive’s performance of duties assigned to the Executive pursuant to this Agreement. Under all
circumstances and at all times, the Executive will take all appropriate steps to safeguard
Confidential Information in his possession and to protect it against disclosure, misuse, espionage,
loss and theft.
ARTICLE 7
INTELLECTUAL PROPERTY
INTELLECTUAL PROPERTY
SECTION 7.01 Ownership of Intellectual Property. In the event that the Executive as
part of his activities on behalf of the Company generates, authors or contributes to any invention,
design, new development, device, product, method of process (whether or not patentable or reduced
to practice or comprising Confidential Information), any copyrightable work (whether or not
comprising Confidential Information) or any other form of Confidential Information relating
directly or indirectly to the business of the Company as now or hereinafter conducted
(collectively, “Intellectual Property”), the Executive acknowledges that such Intellectual
Property is the sole and exclusive property of the Company and hereby assigns all right, title and
interest in and to such Intellectual Property to the Company. Any copyrightable work prepared in
whole or in part by the Executive during the Employment Period will be deemed “a work made for
hire” under Section 201(b) of the Copyright Act of 1976, as amended, and the Company will own all
of the rights comprised in the copyright therein. The Executive will promptly and fully disclose
all Intellectual Property and will cooperate with the Company to protect the Company’s interests in
and rights to such Intellectual Property (including providing reasonable assistance in securing
patent protection and copyright registrations and executing all documents
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as reasonably requested by the Company, whether such requests occur prior to or after
termination of Executive’s employment hereunder).
ARTICLE 8
DELIVERY OF MATERIALS UPON TERMINATION OF EMPLOYMENT
DELIVERY OF MATERIALS UPON TERMINATION OF EMPLOYMENT
SECTION 8.01 Delivery of Materials upon Termination of Employment. As requested by
the Company, from time to time and upon the termination of the Executive’s employment with the
Company for any reason, the Executive will promptly deliver to the Company all property of the
Company or its Subsidiaries, including, without limitation, all copies and embodiments, in whatever
form or medium, of all Confidential Information or Intellectual Property in the Executive’s
possession or within his control (including written records, notes, photographs, manuals,
notebooks, documentation, program listings, flow charts, magnetic media, disks, diskettes, tapes
and all other materials containing any Confidential Information or Intellectual Property)
irrespective of the location or form of such material and, if requested by the Company, will
provide the Company with written confirmation that, to the best of his knowledge, all such
materials have been delivered to the Company.
ARTICLE 9
NONCOMPETITION AND NONSOLICITATION
NONCOMPETITION AND NONSOLICITATION
SECTION 9.01 Noncompetition. The Executive acknowledges that during his employment
with the Company, he will become familiar with trade secrets and other Confidential Information
concerning the Company or its Subsidiaries, and that his services will be of special, unique and
extraordinary value to the Company. In addition, the Executive hereby agrees that at any time
during the Employment Period, and for a period ending six (6) months after the Date of Termination
(the “Noncompetition Period”), he will not directly or indirectly own, manage, control,
participate in, consult with, render services for or in any manner engage in any business competing
with the businesses of the Company or its Subsidiaries as such businesses exist or are in process
or being planned as of the Date of Termination, within any geographical area in which the Company
or its Subsidiaries engage or plan to engage in such businesses; provided, however, that
the portion of the Noncompetition Period following the Date of Termination shall be reduced by the
period of time, if any, between the date Notice of Termination is given and the Date of
Termination. It shall not be considered a violation of this Section 9.01 for the Executive to be a
passive owner of not more than 2% of the outstanding stock of any class of a corporation which is
publicly traded, so long as the Executive has no active participation in the business of such
corporation.
SECTION 9.02 Nonsolicitation of Employees. The Executive hereby agrees that (a)
during the Employment Period and for a period of one (1) year after the Date of Termination (the
“Nonsolicitation Period”) the Executive will not, directly or indirectly, induce or attempt
to induce any employee of the Company or its Subsidiaries to leave the employ of the Company or its
Subsidiaries, or in any way interfere with the relationship between the Company or its Subsidiaries
and any employee thereof or otherwise employ or receive the services of any individual who was an
employee of the Company or its Subsidiaries at any time during such Nonsolicitation Period or
within the six-month period prior thereto.
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SECTION 9.03 Nonsolicitation of Customers. During the Nonsolicitation Period, the
Executive will not induce or attempt to induce any customer, supplier, client, insured, reinsured,
reinsurer, broker, licensee or other business relation of the Company or its Subsidiaries to cease
doing business with the Company or its Subsidiaries.
SECTION 9.04 Enforcement. If, at the enforcement of Sections 9.01, 9.02 or 9.03, a
court holds that the duration, scope or area restrictions stated herein are unreasonable under
circumstances then existing, the parties agree that the maximum duration, scope or area reasonable
under such circumstances will be substituted for the stated duration, scope or area and that the
court will be permitted to revise the restrictions contained in this Section 9 to cover the maximum
duration, scope or area permitted by law.
ARTICLE 10
EQUITABLE RELIEF
EQUITABLE RELIEF
SECTION 10.01 Equitable Relief. The Executive acknowledges that (a) the covenants
contained herein are reasonable, (b) the Executive’s services are unique, and (c) a breach or
threatened breach by him of any of his covenants and agreements with the Company contained in
Sections 6.01, 7.01, 8.01, 9.01, 9.02 or 9.03 could cause irreparable harm to the Company for which
they would have no adequate remedy at law. Accordingly, and in addition to any remedies which the
Company may have at law, in the event of an actual or threatened breach by the Executive of his
covenants and agreements contained in Sections 6.01, 7.01, 8.01, 9.01, 9.02 or 9.03, the Company
shall have the absolute right to apply to any court of competent jurisdiction for such injunctive
or other equitable relief as such court may deem necessary or appropriate in the circumstances.
ARTICLE 11
EXECUTIVE REPRESENTATIONS AND INDEMNIFICATION
EXECUTIVE REPRESENTATIONS AND INDEMNIFICATION
SECTION 11.01 Executive Representations. The Executive hereby represents and warrants
to the Company that (a) the execution, delivery and performance of this Agreement by the Executive
does not and will not conflict with, breach, violate or cause a default under any contract,
agreement, instrument, order, judgment or decree to which the Executive is a party or by which he
is bound, (b) except for agreements provided to the Company by the Executive, the Executive is not
a party to or bound by any employment agreement, noncompetition agreement or confidentiality
agreement with any other Person, and (c) upon the execution and delivery of this Agreement by the
Company, this Agreement will be the valid and binding obligation of the Executive, enforceable in
accordance with its terms. Notwithstanding Section 11.02 below, in the event that any action is
brought against Executive involving any breach of any employment agreement, noncompetition
agreement or confidentiality agreement with any other Person, the Executive shall bear his own
costs incurred in defending such action, including but not limited to, court fees, arbitration
costs, mediation costs, attorneys’ fees and disbursements.
SECTION 11.02 General Indemnification. The Company agrees that if the Executive is
made a party, or is threatened to be made a party, to any action, suit or proceeding, whether
civil, criminal, administrative or investigative (each, a “Proceeding”), by reason of the
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fact that he is or was a director, officer or employee of the Company or is or was serving at
the request of the Company as a director, officer, member, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, including service with respect
to employee benefit plans, whether or not the basis of such Proceeding is the Executive’s alleged
action in an official capacity while serving as a director, officer, member, employee or agent, the
Executive shall be indemnified and held harmless by the Company to the fullest extent permitted or
authorized by applicable law and its organizational documents, against all cost, expense, liability
and loss reasonably incurred or suffered by the Executive in connection therewith, and such
indemnification shall continue as to the Executive even if he has ceased to be a director, member,
employee or agent of the Company or other entity and shall inure to the benefit of the Executive’s
heirs, executors and administrators. The Company agrees to maintain a directors’ and officers’
liability insurance policy covering the Executive to the extent the Company provides such coverage
for its other executive officers.
ARTICLE 12
MISCELLANEOUS
MISCELLANEOUS
SECTION 12.01 Rights and Remedies. The Company will be entitled to enforce its rights
and remedies under this Agreement specifically, without posting a bond or other security, to
recover damages by reason of any breach of any provision of this Agreement and to exercise all
other rights granted by law. There are currently no disciplinary or grievance procedures in place,
there is no collective agreement in place, and there is no probationary period.
SECTION 12.02 Consent to Amendments. The provisions of this Agreement may be amended
or waived only by a written agreement executed and delivered by the Company and the Executive. No
other course of dealing between the parties to this Agreement or any delay in exercising any rights
hereunder will operate as a waiver of any rights of any such parties.
SECTION 12.03 Successors and Assigns. All covenants and agreements contained in this
Agreement by or on behalf of any of the parties hereto will bind and inure to the benefit of the
respective successors and assigns of the parties hereto whether so expressed or not, provided that
the Executive may not assign his rights or delegate his obligations under this Agreement without
the written consent of the Company, other than his rights to compensation and benefits hereunder,
which may be transferred by will subject to the limitations of this Agreement.
SECTION 12.04 Severability. Whenever possible, each provision of this Agreement will
be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be prohibited by or invalid under applicable law, such
provision will be ineffective only to the extent of such prohibition or invalidity, without
invalidating the remainder of this Agreement.
SECTION 12.05 Counterparts. This Agreement may be executed simultaneously in two or
more counterparts, any one of which need not contain the signatures of more than one party, but all
of which counterparts taken together will constitute one and the same agreement.
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SECTION 12.06 Descriptive Headings. The descriptive headings of this Agreement are
inserted for convenience only and do not constitute a part of this Agreement.
SECTION 12.07 Notices. All notices, demands or other communications to be given or
delivered under or by reason of the provisions of this Agreement will be in writing (including by
e-mail as set forth below) and will be deemed to have been given when delivered personally to the
recipient, two (2) business days after the date when sent to the recipient by reputable express
courier service (charges prepaid) or four (4) business days after the date when mailed to the
recipient by certified or registered mail, return receipt requested and postage prepaid. Such
notices, demands and other communications will be sent to the Executive and to the Company at the
addresses set forth below. Notices, demands and other communications hereunder may also be
delivered or furnished by e-mail communication. Notices, demands and other communications sent to
an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the
intended recipient (such as by the “return receipt requested” function, as available, return e-mail
or other written acknowledgement), provided that if such e-mail notice, demand or other
communication is not sent during the normal business hours of the recipient, such notice, demand or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient.
| If to the Executive: | To the last address (including e-mail address) delivered to the Company by the Executive in the manner set forth herein. | |||
| If to the Company: | Validus Holdings, Ltd. Xxxxxxxxx Xxxxx 0 Xxxxxx Xxxxxx Xxxxxxxx XX00 Xxxxxxx |
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| e-mail: xxxxxx.xxxx@xxxxxxxxx.xx | ||||
| Attn: General Counsel |
or to such other address (including e-mail address) or to the attention of such other person as the
recipient party has specified to the sending party in the manner set forth herein.
SECTION 12.08 Withholding. The Company may withhold from any amounts payable under
this Agreement such federal, state, local or foreign taxes as shall be required to be withheld
pursuant to any applicable law or regulation.
SECTION 12.09 No Third Party Beneficiary. This Agreement will not confer any rights
or remedies (or any obligations) upon any person other than the Company, the Executive and their
respective heirs, executors, successors and assigns.
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SECTION 12.10 Entire Agreement. This Agreement (including the documents referred to
herein) constitutes the entire agreement among the parties and supersedes any prior understandings,
agreements or representations by or among the parties, written or oral, that may have related in
any way to the subject matter hereof. This Agreement shall serve as a written statement of
employment for purposes of Xxxxxxx 0 xx xxx Xxxxxxx Xxxxxxxxxx Xxx 0000.
SECTION 12.11 Construction. The language used in this Agreement will be deemed to be
the language chosen by the parties to express their mutual intent, and no rule of strict
construction will be applied against any party. Any reference to any federal, state, local or
foreign statute or law will be deemed also to refer to all rules and regulations promulgated
thereunder, unless the context requires otherwise. The use of the word “including” in this
Agreement means “including without limitation” and is intended by the parties to be by way of
example rather than limitation.
SECTION 12.12 Survival. Sections 5.02, 5.03, 6.01, 7.01, 8.01 and Articles 9 and 12
will survive and continue in full force in accordance with their terms notwithstanding any
termination of the Employment Period.
SECTION 12.13 GOVERNING LAW. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY AND
INTERPRETATION OF THIS AGREEMENT WILL BE GOVERNED BY THE INTERNAL LAW OF BERMUDA, WITHOUT REGARD TO
PRINCIPLES OF CONFLICT OF LAWS, AND THE PARTIES HEREBY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE
SUPREME COURT OF BERMUDA.
SECTION 12.14 Section 409A. It is intended that this Agreement will comply with
Section 409A of the United States Internal Revenue Code of 1986, as amended (the “Code”)
and any regulations and guidelines issued thereunder, to the extent the Agreement is subject
thereto, and the Agreement shall be interpreted on a basis consistent with such intent.
Notwithstanding any provision to the contrary in this Agreement, if the Executive is deemed on the
date of his “separation from service” (within the meaning of Treas. Reg. Section 1.409A-1(h)) to be
a “specified employee” (within the meaning of Treas. Reg. Section 1.409A-1(i)), then with regard to
any payment that is required to be delayed pursuant to Section 409A(a)(2)(B) of the Code, the
portion, if any, of such payment so required to be delayed (after taking into account any
applicable provisions of Treas. Reg. Section 1.409A-1(b)(9)(iii) and 1.409A-1(b)(4)) shall not be
made prior to the earlier of (i) the expiration of the six (6)-month period measured from the date
of his “separation from service”, or (ii) the date of his death (the “Delay Period”). Upon the
expiration of the Delay Period, all payments delayed pursuant to this Section shall be paid to the
Executive in a lump sum. The Company shall not have any obligation to indemnify or otherwise
protect the Executive from any obligation to pay any taxes pursuant to Section 409A of the Code.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day of
, 2008, to be effective as of the date and year first above written.
| VALIDUS HOLDINGS, LTD. | ||||||
| By: | |
|||||
| Printed Name: | ||||||
| Title: | ||||||
| EXECUTIVE | ||||||
| Xxxxxxx X. Xxxxxxxx | ||||||
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