EMPLOYMENT AGREEMENT
EXHIBIT 10.14
THIS EMPLOYMENT AGREEMENT (the “Agreement”), is made and entered into as of January 5, 2006
(the “Effective Date”), by and between Xxxxx International, Inc. (hereafter “Company”) and Xxxxxxx
Xxxxxx (hereafter “Executive”). The Company and Executive may sometimes hereafter be referred to
singularly as a “Party” or collectively as the “Parties.”
W I T N E S S E T H:
WHEREAS, the Company desires to continue to secure the employment services of Executive
subject to the terms and conditions hereafter set forth; and
WHEREAS, the Executive is willing to enter into this Agreement upon the terms and conditions
hereafter set forth;
NOW, THEREFORE, in consideration of Executive’s employment with the Company, and the premises
and mutual covenants contained herein, the Parties hereto agree as follows:
1. Employment. During the Employment Period (as defined in Section 4 hereof),
the Company shall employ Executive, and Executive shall serve as, staff Vice President of the
Company. Executive’s principal place of employment shall be at the main offices of the Company in
the Houston, Texas metropolitan area.
2. Compensation. The Company shall pay to Executive during the Employment Period a
base salary of $150,000.00 per year, as may be adjusted (the “Base Salary”). The Base Salary shall
be payable in accordance with the Company’s normal payroll schedule and procedures for its
executives. Nothing contained herein shall preclude the payment of any other compensation to
Executive.
3. Duties and Responsibilities of Executive. During the Employment Period, Executive
shall devote his services to the business of the Company and perform the duties and
responsibilities assigned to him by the Chief Executive Officer of the Company, to the best of his
ability and with reasonable diligence. This Section 3 shall not be construed as preventing
Executive from (a) engaging in reasonable volunteer services for charitable, educational or civic
organizations, or (b) investing his assets in such a manner that will not require a material amount
of his time or services in the operations of the businesses in which such investments are made;
provided, however, no such other activity shall conflict with Executive’s loyalties and duties to
the Company. Executive shall at all times use his best efforts to, in good faith, comply with
United States laws applicable to Executive’s actions on behalf of the Company and its Affiliates
(as defined in Section 6(d)). Executive understands and agrees that he may be required to
travel from time to time for purposes of the Company’s business.
4. Term of Employment. Executive’s initial term of employment with the Company under
this Agreement shall be for the period of one year commencing upon the termination of the
Executive’s existing Employment Agreement, January 1, 2007 through December 31, 2007 (the “Initial
Term of Employment”). Thereafter, the Employment Period hereunder may be extended on a
month-to-month basis or for such other period as mutually agreed by the Parties. The Initial Term
of Employment, and any extension of employment hereunder, shall each be referred to herein as a
"Term of Employment.” The period from the Effective Date through the date of Executive’s
termination of employment for whatever reason shall be referred to herein as the “Employment
Period.”
Executive may terminate his employment with the Company and all Affiliates at any time by
providing 30 days Notice of Termination to the CEO pursuant to Section 7. Company may
terminate the employment of Executive with the Company and all Affiliates at any time by providing
30 days Notice of Termination to Executive pursuant to Section 7; provided, however, no
advance Notice of Termination shall be required if Executive is being terminated for Cause (as
defined in Section 6(c)). If the Executive is terminated by the Company without Cause
prior to December 31, 2007, the Executive will be eligible to receive the Benefits described in
termination benefits described in Section 6 as if he terminated on December 31, 2007. In
addition, the Stock Options and Performance Restricted Stock Units allocated to him would
continue to vest through December 31, 2007 and the Executive will have the right to exercise all
vested shares as of December 31, 2007.
5. Benefits. Subject to the terms and conditions of this Agreement, during the
Employment Period, Executive shall be entitled to the following:
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(a) Reimbursement of Business Expenses. The Company shall pay or reimburse Executive for all
reasonable travel, entertainment and other business expenses paid or incurred by Executive in the
performance of his duties hereunder. The Company shall also provide Executive with suitable office
space, including staff support, and paid parking.
(b) Other Employee Benefits. Executive shall be entitled to participate in any pension,
retirement, 401(k), profit-sharing, and other employee benefits plans or programs of the Company to
the same extent as available to any other officers of the Company under the terms and conditions of
such plans or programs. Executive shall also be entitled to participate in any group insurance,
hospitalization, medical, dental, health, life, accident, disability and other employee benefits
plans or programs of the Company to the extent available to any other officers of the Company under
the terms and conditions of such plans or programs.
(c) Vacation. Executive shall be entitled to the number of vacation days in each calendar
year determined in accordance with the Company’s Vacation policy for its executives as in effect
from time to time.
(d) Perk Payments. Executive shall be entitled to receive Perk
Payments of $1,558 per month.
6. Rights and Payments upon Termination. The Executive’s right to compensation and
benefits for periods after the date on which his employment with the Company terminates (the
"Termination Date”), shall be determined in accordance with this Section 6, as follows:
(a) Minimum Payments. Executive shall be entitled to the following minimum payments under
this Section 6(a), in addition to any other benefits to which he may be entitled to receive
in accordance with the terms and conditions of any employee benefit plan or program under which he
is covered as of his Termination Date:
(1) his unpaid salary through his Termination Date;
(2) his unpaid Vacation days for that year which have earned through his
Termination Date; and
(3) reimbursement of his reasonable business expenses that were incurred but
unpaid as of his Termination Date; and
(4) a lump sum representing eighteen (18) months of COBRA payments, less
applicable taxes and withholding.
Such salary, accrued Vacation days and COBRA payments shall be paid to Executive within
five (5) business days following the Termination Date in a cash lump sum less applicable
withholdings. Business expenses shall be reimbursed in accordance with the Company’s normal
procedures.
(b) Other Severance Benefits. Executive shall be entitled to any other severance benefits
only to the extent so provided under the terms and conditions of any plans or programs maintained
by the Company under which he is covered as of his Termination Date; provided, however, Executive
shall not be entitled to any such other severance benefits if he is terminated for Cause.
(c) Definitions.
(1) “Affiliate” has the same meaning ascribed to such term in Rule 12b-2 under
the Securities Exchange Act of 1934, as amended from time to time.
(2) “Cause” means any of the following: (A) the Executive’s conviction by a
court of competent jurisdiction as to which no further appeal can be taken of a crime
involving moral turpitude or a felony or entering the plea of nolo contendere to such
crime by the Executive; (B) the commission by the Executive of a material and
demonstrable act of fraud, or a material and demonstrable misappropriation of funds
or property, of or upon the Company or any Affiliate; (C) the knowing engagement by
the Executive, without the written approval of the Board or Compensation Committee,
in any material activity which directly competes with the business of the Company or
any Affiliate, or which would directly result in a material injury to the business or
reputation of the Company or any Affiliate
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(3) “Designated Beneficiary” means the Executive’s surviving spouse, if any. If
there is no such surviving spouse at the time of Executive’s death, then the
Designated Beneficiary hereunder shall be Executive’s estate.
(4) “Dispute” means any dispute, disagreement, claim, or controversy arising in
connection with or relating to the Agreement or the validity, interpretation,
performance, breach, or termination of the Agreement.
(5) “Subsidiary” means a corporation or other entity, whether incorporated or
unincorporated, of which at least a majority of the voting securities is owned,
directly or indirectly, by the Company including, without limitation, M-I L.L.C.
7. Notice of Termination. Any termination of Executive’s employment with the Company
and all Affiliates, either by the Company or by the Executive, shall be communicated by Notice of
Termination to the other Party hereto. The term “Notice of Termination” means a written notice
which sets forth in reasonable detail the basis for termination of the Executive’s employment.
8. Nondisclosure and Noncompetition. As an inducement to the Company to enter into
this Agreement, Executive represents to and covenants with or in favor of the Company his
compliance with the restrictive covenants in Sections 9 through 19, as a condition to the
Company’s obligation to provide employment to Executive under this Agreement.
9. Trade Secrets.
(a) Access to Trade Secrets. As of the Effective Date and on an ongoing basis, the Company
agrees to give Executive access to Trade Secrets which the Executive did not have access to, or
knowledge of, before the Effective Date.
(b) Agreement Not to Use or Disclose Trade Secrets. In exchange for the Company’s promises to
provide Executive with access to Trade Secrets and Specialized Training and other benefits,
Executive agrees that he will not during the Employment Period, or at any time thereafter, disclose
to anyone, including, without limitation, any person, firm, corporation or other entity, or publish
or use for any purpose, any Trade Secrets and Specialized Training, except as required in the
ordinary course of the Company’s business or as authorized by the Board, Compensation Committee or
CEO.
(c) Agreement to Refrain from Defamatory Statements. Executive shall refrain, both during the
Employment Period and thereafter, from publishing any oral or written statements about any
directors, officers, employees, agents, investors or representatives of the Company or any
Affiliate that are slanderous, libelous, or defamatory; or that disclose private or confidential
information about the business affairs, directors, officers, employees, agents, investors or
representatives of the Company or any Affiliate; or that constitute an intrusion into the seclusion
or private lives of any of such directors, officers, employees, agents, investors or
representatives; or that give rise to unreasonable publicity about the private lives of such
persons; or that place any such person in a false light before the public; or that constitute a
misappropriation of the name or likeness of any such person. A violation or threatened violation
of these restrictive covenants may be enjoined by a court of law notwithstanding the arbitration
provisions of Section 30.
(d) Definitions. The following terms, when used in this Agreement, are defined below:
(1) “Trade Secrets” means any and all information and materials (in any form or medium)
that are proprietary to the Company or a Subsidiary, or are treated as confidential by the
Company or Subsidiary as part of, or relating to, all or any portion of its or their
business, including information and materials about the products and services offered, or
the needs of customers served, by the Company or Subsidiary; compilations of information,
records and specifications, processes, programs, and systems of the Company or Subsidiary;
research of or for the Company or Subsidiary; and methods of doing business of the Company
or Subsidiary. Trade Secrets include, without limitation, all of the Company’s or
Subsidiary’s technical and business information, whether patentable or not, which is of a
confidential, trade secret or proprietary character, and which is either developed by the
Executive alone, with others or by others; lists of customers; identity of customers;
identity of prospective customers; contract
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terms; bidding information and strategies;
pricing methods or information; computer software; computer software methods and
documentation; hardware; the Company’s or Subsidiary’s methods of operation; the procedures,
forms and techniques used in servicing accounts or properties; and other documents,
information or data that the Company or Subsidiary requires to be maintained in confidence
for the business success of Company or Subsidiary.
10. Duty to Return Company Documents and Property. Upon termination of the Employment
Period, Executive shall immediately return and deliver to the Company any and all papers, books,
records, documents, memoranda and manuals, e-mail, electronic or magnetic recordings or data,
including all copies thereof, belonging to the Company or Subsidiary or relating to its business,
in Executive’s possession, whether prepared by Executive or others. If at any time after the
Employment Period, Executive determines that he has any Trade Secrets in his possession or control,
Executive shall immediately return them to the Company, including all copies thereof.
11. Best Efforts and Disclosure. Executive agrees that, while he is employed with the
Company, he shall devote business time and attention to the Company’s business and shall use his
best efforts to promote its success. Further, Executive shall promptly disclose to the Company all
ideas, inventions, computer programs, and discoveries, whether or not patentable or copyrightable,
which he may conceive or make, alone or with others, during the Employment Period, whether or not
during working hours, and which directly or indirectly:
| (a) | relate to a matter within the scope, field, duties or responsibility of Executive’s employment with the Company; or | ||
| (b) | are based on any knowledge of the actual or anticipated business or interests of the Company; or | ||
| (c) | are aided by the use of time, materials, facilities or information of the Company. |
Executive assigns to the Company, without further compensation, any and all rights, titles and
interest in all such ideas, inventions, computer programs and discoveries in all countries of the
world that pertain to the current products and services of the Company. Executive recognizes that
all ideas, inventions, computer programs and discoveries of the type described above, conceived or
made by Executive alone or with others within 12 months after the Termination Date (voluntary or
otherwise), are likely to have been conceived in significant part either while employed by the
Company or as a direct result of knowledge Executive had of proprietary information or Trade
Secrets. Accordingly, Executive agrees that such ideas, inventions or discoveries shall be
presumed to have been conceived during his Employment Period, unless and until the contrary is
clearly established by the Executive.
12. Inventions and Other Works. Any and all writings, computer software, inventions,
improvements, processes, procedures and/or techniques which Executive may make, conceive, discover,
or develop, either solely or jointly with any other person or persons, at any time during the
Employment Period, whether at the request or upon the suggestion of the Company or otherwise, which
relate to or are useful in connection with any of the current products and services of the Company
shall be the sole and exclusive property of the Company. Executive agrees to take any and all
actions necessary or appropriate so that the Company can prepare and present applications for
copyright or Letters Patent therefor, and secure such copyright or Letters Patent wherever
possible, as well as reissue renewals, and extensions thereof, and obtain the record title to such
copyright or patents. Executive shall not be entitled to any additional or special compensation or
reimbursement regarding any such writings, computer software, inventions, improvements, processes,
procedures and techniques. Executive acknowledges that the Company from time to time may have
agreements with other persons or
entities which impose obligations or restrictions on the Company regarding inventions made
during the course of work thereunder or regarding the confidential nature of such work. Executive
agrees to be bound by all such obligations and restrictions, and to take all action necessary to
discharge the obligations of the Company.
13. Non-Solicitation Restriction. To protect Trade Secrets following the Employment
Period, it is necessary to enter into the following restrictive covenants which are ancillary to
the enforceable promises between the Company and Executive in Sections 9 through 12 and
other provisions of this Agreement. Executive hereby covenants and agrees that he will not,
directly or indirectly, either individually or as a principal, partner, agent, consultant,
contractor, employee, or as a director or officer of any entity, or in any other manner or capacity
whatsoever, except on behalf of the Company, solicit business, or attempt to solicit business, in
products or services competitive with any products or services offered or performed by the Company
or any Subsidiary from the Company’s or Subsidiary’s customers as of the Termination Date, or those
individuals or entities with whom the Company or Subsidiary conducted business during the two-year
period ending on the Termination Date. The prohibitions set forth in this Section 13 shall
remain in effect for a period of one (1) year following the Termination Date.
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14. Non-Competition Restriction. Executive hereby agrees that in order to protect
Trade Secrets, it is necessary to enter into the following restrictive covenant, which is ancillary
to the enforceable promises between the Company and Executive in Sections 9 through 13 and
other provisions of this Agreement. Executive hereby covenants and agrees that during the
Employment Period, and for a period of one (1) year following the Termination Date, Executive will
not, without the prior written consent of the Board or the Compensation Committee, become
interested in any capacity in which Executive would perform any duties, directly or indirectly
(whether as proprietor, stockholder, director, partner, employee, agent, independent contractor,
consultant, trustee, or in any other capacity), with respect to any entity which competes with the
current products and services of the Company or any of its Affiliates including, but not limited
to, Halliburton Company, Xxxxxxxxxxx International Ltd., BJ Services Company, Rockbit
International, Xxxxx International, Xxxxx Xxxxxx, Inc. and Tuboscope Vetco International, Inc. or
any of their subsidiaries or other affiliates, except M-I L.L.C., as determined by the Company (a
“Competing Enterprise”); provided, however, Executive shall not be deemed to be participating or
engaging in a Competing Enterprise solely by virtue of his ownership of not more than one percent
(1%) of any class of stock or other securities which are publicly traded on a national securities
exchange or in a recognized over-the-counter market.
15. No-Recruitment Restriction. Executive agrees that during the Employment Period,
and for a period of one (1) year following the Termination Date, Executive will not, either
directly or indirectly, or by acting in concert with others, solicit or influence, or seek to
solicit or influence, any employee or independent contractor performing services for the Company or
any Subsidiary to terminate, reduce or otherwise adversely affect his or her employment or other
relationship with the Company or any Subsidiary.
16. Tolling. If Executive violates any of the restrictions contained in Sections
13, 14 or 15, then notwithstanding any provision hereof to the contrary, the restrictive period
will be suspended and will not run in favor of Executive from the time of the commencement of any
such violation until the time when the Executive cures the violation to the reasonable satisfaction
of the Compensation Committee.
17. Reformation. If a court or arbitrator rules that any time period or the
geographic area specified in any restrictive covenant in Sections 9 through 16 is
unenforceable, then the time period will be reduced by the number of months, or the geographic area
will be reduced by the elimination of such unenforceable portion, or both, so that the restrictions
may be enforced in the geographic area and for the time to the full extent permitted by law.
18. Conflicts of Interest. In keeping with his fiduciary duties to Company, Executive
hereby agrees that he shall not become involved in a conflict of interest, or upon discovery
thereof, allow such a conflict to continue at any time during the Employment Period. In this
respect, Executive agrees to fully comply with the conflict of interest agreement entered into by
Executive in his capacity as of an officer or director of the Company or any Subsidiary. In the
instance of a violation of the conflict of interest agreement to which Executive is a party, it may
be necessary for Board to terminate Executive’s employment for Cause.
19. Remedies. Executive acknowledges that the restrictions contained in Sections
9 through 18 of this Agreement, in view of the nature of the Company’s business, are reasonable
and necessary to protect the Company’s or Subsidiary’s legitimate business interests, and that any
violation would result in irreparable injury to the Company or
Subsidiary. Notwithstanding the arbitration provisions in Section 26, in the event of a
breach or a threatened breach by Executive of any provision of Sections 9 through 18, the
Company shall be entitled to a temporary restraining order and injunctive relief restraining
Executive from the commission of any breach, and to recover the Company’s attorneys’ fees, costs
and expenses related to the breach or threatened breach. Nothing contained in this Agreement shall
be construed as prohibiting the Company from pursuing any other remedies available to it for any
such breach or threatened breach, including, without limitation, the recovery of money damages,
attorneys’ fees, and costs. These covenants and agreements shall each be construed as independent
of any other provisions in this Agreement, and the existence of any claim or cause of action by
Executive against the Company, whether predicated on this Agreement or otherwise, shall not
constitute a defense to the enforcement by the Company of such covenants and agreements. Moreover,
the restrictive covenants in Sections 9 through 18 shall supplement, and be in addition to,
any other restrictive covenants to which Executive is a party, or otherwise subject to, under any
other agreement or policy.
20. Withholdings; Right of Offset. The Company may withhold and deduct from any
benefits and payments made or to be made pursuant to this Agreement (a) all federal, state, local
and other taxes as may be required pursuant to any law or governmental regulation or ruling, (b)
all other normal employee deductions made with respect to Company’s employees generally, and (c)
any advances made to Executive and owed to Company.
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21. Nonalienation. The right to receive payments under this Agreement shall not be
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge or
encumbrance by Executive, his dependents or beneficiaries, or to any other person who is or may
become entitled to receive such payments hereunder. The right to receive payments hereunder shall
not be subject to or liable for the debts, contracts, liabilities, engagements or torts of any
person who is or may become entitled to receive such payments, nor may the same be subject to
attachment or seizure by any creditor of such person under any circumstances, and any such
attempted attachment or seizure shall be void and of no force and effect.
22. Incompetent or Minor Payees. Should the Board or the Compensation Committee
determine, in its discretion, that Executive or any other person to whom any payment is payable
under this Agreement has been determined to be legally incompetent or is a minor, any payment due
hereunder, notwithstanding any other provision of this Agreement to the contrary, may be made in
any one or more of the following ways: (a) directly to such minor or person; (b) to the legal
guardian or other duly appointed personal representative of the person or estate of such minor or
person; or (c) to such adult or adults as have, in the good faith knowledge of the Board or the
Compensation Committee, assumed custody and support of such minor or person; and any payment so
made shall constitute full and complete discharge of any liability under this Agreement in respect
to the amount paid.
23. Severability. It is the desire of the parties hereto that this Agreement be
enforced to the maximum extent permitted by law, and should any provision contained herein be held
unenforceable by a court of competent jurisdiction or arbitrator (pursuant to Section 26),
the parties hereby agree and consent that such provision shall be reformed to create a valid and
enforceable provision to the maximum extent permitted by law; provided, however, if such provision
cannot be reformed, it shall be deemed ineffective and deleted herefrom without affecting any other
provision of this Agreement. This Agreement should be construed by limiting and reducing it only
to the minimum extent necessary to be enforceable under then applicable law.
24. Title and Headings; Construction. Titles and headings to Sections hereof are for
the purpose of reference only and shall in no way limit, define or otherwise affect the provisions
hereof. The words “herein”, “hereof”, “hereunder” and other compounds of the word “here” shall
refer to the entire Agreement and not to any particular provision.
25. Governing Law; Jurisdiction. All matters or issues relating to the
interpretation, construction, validity, and enforcement of this Agreement shall be governed by the
laws of the State of Texas, without giving effect to any choice-of-law principle that would cause
the application of the laws of any jurisdiction other than Texas. Jurisdiction and venue of any
action or proceeding relating to this Agreement or any Dispute (to the extent arbitration is not
required under Section 30) shall be exclusively in Xxxxxx County, Texas.
26. Mandatory Arbitration. Except as provided in subsection (h) of this Section
26, any Dispute (as defined in Section 6(c)) must be resolved by binding arbitration in
accordance with the following:
(a) Party may begin arbitration by filing a demand for arbitration in accordance with the
Arbitration Rules and concurrently Notifying the other Party of that demand. If the Parties are
unable to agree upon a panel of three arbitrators within ten days after the demand for arbitration
was filed (and do not agree to an extension of that ten-day period), either Party may request the
Houston, Texas office of the American Arbitration Association (“AAA”) to appoint the arbitrator or
arbitrators necessary to complete the panel in accordance with the Arbitration Rules. Each
arbitrator so appointed shall be deemed accepted by the Parties as part of the panel.
(b) The arbitration shall be conducted in the Houston metropolitan area at a place and time
agreed upon by the Parties with the panel, or if the Parties cannot agree, as designated by the
panel. The panel may, however, call and conduct hearings and meetings at such other places as the
Parties may agree or as the panel may, on the motion of one Party, determine to be necessary to
obtain significant testimony or evidence.
(c) The panel may authorize any and all forms of discovery upon a Party’s showing of need that
the requested discovery is likely to lead to material evidence needed to resolve the Dispute and is
not excessive in scope, timing, or cost.
(d) The arbitration shall be subject to the Federal Arbitration Act and conducted in
accordance with the Arbitration Rules to the extent that they do not conflict with this Section
26. The Parties and the panel may, however, agree to vary to provisions of this Section
26 or the matters otherwise governed by the Arbitration Rules.
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(e) The arbitration hearing shall be held within 60 days after the appointment of the panel.
The panel’s final decision or award shall be made within 30 days after the hearing. That final
decision or award shall be made by unanimous or majority vote or consent of the arbitrators
constituting the panel, and shall be deemed issued at the place of arbitration. The panel’s final
decision or award shall be based on this Agreement and applicable law.
(f) The panel’s final decision or award may include injunctive relief in response to any
actual or impending breach of this Agreement or any other actual or impending action or omission of
a Party under or in connection with this Agreement.
(g) The panel’s final decision or award shall be final and binding upon the Parties, and
judgment upon that decision or award may be entered in any court having jurisdiction. The Parties
waive any right to apply or appeal to any court for relief from the preceding sentence or from any
decision of the panel made before the final decision or award.
(h) Nothing in this Section 26 limits the right of either Party to apply to a court
having jurisdiction to (i) enforce the agreement to arbitrate in accordance with this Section
26, (ii) seek provisional or temporary injunctive relief, in response to an actual or impending
breach of the Agreement or otherwise so as to avoid an irreparable damage or maintain the status
quo, until a final arbitration decision or award is rendered or the Dispute is otherwise resolved,
or (iii) challenge or vacate any final arbitration decision or award that does not comply with this
Section 26. In addition, nothing in this Section 26 prohibits the Parties from
resolving any Dispute (in whole or in part) by agreement.
The panel may proceed to an award notwithstanding the failure of any Party to participate
in such proceedings. The prevailing Party in the arbitration proceeding may be entitled to an
award of reasonable attorneys’ fees incurred in connection with the arbitration in such amount,
if any, as determined by the panel in its discretion. The costs of the arbitration shall be
borne equally by the Parties unless otherwise determined by the panel in its award.
The panel shall be empowered to impose sanctions and to take such other actions as it deems
necessary to the same extent a judge could impose sanctions or take such other actions pursuant
to the Federal Rules of Civil Procedure and applicable law. Each party agrees to keep all
Disputes and arbitration proceedings strictly confidential except for disclosure of information
required by applicable law which cannot be waived.
This Section 26 shall not preclude the Parties at any time from mutually agreeing to
pursue non-binding mediation of the Dispute.
27. Binding Effect: Third Party Beneficiaries. This Agreement shall be binding upon
and inure to the benefit of the Parties hereto, and to their respective heirs, executors,
beneficiaries, personal representatives, successors and permitted assigns hereunder, but otherwise
this Agreement shall not be for the benefit of any third parties.
28. Entire Agreement; Amendment and Termination. This Agreement contains the entire
agreement of the Parties hereto with respect to the matters covered herein; moreover, this
Agreement supersedes all prior and contemporaneous agreements and understandings, oral or written,
between the Parties concerning the subject matter hereof. This Agreement may be amended, waived or
terminated only by a written instrument that is identified as an amendment, waiver or termination
hereto and that is executed on behalf of both Parties.
29. Survival of Certain Provisions. Wherever appropriate to the intention of the
Parties, the respective rights and obligations of the Parties hereunder shall survive any
termination or expiration of this Agreement.
30. Waiver of Breach. No waiver by either Party hereto of a breach of any provision
of this Agreement by any other Party, or of compliance with any condition or provision of this
Agreement to be performed by such other Party, will operate or be construed as a waiver of any
subsequent breach by such other Party or any similar or dissimilar provision or condition at the
same or any subsequent time. The failure of either Party hereto to take any action by reason of
any breach will not deprive such Party of the right to take action at any time while such breach
continues.
31. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the Company and its Subsidiaries (and its and their successors), as well as upon any
person or entity acquiring, whether by merger, consolidation, purchase of assets, dissolution or
otherwise, all or substantially all of the capital stock, business and/or assets of the Company (or
its successor) regardless of whether the Company is the surviving or resulting corporation. The
Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation, dissolution or otherwise) to all or substantially all of the capital stock, business
or assets of the Company to expressly assume and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform it if no such succession
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had
occurred; provided, however, no such assumption shall relieve the Company of any of its duties or
obligations hereunder unless otherwise agreed, in writing, by Executive.
This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or
legal representative, executors, administrators, successors, and heirs. In the event of the death
of Executive while any amount is payable hereunder, all such amounts shall be paid to the
Designated Beneficiary (as defined in Section 6(c)).
32. Notice. Each notice or other communication required or permitted under this
Agreement shall be in writing and transmitted, delivered, or sent by personal delivery, prepaid
courier or messenger service (whether overnight or same-day), prepaid telecopy or facsimile, or
prepaid certified United States mail (with return receipt requested), addressed (in any case) to
the other Party at the address for that Party set forth below that Party’s signature on this
Agreement, or at such other address as the recipient has designated by Notice to the other Party.
Each notice or communication so transmitted, delivered, or sent (a) in person, by courier or
messenger service, or by certified United States mail shall be deemed given, received, and
effective on the date delivered to or refused by the intended recipient (with the return receipt,
or the equivalent record of the courier or messenger, being deemed conclusive evidence of delivery
or refusal), or (b) by telecopy or facsimile shall be deemed given, received, and effective on the
date of actual receipt (with the confirmation of transmission being deemed conclusive evidence of
receipt, except where the intended recipient has promptly Notified the other Party that the
transmission is illegible). Nevertheless, if the date of delivery or transmission is not a business
day, or if the delivery or transmission is after 5:00 p.m. (CST) on a business day, the notice or
other communication shall be deemed given, received, and effective on the next business day.
33. Executive Acknowledgment. Executive acknowledges that (a) he is knowledgeable and
sophisticated as to business matters, including the subject matter of this Agreement, (b) he has
read this Agreement and understands its terms and conditions, (c) he has had ample opportunity to
discuss this Agreement with his own legal counsel prior to execution, and (d) no strict rules of
construction shall apply for or against the drafter or any other Party. Executive represents that
he is free to enter into this Agreement including, without limitation, that he is not subject to
any covenant not to compete that would conflict with his duties under this Agreement.
34. Counterparts. This Agreement may be executed in any number of counterparts, each
of which when so executed and delivered shall be an original, but all such counterparts shall
together constitute one and the same instrument.
IN WITNESS WHEREOF, Executive has hereunto set his hand and Company has caused this Agreement
to be executed in its name and on its behalf by its duly authorized officer, to be effective as of
the Effective Date.
| EXECUTIVE: | ||||||
| Signature: | /s/ XXXXXXX X. XXXXXX | |||||
| Name: | Xxxxxxx X. Xxxxxx | |||||
| Date: | January 5, 2006 | |||||
| XXXXX INTERNATIONAL, INC. | ||||||
| By: | /s/ XXXXXXX X. XXXXXXXX | |||||
| Its: | VP Human Resources | |||||
| Name: | Xxxxxxx X. Xxxxxxxx | |||||
| Date: | January 5, 2006 | |||||
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