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Exhibit 10.7
ALL SECTIONS MARKED WITH TWO ASTERISKS ("**") REFLECT PORTIONS WHICH HAVE BEEN
REDACTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION BY
THE REGISTRANT AS PART OF A REQUEST FOR CONFIDENTIAL TREATMENT.
EMPLOYMENT AGREEMENT
THIS AGREEMENT, dated February 14, 1997, is made and entered into among
Financial Pacific Insurance Group, Inc. a Delaware corporation ("Financial
Pacific"), and Financial Pacific Insurance Company (FPIC), a California
corporation (Financial Pacific, and FPIC are hereinafter referred to
collectively as "Companies") and Xxxxxxx X. Xxxxxx ("Executive").
RECITALS
A. Executive currently serves as Vice President of Information
Services. Executive's salary is paid by FPIC.
NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements set forth below, the parties hereby agree as follows:
(1) Termination: The Executive's employment hereunder may be
terminated by the Companies or Executive, as applicable, under the following
circumstances.
(a) Death: The Executive's employment hereunder shall
terminate upon his death. In the case of Executive's death, the Companies shall
pay Executive's beneficiaries or estate, as appropriate, the unpaid Annual Base
Salary to which he is entitled, through the date of his termination. This
subsection shall not limit the entitlement of the Executive's estate or
beneficiaries to any death or other benefits then available to Executive under
any life insurance or other benefit plan or policy which is maintained by the
Companies for Executive's benefit.
(b) By the Companies: Companies may terminate Executive's
employment hereunder for any reason, (with or without cause) upon 30 days
written notice. In the event that Companies terminate Executive's employment,
the Companies shall pay to Executive the unpaid Annual Base Salary to which he
is entitled through the termination date. In addition, the Companies shall pay
Executive severance benefits as set forth in Section 2.
(c) Resignation: The Executive may resign his employment upon
30 days written notice to the Companies. Upon Executive's resignation, the
Companies shall promptly pay to Executive (or his designated representative)
the unpaid Annual Base Salary and any other unpaid benefits (vacation, sick,
bonus, pension, business expenses, etc.) to which the Executive is entitled
through Executive's termination date. Executive shall be entitled to no other
compensation.
(d) Mutual Agreement: The Executive's employment may be
terminated by mutual agreement of Executive and the Companies at any time. If
Executive is terminated by mutual agreement, the severance benefits in Section
2 will apply.
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(2) Severance Benefits
(a) Termination: The Executive's employment is terminated
pursuant to Section 1(b) or (d), above the Company shall pay Executive
severance compensation which shall consist of a lump sum payment representing
1/2 of Executive's then current Annual Base Salary and any other unpaid
benefits (vacation, sick, bonus, pension, business expenses, etc.).
(b) Mitigation of Damages: In the event of any termination of
Executive's employment by the Companies or the Executive, Executive shall not
be required to seek other employment to mitigate damages, and any income earned
by Executive from other employment or self-employment shall not be offset
against any obligations of the Companies to the Executive under this agreement.
(3) Disputes
(a) Any dispute or controversy arising under, out of, in
connection with, or in relation to this Agreement shall, at the election and
upon written demand of any party to this Agreement, be finally determined and
settled by arbitration in Sacramento, California, in accordance with the rules
and procedures of the American Arbitration Association. The judgment as
determined through arbitration may be entered in any court having jurisdiction
thereof.
(b) If any legal action, arbitration, or other proceeding is
brought for the enforcement of this Agreement, or because of an alleged
dispute, breach, default or misrepresentation in connection with any of the
provisions of this Agreement, the successful or prevailing party shall be
entitled to recover reasonable attorneys' fees and other costs incurred in that
action or proceeding, in addition to any other relief that may be granted.
(4) Binding on Successors: This Agreement shall be binding upon and
inure to the benefit of the Companies, Executive, and their perspective
successors, assigns, personal and legal representatives, executors,
administrators, heirs, distributes, devisees, and legatees, as applicable.
(5) Governing Law: This Agreement is being made, executed, and is
intended to be performed in the State of California and shall be governed,
construed, interpreted and enforced in accordance with the substantive laws of
the State of California, without regard to the conflict of laws principles
thereof.
(6) Severability: The invalidity or unenforceability of any provision
or provisions of this Agreement shall not affect the validity or enforceability
of any other provision of this Agreement, which shall remain in full force and
effect.
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(7) Notices: Any notice, request, claim, demand, document and other
communication hereunder to any party shall be effective upon receipt (or
refusal of receipt) and shall be in writing and delivered personally or sent by
hand, telex, telecopy, or certified or registered mail, postage prepaid and
addressed to the following address:
Xxxxxxx X. Xxxxxx Financial Pacific Insurance Company
** Attn: Xxxxxx X. Xxxxxxx
X.X. Xxx 000000
Xxxxxxxxxx, XX 00000-0000
IN WITNESS WHEREOF, the parties have executed put addresses
inherence this Agreement as of above written.
EXECUTIVE FINANCIAL PACIFIC INSURANCE CO.
/s/ Xxxxxxx X. Xxxxxx /s/ Xxxxxx X. Xxxxxxx
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Xxxxxxx X. Xxxxxx Xxxxxx X. Xxxxxxx
President & Chief Executive Officer
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