Exhibit 10.9
EMPLOYMENT AGREEMENT
This Employment Agreement is made and entered into as of this 1st day
of September 2000, by and between XXXXX INC., a Delaware corporation (the
"Company"), and Xxxxxxx X. Xxxxx (the "Executive").
WHEREAS, the Executive and the Company desire to embody in this Agreement
the terms and conditions of the Executive's employment by the Company;
NOW, THEREFORE, in consideration of the premises and mutual promises
contained in this Agreement, including the compensation paid to the Executive,
the parties hereby agree:
ARTICLE 1
Employment, Duties and Responsibilities
1.1 Employment. The Company shall employ the Executive as Vice President,
General Counsel and Managing Director. The Executive hereby accepts such
employment. The Executive agrees to devote her best efforts to promote the
interests of the Company, and, if requested by the Board of Directors of the
Company, for any affiliate of the Company.
1.2 Duties and Responsibilities. The Executive shall have such duties and
responsibilities as are consistent with her position reporting to the Chief
Executive Officer of the Company. The Company shall not, without the Executive's
consent, permanently relocate the Executive outside of the New York Metropolitan
area.
ARTICLE 2
Term
2.1 Term. The term of the Executive's employment under this Agreement (the
"Term") shall commence on the date hereof and shall continue until August 31,
2003, unless sooner terminated pursuant to Article V hereof. Thereafter, the
Term shall continue on a monthly basis unless terminated by either party upon
one month's prior written notice.
ARTICLE 3
Compensation
3.1 Salary, Bonuses and Benefits. As compensation and consideration for
the performance by the Executive of her obligations to the Company under this
Agreement, the Executive shall be entitled to the compensation and benefits
described in the attached Exhibit A (subject, in each case, to the provisions of
ARTICLE 5 hereof).
3.2 Expenses. The Company will reimburse the Executive for reasonable
business-related expenses incurred by her in connection with the performance of
her duties hereunder during the Term, subject, however, to the Company's written
policies relating to business-related expenses as in effect, from time to time,
during the Term, a copy of which has previously been provided to the Executive.
ARTICLE 4
Exclusivity, Confidentiality and Noncompetition
4.1 Exclusivity, Etc. The Executive agrees to perform her duties,
responsibilities and obligations hereunder efficiently and to the best of her
ability. The Executive agrees that she will devote her entire working time, care
and attention and best efforts to such duties, responsibilities and obligations
throughout the Term, subject to any obligations to third parties in existence as
of the date hereof, which obligations may not be in conflict with Section 4.2(d)
hereof. The Executive also agrees that she will not engage in any other business
activities pursued for gain, profit or other pecuniary advantage that are
competitive with the activities of the Company, except as permitted in Section
4.2 below. The Executive agrees that all of her activities as an employee of the
Company shall be in conformity with all policies, rules and regulations and
directions of the Company not inconsistent with this Agreement.
4.2 Confidentiality and Noncompetition.
(a) The term "Confidential Information," as employed in this Agreement,
means, except to the extent such information is otherwise publicly available and
such public availability was not caused in any manner by the Executive, (i) any
object, material, device, substance, data, report, record, forecast,
interpretation or information, whether written or oral, not in the public domain
and relating to or reflecting any product, design, process, procedure, formula,
research, idea, invention, discovery, improvement, equipment, scientific or
technical information, method of production, business plan, financial
information, listing of names, addresses or telephone numbers, trade secret
and/or know how, and all matters pertaining thereto, of the Company and its
affiliates, whether or not contained in any written document, which are or have
been directly or indirectly communicated to, acquired by, or learned by the
Executive as a result of her relationship (whether as an employee or otherwise)
with the Company or any of its affiliates and (ii) any analysis, compilation,
note, study, sample, drawing, sketch, computer program, computer file or other
document, whether prepared by or under the direction of the Company or any of
its affiliates, the Executive or others, and all copies, facsimiles, replicas,
photographs, and reproductions thereof, which contain, relate to, or reflect any
of the aforementioned items.
(b) The Executive shall not, directly or indirectly, either disclose any
Confidential Information, except to the extent required in the performance of
her duties as an employee of the Company or use any Confidential Information for
the benefit of herself or any person, firm, corporation, or association other
than the Company or any of its affiliates, during the Term or thereafter.
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(c) All samples, drawings, sketches, documents and written information of
any kind reflecting any of the Confidential Information or relating to the
Company's or any of its affiliates' business or products which come into the
possession of the Executive shall remain the sole property of the Company or
such affiliate and shall not be copied, photocopied, reprinted or otherwise
reproduced or disseminated by the Executive, except in the performance of her
duties as an employee of the Company. Upon the earlier of the Company's request
therefor or the termination of the Executive's employment by the Company, the
Executive shall return all such samples, drawings, sketches, documents and
written information, and all copies, facsimiles, replicas, photocopies, and
reproductions of them to the Company.
(d) The Executive hereby covenants and agrees to refrain, during the Term
hereof and any extension (including month-to-month extensions) or renewal
thereof and for a period of two (2) years after the date of termination of the
Executive's employment during the Term (i) if such termination during the Term
was for Cause (as hereinafter defined) or (ii) if the Executive terminates
employment during the Term on her own volition, from, directly or indirectly,
(a) engaging on her own behalf in the Company's business or (b) owning any
interest in or engaging in or performing any service for any person, firm,
corporation or other entity, either as a partner, owner, employee, consultant,
agent officer, director or shareholder that (A) derives a meaningful portion of
its revenues from the Company's business or (B) is a meaningful competitor in
the Company's business. Notwithstanding the foregoing, for purposes of this
Section 4.2(d), the term "Term" shall not include any month-to-month extensions
of this Agreement. The Executive will not at any time during the period of the
Executive's employment by the Company and for a period of two (2) years
thereafter induce or assist others to induce or attempt to induce, in any
manner, directly or indirectly, any employee, agent, representative, customer or
any other person or concern dealing with or in any way associated with the
Company or any of its affiliates to terminate or to modify in any other fashion
to the detriment of the Company or any of its affiliates such association with
the Company or any of its affiliates. The Executive represents that her
experience and capabilities are such that the provisions of this paragraph will
not prevent her from earning a livelihood. Notwithstanding any provision of this
Section 4.2(d), (i) it shall not be a violation of this Section 4.2(d) for the
Executive to own two percent (2%) or less of a public company, provided that the
Executive does not exert or have the power to exert any management or other
control over such public company, and (ii) the Executive shall not be required
to sell or transfer the Executive's ownership interest in any company involved
in the Company's business which the Executive owns as of the date of this
Agreement.
(e) The parties hereto agree that the Executive's agreements contained in
paragraph (b) through (d) of this Article relate to matters of unique character
and peculiar value impossible of replacement that breach of such agreements by
the Executive will cause the Company great and irreparable injury therefor, that
the remedy at law for any breach of the agreements contained in (b) through (d)
will be inadequate and that the Company, in addition to any other relief
available to it, shall be entitled to seek temporary restraining orders and
temporary and permanent injunctive relief or other equitable relief without the
necessity of proving actual damage or of providing any bond so as to prevent a
breach of any of the agreements contained in (b) through (d) of this Article and
to secure the enforcement thereof.
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ARTICLE 5
Termination
5.1 Termination of Employment. (a) By the Company. The Company shall have
the right to terminate the Executive's employment at any time, with or without
"Cause." For purposes of this Agreement, "Cause" shall mean the nonappealable
conviction of Executive of a felony.
(b) By the Executive. The Executive shall have the right to voluntarily
resign and terminate her employment with the Company at any time with thirty
(30) days prior written notice.
5.2 Death. In the event the Executive dies during the Term, this Agreement
shall automatically terminate, such termination to be effective on the date of
the Executive's death.
5.3 Disability. In the event that the Executive shall suffer a disability
which shall have prevented her from performing satisfactorily her obligations
hereunder for a period of at least ninety (90) consecutive days or one hundred
eighty (180) non-consecutive days within any three hundred sixty-five (365) day
period, the Company shall have the right to terminate the Executive's
employment, such termination to be effective upon the giving of notice thereof
to the Executive in accordance with Section 6.3 hereof.
5.4 Effect of Termination. (a) In the event of termination of the
Executive's employment for any reason, the Company shall pay to the Executive
(or her beneficiary, heirs or estate in the event of her death) any base salary
or other compensation in accordance with the normal pay practices of the Company
upon a termination of employees for similar reasons.
(b) In the event of termination of the Executive's employment (i) by the
Company for Cause, (ii) by the Executive for any reason, (iii) because of the
Executive's death, or (iv) pursuant to Section 5.3, because of the Executive's
disability, neither the Executive nor any beneficiary, heir or estate of the
Executive shall be entitled to any further compensation other than the amounts
described in Section 5.4(a) hereof.
(c) In the event of termination of the Executive's employment by the
Company other than for Cause, the Company shall pay the Executive, in addition
to the amounts described in Section 5.4(a) hereof, the greater of (i) an amount
equal to the value of the continued payment of the Executive's base salary for
the remainder of the Term (excluding any renewal periods), or (ii) an amount
equal to Executive's then current base salary for one (1) year. Such amount
shall be payable, at the discretion of the Company, either (A) in a lump sum or
(B) in equal monthly installments.
(d) In the event that the Company fails to offer Executive to renew the
terms of this Agreement for at least one (1) year following the end of the Term
at a salary level at least equal to Executive's then current base salary, the
Company shall pay Executive an amount equal to Executive's then current base
salary for one (1) year.
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ARTICLE 6
Miscellaneous
6.1 Benefit of Agreement; Assignment; Beneficiary. (a) This Agreement
shall inure to the benefit of and be binding upon the Company and their
successors and assigns (but only to the extent the Agreement relates to such
entity), including, without limitation, any corporation or person which may
acquire all or substantially all of the Company's assets or business or with or
into which the Company may be consolidated or merged. This Agreement shall also
inure to the benefit of, and be enforceable by, the Executive and her personal
or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If the Executive should die while any
amount would still be payable to the Executive hereunder if she had continued to
live, all such amounts shall be paid in accordance with the terms of this
Agreement to the Executive's beneficiary, devisee, legatee or other designee, or
if there is no such designee, to the Executive's estate.
(b) The Company shall require any successor (whether director or indirect,
by operation of law, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/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
had taken place.
(c) Upon a reorganization, merger or consolidation of Xxxxx Inc. with one
or more corporations as a result of which Xxxxx Inc. is not to be the surviving
corporation (whether or not Xxxxx Inc. shall be dissolved or liquidated) or upon
the execution of an agreement for the sale or transfer of all or substantially
all of the assets of the Company ("Change in-Control Event"), at the option of
the Executive, the Term shall be modified to the lesser of (i) eighteen (18)
months from the Change-in-Control Event or (ii) the remaining Term.
6.2 Notices. Any notice required or permitted hereunder shall be in
writing and shall be sufficiently given if personally delivered or if sent by
registered or certified mail, postage prepaid, with return receipt requested,
addressed: (a) in the case of the Company to the Chief Executive Officer of the
Company, and (b) in the case of the Executive, to the Executive's last known
address as reflected in the Company's records, or to such other address as the
Executive shall designate by written notice to the Company. Any notice given
hereunder shall be deemed to have been given at the time of receipt thereof by
the person to whom such notice is given if personally delivered or at the time
of mailing if sent by registered or certified mail.
6.3 Entire Agreement; Amendment. This Agreement contains the entire
agreement of the parties hereto with respect to the terms and conditions of the
Executive's employment during the Term and supersedes any and all prior
agreements and understandings, whether written or oral, between the parties
hereto with respect to compensation due for services rendered hereunder. This
Agreement may not be changed or modified except by an instrument in writing
signed by both of the parties hereto.
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6.4 Waiver. The waiver of either party of a breach of any provision of
this Agreement shall not operate or be construed as a continuing waiver or as a
consent to or waiver of any subsequent breach hereof.
6.5 Headings. The Article and Section headings herein are for convenience
of reference only, do not constitute a part of this Agreement and shall not be
deemed to limit or affect any of the provisions hereof.
6.6 Governing Law. This Agreement shall be governed by, and construed and
interpreted in accordance with, the internal laws of the State of New York
without reference to the principles of conflict of laws.
6.7 Agreement to Take Actions. Each party hereto shall execute and deliver
such documents, certificates, agreements and other instruments and shall take
such other actions, as may be reasonably necessary or desirable in order to
perform her or its obligations under this Agreement or to effectuate the
purposes hereof.
6.8 Venue and Jurisdiction. Any action or proceeding seeking to enforce
any provision of, or based on any right arising out of, this Agreement may be
brought against any of the parties hereto in the courts of the State of New
York, County of New York or in the United States District Court for the Southern
District of New York, and each of the parties hereto consents to the
jurisdiction of such courts (and the appropriate appellate courts) in any such
action or proceeding and waives any objections to venue laid therein.
6.9 Survivorship. The respective rights and obligations of the parries
hereunder shall survive any termination of this Agreement to the extent
necessary effectuate to the intended preservation of such rights and
obligations.
6.10 Validity. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of
any other provision, or provisions of this Agreement, which shall remain in full
force and effect. If any provision of this Agreement is held to be invalid, void
or unenforceable, any court so holding shall substitute a valid, enforceable
provision that preserves, to the maximum lawful extent, the terms and intent of
this Agreement.
6.11 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.
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IN WITNESS WHEREOF, each of the parties hereto has dully executed this
Agreement effective as of the date first written above.
KROLL INC.
By: /s/ Xxxxxxx X. Xxxxxxxxx
--------------------------------------
Name: Xxxxxxx X. Xxxxxxxxx
Title: President
EXECUTIVE:
/s/ Xxxxxxx X. Xxxxx
------------------------------------------
XXXXXXX X. XXXXX
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EXHIBIT A TO EMPLOYMENT AGREEMENT
The Executive shall receive as compensation for her performance under the
attached Employment Agreement the following:
(a) Salary. The Company shall pay the Executive a base salary during the
Term, payable in accordance with the normal payment procedures of the Company,
subject to such withholdings and other normal employee deductions as may be
required by law, at the annual rate of not less than $160,000 The Board of
Directors of the Company shall review such compensation not less frequently than
annually during the Term, but any adjustment in Executive's salary may only be
upward. The Executive shall be entitled to a minimum four percent (4%) annual
increase in salary.
(b) Annual Bonus. In addition to base salary, the Executive shall earn
incentive compensation ("incentive compensation") and the Company shall pay each
fiscal year, or any fractional period thereof during the term, incentive
compensation in accordance with the plan approved by the Compensation Committee
and/or the Board of Directors of the Company each fiscal year.
(c) Benefits. The Executive shall participate during the Term in such
pension, life insurance, health, death, disability and major medical insurance
plans, and in such other employee benefit plans and programs, for the benefit of
the employees of the Company, as may be maintained, from time to time, during
the Term, in the Company's discretion, in each case to the extent and in the
manner available to other officers of the Company and subject to the terms and
provisions of such plans or programs. Nothing herein shall limit the Company's
ability to change, modify, cancel or amend any such pension, life insurance,
health, death, disability or major medical insurance plans.
(d) Vacation. The Executive shall be entitled to paid vacation in
accordance with Company policy during the Term.
(e) Stock Options. The Executive shall be granted Kroll Inc. stock options
under, and in accordance with the terms thereof, which options shall vest as
provided in the Plan. The Executive shall thereafter be eligible for grants
consistent with other senior executives and officers of Xxxxx Inc.
(f) Incentive Stock Awards. The Executive shall be granted restricted
stock shares, under, and in accordance with the terms thereof, which shares
shall vest as provided in the Plan. The Executive shall thereafter be eligible
for grants of incentive stock awards consistent with other senior executives and
officers of Xxxxx Inc.
(g) Executive shall be entitled to take 20 paid days per calendar year in
addition to other vacation, sick pay or personal time as provided by Company
policy.
AMENDMENT I
TO EMPLOYMENT AGREEMENT
Amendment I dated December 10, 2001 to Employment Agreement made and
entered into as of the 1st day of September 2000, by and between Xxxxx Inc., a
Delaware corporation (the "Company"), and Xxxxxxx X. Xxxxx (the "Executive")
(the "Employment Agreement").
The Employment Agreement is hereby modified such that the Company is
changed to Kroll Inc., an Ohio Corporation. All rights and obligations of
Xxxxx Inc. (Delaware) pursuant to the Employment Agreement are hereby assumed
by Kroll Inc. (Ohio).
Paragraph (a), Exhibit A to the Employment Agreement is hereby modified
such that Executive's annual base salary is increased to $170,000, effective
September 1, 2001. The remainder of paragraph (a) remains in effect.
All other provisions of the Employment Agreement shall remain in full
force and effect.
IN WITNESS WHEREOF, each of the parties hereto has duly executed this
Amendment effective as of the date first written above.
Xxxxx Inc. (Ohio)
By: /s/ Xxxxxxx X. Xxxxxxxxx
------------------------------------
Xxxxxxx X. Xxxxxxxxx
President and Chief Executive
Xxxxx Inc. (Delaware)
By: /s/ Xxxxxxx X. Xxxxxxxxx
------------------------------------
Xxxxxxx X. Xxxxxxxxx
President
Executive:
/s/ Xxxxxxx X. Xxxxx
---------------------------------------
Xxxxxxx X. Xxxxx
