EXHIBIT 10.5
Conformed Copy
EMPLOYMENT AGREEMENT
This EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into as of
the 9th day of July, 1997, by and among U.S. Timberlands Services Company,
L.L.C., a Delaware limited liability company (the "Company"), U.S. Timberlands
Company, L.P., a Delaware limited partnership ("UST"), New Services (as defined
below), a Delaware limited liability company, and Xxxxxx X. Xxxxxxxx
("Executive").
Recitals:
--------
A. The Company desires to employ Executive as its Executive Vice President
and Chief Operating Officer, and Executive desires to accept such employment, on
the terms and conditions set forth in this Agreement.
B. A new limited partnership, UST, has been formed and a new limited
liability company to be re-named "U.S. Timberlands Service Company, L.L.C."
("New Services"), has been formed to serve as the general partner of UST and as
the managing member of certain affiliated limited liability companies (together
with any subsidiary entities, the "UST Group") and upon the initial public
offering of the units representing limited partner interests in UST (the "IPO"),
New Services will assume the obligations of the Company hereunder as more fully
described in Section 12.2.
C. To induce Executive to accept such employment, UST desires to guarantee
the performance by the Company of its obligations hereunder.
Agreements:
----------
NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants hereinafter set forth, the parties agree as follows:
Section 1. Employment.
The Company hereby employs Executive, and Executive hereby accepts
employment with the Company, on the terms and conditions set forth in this
Agreement.
Section 2. Term.
Subject to the provisions of Section 6, Executive's employment by the
Company under this Agreement shall be for a term (the "Term") commencing on the
date hereof and expiring on December 31, 2002.
Section 3. Executive's Duties.
3.1 Duties. Executive shall hold the position of the Company's Executive
Vice President and Chief Operating Officer. Subject to the control of the board
of directors or other governing body of the Company (the "Board") and the Chief
Executive Officer, and any limitations set forth in the operating agreement of
the Company (the "Company Agreement") and in the agreements of limited
partnership of the partnerships within the UST Group, Executive shall, in
general, assist the Chief Executive Officer of the Company in the supervision
and control of all the day-to-day business and affairs of the Company and the
UST Group.
3.2 Performance of Duties. Executive shall perform Executive's duties and
responsibilities during the Company's normal business hours and at all other
times reasonably necessary to comply with the terms and conditions of this
Agreement. Executive shall devote the time and attention required to the
performance of Executive's duties and responsibilities for and on behalf of the
Company on the terms set forth in this Section 3.2. In addition, Executive may
from time to time serve as a consultant to and/or as a member of the board of
directors of other entities, provided that the Board in good faith determines
that such activities do not unreasonably interfere with the business of the
Company and the UST Group and the performance of Executive's duties hereunder.
The parties acknowledge that Executive currently serves as a board member or
advisory member of various civic and charitable organizations and may continue
to participate in these activities, subject to the limitations set forth in the
first two sentences of this Section 3.2; provided, however, that such continued
participation shall in no event be deemed a violation of the limitations of the
first two sentences of this Section 3.2 unless and until Executive shall have
been notified in writing thereof and afforded a reasonable opportunity to cure
the violation.
3.3 Principal Place of Employment. Executive's principal place of
employment shall be at the location of the Company's executive offices on the
date of this Agreement or at any other location which the Company establishes as
its executive offices. The Company shall provide Executive, at his principal
place of employment, with a private office, secretarial services and such other
facilities and support services as are appropriate to the positions of Executive
Vice President and Chief Operating Officer and necessary or appropriate in the
performance of Executive's assigned duties.
Section 4. Compensation and Other Benefits
Executive shall be entitled to receive from the Company the following
compensation and benefits for the services to be rendered by Executive
hereunder:
4.1 Salary and Bonuses. During the Term, the Company shall pay Executive an
annual base salary of $350,000, payable in equal installments during the year in
accordance with the Company's customary practices for senior executives ("Base
Salary"). The amount of Executive's Base Salary may be increased from time to
time by the Board, and, once increased, such higher amount shall become the Base
Salary for all purposes of this Agreement and may not thereafter be
2
reduced. The Company shall also pay to Executive, to the extent earned, an
annual cash bonus, not to exceed 100% of Base Salary, which shall be based on
the performance of Executive and the UST Group's business as determined annually
by the Compensation Committee of the Board in its discretion. The Company shall
have the right to deduct and withhold from Executive's compensation all taxes
and charges that are currently or that hereafter may be required by law to be so
deducted and withheld. The Company shall establish a program whereby Executive
may, at his option, defer receipt of any or all of the Base Salary and bonuses
otherwise payable to him under this Agreement. Any amounts so deferred shall be
placed in a "rabbi" trust, with a bank or other financial institution reasonably
satisfactory to Executive as trustee providing the maximum security to
Executive without causing the constructive receipt of income for federal income
tax purposes (the "Deferred Compensation Trust") and distributed, together with
interest or other earnings thereon, according to a payment schedule to be
designated by Executive.
4.2 Long Term Incentive Plan. Executive shall be entitled to participate
in the Long Term Incentive Plan ("LTIP") adopted by the Company on the terms and
conditions set forth therein. Concurrently with the IPO, Executive will be
granted Phantom Units (as defined in the LTIP) pursuant to the LTIP in an amount
equal to 12.5% of the number of Phantom Units initially available to be granted
under the LTIP and substantially in the form of the grant agreement attached
hereto as Attachment A.
4.3 Interest in the Company. Upon or as soon as reasonably practicable
following the IPO, Executive shall receive as a sign-on bonus an Interest (as
defined in the Company Agreement) in the Company which is equal to 5% of all of
the Interests to be initially issued. Executive shall be a Class B Member and
his Interest shall be subject to all of the terms of the Company Agreement that
are applicable to Class B Members (as defined therein), including, without
limitation, Section 8.4(b) thereof, which provides for the pro rata reallocation
to the then Class B Members of the Interests of Class B and Class C Members that
are acquired by the Company upon the occurrence of the events described in
Section 8.4(a) thereof.
4.4. IP Stock Option Payment. The Company acknowledges that Executive's
acceptance of employment under this Agreement has caused Executive to forfeit
his right to exercise certain in-the-money stock options granted to him by a
prior employer. In consideration thereof, the Company shall contribute to the
Deferred Compensation Trust $450,000 in three equal installments of $150,000 on
January 1, 1998, January 1, 1999 and January 1, 2000.
4.5 Participation in Benefit Plans. During the Term, Executive shall be
eligible to participate in all employee benefit plans and arrangements now in
effect or which may hereafter be established that are generally applicable to
other senior executives of the Company, including, without limitation, all life,
group insurance, and medical and dental care plans and all disability,
retirement, 401(k) and other employee benefit plans of the Company, as long as
any such plan or arrangement remains generally applicable to other senior
executives of the Company. Executive shall also be entitled to the same
vacation benefits as are generally available to senior executives of the
Company, provided in any case that Executive shall have a minimum of four weeks'
vacation per year.
3
4.6 Reimbursement of Expenses. The Company shall reimburse Executive for
reasonable expenses incurred by Executive in the performance of Executive's
duties hereunder in accordance with the policy of the Company for reimbursement
of expenses as adopted by the Board from time to time and generally applicable
to all senior executives of the Company. Executive shall furnish the Company
with the supporting documentation required under the Company's policy in
connection with the reimbursement of such expenses. The Company shall directly
pay all reasonable and ordinary costs of Executive moving his principal
residence from Dallas, Texas to the New York City metropolitan area. In the
event that the Company requires Executive to be based at a principal place of
employment outside of the New York City metropolitan area, the Company shall
directly pay all reasonable and ordinary costs of Executive moving his principal
residence to such principal place of employment.
Section 5. Membership on the Board
Executive shall be entitled to membership on the Board in accordance with
the terms of the Company Agreement as in effect on the date the Company
Agreement is first executed.
Section 6. Termination
6.1 Termination by the Company Without Cause. The Company may terminate
Executive's employment other than for Cause or Executive becoming Disabled (as
such terms are defined below) at any time during the Term if the Board
determines, in its sole discretion, that the continued employment of Executive
is not in the continued interests of the Company. In the event the Company
terminates Executive's employment pursuant to this Section 6.1, then Executive
shall be paid on termination (i) any unpaid Base Salary earned hereunder prior
to the termination date, (ii) all unused vacation time accrued by Executive as
of the termination date in accordance with the Company's vacation policy for
senior executives, (iii) all unpaid amounts of compensation in which Executive
is vested as of the termination date under any and all incentive compensation
plans or programs of the Company, (iv) any expenses in respect of which
Executive has requested, and is entitled to, reimbursement in accordance with
Section 4.6, (v) a prorated bonus for the year of such termination calculated
based on the bonus being equal to 100% of Base Salary, and (vi)(A) if such
termination occurs prior to July 1, 1999, an amount equal to the amount of Base
Salary that Executive would receive if Executive's employment had continued
without change for 24 months or (B) if such termination occurs on or after July
1, 1999, an amount equal to the amount of Base Salary that Executive would
receive if Executive's employment had continued without change through the
remainder of the Term or for 12 months, whichever is less (items (i) through
(iv) above being the "Earned Amounts").
6.2 Termination by the Company for Cause. The Company may terminate this
Agreement at any time, in the discretion of the Board, in the event of (i) any
conviction of Executive for a felony, (ii) any material breach by Executive of a
material written agreement between Executive and the Company or the UST Group,
including this Agreement, (iii) any breach caused by Executive of the Company
Agreement, the limited partnership agreement of any member of the UST Group, or
the charter or bylaws of any corporation within the UST Group, provided that
Executive had prior written notice of such agreement or other document and any
amendment thereto
4
(including a copy of the full text thereof) and provided that such breach has a
material adverse effect on the Company, (iv) any willful conduct by Executive
materially injurious to the Company or the UST Group or their respective
businesses, (v) any willful failure by Executive to comply with any material
policies, procedures, or directives of the Board, provided that, Executive shall
first be given notice from the Board of such failure and such failure shall not
have been cured within three days after such notice or, if such failure is not
capable of being cured within three days, Executive shall not have commenced and
be diligently pursuing in good faith efforts to cure such default, or (vi) any
fraud, misappropriation of funds, embezzlement, or other similar acts of
misconduct by Executive with respect to the Company or the UST Group. In the
event the Company terminates Executive's employment pursuant to this Section 6.2
for Cause, then Executive shall be paid on termination the Earned Amounts. For
purposes of this Agreement, no act or failure to act on Executive's part shall
be deemed "willful" unless done, or omitted to be done, in bad faith or without
the reasonable belief that the act or failure to act was in the best interests
of the Company or the UST Group. Any act or failure to act on the basis of
authority given by resolution duly adopted by the Board or on the basis of
advice given by legal counsel for the Company shall be conclusively presumed to
have been done, or omitted to be done, in good faith and in the best interests
of the Company or the UST Group. No termination of Executive's employment shall
be for Cause unless such termination shall have been authorized in advance by a
resolution adopted by the Board and delivered to Executive, following a meeting
of the Board at which Executive (together with his counsel) shall have been
afforded a reasonable opportunity to refute the purported grounds for
termination for Cause.
6.3 Termination Upon Death or Disability of Executive. This Agreement shall
terminate upon the death of Executive, or upon Executive becoming Disabled (as
defined below). In the event of a termination of this Agreement pursuant to this
Section 6.3, Executive (or Executive's estate, if applicable) shall be paid on
termination the Earned Amounts. For purposes of this Agreement, "Disabled" shall
mean that Executive shall have qualified for and be receiving benefits under the
Company's long-term disability insurance plan or, if there is no such plan, that
Executive shall have qualified for and be receiving disability benefits under
the federal Social Security Act.
6.4 Voluntary Resignation for Good Reason. Executive may resign Executive's
employment with the Company at any time and, if such resignation is for "Good
Reason", Executive shall be entitled to the same payments and benefits that
Executive would receive under Section 6.1(i)-(v) and 6.1(vi)(B) if Executive's
employment were being terminated by the Company other than for Cause or
Executive becoming Disabled. "Good Reason" shall mean any one or more of the
following: (i) failure of UST to complete its IPO on or before March 31, 1998;
(ii) failure of the Company to appoint or re-appoint Executive to the offices of
Executive Vice President and Chief Operating Officer or to more senior offices;
(iii) failure of the Company's members to elect or re-elect Executive to the
Board; (iv) failure of the Company, by act, omission, amendment to the
instruments governing its organization and operation or otherwise, to vest in
Executive the position, duties and responsibilities contemplated by this
Agreement; (v) failure by the Company to pay when due any portion of the
compensation payable to Executive hereunder; (vi) any material breach by the
Company of any material provision of this Agreement; (vii) if, prior to December
31, 2000, the Company relocates its principal executive offices more than 75
miles from the Borough of Manhattan in the City of New York and fails to provide
Executive within such 75-mile radius, with the items set forth in the second
sentence of Section 3.3; or (viii) on or following a Change of
5
Control (as such term is defined in the Company's LTIP, as the same may be
amended from time to time), either Executive is assigned any duties or
responsibilities materially inconsistent with, or diminished from, Executive's
duties and responsibilities with the Company and the UST Group immediately prior
to the Change of Control, or, Executive's status, duties, responsibilities,
titles or offices with the Company and the UST Group are materially diminished
from those in effect immediately prior to the Change of Control, as determined
in the good faith opinion of Executive; provided, however, Good Reason shall
exist with respect to a matter described in (ii) through (viii) above that is
capable of being corrected by the Company only if such matter is not corrected
by the Company within a reasonable period following its receipt of written
notice of such matter from Executive, and in no event shall a termination by
Executive occurring more than 60 days following any such written notice or the
event described in (i) above be for Good Reason.
Section 7. Covenant Not to Compete; Confidentiality
7.1 Noncompetition. Unless granted written permission by the Board and
subject to any further restrictions contained in the agreements of limited
partnership within the UST Group, while employed by the Company and for a period
of 12 months after the termination of such employment, Executive covenants that
Executive shall not (i) own (as a proprietor, partner, or stockholder of greater
than one percent of outstanding equity securities, interests or otherwise) an
interest in, or (ii) participate (as an officer, director, or in any other
capacity) in the management, operation, or control of, or (iii) perform services
as or act in the capacity of any employee, independent contractor, consultant,
or agent of any enterprise which engages in one or more of the following
activities in a state in which the Company or the UST Group is then conducting
business and in which the Company or the UST Group commenced conducting business
prior to the commencement of such activities therein by Executive:
(a) acquisition, exchange, operation or sale of timber-producing real
property or rights to harvest timber, a principal purpose of which is
producing logs or other forest products;
(b) harvesting of timber other than harvesting which is incidental to
the ownership or operation of real property not owned or operated for a
principal purpose of producing logs or other forest products;
(c) sale, exchange or purchase of logs other than sales, exchanges or
purchases which are incidental to the ownership or operation of real
property not owned or operated for a principal purpose of producing logs or
other forest products;
(d) acquisition or sale of any facilities used to convert logs into
lumber, plywood or other wood products;
(e) conversion of logs into lumber, plywood or other wood products;
(f) marketing and sale of lumber, plywood or other wood products;
6
(g) import or export of logs, lumber, plywood or other wood products
to or from the United States;
(h) manufacture, marketing or sale of manufactured, engineered, or
substitute wood products to the extent such products compete with products
produced by the Company or any member of the UST Group; or
(i) any and all other activities relating to the United States forest
products industry to the extent such activities compete with activities of
the Company or any member of the UST Group.
The noncompetition restrictions set forth in this Section 7.1 shall not apply in
the event of a termination of this Agreement pursuant to Section 6.1 or 6.4 nor,
in the event of Executive's termination due to Executive becoming Disabled in
accordance with Section 6.3, shall they apply following Executive ceasing to
be Disabled unless the Company offers to re-employ Executive on terms and
conditions at least as favorable as those set forth in this Agreement.
7.2 Confidentiality. Executive acknowledges that in the course of
Executive's employment by the Company, including as a member of the Board
following employment, if applicable, Executive will be furnished and have access
to certain information concerning the business, financial condition, operations,
assets and liabilities of the Company and the UST Group that is confidential or
proprietary in nature. All such information (irrespective of the form of
communication) is hereinafter collectively referred to as the "Information."
Until the later to occur of (i) the date of termination of Executive's
employment hereunder or (ii) the date of Executive's resignation or removal from
the Board, and for a period of 18 months thereafter, Executive agrees to keep
the Information confidential and agrees that Executive will use the Information
solely for the purpose of performing Executive's duties hereunder or as a member
of the Board or as otherwise authorized by the Company. This Agreement shall be
inoperative as to such portions of the Information which (a) are or become
generally available to the public other than as a result of a disclosure by
Executive in violation of this Agreement, (b) become available to Executive on a
non-confidential basis from a source other than the Company or the UST Group
that is not bound by an obligation of confidentiality to such entity or
entities, or (c) are required to be disclosed by an order or decree of a court
or other tribunal of competent jurisdiction, provided the Company is given
prompt notice of, and the opportunity to contest disclosure under, such order or
decree. Upon termination of this Agreement, Executive will return the
Information furnished by the Company or the UST Group and any documents that
contain, reflect, or are based upon, in whole or in part, the Information.
7.3 Equitable Relief. Executive acknowledges and agrees that it would be
difficult to measure damage to the Company or the UST Group from any breach by
Executive of Section 7.1 or 7.2 and that monetary damages would be an inadequate
remedy for any such breach. Accordingly, Executive agrees that if Executive
shall breach Section 7.1 or 7.2, the Company shall be entitled, in addition to
all other remedies it may have at law or in equity, to an injunction or other
appropriate orders or equitable relief to restrain any such breach, without
showing or proving any
7
actual damage sustained by the Company or the UST Group. Executive further
agrees to waive any requirement for the securing or posting of any bond in
connection with such remedies.
7.4 Executive's Acknowledgment. Executive hereby expressly acknowledges
and agrees that (i) the restrictions and obligations set forth in and imposed by
this Section 7 will not prevent Executive from obtaining gainful employment in
Executive's field of expertise or cause Executive undue hardship, and (ii) in
view and consideration of the substantial benefits Executive will receive from
the Company pursuant to this Agreement and the Company Agreement, the
restrictions and obligations imposed on Executive under this Section 7 are
reasonable and necessary to protect the legitimate business interests of the
Company and its members and the UST Group.
Section 8. Indemnification
(a) During the Term and for a period of six years thereafter, the Company
shall cause Executive to be covered by and named as an insured under any policy
or contract of insurance obtained by it to insure its directors and officers
against personal liability for acts or omissions in connection with service as
an officer or director of the Company or service in other capacities at the
request of the Company. The coverage provided to Executive pursuant to this
Section 8 shall be of a scope and on terms and conditions at least as favorable
as the coverage (if any) provided to any other officer or director of the
Company.
(b) To the maximum extent permitted under applicable law, during the Term
and for a period of six years thereafter, the Company shall indemnify Executive
against and hold Executive harmless from any costs, liabilities, losses and
exposures to the fullest extent and on the most favorable terms and conditions
that similar indemnification is offered to any director or officer of the
Company.
Section 9. Representations and Warranties
9.1 By Executive. Except for the conditions and limitations set forth in
the waiver of the employment agreement from Executive's prior employer, IP
Forest Resources Company, a copy of which is attached hereto as Exhibit B and
the terms and conditions of which the parties hereto agree Executive may comply
with without breaching the terms of this Agreement, Executive represents and
warrants to the Company that (i) Executive is under no contractual or other
restriction or obligation which would prevent the performance of Executive's
duties hereunder or interfere with the rights of the Company hereunder and (ii)
this Agreement has been duly executed and delivered by Executive, is the legal,
valid and binding obligation of Executive, and is enforceable against Executive
in accordance with its terms, except that no representation or warranty is made
with respect to the provisions of Section 7.
9.2 By the Company. The Company represents and warrants to Executive that
(i) it has all requisite limited liability company power and authority to
execute, deliver and perform this Agreement, (ii) all necessary proceedings of
the Company have been duly taken to authorize the execution, delivery and
performance of this Agreement, and (iii) this Agreement has been duly
authorized, executed and delivered by the Company, is the legal, valid and
binding obligation of the Company, and is enforceable against the Company in
accordance with its terms.
8
Section 10. Life Insurance
If requested by the Company, Executive shall submit to such physical
examinations by a physician and otherwise take such actions and execute and
deliver such documents as may be reasonably necessary to enable the Company to
obtain life insurance on the life of Executive for the benefit of the Company,
but in no event shall Executive's failure to qualify for such coverage, as a
result of the outcome of the medical examination or otherwise, be grounds for a
termination of Executive's employment.
Section 11. Notices
Any notice given pursuant to this Agreement shall be in writing and shall
be deemed given on the earlier of the date (i) the notice is personally
delivered to the party to be notified, (ii) that is three days after the notice
is mailed, postage prepaid, certified with return receipt requested, addressed
as follows, or at such other address as a party may from time to time designate
by notice to the other party, (iii) the notice is delivered at the party's
address via courier service, or (iv) the notice is received by fax or
telecopier:
To the Company: U.S. Timberlands Services Company, L.L.C.
000 Xxxxxxx Xxxxxx - Xxxxx 00-X
Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxxx X. Xxxxx
Facsimile No: (000) 000-0000
To Executive: Xxxxxx X. Xxxxxxxx
0000 Xxxxx Xxxxxx Xxxxx
Xxxxxx, Xxxxx 00000
Section 12. General Provisions
12.1 Remedies on Default. In the event either party breaches this
Agreement, the other party shall be entitled to pursue all remedies available at
law or in equity. Except as otherwise provided herein, in the event this
Agreement is breached by either party, the non-breaching party shall not
terminate this Agreement without notice and a reasonable opportunity to cure
such breach.
12.2 Assignment; Binding Effect. This Agreement shall be binding upon and
inure to the benefit of the Company and any successor of the Company, by merger
or otherwise. The parties understand and hereby acknowledge that upon the
consummation of the IPO and related transactions, the obligations of the Company
under this Agreement shall be assumed by New Services. It is further agreed that
the Interest in the Company provided for in Section 4.3 shall refer to an
Interest in New Services as successor to the Company, unless the Company remains
the general partner of UST upon the effectiveness of UST. The Company will
require any successor, other than New Services, which is already a party to this
Agreement, by agreement in form and substance
9
reasonably acceptable to Executive, 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 and following
such assumption all references to the Company herein shall be deemed to mean
such successor including New Services. Except as provided in the preceding
sentence, this Agreement, and the rights and obligations of the parties
hereunder, are personal and neither this Agreement, nor any right, benefit, or
obligation of either party hereto, shall be subject to voluntary or involuntary
assignment, alienation or transfer, whether by operation of law or otherwise,
without the prior written consent of the other party. Subject to the foregoing,
the provisions of this Agreement shall be binding upon and inure to the benefit
of the parties and their respective heirs, personal representatives,
administrators, successors, and permitted assigns.
12.3 Waiver. Failure of any party at any time to require performance of
any provision of this Agreement shall not limit such party's right to enforce
such provision, nor shall any waiver of any breach of any provision of this
Agreement constitute a waiver of any succeeding breach of such provision or a
waiver of such provision itself. No attempted or purported waiver of any
provision of this Agreement shall be effective unless set forth in writing and
signed by the party to be bound.
12.4 Amendment. This Agreement may not be modified or amended except by
the written agreement of the parties.
12.5 Severability. The agreements and covenants contained in this
Agreement are severable, and in the event any of the agreements and covenants
contained in this Agreement should be held to be invalid by any court or
tribunal of competent jurisdiction, this Agreement shall be interpreted as if
such invalid agreements and covenants were not contained herein; provided,
however, that if in any legal proceeding a court shall hold unenforceable the
covenants contained in Section 7 by reason of their extent or duration or
otherwise, any such covenant shall be reduced in scope to the extent required by
law and enforced in its reduced form.
12.6 Integration. This Agreement contains the entire agreement and
understanding of the parties with respect to the employment of Executive by the
Company and supersedes all prior and contemporaneous agreements (oral or
written) between them with respect to such subject matter.
12.7 Attorneys' Fees. If any legal action or other proceeding is brought
for the enforcement or interpretation of this Agreement, or because of an
alleged dispute or breach in connection with any of the provisions of this
Agreement, if Executive is the successful or prevailing party, Executive shall
be entitled to recover from the Company reasonable attorneys' fees and other
costs incurred by Executive in connection with that action or proceeding, and in
any petition for appeal or review therefrom, in addition to any other relief to
which Executive may be entitled. The Company shall reimburse Executive for the
reasonable attorney's fees and expenses Executive has incurred in the
negotiation of this Agreement.
12.8 Third Party Beneficiaries. This Agreement does not create, and shall
not be construed as creating, any rights enforceable by any person not a party
to this Agreement.
12.9 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.
10
12.10 Survival. In the event of termination of this Agreement by either
party, this Agreement shall become void and there shall be no liability on the
part of Executive or the Company except to the extent such termination results
from the breach by a party hereto of its obligations hereunder (in which case
Section 12.1 shall apply); provided that Sections 6.1, 6.2, 6.3, 6.4, 7, 8, 11,
12.7 and 12.11 shall survive the termination of this Agreement.
12.11 UST Guaranty. UST hereby irrevocably and unconditionally guarantees
to Executive the payment of all amounts and the performance of all other
obligations due from the Company in accordance with the terms of this Agreement
as and when due without requirement of presentment, demand of payment, protest
or notice of dishonor or nonpayment.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.
The Company: U.S. TIMBERLANDS SERVICES COMPANY, L.L.C.,
a Delaware limited liability company
By: /s/ Xxxx X. Xxxxx
--------------------------------------------
Name: Xxxx X. Xxxxx
Title: Managing Director
UST: U.S. TIMBERLANDS COMPANY, L.P.
a Delaware limited partnership
By: New Services, L.L.C., as general partner
By: /s/ Xxxx X. Xxxxx
---------------------------------------------
Name: Xxxx X. Xxxxx
Title: Chairman
New Services: NEW SERVICES, L.L.C.
a Delaware limited liability company
By: /s/ Xxxx X. Xxxxx
---------------------------------------------
Name: Xxxx X. Xxxxx
Title: Chairman
Executive: /s/ Xxxxxx X. Xxxxxxxx
---------------------------------------------
Xxxxxx X. Xxxxxxxx
11
