EXHIBIT 10.48
EMPLOYMENT AGREEMENT
EMPLOYMENT AGREEMENT, effective as of December 1, 2002, by and between
USI INSURANCE SERVICES CORP. a Delaware corporation ("Company") and XXXXXXX X.
XXXXX ("Executive"). Company and Executive are referred to hereinafter as the
"Parties".
R E C I T A L S :
WHEREAS, the Company is a wholly owned subsidiary of U.S.I. Holdings
Corporation, a Delaware corporation ("USI") and;
WHEREAS, the Executive is presently employed by the Company pursuant
to a prior Employment Agreement effective as of January 1, 2000 (the "Original
Employment Agreement"); and
WHEREAS, the Company and Executive desire to terminate the Original
Employment Agreement and all respective rights and obligations therein except as
expressly provided herein; and
WHEREAS, the Company desires to employ the Executive on the terms and
subject to the conditions set forth herein, and Executive is willing to accept
such employment on such terms and conditions; and
WHEREAS, by virtue of such employment, Executive will have access to
Confidential Information of the USI Companies; and
WHEREAS, Executive acknowledges and agrees that the Company (on behalf
of itself and the USI Companies) has a reasonable, necessary and legitimate
business interest in protecting its own and the USI Companies' Confidential
Information, Client Accounts, relationships with Active Prospective Clients,
Goodwill and ongoing business, and that the terms and conditions set forth below
are reasonable and necessary in order to protect these legitimate business
interests.
NOW THEREFORE, in consideration of the representations, warranties,
covenants, and agreements contained herein, and for other good and valuable
consideration, the receipt and adequacy of which are conclusively acknowledged,
the Parties, intending to become legally bound, agree as follows:
A G R E E M E N T :
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1. DEFINITIONS
1.1 Specific Definitions. Capitalized terms not defined elsewhere
herein shall have the following meanings ascribed to them:
"Active Prospective Acquisition" means any business or enterprise
engaged in providing USI Business, (i) with which a specified Person (or any of
its agents) had engaged in negotiations (whether or not successfully) within the
24 months preceding a specified date, regarding the acquisition of, sale of
assets by, or merger or joint venture with, such business or enterprise or (ii)
which had been identified by a specified Person (or any of its agents) in the
business records of such specified Person within the 24 months preceding a
specified date, and actively considered as a candidate, for possible
acquisition, merger, sale of assets or joint venture.
"Active Prospective Client" means any Person, or a group of Persons,
(i) who or which had been identified with reasonable particularity by a
specified Person (or any of its agents) in the business records of such
specified Person within the 24 months preceding a specified date, with
reasonable particularity as a possible client or customer of such specified
Person, or (ii) to whom or which a specified Person (or any of its agents) had
communicated in the business records of such specified Person within the 24
months preceding a specified date, in writing or otherwise, with respect to the
provision of any services that such specified Person provides in the conduct of
its business.
"Change of Control" means the occurrence of any of the following:
(i) any transaction, or series of related transactions (including
any merger or consolidation), the result of which is that any "person" or
"group" (as such terms are defined for purposes of the Securities Exchange Act
of 1934, as amended), becomes the "beneficial owner" (as so defined in Rule
13-d3 under such Act, except that a Person shall be deemed to have "beneficial
ownership" of all securities that such Person has the right to acquire, whether
such right is currently exercisable or is exercisable only upon the occurrence
of a subsequent condition), directly or indirectly, of 50% or more of USI's
aggregate outstanding voting stock (measured by voting power rather than number
of shares);
(ii) USI consolidates with, or merges with or into, any Person, or
any Person consolidates with or merges with or into USI, in any such event
pursuant to a transaction in which any of the outstanding voting stock of USI is
converted into or exchanged for cash, securities or other property, other than
any such transaction where the voting stock of USI outstanding immediately prior
to such transaction is converted into or exchanged for voting stock of the
surviving or transferee Person constituting 50% or more (immediately after
giving effect to such conversion or exchange) of the aggregate outstanding
shares of such voting stock of such surviving or transferee Person or
(iii) substantially all of USI's assets or earnings power is sold in
any transaction or series of related transactions.
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"Client Account" means the account of any client (including, without
limitation, any retail insurance agent or broker, individual insured,
association and any member thereof, and any insurance carrier or other entity to
the extent third party administration claims processing or underwriting is
performed by such specified Person for such carrier or other entity) who or
which is serviced, as of a specified date, by a specified Person in connection
with such specified Person's business, regardless of whether such services are
provided by, or through the licenses of, such specified Person or any
shareholder, employee or agent of such specified Person.
"Confidential Information" means any information of a specified
Person, determined as of a specified date, that is not already generally
available to the public (unless such information has entered the public domain
and become available to the public through fault on the part of the Party to be
charged hereunder), all of which the Parties agree constitute trade secrets
under the governing trade secrets law, including but not limited to:
(i) the identity of any client (including, without limitation, any
retail insurance agent or broker, individual insured,
association and any member thereof, and any insurance carrier
or other entity to the extent third party administration claims
processing or underwriting is performed by such specified
Person for such carrier or other entity) whose account
constituted a Client Account of such specified Person at any
time within the 24 months preceding such specified date, as
well as the identity of any Active Prospective Client of such
specified Person as of such date;
(ii) the identity, authority and responsibilities of key contacts at
each such client and Active Prospective Client;
(iii) the service cost burden with respect to each such client and
Active Prospective Client;
(iv) the identities of markets or companies (including, but not
limited to, managed care programs, physician networks and the
surgical review board) from which insurance coverages or other
commitments, benefits or services for clients are obtained, the
surgical review boards of such companies and the commission
rates and/or fees with respect thereto;
(v) the types of consulting, third-party administration, employee
communication, investment management, managed care, human
resource and other services, and insurance coverages, provided
or to be provided specifically to any such client or Active
Prospective Client, and the internal corporate policies
relating thereto;
(vi) the specific insurance policies purchased by or for such
clients or Active Prospective Clients;
(vii) the expiration dates, commission rates, fees, premiums and
other terms and conditions of such policies;
(viii) the risk specifications and other characteristics, and claims
loss histories of such clients or Active Prospective Clients;
(ix) the nature of programs and plans, including their design,
funding and administration, demographic characteristics and any
other information supplied by, or developed for, such clients
or Active Prospective Clients;
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(x) operations manuals, prospecting manuals and guidelines, pricing
policies and related information, marketing manuals and plans,
and business strategies, techniques and methodologies;
(xi) financial information, including information set forth in
internal records, files and ledgers, or incorporated in profit
and loss statements, fiscal reports and business plans;
(xii) Active Prospective Acquisitions of such specified Person as of
such date, and all financial data, pricing terms, information
memoranda and due diligence reports relating thereto;
(xiii) Technology and e-commerce strategies, business plans and
implementations, inventions, algorithms, computer hardware,
software and applications (including but not limited to any
source code, object code, documentation, diagrams, flow charts,
associated with the development or use of the foregoing
computer software);
(xiv) all internal memoranda and other office records, including
electronic and data processing files and records; and (xv) any
other information constituting a trade secret under the
governing trade secrets law.
"Goodwill" means the expectation of continued patronage from Client
Accounts and new patronage from prospective clients.
"Person" means an individual, a partnership, a corporation, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization, a limited liability company, or a governmental entity (or any
department, agency, or political subdivision thereof).
"USI Company" means any USI Company to which Executive provides
services on behalf of the Company during the term of this Agreement.
"USI Business" means the businesses provided by any of the USI
Companies (including, without limitation, the providing of (i) insurance agency
and brokerage, and related insurance services, including, without limitation,
risk management and loss control, medical xxxx review, utilization review, cost
containment, analysis of loss exposures and designs, catastrophic case
management, loss reserves and rate reviews, performance of cash flow studies,
administration of risk funding and transfer techniques, captive company
formation, self-insurance consulting, reinsurance and excess stop loss (both
specific and aggregate) placement, management of insurance programs (including
programs with respect to membership associations and congregations), third party
administration, actuarial and administrative services for pension and health
plans, compensation programs and employee communications; (ii) managed care
consulting services and related legal assistance; (iii) human resource and
employee compensation consulting services and related legal assistance; and (iv)
any insurance or financial services relating to any of the foregoing).
"USI Companies" means USI, its subsidiaries (including the Company),
its "affiliates" and "associates" (as defined in Rule 12b-2 of the regulations
promulgated under the Exchange
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Act, without regard to whether any party is a "registrant" under such Act), and
any of their successors or assigns.
2. POSITION, RESPONSIBILITIES AND TERM
2.1. Executive's Position. On the terms and subject to the
conditions set forth in this Agreement, the Company shall employ Executive to
serve as Senior Vice President of Sales and Marketing of the Company and USI.
Executive shall report to the CEO of USI (the "USI CEO").
2.2 Executive's Responsibilities. The Executive shall perform all
duties customarily attendant to these positions and shall perform such services
and duties commensurate with such positions as may from time to time be
reasonably prescribed by the USI CEO.
2.3 No Conflicts of Interest. Executive further agrees that
throughout the period of his employment hereunder, he will not perform any
activities or services, or accept such other employment which would be
inconsistent with this Agreement, the employment relationship between the
Parties, or would interfere with or present a conflict of interest concerning
Executive's employment with USI or the Company; provided, that Executive shall
be permitted to serve on the boards of directors of such other companies as the
USI CEO shall approve, such approval not to be unreasonably withheld, and that
Executive may make personal investments and may act as a director and engage in
other activities for any charitable, educational, or other nonprofit
institution, as long as such investments and activities do not materially
interfere with the performance of Executive's duties hereunder. Executive agrees
to adhere to and comply with any and all business practices and requirements of
ethical conduct set forth in writing from time to time by the Company in its
employee manual or similar publication.
2.4. Term. Executive shall be employed for a five-year term
commencing on December 1, 2002, and ending on November 30, 2007, unless sooner
terminated in accordance with the provisions of Section 8 of this Agreement;
provided however that such employment shall be automatically extended on the
same terms and conditions as contained herein, unless the Company provides
Executive written notice, no later than 120 days prior to the then scheduled
termination of employment, of its intent not to extend such employment. The
foregoing term of employment shall be referred to hereinafter as the "Term".
3. ACCEPTANCE
3.1 Executive hereby accepts such employment and agrees that
throughout the period of employment hereunder, Executive will devote his full
business time, attention, knowledge and skills faithfully, diligently and to the
best of his ability, in the furtherance of the business of the USI Companies.
4. COMPENSATION
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4.1. Base Salary. As compensation for the services to be rendered by
Executive hereunder, the Company agrees to pay Executive, and Executive agrees
to accept, a base salary ("Base Salary") during employment hereunder at the
annual rate of not less than $339,800; provided, however, that the USI CEO may
determine to increase but not decrease the Executive's Base Salary in such
amount as the USI CEO may determine. The Base Salary shall be payable in equal
installments by the Company according to its normal payroll practices.
4.2 Performance Bonus. As additional compensation for the services
to be rendered by Executive hereunder, Executive shall be eligible to receive
from time to time during the term hereof, a bonus under the USI Management
Incentive Plan, as may be amended from time to time at the sole discretion of
the Board or Compensation Committee of the Board (the "USI Plan"). As Senior
Vice President of Sales and Marketing of the Company, Executive is entitled to a
percentage of Base Salary award which is in turn based upon the USI Companies
performance criteria set forth in the USI Plan. At no time during the Term
hereof will Executive's "target" award opportunity be any less than 60% of
Executive's then Base Salary and will Executive's "threshold" award opportunity
be any less than 48% of Executive's then Base Salary. Any awards under the USI
Plan which exceed target performance will be in such amount as the USI CEO may
determine, and any decision of USI CEO shall be in his sole and unreviewable
discretion. Any award under the USI Plan will be paid to the Executive no later
than 90 days following the end of the performance year.
4.3 2002 Equity Incentive Plan. As additional compensation for the
services to be rendered by Executive hereunder, Executive shall be eligible to
receive from time to time during the Term hereof, stock based compensation
awards under the 2002 Equity Incentive Plan, as may be amended from time to time
at the sole discretion of the Board or Compensation Committee of the Board.
Moreover, as a specific additional consideration for transitioning to
Executive's new responsibilities under this Agreement, Executive will receive a
grant of 40,000 options to purchase USI stock pursuant to a Notice of Stock
Option Grant from USI.
4.4 Benefits. In addition to such compensation, Executive shall be
entitled to the benefits which are afforded generally, from time to time to USI
executive employees. Notwithstanding the foregoing, nothing contained in this
Agreement shall require the USI Companies to establish, maintain or continue any
of the group benefits plans already in existence or hereafter adopted for the
employees of the USI Companies, or restrict the right of the USI Companies to
amend, modify or terminate such group benefit plans in a manner which does not
discriminate against Executive as compared to other executive employees of USI
Companies.
4.5 Vacation. Executive shall be entitled to vacation time and
holidays as are provided in general to executive employees of the USI Companies,
in accordance with usual practices and procedures, but shall in any event, be
entitled to no less than four weeks of vacation per year. Without limiting the
foregoing, Executive shall not be entitled to any additional compensation for
any unused vacation time.
5. EXPENSES
5.1 The Company shall reimburse Executive, in accordance with
Company
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policy, for all expenses reasonably and properly incurred by Executive in
connection with the performance of Executive's duties hereunder and the conduct
of the business of the Company, upon the submission to the Company (or its
designee) of appropriate vouchers therefor. Additionally, the Executive shall be
provided with up to $1000.00 a month for an automobile allowance during his
employment with the Company. The Company shall provide Executive with up to
$1000 per month for club and other organizational memberships. The Company shall
provide Executive with up to $3200.00 per year for term life insurance.
6. CONFIDENTIAL INFORMATION AND PROPERTY
6.1. Property of the Company. Executive acknowledges and agrees that
all premiums, commissions, fees and other forms of compensation, and all
Confidential Information of the USI Companies relating thereto, which Executive
generates in the course of providing, directly or indirectly, any USI Business
during the Term hereof (including such items resulting from or relating to
services provided by Executive to the USI Companies), shall be the sole property
of the USI Companies, as the case may be.
6.2. Confidentiality during Term. During the Term hereof, Executive
will not use, or disclose to any Person, any Confidential Information
(determined as of any date during the Term hereof) of any USI Company, except
(a) in the normal course of business on behalf of such USI Company (b) with the
prior written consent of such USI Company or (c) to the extent necessary to
comply with law or the valid order of a court of competent jurisdiction, in
which event Executive shall notify such USI Company as promptly as practicable
(and, if possible, prior to the making of such disclosure). In addition,
Executive will use reasonable efforts to prevent any such prohibited use or
disclosure by any other person.
6.3. Confidentiality following Term. Following the Term hereof,
Executive will not use, or disclose to any Person, any Confidential Information
(determined as of the date of termination of Executive's employment with the
Company) of any USI Company, except (a) with the prior written consent of such
USI Company or (b) to the extent necessary to comply with law or the valid order
of a court of competent jurisdiction, in which event Executive shall notify such
USI Company as promptly as practicable (and, if possible, prior to the making of
such disclosure). In addition, Executive will use reasonable efforts to prevent
any such prohibited use or disclosure by any other person.
7. NON-SOLICITATION, NON-COMPETITION AND CONFLICTS OF INTEREST
7.1. Non-Solicitation. Except in the normal course of business on
behalf of any USI Company, Executive agrees that he will not, directly or
indirectly, (a) solicit, sell, provide or accept any request to provide, or
induce the termination, cancellation or non-renewal of, any USI Business from or
by any person, corporation, firm or other entity whose account constituted a
Client Account of such USI Company, at any time within the 24 months preceding
the earlier of the date of such act or the date of termination of Executive's
employment with USI and the Company or (b) solicit, offer, negotiate or
otherwise seek to acquire any interest in any Active
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Prospective Acquisition of such USI Company, determined as of the earlier of the
date of such act or the effective date of termination of Executive's employment
with USI and the Company. The restrictions contained in this Section 7.1 shall
apply throughout the Term hereof and thereafter until two (2) years after the
effective date on which Executive's employment with USI and the Company, or
there respective successors in interest, terminates.
7.2. Non-Competition. In consideration of the payments and benefits
to be received by Executive under this Agreement and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
Executive, Executive agrees that, during the Non-Competition Period (as
hereinafter defined), Executive will refrain from carrying on any business,
directly or indirectly, which provides any USI Business, except (i) in the
normal course of business on behalf of any USI Company during the term of
Executive's employment under this Agreement or (ii) with the Company's prior
written consent. The term "carrying on any business" shall mean to act as a sole
proprietor, partner, member of a limited liability company, stockholder,
officer, director, employee, manager, trustee, agent, advisor, joint venturer,
or consultant of, with or to, any business, or otherwise to own, manage,
operate, control or participate in the ownership, management, operation or
control of, or engage in, any business. The Non-Competition Period shall mean
the period beginning on the effective date of this Agreement and ending on the
following date: (1) the first anniversary of the date of Executive's termination
of employment in the case of a termination of Executive's employment pursuant to
Section 8.2, or 8.4; or (2) the last day of the period for which payments are
made to Executive pursuant to Section 8.1 or 8.3. It is expressly agreed that
this Section 7.2 is not intended to restrict or prohibit the ownership by
Executive of stock or other securities of a publicly-held corporation in which
Executive does not (a) possess beneficial ownership of more than 5% of the
voting capital stock of such corporation or (b) participate in any management or
advisory capacity. In addition, it is also agreed that this Section 7.2 shall
not prohibit Executive from serving as a director pursuant to the terms of
Section 2.3 during the term of his employment under this Agreement. It is the
desire and intent of the parties that the provisions of this Section 7.2 shall
be enforced under the laws and public polices applied in each jurisdiction in
which enforcement is sought. Accordingly, if any particular provision of this
Section 7.2 is adjudicated to be invalid or unenforceable or shall for any
reason be held to be excessively broad as to duration, geographic scope,
activity or subject, it shall be construed by limiting and reducing it, so as to
be enforceable to the extent compatible with applicable laws and such provision
shall be deemed modified and amended to the extent necessary to render such
provision enforceable in such jurisdiction. If Executive challenges the
enforceability of the provisions of this Section 7.2 in whole or in part,
Executive shall, immediately upon such challenge, forfeit any right to any
payments and benefits under this Agreement that he has not already received.
7.3. No Hiring. Executive further agrees that he will not, directly
or indirectly, solicit the employment, consulting or other services of any other
employee or independent producer of any USI Company or otherwise induce any of
such employees to leave such USI Company's employment or to breach an employment
or independent producer agreement therewith. The restrictions contained in this
Section 7.3 shall apply throughout the Term hereof and thereafter until two (2)
years following the date on which Executive's employment with USI and the
Company or their respective successors in interest terminates.
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7.4 Non-disparagement. Subject to obligations under applicable laws
and regulations, in the event of a termination of this Agreement, neither the
Executive nor any of the USI Companies or their senior officers or directors,
shall publicly make any statements or comments that disparage the reputation of
the Executive, or any of the USI Companies or their senior officers or
directors.
7.5. Miscellaneous. Without limiting the provisions of Section 16,
in the event of any assignment by the Company permitted under such section, the
restrictive periods contained in this Section 7 shall be determined by reference
to the termination of Executive's employment with any permitted assignee of the
Company.
8. TERMINATION
8.1 Termination by the Company Without Cause; Failure to Extend.
Company shall have the right to terminate Executive's employment hereunder
"without cause" by giving Executive written notice to that effect. Any such
termination of employment shall be effective on the date specified in such
notice. The Company may also give notice of its election not to extend
Executive's employment hereunder for an additional Term. In the event of such
termination, or in the event of a failure to extend Executive's employment
hereunder for an additional Term under the same terms and conditions, the
Company shall (i) pay Executive his unpaid Base Salary through the effective
date of termination and any business expenses remaining unpaid on the effective
date of the termination for which Executive is entitled to be reimbursed under
Section 5 of this Agreement, (ii) pay Executive an amount per month equal to
one-twelfth the sum of (1) his then adjusted Base Salary plus (2) an amount
equal to Executive's target bonus set by the Board that he would have otherwise
received (but for such termination) for the year in which such termination
occurred for the period commencing on the date following the date of termination
and ending on the date which is twenty four (24) months following the effective
date of termination; and (iii) either continue to provide Executive with
healthcare coverage under the plan in which Executive participates immediately
prior to the effective date of such termination (where Executive remains
eligible to participate, and in accordance with the terms thereof) or in the
event Executive no longer remains eligible to participate under such healthcare
plan, to reimburse Executive for the amount of the premium Company would have
paid for Executive's healthcare coverage had Executive remained employed
hereunder, in each case until (A) the date which is twenty four (24) months
following the effective date of termination or (B) the commencement of
Executive's coverage under another employer's healthcare plan; provided,
however, that without limiting any other remedy available hereunder, all
payments described in the Section 8.1 shall immediately terminate upon an
arbitrator's or judge's determination that Executive has breached the provisions
of Section 6 or 7 hereof.
8.2 Termination by the Company for Cause. The Company shall have
the right to terminate this Agreement and Executive's employment hereunder "for
cause" by giving Executive written notice to that effect. Any such termination
of employment shall be effective on the date specified in such notice. In the
event of such termination, the Company shall pay to Executive (a) his unpaid
Base Salary through the effective date of the termination, and (b) any business
expenses remaining unpaid on the effective date of the termination for which
Executive
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is entitled to be reimbursed under Section 5 of this Agreement. For the purpose
of this Agreement, "for cause" shall mean (i) commission of a willful and
material act of dishonesty in the course of Executive's duties hereunder, (ii)
conviction by a court of competent jurisdiction of a crime constituting a felony
or conviction in respect of any act involving fraud, dishonesty or moral
turpitude, (iii) Executive's performance under the influence of controlled
substances, or continued habitual intoxication, during working hours, after the
Company shall have provided written notice to Executive and given Executive 30
days within which to commence rehabilitation with respect thereto, and Executive
shall have failed to commence such rehabilitation or continued to perform under
the influence after such rehabilitation, (iv) frequent or extended, and
unjustifiable (not as a result of incapacity or disability) absenteeism which
shall not have been cured within 90 days after the Company shall have advised
Executive in writing of its intention to terminate Executive's employment in
accordance with the provisions of this Section 8.2, in the event such condition
shall not have been cured, (v) Executive's personal, willful and continuing
misconduct or refusal to perform duties and responsibilities described in
Section 1 above, or to carry out directives of the USI CEO, which, if capable of
being cured, shall not have been cured within 90 days after the Company shall
have advised Executive in writing of its intention to terminate Executive's
employment in accordance with the provision of this Section 8.2 or (iv) material
non-compliance with the terms of this Agreement, including but not limited to
any breach of Section 6 or Section 7 of this Agreement.
8.3 Termination by Executive for Good Reason. Executive shall have
the right to terminate this Agreement and his employment hereunder for "good
reason," if (i) there is a Change of Control, and, within one year following
such Change of Control, Executive terminates his employment hereunder due to the
material diminution of his duties and responsibilities, as set forth herein, or
(ii) default by the Company in the payment of or otherwise failure by the
Company to pay in a timely fashion after demand therefor any material sum due to
the Executive pursuant to this Agreement; provided that Executive shall give the
Company prior written notice of the reason therefore and a period of 30 days
following receipt by the Company of such notice shall have lapsed and the
matters which constitute or give rise to such "good reason" shall not have been
cured or eliminated by the Company. In the event of such termination, Executive
shall be entitled to receive the same payments and benefits as would be provided
under Section 8.1 in the event of a termination without cause.
8.4 Termination by Executive Without Good Reason. Executive shall
have the right to terminate this Agreement and his employment hereunder by
giving the Company not less than ninety (90) days prior written notice to that
effect. The termination of employment shall be effective on the date specified
in such notice. In the event that such notice is given, the Company may require
Executive to leave immediately, in which event, Executive must be compensated
under this Agreement for the notice period in a manner commensurate to the
compensation Executive would have received during the notice period had his
employment not been terminated by him. In the event of such termination,
Executive shall be entitled to receive the same payments as would be provided
under Section 8.2 in the event of termination for cause.
8.5 DEATH, INCAPACITATION OR DISABILITY.
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a. Death. If Executive dies during his employment
hereunder, this Agreement shall terminate upon the date of Executive's death. In
the event of any such termination, the Company shall pay to Executive's
representative or his estate any unpaid Base Salary through the effective date
of termination and any business expenses remaining unpaid on the effective date
of the termination for which Executive is entitled to be reimbursed under
Section 5 of this Agreement.
b. Incapacitation or Disability. In the event that
Executive is incapacitated or disabled by reason of illness or physical or
mental disability from performing Executive's duties hereunder (which shall be
deemed to have occurred (i) when Executive has receive total disability benefits
under the Company's long-term group disability policy for a continuous period of
six (6) months or, if no policy is then in effect, (ii) when such incapacity or
disability shall have existed for either (A) one continuous period of six months
or (B) a total of seven months out of any twelve consecutive months), the
Company shall have the right to terminate Executive's employment hereunder by
giving Executive 30 days prior written notice to that effect. In the event of
any such termination, the Company shall pay to Executive any unpaid Base Salary
through the effective date of termination and any business expenses remaining
unpaid on the effective date of the termination for which Executive is entitled
to be reimbursed under Section 5 of this Agreement.
9. REMEDIES
9.1. Equitable Relief. Executive acknowledges that the services to
be rendered by him are of a special, unique and extraordinary character and that
it would be extremely difficult or impracticable to replace such services, that
the material provisions of this Agreement are of crucial importance to the
Company and that any damage caused by the breach of Sections 6 or 7 of this
Agreement would result in irreparable harm to the business of the Company for
which money damages alone would not be adequate compensation. Accordingly,
Executive agrees that if he violates Sections 6 or 7 of this Agreement, the
Company shall, in addition to any other rights or remedies of the Company
available at law, be entitled to equitable relief in any court of competent
jurisdiction, including, without limitation, temporary injunction and permanent
injunction.
9.2 Arbitration. The Parties agree that any controversy, claim or dispute
arising out of or relating to Executive's employment hereunder, or the
termination of such employment, shall be settled by arbitration before a
mutually selected arbitrator to be held in the State of New York in accordance
with the Commercial Arbitration Rules of the American Arbitration Association
then in effect. The Parties agree that Executive's sole remedy for a breach of
this Agreement shall be monetary damages. Judgment may be entered on the
arbitrator's award in any court having jurisdiction, and the Parties consent to
the jurisdiction of the courts of the State of New York for this purpose. The
arbitrator shall determine which Party or Parties shall be entitled to costs and
expenses (including reasonable attorneys' fees) resulting from such dispute or
controversy. If such controversy, claim or dispute involves a claim (including,
without limitation, claims, arising under Section 6 or 7) for injunctive or
other equitable relief, and suit or cross-claim for such relief is filed in a
court of competent jurisdiction, the litigation shall be bifurcated to the
extent feasible, to the end that all issues other than those injunctive or
equitable 11
issues required to be determined by the court shall be determined by arbitration
as hereinabove required.
10. WITHHOLDING
10.1 Each payment to Executive under this Agreement shall be reduced
by any amounts required to be withheld by the Company from time to time under
applicable laws and regulations then in effect.
11. ENTIRE AGREEMENT; NO AMENDMENT
11.1 No agreements or representations, oral or otherwise, express or
implied, have been made by either Party, with respect to Executive's employment
by any USI Company, that are not set forth expressly in this Employment
Agreement. Except as provided for hereinafter, this Agreement supersedes and
cancels any prior agreement entered into between Executive and the Company or
its predecessors relating to Executive's employment by any USI Company,
including, but not limited to, the Original Employment Agreement.
Notwithstanding the foregoing, the terms and conditions of the Original
Employment Agreement shall remain applicable with respect to Executive's
employment during the portion of the Term (as defined therein) ended November
30, 2002. No amendment or modification of this Agreement shall be valid or
binding unless made in writing and signed by the Party against whom enforcement
thereof is sought.
12. NOTICES
12.1 All notices, demands and requests of any kind which either
Party may be required or may desire to serve upon the other Party hereto in
connection with this Agreement shall be delivered only by courier or other means
of personal service, which provides written verification of receipt, or by
registered or certified mail return receipt requested, or by telecopy, provided
that the telecopy is promptly followed by delivery of hard copy of such notice
which provides written verification of receipt (each, a "Notice"). Any such
Notice delivered by registered or certified mail shall be deposited in the
United States mail with postage thereon fully prepaid, or if by courier then
deposited with the courier. All Notices shall be addressed to the Parties to be
served as follows:
(a) If to the Company, at
USI Insurance Services Corp.
00 Xxxxxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxxxxxxx, XX 00000
Attn: Chief Executive Officer
Telephone: (000)000-0000
Facsimile: (000)000-0000
Copy to:
USI Insurance Services Corp.
00 Xxxxxxxxxx Xxxxxx, 00xx Xxxxx
00
Xxx Xxxxxxxxx, XX 00000
Attn: General Counsel
Telephone: (000)000-0000
Facsimile: (000)000-0000
(b) If to the Executive at,
Xxxxxxx X. Xxxxx
000 X. Xxxxxxxx Xx.
Xxxxxxxx Xxxx, XX. 00000
Either of the Parties hereto may at any time and from time to time
change the address to which notice shall be sent hereunder by notice to the
other Party given under this Section. All such notices, requests, demands, and
other communications shall be effective when received at the respective address
set forth above or as then in effect pursuant to any such change.
13. WAIVERS
13.1 No waiver of any default or breach of this Agreement shall be
deemed a continuing waiver or a waiver of any other breach or default.
14. GOVERNING LAW
14.1 THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS
OF LAW.
15. SEVERABILITY
15.1 The provisions of this Agreement are intended to be interpreted
in a manner which makes them valid, legal, and enforceable. In the event any
provision of this Agreement is found to be partially or wholly invalid, illegal
or unenforceable, such provision shall be modified or restricted to the extent
and in the manner necessary to render it valid, legal, and enforceable. It is
expressly understood and agreed between Executive and the Company that such
modification or restriction may be accomplished by mutual accord between the
Parties or, alternatively, by disposition of an arbitrator or a court of law. If
such provision cannot under any circumstances be so modified or restricted, it
shall be excised from this Agreement without affecting the validity, legality or
enforceability of any of the remaining provisions.
16. ASSIGNMENT
16.1 Executive may not assign any rights (other than the right to
receive income hereunder) under this Agreement without the prior written consent
of the Company. This Agreement may be assigned without the consent of Executive,
and the provisions of this Agreement shall be binding upon and shall inure to
the benefit of the assignee hereof.
13
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to
be duly executed as of the day and year first above written.
USI INSURANCE SERVICES CORP.
By: /s/ Xxxxx X. Xxxxxx
--------------------------------
Name: Xxxxx X. Xxxxxx
---------------------------
Title: Chairman, President & CEO
---------------------------
/s/ Xxxxxxx X. Xxxxx
--------------------------------
XXXXXXX X. XXXXX
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