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Exhibit 10.3
AMENDED AND
RESTATED
EMPLOYMENT AGREEMENT
between
SWITCH AND DATA MANAGEMENT COMPANY LLC
and
ERNEST SAMPERA
TABLE OF
CONTENTS
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Page
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ARTICLE 1 DEFINITIONS; CONSTRUCTION
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1
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1.3.
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DEFINITIONS
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1
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1.4.
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CONSTRUCTION
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1
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ARTICLE 2 EMPLOYMENT AND DUTIES
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1
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2.3.
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EMPLOYMENT
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1
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2.4.
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POSITION
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1
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2.5.
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DUTIES AND SERVICES
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1
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2.6.
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DUTY OF LOYALTY
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2
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ARTICLE 3 STATED TERM AND TERMINATION OF
EMPLOYMENT
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2
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3.1.
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STATED TERM
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2
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3.2.
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THE COMPANY’S RIGHT TO TERMINATE
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2
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3.3.
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THE EMPLOYEE’S RIGHT TO
TERMINATE
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3
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3.4.
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EFFECT OF TERMINATION.
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3
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ARTICLE 4 COMPENSATION AND BONUSES
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5
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4.1.
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BASE SALARY
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5
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4.2.
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BONUSES
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5
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4.3.
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BENEFITS
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5
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ARTICLE 5 PROTECTION OF INFORMATION
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6
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5.1.
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DISCLOSURE TO AND PROPERTY OF THE
COMPANY
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6
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5.2.
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DISCLOSURE TO THE EMPLOYEE
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6
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5.3.
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NO UNAUTHORIZED USE OR DISCLOSURE
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6
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5.4.
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OWNERSHIP BY THE COMPANY
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7
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5.5.
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ASSISTANCE BY THE EMPLOYEE
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7
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5.6.
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REMEDIES
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8
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ARTICLE 6 STATEMENTS CONCERNING THE
COMPANY
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8
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6.1.
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NON-DISPARAGEMENT
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8
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ARTICLE 7 NONCOMPETITION
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8
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7.1.
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IN GENERAL
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8
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ARTICLE 8 MISCELLANEOUS
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9
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8.1.
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NOTICES
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9
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8.2.
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APPLICABLE LAW
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10
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8.3.
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NO WAIVER
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10
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8.4.
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SEVERABILITY
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10
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8.5.
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COUNTERPARTS
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10
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8.6.
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WITHHOLDING OF TAXES AND OTHER EMPLOYEE
DEDUCTIONS
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10
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8.7.
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HEADINGS
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10
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i
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8.8.
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GENDER AND PLURALS
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10
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8.9.
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ASSIGNMENT
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10
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8.10.
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AMENDMENT; ENTIRE AGREEMENT
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11
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8.11.
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ARBITRATION
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11
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ii
EMPLOYMENT
AGREEMENT
This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this
"Agreement") is entered into by and between Switch and Data
Management Company LLC, a Delaware limited liability company (the
"Company"), and Ernest Sampera (the "Employee") effective as of
December 18, 2008 (the "Effective Date").
BACKGROUND
The Company desires to employ the Employee, and the Employee
desires to be employed by the Company; in each case, on the terms
and conditions of this Agreement. Accordingly, in consideration of
the employment by the Company, and of the compensation and other
remuneration to be paid by the Company to the Employee for such
employment, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by the
Employee, the Company and the Employee agree as follows:
TERMS
ARTICLE 1
DEFINITIONS; CONSTRUCTION
1.1. Definitions . In addition to terms defined in the body of
this Agreement, capitalized terms used in this Agreement shall have
the meanings given to them in Exhibit A.
1.2. Construction . Unless the context requires
otherwise: (a) references to Articles and Sections refer to
articles and sections of this Agreement; (b) references to
Exhibits and Schedules are to exhibits and schedules attached to
this Agreement, each of which is made a part of this Agreement for
all purposes; and (c) references to money refer to legal
currency of the United States of America.
ARTICLE 2
EMPLOYMENT AND DUTIES
2.1. Employment . Subject to the terms of this Agreement, the
Company agrees to employ the Employee, and the Employee agrees to
be employed by the Company, beginning as of the Effective Date and
continuing until the last day of the Stated Term set forth in
Section 3.01 unless earlier terminated or extended in
accordance with this Agreement (such period of employment being
referred to herein as the "Term").
2.2. Position . During the Term, the Employee shall serve
as the Senior Vice President and Chief Marketing Officer, of the
Company. The Employee acknowledges that the Company is a management
company affiliated with Switch & Data Facilities Company,
Inc. (the "Parent") and that the Employee’s duties under this
Agreement will involve services on behalf of the Company, Parent
and the Parent’s subsidiaries (collectively, the
"Switch & Data Group").
2.3. Duties and Services . The Employee shall perform
diligently and to the best of his abilities the duties and services
appertaining to the office referred to in Section 2.2, as well
as such additional duties and services appropriate to such office
that the Board of Directors of the
Parent (the "Board") or the Chief Executive
Officer of the Parent (the "CEO") may determine from time to time.
The Employee’s employment shall also be subject to the
policies maintained and established by the Board and the CEO, as
the same may be amended from time to time. In furtherance of the
foregoing, the Employee shall devote his full business time, energy
and efforts to the business and affairs of the Company and its
affiliates and shall not engage, directly or indirectly, in any
other business or businesses, whether or not similar to that of the
Switch & Data Group, except with the consent of the Board,
which consent may be withheld by the Board in its sole discretion.
The foregoing notwithstanding, the parties recognize and agree that
the Employee may engage in passive personal investments and other
business activities that do not conflict with the business and
affairs of the Switch & Data Group or interfere with the
Employee’s performance of his duties hereunder.
2.4. Duty of Loyalty . The Employee acknowledges and
agrees that the Employee owes a fiduciary duty of loyalty, fidelity
and allegiance to act at all times in the best interests of the
Switch & Data Group and to do no act that would injure the
business, interests or reputation of the Company or any of its
subsidiaries or affiliates. In keeping with these duties, the
Employee shall make full disclosure to the Board of all business
opportunities pertaining to the Switch & Data
Group’s business and shall not appropriate for the
Employee’s own benefit any such business opportunities.
ARTICLE 3
STATED TERM AND TERMINATION OF EMPLOYMENT
3.1. Stated Term . The stated term (the "Stated Term") of this
Agreement shall commence on the Effective Date and end on December
31, 2009. If neither party gives written notice of termination at
30 days prior to the end of the Stated Term or any extension of the
Stated Term, this Agreement shall be automatically extended for a
period of one year (an "Extended Year Term") on the same terms and
conditions as then in effect.
3.2. The Company’s Right to Terminate .
Notwithstanding the provisions of Section 3.1, the
Employee’s employment shall terminate prior to the expiration
of the Stated Term as follows:
(a) the Employee’s employment shall automatically
terminate upon the Employee’s death; and
(b) the Company shall have the right to terminate the
Employee’s employment at any time for any of the following
reasons:
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(i)
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the Employee’s becoming
incapacitated by accident, sickness or other circumstance that
renders him Totally Disabled;
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(iii)
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for any reason not described in
Section 3.2(a) or 3.2(b)(i) or (ii) ("Without Cause
Termination").
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3.3. The Employee’s Right to
Terminate . The Employee may terminate his employment
hereunder for Good Reason at any time during the Term, in which
event the Employee shall resign from all of his positions with the
Company. For purposes of this Agreement, "Good Reason" shall mean
any of the following should they occur without the Employee’s
prior consent:
(a) The assignment to the Employee by the Company of duties
significantly inconsistent with the Employee’s position
designated in Section 2.2, or any significant reduction or
significant change in either position, stature, or job function,
except in connection with the termination of employment for Cause
or in connection with the termination of employment by reason of
the Employee becoming Totally Disabled; provided, that "Good
Reason" shall not occur pursuant to this Section 3.3(a) unless
and until the Employee first provides written notice to the Company
of such assignment, significant reduction or significant change
within 90 days following the effective date of such assignment,
significant reduction or significant change, and such assignment,
significant reduction or significant change remains uncorrected for
more than 30 days following written notice to the Company by the
Employee of same;
(b) A reduction by the Company in the Base Salary or benefits
received by the Employee in violation of this Agreement; provided,
that "Good Reason" shall not occur pursuant to this
Section 3.3(b) unless and until the Employee first provides
written notice to the Company of such reduction of Base Salary or
benefits within 90 days following the effective date of such
reduction, and such reduction remains uncorrected for more than 30
days following written notice to the Company by the Employee of
same; or
(c) The transfer of the Employee to a new principal business
address that is located more than fifty miles from the city limits
of Tampa, Florida; provided, that "Good Reason" shall not occur
pursuant to this Section 3.3(c) unless and until the Employee
first provides written notice to the Company of such transfer
within 90 days following the effective date of such transfer, and
such transfer remains uncorrected for more than 30 days following
written notice to the Company by the Employee of same. It is
understood that from time to time, on a temporary basis, the
Employee shall perform services for the Company at various
locations, worldwide.
The Employee’s termination of his employment shall not
constitute a termination for "Good Reason" unless the effective
date of such termination is within one year following the effective
date of the occurrence of the "Good Reason."
3.4. Effect of Termination .
(a) If Employee’s employment shall terminate by either
party giving notice pursuant to Section 2.1 upon the
expiration of the Stated Term, then Employee shall be paid all
earned but unpaid compensation and benefits, and all further
compensation and benefits to Employee hereunder shall terminate
contemporaneously with such termination of employment; provided, if
Employee complies with the provisions of Articles 6 and 7 hereof,
then, subject to subsection 3.4(d) below, Company shall continue to
pay Employee the Base Salary (as defined below) for a period of 6
months after the
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expiration of the Stated Term, in such
installments and on the same normal payroll dates as Company would
have paid in accordance with Company’s normal payroll
practice had such expiration not occurred; provided, to the extent
permitted by the applicable benefit plan or Company policy, provide
Employee with continued benefits that were in effect as of the
Termination of this Agreement for a period of six months, as if
Employee had remained an active employee of the Company hereunder
for such six months. In the event Employee is no longer eligible to
participate in a benefit plan that was in effect as of the
termination of this Agreement and such ineligibility is caused
solely as a result of the termination of this Agreement, then the
Company shall provide that Employee with substantially similar
benefits through commercial insurers or such other means as the
Company shall reasonably determine.
(b) If Employee’s employment shall terminate prior to
expiration of the Stated Term or an Extended Year Term pursuant to
Sections 3.2 or 3.3 then, upon such termination, regardless of the
reason therefor, Employee shall be paid all earned but unpaid
compensation and benefits, and all further compensation and
benefits to Employee hereunder shall terminate contemporaneously
with such termination; provided, that upon any termination for
"Good Reason" or upon any "Without Cause Termination," if Employee
complies with the provisions of Articles 6 and 7 hereof, then,
subject to subsection 3.4(d) below, Company shall (1) pay
Employee, in such installments and on the same normal payroll dates
as Company would have paid in accordance with Company’s
normal payroll practice had such termination not occurred, the Base
Salary (as defined below) for a period of twelve months after such
termination (the "Severance Term") (2) pay Employee the amount
of the prior year’s bonus (if any) in twelve equal monthly
installments during the Severance Term, as nearly as practicable,
on the same normal payroll dates that would have been applicable in
accordance with the Company’s normal payroll practice had
such termination not occurred, and (3) to the extent permitted
by the applicable benefit plan or Company policy, provide Employee
with continued benefits that were in effect as of the termination
of this Agreement for twelve months, as if Employee had remained an
active employee of the Company hereunder during the Severance Term.
With respect to subsection (3) above, in the event Employee is
no longer eligible to participate in a benefit plan that was in
effect as of the termination of this Agreement, and such
ineligibility is caused solely as a result of the termination of
this Agreement, then the Company shall provide Employee with
substantially similar benefits through commercial insurers or such
other means as the Company shall reasonably determine.
Notwithstanding the above, if a Change in Control of the Parent has
occurred and a Without Cause Termination or a termination for Good
Reason has occurred, and if the Employee is in compliance with
Articles 6 and 7 of this Agreement, then, subject to subsection
3.4(d) below, the Employee shall be entitled to a lump sum payment
equal to 1x times the sum of his Base Salary and his prior
year’s bonus (in any), in addition to the benefits
contemplated by Section 3.4(b)(3).
(c) In light of the difficulties in estimating the damages for
an early termination of this Agreement, Company and Employee hereby
agree that the payments, if any, to be received by Employee
pursuant to this Section 3.4 shall be received by Employee as
liquidated damages, and Employee shall not have any right to any
other payment or damages hereunder except for such liquidated
damages. Any lump sum payment due under this section shall be
delivered to the Employee no later than thirty days following the
Without Cause Termination or termination for Good Reason.
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(d) With respect to the payments provided by
subsections 3.4(a), (b) and (c) above (the "Cash
Severance Amount"), in the event the aggregate portion of the Cash
Severance Amount payable during the first 6 months of the Severance
Term would exceed an amount (the "Minimum Amount") equal to 2 times
the lesser of (i) the Employee’s annualized compensation
as in effect for the calendar year immediately preceding the
calendar year during which the Employee’s termination of
employment occurs, or (ii) the maximum amount that may be
taken into account under a qualified retirement plan pursuant to
Section 401(a)(17) of the Internal Revenue Code of 1986, as
amended (the "Code") for the calendar year during which the
Employee’s termination of employment occurs, then, to the
extent necessary to avoid the imposition of additional income taxes
or penalties or interest on the Employee under Section 409A of
the Code, (x) the Company shall pay a portion of the Cash
Severance Amount equal to the Minimum Amount over the first 6
months of the Severance Term, in equal installments as nearly as
practicable, on the normal payroll dates that would have been
applicable for the Employee had such termination not occurred, and
(y) the Company shall accumulate the portion of the Cash
Severance Amount that exceeds the Minimum Amount and that the
Employee would otherwise be entitled to receive during the first 6
months of the Severance Term and shall pay such accumulated amount
to the Employee in a lump sum on
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