Exhibit 10.1
EXECUTIVE EMPLOYMENT
AGREEMENT
THIS EXECUTIVE EMPLOYMENT
AGREEMENT (the “
Agreement ”), is entered into as of October 28,
2008 (the “ Effective Date ”) by and between
William D. Albers, a resident of the State of California (“
Executive ”), and Heeling Sports Limited, a Texas
limited partnership (“ Company ”, and together
with Executive, the “ Parties ” and each a
“ Party ”).
WHEREAS , Company is engaged in the commercial
enterprise of selling wheeled footwear, other athletic footwear,
and related products and services (the “ Business
”);
WHEREAS , Company recognizes that Executive’s
substantial skills and expertise will be useful to the Business and
desires to provide for the employment of Executive on the terms and
conditions provided in this Agreement;
WHEREAS , Executive is willing to commit to serve
Company in the capacity and on the terms and conditions provided in
this Agreement; and
WHEREAS , in order to effect the foregoing, Company and
Executive wish to enter into an employment agreement on the terms
and conditions set forth below;
NOW, THEREFORE
, in consideration of the premises
and the mutual promises and agreements contained herein, the
Parties, intending to be legally bound, hereby agree as
follows:
1.
Scope of
Employment.
1.1
Employment . Subject to the terms and
conditions set forth herein, Company agrees to employ Executive
during the Employment Term (as defined below), and Executive hereby
commits to accept such employment as set forth in
Section 4.1 . Executive will hold the office of
“Vice President of Sourcing” (“ VP of
Sourcing ”) during the Employment Term, and will perform
the services described in Section 3 (the “
Services ”) as assigned to Executive by the Board of
Directors (the “ Board ”) of Heelys, Inc.,
a Delaware corporation (“ Parent ”), its
designee, the Chief Executive Officer of Parent (“ CEO
”), or the CEO’s designee.
1.2
Place of Performance . Executive will
perform the Services based out of an office in China, but Executive
will be required to travel as reasonably required for performance
of the Services.
2.
Representations, Warranties,
Covenants, and Acknowledgements . Executive hereby represents, warrants,
covenants, and acknowledges to Company as follows:
2.1
No Conflict or Breach . The execution,
delivery, and performance of this Agreement by Executive does not
and will not conflict with, breach, violate, or cause a default
under any contract, agreement, instrument, order, judgment, or
decree by which Executive is bound.
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2.2
Disclosed Previous Agreements . As of the Effective
Date, Executive has not violated any lawful obligations to any
previous employer. Executive acknowledges Company’s
instructions not to breach any such lawful obligations.
2.3
No Use of Previous Employer Information .
During
the Employment Term and thereafter, Executive will not use or
disclose to Company or Parent, or to any affiliate, subsidiary,
investor, owner, shareholder, franchisee, franchisor or other
related entity (each a “ Related Entity ”) of
Company, or to any other Person (as defined below), any
confidential or proprietary information or trade secrets of any of
Executive’s previous employer(s) or any Related Entity
of such employer(s), and will not bring onto Company’s
premises, or access, such confidential or proprietary information
or trade secrets, unless consented to in writing by such
employer(s) or Related Entity and then only with the prior
written authorization of Company. For purposes of this
Agreement, “ Person ” means an individual, a
partnership, a limited liability company, a corporation, an
association, a joint stock company, a trust, a joint venture, an
unincorporated organization, and/or a governmental entity or any
department, agency, or political subdivision thereof.
2.4
Understands Agreement . Executive
acknowledges that Executive has read this Agreement before signing
it, has had the opportunity to consult with and be advised by
counsel about it, and fully understands its purposes, terms, and
provisions, which Executive hereby expressly acknowledges to be
reasonable in all respects.
2.5
Material Breach . Executive acknowledges
that any breach of Section 2 (including subparts) by
Executive will constitute a material breach of this
Agreement.
3.
Duties and
Responsibilities .
3.1
VP of Sourcing . During the Employment Term,
Executive’s duties and responsibilities will be those
typically performed by a VP of Sourcing of a nationwide commercial
enterprise in the Business, and otherwise as reasonably and
lawfully directed by the Board, its designee, the CEO or the
CEO’s designee. Company may adjust the duties and
responsibilities of the Executive notwithstanding the specific
title set forth in Section 1.1, based upon Company’s
needs from time to time. Executive will devote substantially
all of Executive’s business time, energy, and skill to
performing the Services and will perform all obligations hereunder
diligently, faithfully, and to the best of Executive’s
abilities, except during times of vacation, illness, incapacity, or
other approved leave. It shall not be a violation of this
Agreement for the Executive to serve on industry, civic, community,
charitable, religious, educational or for-profit boards so long as
such service is with the approval of the Board or the CEO and does
not unreasonably interfere with the Executive’s performance
of his duties hereunder. Executive shall strictly adhere to
and obey all applicable policies and practices now in effect or
subsequently promulgated or revised governing the conduct of
employees of Company. In the event of conflict or
inconsistency between this Agreement and the employee policies and
written manuals of Company, the terms of this Agreement shall
govern.
3.2
Board . During the Employment Term,
Executive shall serve, if elected or appointed, as an officer of
any subsidiary or affiliate of Parent.
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4.
Employment Term;
Termination .
4.1
Employment Term . Subject to the terms
and conditions of this Agreement, Executive’s employment
under this Agreement commences on the Effective Date, and will
continue through and until December 31, 2009 (the “
Employment Term ”), subject to prior termination
pursuant to the provisions of Section 4.2 . The
Employment Term will automatically renew for a period of one
(1) year (a “ Renewal Term ”) beginning on
January 1, 2010, and thereafter on each anniversary of such
date, without the need for any action by either Party, unless
Executive’s employment is terminated in accordance with the
provisions of Section 4.2 . For the purposes of
this Agreement: (a) the term “ Employment
Term ” includes any Renewal Term that has occurred or
that is in effect, as applicable according to the provisions of
this Agreement; and (b) the last date of Executive’s
employment with Company is referred to herein as the “
Termination Date .”
4.2
Termination
.
(a)
Death . This Agreement will automatically and immediately
terminate upon the death of Executive, and Executive (e.g.,
Executive’s heirs or estate) will be entitled to limited
Severance Benefits (as defined below).
(b)
Disability . This Agreement may be terminated by
either Party upon written notice to the other in the event
Executive becomes unavailable to work due to a Disability (as
defined in this Section). As used herein, “
Disability ” means Executive’s becoming
incapacitated by accident, sickness, or other circumstances that,
in the reasonable judgment of Company, renders or is expected to
render Executive mentally or physically incapable of performing the
essential duties and services required hereunder, where
(i) such incapacity has been determined to exist by the
disability insurance carrier for Company, or (ii) Company has
determined, based on competent professional advice, that such
incapacity has continued or will continue for at least ninety (90)
consecutive calendar days, or 180 non-consecutive calendar days,
within a calendar year. If Executive’s employment is
terminated due to a Disability, Executive will not be
entitled to any Severance Benefits. In conjunction with
determining mental and/or physical disability for purposes of this
Agreement, the Executive hereby consents to (x) any
examinations that the Board or Compensation Committee of Parent
deems relevant to a determination of whether the Executive is
mentally and/or physically disabled, or are required by
Company’s designated physician, (y) furnish such medical
information as may be reasonably requested, and (z) waive any
applicable privilege that may arise because of such
examination.
(c)
Cause . In addition to any other rights or remedies
available to Company during the Employment Term, in its sole
discretion Company may terminate Executive’s employment for
Cause (as defined in this Section) effective immediately upon
delivery of written notice to Executive, and Executive will
not be entitled to any Severance Benefits. As used
herein, “ Cause ” means any of the
following: (i) Company’s determination that
Executive has materially neglected, failed, or refused to render
the Services or perform any other material duties or obligations
under this Agreement; (ii) Company’s determination that
Executive has otherwise materially violated any provision of this
Agreement, including, without limitation, violation of Company
policies regarding drugs and alcohol, discrimination, harassment,
retaliation, honesty, confidentiality, and/or other employee
misconduct, whether
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now in effect or
subsequently promulgated or revised; (iii) Executive’s
conviction for, or entry of a plea of no contest with respect to,
any felony, crime of moral turpitude, or other crime that adversely
affects or (in Company’s reasonable judgment) may adversely
affect Company, the ability of Executive to provide the Services,
or any of the other Company Parties (as defined below);
(iv) any act or omission of Executive involving fraud, theft,
dishonesty, disloyalty, or illegality with respect to, or that
harms or embarrasses or (in Company’s reasonable judgment)
may harm or embarrass, Company or any of the other Company Parties;
or (v) any act or omission of Executive constituting the
knowing or intentional violation of applicable law with respect to,
or that harms or embarrasses or (in Company’s reasonable
judgment) may harm or embarrass, Company or any of the other
Company Parties; provided, however , that with respect to
clauses (i) and (ii) of this Section, if such breach or
violation is susceptible to cure, Company may not terminate
Executive’s employment for Cause unless Company provides
Executive with written notice specifying such breach or violation,
in reasonable detail, and Executive fails to cure or remedy such
breach or violation within fifteen (15) days after receipt of such
notice; provided further , that the Board of Company shall
have the sole discretion to determine whether such a breach or
violation is subject to cure, and if so, whether the Executive
successfully effected a cure following notice.
(d)
Good Reason . Executive may terminate employment with
Good Reason at any time upon notice to Company. For the
purpose of this Agreement, “ Good Reason ”
means, in the absence of Executive’s consent:
(A) the material breach by Company of any material
compensation or material benefit obligation to Executive under this
Agreement; or (B) a material reduction in Executive’s
Base Salary within one (1) year following a Change of Control
(as defined below); or (C) a material diminution in
Executive’s job duties within one (1) year following a
Change of Control, provided, however , that Good Reason
shall only exist if the Company fails to correct or cure the Good
Reason condition within a period of forty-five (45) days, after
being provided with written notice (describing the Good Reason
condition in reasonable detail) by Executive within thirty (30)
days of the initial existence of the alleged Good Reason
condition. Should it be determined by Company, by a court of
competent jurisdiction, or by a duly authorized arbitrator that
Executive has resigned for Good Reason, Executive will be
entitled to the Severance Benefits provided in
Section 7.2(a) .
(i)
Change of Control . For the purpose of this Agreement,
“ Change of Control ” means the occurrence of
any of the following events: (w) any “person” (as
such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “
Exchange Act ”)), other than one or more Permitted
Holders (as defined below), is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of securities of the Parent
representing twenty-five percent (25%) or more of the combined
voting power of the Parent’s then outstanding securities;
(x) any change or changes are made in the composition of the
Parent’s Board of Directors within a two-year period as a
result of which less than a majority of the directors are
(1) persons who were directors at the beginning of that
two-year period or (2) persons who were elected or nominated
for election as directors with the affirmative vote or consent of
at least a majority of the incumbent directors at the time of that
election or nomination, but not including any person whose election
or nomination was or is in connection with an actual or threatened
proxy contest regarding the election of the Parent’s
directors; (y) the Parent is merged or consolidated with
another
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corporation or
other entity (other than one or more Permitted Holders or any
entity controlled by one or more Permitted Holders) and, as a
result of the merger or consolidation, less than seventy-five
percent (75%) of the outstanding voting securities of the surviving
or resulting corporation or other entity, as the case may be, are
“beneficially owned” (within the meaning of
Rule 13d-3 under the Exchange Act), directly or indirectly,
immediately after the merger or consolidation by persons who or
which beneficially owned the outstanding voting securities of the
Parent immediately before the merger or consolidation; or
(z) the Parent transfers, sells or otherwise disposes of all
or substantially all of its assets to another corporation or other
entity which is not an affiliate of the Parent. “
Permitted Holders ” means Capital Southwest Venture
Corporation and its affiliates and Roger R. Adams and his
affiliates.
(e)
Discretionary .
(i)
By Executive Upon Notice . Executive may terminate his
employment effective as of the end of the Employment Term, by
providing Company with a written notice of non-renewal at least
ninety (90) days prior to the end of the Employment Term, in which
event Executive will not be entitled to any Severance
Benefits. If such a notice of non-renewal is given, then
employment pursuant to this Agreement will continue until the end
of the Employment Term; provided, however , that upon
receipt of such a notice, Company may instruct Executive in writing
to cease work pursuant to this Agreement, not to report to
Company’s offices, and/or not to attend any Company business
functions, ceasing Executive’s compensation and benefits
pursuant to this Agreement as of the effective date of such
instructions, and creating an earlier Termination Date than noticed
by Executive, without otherwise affecting the denial of Severance
Benefits; provided further , that Executive will receive
compensation and benefits pursuant to this Agreement for two
(2) weeks following the effective date of such
instructions.
(ii)
By Executive Without Notice . Executive may terminate
employment at any time without Good Reason and without the formal
notice and completion of the Employment Term as provided in
Section 4.2(e)(i) , in which event Executive will
not be entitled to any Severance Benefits. In response
to such a termination by Executive, Company may instruct Executive
to cease work pursuant to this Agreement, not to report to
Company’s offices, and/or not to attend any Company business
functions, ceasing Executive’s compensation and benefits
pursuant to this Agreement as of the effective date of such
instructions, and creating an earlier Termination Date than planned
or noticed by Executive, without otherwise affecting the denial of
Severance Benefits.
(iii)
By Company Upon Notice . Company may terminate
Executive’s employment effective as of the end of the
Employment Term, by providing Executive with a written notice of
non-renewal at least ninety (90) days prior to the end of the
Employment Term, in which event Executive will not be
entitled to any Severance Benefits. If such a notice of
non-renewal is given, then employment pursuant to this Agreement
will continue until the end of the Employment Term, provided,
however , that upon or after delivery of such a notice, Company
may instruct Executive to cease work
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pursuant to this
Agreement, not to report to Company’s offices, and/or not to
attend any Company business functions from the date of the notice
of such non-renewal through the end of the Employment Term, while
continuing to pay compensation and benefits to Executive pursuant
to this Agreement, without otherwise affecting the denial of
Severance Benefits.
(iv)
By Company Without Notice . Company may terminate
Executive’s employment at any time without Cause and without
the notice and completion of the Employment Term as required by
Section 4.2(e)(ii) , in which event Executive
will be entitled to the Severance Benefits provided in
Section 7.2(a) .
(f)
Change of Control . If Company terminates
Executive’s employment without Cause (with or without notice)
within one (1) year following a Change of Control, Executive
will be entitled to the Severance Benefits provided in
Section 7.2(b) . If Company effectuates such a
termination upon delivery of an advance written notice, Company may
instruct Executive to cease work pursuant to this Agreement, not to
report to Company’s offices, and/or not to attend any Company
business functions from the date of such notice through the through
the end of the notice period, while continuing to pay Executive
compensation and benefits pursuant to this Agreement during the
term of the notice period, without otherwise affecting the
Executive’s right to Severance Benefits.
5.
Salary, Bonus, and Business
Expenses .
5.1
Base Salary . During the Term, Company
will pay Executive a base salary at the rate of ONE HUNDRED
FORTY-FIVE THOUSAND DOLLARS AND NO/100 ($145,000.00) per annum (the
“ Base Salary ”), payable in regular
installments in accordance with Company’s general payroll
practices and subject to all applicable deductions and withholdings
as allowed by law. So long as Executive is employed by
Company or one of its affiliates and living in China (or outside
the United States, at the request of Company), Company will pay
Executive an ex-patriot adjustment of thirty-five percent (35%) of
the Base Salary, payable in equal semi-monthly installments in
accordance with Company’s general payroll practices and
subject to all applicable deductions and withholdings as allowed by
law. Executive’s Base Salary for any partial year will
be prorated based upon the number of days elapsed in such
year. Executive’s pay may be changed by Company from
time to time, as Company deems appropriate in its sole discretion
(but may not be decreased without Executive’s consent), by
way of an addendum or other documentation, without otherwise
affecting this Agreement (except as may be set forth in such
addendum or other documentation). Notwithstanding any change
in pay, the employment of Executive will be construed as continuing
under this Agreement, without the necessity of Executive’s
execution of any further instrument.
5.2
Annual Bonus . During the Employment Term,
Executive will be eligible for an annual incentive bonus consisting
of up to 25% of annual Base Salary, as determined by the Board or
Compensation Committee of Parent in its sole discretion
(collectively, “ Annual Bonus ”). The
opportunity to earn an Annual Bonus and the amount of any Annual
Bonus will be determined in accordance with criteria (“
Bonus Criteria ”) established by the Board or
Compensation Committee of Parent. Executive acknowledges that
application of the Bonus Criteria will be discretionary, with
discretion resting with the Board or Compensation
Committee
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of Parent. Payment of
the Annual Bonus, if any, will be made in a single sum cash payment
between January 1 and March 15 of the calendar year
following the calendar year in which the Annual Bonus is
earned. The amount and/or basis for earning the Annual Bonus
may be changed by Company from time to time, as Company deems
appropriate in its sole discretion, by way of an addendum or other
documentation, without otherwise affecting this Agreement (except
as may be set forth in such addendum or other documentation).
Notwithstanding any such change in the Annual Bonus, the employment
of Executive will be construed as continuing under this Agreement,
without the necessity of Executive’s execution of any further
instrument.
5.3
Business and Other Expenses . Subject to
Executive’s compliance with all applicable expense policies
and procedures, Company will reimburse Executive for all reasonable
travel, lodging, long distance telephone, and other business costs
and expenses reasonably incurred by Executive to render Services
pursuant to this Agreement. In addition, Executive shall be
entitled to receive those certain reimbursements and benefits to
the extent set forth on Annex A , which Company and
Executive shall update annually. Notwithstanding the
preceding sentences, or any provision in the applicable expense
reimbursement policy or procedure to the contrary, if an expense
reimbursement would constitute taxable income to Executive:
(a) the amount of expenses eligible for reimbursement during
any calendar year shall not affect the amount of expenses eligible
for reimbursement in any other calendar year; (b) the
reimbursement by Company of an eligible expense shall be made on or
before December 31 of the calendar year following the calendar
year in which the expense is incurred; and (c) the right to
reimbursement for expenses shall not be subject to liquidation or
exchange for another benefit.
5.4
Tax Withholding; Offsets . Company may deduct
from any compensation or other amount payable to Executive under
this Agreement, social security (FICA) taxes and all federal,
state, municipal, or other such taxes or governmental charges as
may now be in effect or that may hereafter be enacted or
required. Executive further authorizes Company to make
deductions from Executive’s compensation, including, without
limitation, Executive’s final paycheck, that are necessary
for Company to recover for property damages or property not
returned by Executive, and/or to recover overpayments, improper
expenses, loans, and/or advances paid to Executive.
6.
Benefits
.
6.1
Benefit Plans . During the Employment Term,
Executive will be entitled to participate in all employee benefit
plans and programs and to receive all benefits for which similarly
situated executives within Company generally are eligible under any
plan or program now in place or established later by Company, on
the same basis as such executives. Executive’s benefits
may be changed by Company from time to time, as Company deems
appropriate in its sole discretion, without otherwise affecting
this Agreement. Nothing in this Agreement will preclude
Company from amending or terminating any of the benefit plans or
programs applicable to Executive as long as such amendment or
termination is applicable to all similarly situated
employees. Notwithstanding any change in benefits, the
employment of Executive will be construed as continuing under this
Agreement, without the necessity of Executive’s execution of
any further instrument.
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6.2
Vacation . While employed by Company,
Executive will be entitled to four (4) weeks of paid
vacation per calendar year, to be accrued and taken in accordance
with Company’s normal vacation policy applicable to senior
executives. Executive’s vacation term for any partial
year will be prorated based upon the number of days of
Executive’s employment in such year. Accumulation and
payment of vacation benefits, and loss of unused vacation time, if
any, shall be determined and governed in accordance with Company
policy and procedure. Nothing in this Agreement will preclude
Company from amending the vacation policy applicable to Executive
as long as such amendment is applicable to all similarly situated
employees. Notwithstanding any change in vacation policy, the
employment of Executive will be construed as continuing under this
Agreement, without the necessity of Executive’s execution of
any further instrument.
7.
Rights On
Termination .
7.1
Without Severance Benefits . If Executive’s
employment under this Agreement is terminated by reason of
Executive’s death or Disability pursuant to Sections
4.2(a) or 4.2(b) , by Company for Cause pursuant
to Section 4.2(c) , by Executive without Good Reason
pursuant to Sections 4.2(e)(i) or 4.2(e)(ii) ,
or by Company for non-renewal pursuant to
Section 4.2(e)(iii) , then all further rights of
Executive (or as applicable, of Executive’s heirs or estate)
to employment and/or compensation and benefits from Company under
this Agreement shall cease as of the Termination Date, except that
Company will pay Executive (or as applicable, Executive’s
heirs or estate) the following:
(a)
any amount of unpaid Base Salary earned by Executive through the
Termination Date, paid in the same manner and on the same date as
would have occurred if Executive’s employment under this
Agreement had not ceased;
(b)
any amount of unpaid Annual Bonus or other bonus that Company in
its sole discretion may deem to be earned by Executive through the
Termination Date, paid in the same manner and on the same date as
would have occurred if Executive’s employment under this
Agreement had not ceased; provided, however , that no Annual
Bonus will be paid for any partial year of work (i.e. for any year
during which the Executive was not employed with Company throughout
that year, through and including the last day of the
year);
(c)
all unpaid reimbursable expenses due to Executive under this
Agreement as of the Termination Date, subject to Executive’s
compliance with Company’s expense reimbursement policies,
paid in accordance with the terms of Company’s policies,
practices, and procedures regarding reimbursable expenses, and
subject to the provisions in Section 5.3 as applicable
to reimbursements of expenses that constitute taxable income to
Executive;
(d)
all unpaid benefits that have been earned by or vested in Executive
under, and subject to the terms of, the employee benefit plans,
insurance policies, or arrangements of Company in which Executive
participated through the Termination Date, paid in accordance with
the terms of the employee benefit plans, insurance policies, or
arrangements under which such amounts are due to Executive;
and
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(e)
an amount equal to all accrued and unused vacation pay, calculated
in accordance with Company’s vacation policies, practices,
and procedures, earned by Executive through the Termination Date,
paid in accordance with the terms of Company’s policies,
practices, and procedures regarding vacation pay; provided,
however , that such payment will be made in a single sum cash
payment within sixty (60) days after the Termination
Date.
7.2
With Severance Benefits . Subject to the requirements
of Section 7.3 , if Executive’s
employment under this Agreement is terminated by reason of
Executive’s death pursuant to Section 4.2(a) , by
Executive for Good Reason pursuant to Section 4.2(d)
within ninety (90) days of the initial existence of the Good
Reason condition, by Company without Cause pursuant to
Section 4.2(e)(iv) , or by Company without Cause
following a Change of Control pursuant to
Section 4.2(f) , then all further rights of Executive
(or as applicable, of Executive’s heirs or estate) to
employment and/or compensation and benefits from Company under this
Agreement shall cease as of the Termination Date, except that
Company will pay Executive (or as applicable, Executive’s
heirs or estate) the following severance benefits (“
Severance Benefits ”), as applicable:
(a)
If Executive’s employment under this Agreement is terminated
by Executive for Good Reason pursuant to Section 4.2(d)
, or by Company without Cause pursuant to
Section 4.2(e)(iv) , then Company will not pay
any amounts pursuant to Sections 7.2(b) or 7.2(c) , but
will pay Executive (or as applicable, Executive’s
heirs or estate) the following severance benefits:
(i)
all payments and compensation pursuant to Section 7.1
;
(ii)
Executive’s Base Salary for a period of six (6) months,
plus an additional period equivalent to four (4) weeks for
every year of Executive’s employment with the Company in
excess of five (5) years, including any years of such
employment prior to the Effective Date, prorated for partial years
of such employment (collectively referred to as the “
Severance Period ”), as severance pay, capped at a
total combined maximum of seventy-eight (78) weeks of Base Salary
severance, based upon Executive’s Base Salary as of the
Termination Date, and paid in equal installments in accordance with
the normal payroll policies of Company, less applicable taxes,
commencing on the first regular payroll date of Company following
the Release Date (as defined below); provided, however ,
that in the event Executive enters into business or accepts
employment with another employer following the Termination Date,
the severance payments pursuant to this Section shall be
reduced to the difference (if any) between Executive’s Base
Salary as of the Termination Date and Executive’s base
compensation with such new business or employer, paid in equal
installments during the remainder of the Severance Period;
and
(iii)
if Executive elects continuation coverage (with respect to
Executive’s coverage and/or any eligible dependent coverage)
(“ COBRA Continuation Coverage ”) under the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“
COBRA ”) with respect to Company’s group health
insurance plan, Executive will be responsible for payment of the
monthly cost of such COBRA Continuation Coverage; provided,
however , that commencing on the first regular payroll date of
Company
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following the
Release Date, to the extent allowed by applicable law, Company will
reimburse Executive for the monthly premium cost for all COBRA
Continuation Coverage (including the premium cost for the period
between the Termination Date and the Release Date) net of all
premium cost (if any) Executive would have paid had
Executive’s employment under this Agreement continued through
the Severance Period, within thirty (30) days of each payment of
such cost by the Executive, provided further , that such
COBRA Continuation Coverage reimbursement payments by Company shall
terminate upon the earlier of: (A) the expiration of the
maximum period required under COBRA for COBRA Continuation
Coverage, (B) the completion of the
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