Exhibit 10.1
FORM OF
EMPLOYMENT
AGREEMENT
THIS EMPLOYMENT AGREEMENT (this "Agreement") is made on the
___ day of February, 2009, by PGT Industries, Inc., a Florida
corporation (the "Employer"), and [NAME], an individual and
resident of the State of [] (the "Employee").
RECITALS:
A.
The Employee is currently employed by the Employer, pursuant to
that certain employment agreement, dated [], by and between the
Employer and Employee (the “Prior
Agreement”).
B. Employer
desires to employ Employee upon the terms and conditions set forth
herein, and the Employee wishes to terminate the Prior Agreement,
and accept such employment upon the terms and conditions set forth
herein including, without limitation, the nondisclosure and
noncompetition covenants and agreements of the Employee set forth
in Sections 7 and 8 hereof, in order to cause Employer to provide
Employee the Compensation (as defined herein) and Termination Pay
pursuant to Section 6.2 hereof.
AGREEMENT
In
consideration of the foregoing and the mutual promises and
covenants set forth herein, the parties, intending to be legally
bound, agree as follows:
For
the purposes of this Agreement, the following terms have the
meanings specified or referred to in this Section 1.
"AFFILIATE(S)"
-- any Person, directly or indirectly controlled by, or under
common control with, the Employer or any other referenced
Person.
"AGREEMENT"
-- this Employment Agreement, as amended from time to
time.
"ANNUAL
PERFORMANCE BONUS" -- as described in Section 3.2.
"BENEFITS"
-- as described in Section 3.1(b).
"BOARD
OF DIRECTORS" -- the board of directors of the Employer.
"CAUSE"
-- means the occurrence of any of the following events during the
Employment Period: (a) conduct amounting to fraud or dishonesty
against the Employer or any subsidiary or affiliate of the
Employer; (b) the Employee's intentional misconduct, repeated
refusal to follow the reasonable directions of the Chairman or
Board of Directors of the Employer or a material breach of this
Agreement, provided an officer of the Employer, upon the direction
of the Chairman or Board of Directors of the Employer, notifies the
Employee of the acts deemed to constitute such intentional
misconduct, repeated refusal or material breach in writing and the
Employee fails to correct such acts (or begin such action necessary
to correct such acts and thereafter diligently pursues the
completion thereof) within five (5) business days after written
notice is given; (c) repeated intoxication with alcohol or drugs
while on the Employer's business during regular business hours; (d)
a conviction or plea of guilty or nolo contendere to a felony
(other than one arising from the operation of a motor vehicle or
resulting from actions taken (or not taken) by the Employee in good
faith in his capacity as an employee or officer of the Employer);
or (e) the Employee's failure to observe and comply with the
requirements in Sections 7 or 8 hereof.
"COMPENSATION"
-- Salary and Benefits.
"CONFIDENTIAL
INFORMATION" -- any and all:
(a)
trade secrets concerning the business and affairs of the Employer
or any Affiliate of the Employer, product or service
specifications, data, know-how, formulae, compositions, processes,
designs, sketches, photographs, graphs, drawings, samples,
inventions and ideas, past, current, and planned research and
development, current and planned manufacturing, marketing or
distribution methods and processes, customer lists, prospective
customer lists, current and anticipated customer requirements,
price lists, market studies, business plans, computer software and
programs (including object code and source code), computer software
and database technologies, systems, structures, and architectures
(and related formulae, compositions, processes, improvements,
devices, know-how, inventions, discoveries, concepts,
ideas, designs, methods and information), and any other
information, however documented, that is a "trade secret" either
under common law or as such term is defined by statute under the
laws of any applicable jurisdiction;
(b)
information concerning the business and affairs of the Employer or
its Affiliates (which includes historical financial statements,
financial projections and budgets, historical and projected sales,
capital spending budgets and plans, the names and backgrounds of
key personnel, personnel training and techniques and materials),
however documented; and
(c)
notes, analysis, compilations, studies, summaries, and other
material prepared by or for the Employer or Affiliates of the
Employer, containing or based, in whole or in part, on any
information included in the foregoing.
"DISABILITY"
-- as defined in Section 6.3.
"EMPLOYEE
INVENTION" -- any idea, invention, technique, modification,
process, or improvement (whether patentable or not), and any work
of authorship (whether or not copyright protection may be obtained
for it) created, conceived, or developed by the Employee, either
solely or in conjunction with others, during the Employment Period,
or a period that includes a portion of the Employment Period, that
relates in any way to, or is useful in any manner in, the business
then being conducted or proposed to be conducted by the Employer or
any Affiliate of the Employer, and any such item created by the
Employee, either solely or in conjunction with others, following
termination of the Employee's employment with the Employer, that is
based upon or uses Confidential Information; provided, however,
that any item so created by the Employee that is based upon or uses
Confidential Information that the Employee demonstrates was or
became generally available to the public, other than as a result of
a disclosure by the Employee, will not be deemed to be an Employee
Invention for any purposes.
"EMPLOYER"
-- as defined on the first page of this Agreement and its
successors and assigns.
"EMPLOYMENT
PERIOD" -- the term of the Employee's employment with the
Employer.
"GOOD
REASON" -- means the occurrence of any of the following events
during the Employment Period: (a) a material diminution of the
duties or responsibilities of the Employee; or (b) the assignment
of the Employee to a worksite outside of a fifty (50) mile radius
from the Employer's current headquarters; provided, however, that
none of the foregoing events or conditions will constitute
“Good Reason” unless: (c) Employee provides the
Employer with written objection to the event or condition within
sixty (60) days following the occurrence thereof, (d) the Employer
does not reverse or otherwise cure the event or condition within
thirty (30) days of receiving that written objection, and (e)
Employee resigns his employment within sixty (60) days following
the expiration of that cure period.
“INCENTIVE AMOUNT” means the target
amount payable to the Employee under the Employer’s Annual
Incentive Plan for the award period ending in the year in which the
termination of employment occurs.
"NONCOMPETITION
AGREEMENT" -- the agreements and covenants of the Employee found in
Section 8.2.
"NONCOMPETITION
PERIOD" -- for a period of time equal to the Employment Period plus
two (2) years, unless this Agreement is terminated by the Employer
without Cause or by the Employee with Good Reason, in which case
the Noncompetition Period will be for a period of time equal to the
Employment Period plus one (1) year.
"PERSON"
-- any individual, corporation (including any non-profit
corporation), general or limited partnership, limited liability
company, joint venture, estate, trust, association, organization,
or governmental body.
"PROPRIETARY
ITEMS" -- as defined in Section 7.2(a)(iv).
"SALARY"
-- as defined in Section 3.1(a).
2.
Employment
Term and Duties.
2.1
Employment. The Employer hereby employs the Employee, effective as
of the date hereof, and the Employee shall accept employment by the
Employer, effective as of the date hereof, upon the terms and
conditions set forth in this Agreement.
2.2
Term. Subject to the provisions of Section 6, the term of the
Employee's employment under this Agreement shall commence on the
date hereof and continue until terminated in accordance with
Section 6.
2.3
Duties. The Employee will initially serve as the [POSITION] of the
Employer, with duties and responsibilities associated with and
related to such position and as otherwise reasonably requested in
good faith by the Chairman or Board of Directors of the Employer
consistent with such position. The Employee will (a) devote the
Employee's business effort, time, energy and skill (vacations and
reasonable absences due to illness excepted) as is necessary to
fulfill the duties of his position and those assigned by the
Chairman or Board of Directors of the Employer, (b) use his best
efforts to promote the success of the business, and (c) cooperate
fully with the reasonable requests of the Chairman and the Board of
Directors, as the case may be, in the advancement of the best
interests of the Employer and its Affiliates. During the Employment
Period, the Employee shall not be engaged in or provide services to
any other business or enterprise (whether engaged in for profit or
not), which interferes with the Employee's obligations under this
Agreement.
(a)
Salary . The Employer shall pay to the Employee an
annualized salary at a rate of $[] per year, subject to the
provisions of Section 6 and increased (but not decreased) as
provided below (the "Salary"), which Salary will be payable in
equal periodic installments in accordance with the Employer's
customary payroll practices. The Salary will be reviewed by the
Board of Directors, as the case may be, at least once each year and
may be increased by the Employer following such review. Any such
increase in the Salary shall be made by, and at the sole discretion
and approval of, the Board of Directors, as the case may be, and,
as increased, shall become the Employee's new "Salary" hereunder
(unless and until further increased).
(b)
Benefits . The Employee will be entitled to
participate in such deferred compensation, profit sharing, bonus,
life insurance, hospitalization and medical plans or insurance
coverage, disability, and other employee benefit plans, programs
and policies of the Employer in effect from time to time
(collectively, the "Plans"), vacation and holidays (as further
provided in Section 5 below), and any other plan which may be made
available by the Employer to its key management employees from time
to time in the future, if, and to the extent that, the Employee is
eligible under the terms of such Plans. All of the plans,
agreements, and undertakings of Employer set forth above shall be
called, collectively, the "Benefits." Any Benefits hereunder shall
be subject to such local, state or federal tax reporting
requirements as maybe in effect from time to time. This
Agreement will not limit the Employer’s ability to amend,
modify or terminate such Plans at any time for any
reason.
3.2
Annual Performance Bonus.
As
additional incentive compensation for the services to be rendered
by the Employee pursuant to this Agreement, the Employee shall be
eligible, each calendar year, to receive a bonus (the "Annual
Performance Bonus"). The Annual Performance Bonus, if any, shall be
determined by the Board of Directors, in its
discretion. Any Annual Performance Bonus that is due to
the Employee hereunder shall be paid as soon as practicable, but in
no event later than 30 days following completion of the Employer's
audited financial statements of the year to which the Annual
Performance Bonus relates.
4.
Facilities and Expenses .
The
Employer will furnish the Employee with office space, equipment,
supplies, computer and facsimile equipment, telephones (including
cellular telephone), and such other facilities, support staff and
personnel as the Employer deems necessary or appropriate for the
performance of the Employee's duties under this Agreement. The
Employer will reimburse the Employee for reasonable business
expenses incurred by him on behalf of the Employer in the
performance of his duties; provided, that Employee furnishes to
Employer documentation of such expenses as is required by the
Internal Revenue Service, as well as such other documentation as
the Employer may reasonably request. In addition, the Employer
shall reimburse the Employee or otherwise provide and pay for all
approved professional affiliation expenses incurred by the
Employee. The Employee must file authorization requests, to the
extent required by the Employer's employment policies and, in all
instances, expense reports with respect to such expenses in
accordance with the Employer's policies.
5. Vacations and
Holidays.
The
Employee will be entitled to four (4) weeks paid vacation each year
or such other amount of paid vacation as is provided
in the Employer's written vacation policy, if greater. Such
vacation shall be taken in accordance with the vacation policies of
the Employer in effect for its executive officers from time to
time. Vacation must be taken by the Employee at such time or times
as mutually agreed by the Employee and the Employer. The Employee
will also be entitled to the paid holidays as set forth in the
Employer's policies.
6.
Termination.
6.1 Events of Termination.
(a)
Death; Disability. In the event of the Employee's
death or Disability, his employment with the Employer shall be
deemed terminated as of the end of the month in which such death
occurs or such Disability is determined, and all rights, duties and
obligations of the parties hereunder shall thereupon cease, except
for the Employee's obligations under Section 7 and Section 8 hereof
(in the case of a termination due to Disability), and the
Employer's obligations under Sections 6.2(a) and 6.2(b) hereof, as
the case may be.
(b)
By The Employer for Cause. The Employee's employment
with the Employer may be terminated at the option of and by written
notice from the Employer if the Board of Directors in good faith
finds Cause. Upon any such termination, all rights, obligations and
duties of the parties hereunder shall immediately cease (including,
but not limited to, the payment by the Employer of all
Compensation), except for the Employee's obligations under Section
7 and Section 8 hereof.
(c)
By The Employer Without Cause. The Employer may also
terminate the Employee's employment at any time upon not less than
thirty (30) days advance written notice without Cause. Upon
expiration of such notice period , all rights, obligations
and duties of the parties hereunder shall immediately cease, except
for the Employee's obligations under Section 7 and Section 8 hereof
and the Employer's obligations under Section 6.2(c). The Employer
may accelerate the effective date of such termination
if, in lieu of such notice, and in addition to the payments
required by Section 6.2(c) below, Employer continues to pay Salary
to Employee for a number of days equal to the number of days by
which Employer accelerated the effective date of Employee's
termination.
(d)
Voluntary Termination without Good Reason By
Employee. The Employee may terminate his employment with
the Employer without Good Reason upon not less than thirty (30)
days advance written notice to the Employer; provided, however,
that after the receipt of such notice, the Employer may, in its
discretion accelerate the effective date of such termination at any
time by written notice to the Emplo
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