WASTE SERVICES, INC. EXECUTIVE EMPLOYMENT AGREEMENTEmployee Retention Agreement |
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WASTE SERVICES, INC.
EXECUTIVE EMPLOYMENT AGREEMENT
This Employment Agreement
(the Agreement) is dated as of July 22, 2008 by and between WASTE
SERVICES, INC., a Delaware corporation (the Company) and BRIAN A. GOEBEL (the
Executive):
WHEREAS, the Company desires
to employ Executive in an executive capacity and Executive desires to enter
into the Companys employ upon the terms and subject to the conditions set
forth herein.
NOW, THEREFORE, in
consideration of the mutual promises and agreements set forth herein, the
receipt and adequacy of which are hereby acknowledged, the parties hereto agree
as follows:
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1. |
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EMPLOYMENT. |
The Company shall employ
Executive, and Executive shall be employed by the Company, upon the terms and
subject to the conditions set forth in this Agreement, effective as of
July 22, 2008 (the Effective Date); provided, however that
as a condition to effectiveness of this Agreement, the Company and Executive
shall have entered into an Indemnification Agreement substantially in the form
of Exhibit A attached hereto.
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2. |
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TERM OF
EMPLOYMENT. |
The period of Executives
employment under this Agreement (the Employment Term) shall begin on the
Effective Date and shall continue until Executives employment is terminated in
accordance with Section 5 below.
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3. |
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DUTIES AND
RESPONSIBILITIES. |
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(a) |
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Executive shall
serve as Senior Vice President, Controller and Chief Accounting Officer of
the Company and shall report to the Chief Financial Officer of the Company.
In such capacity, Executive shall have responsibility and authority and shall
perform the duties necessary to carry out those responsibilities and exercise
that authority, as may be assigned to Executive from time to time by the
Chief Financial Officer of the Company. |
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(b) |
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During the
Employment Term, Executive shall devote his full time and attention during
normal business hours to the affairs of the Company and use his best efforts
to perform faithfully and efficiently his duties and responsibilities; provided,
however, that subject to the limitations of Section 8 hereof and
to the prior approval of the Chief Financial Officer of the Company,
Executive may serve on corporate, industry, civic or charitable Boards or
committees as long as such activities do not interfere with the performance
of Executives responsibilities to the Company. Executive agrees to act at
all times in the best interests of the Company and to take no action or make
any statement, oral or |
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written, which could
reasonably be expected by Executive to injure the Companys business,
financial condition, results of operations, prospects, interests or
reputation. |
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(c) |
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Executive
agrees to comply at all times during the Employment Term with all applicable
policies, rules, codes and regulations of the Company in effect from time to
time, including, without limitation, all applicable codes of ethics or
conduct and all policies regarding trading in the Companys common stock. |
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4. |
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COMPENSATION
AND BENEFITS. |
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(a) |
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BASE SALARY.
During the Employment Term, the Company shall pay Executive a base salary at
the annual rate of $236,900, or such higher rate as may be determined from
time to time by the Board of Directors or a duly authorized committee thereof
(such amount, as increased from time to time, the Base Salary). Such Base
Salary shall be paid on the Companys regular pay days in accordance with the
Companys standard payroll practice for executive officers, subject only to
such payroll and withholding deductions as may be required by law and other
deductions applied generally to employees of the Company for insurance and
other employee benefit plans. For all purposes under this Agreement,
Executives Base Salary shall include any amount which is deferred under any
nonqualified plan or arrangement of the Company. |
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(b) |
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INCENTIVE
COMPENSATION. |
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(i) |
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ANNUAL CASH
BONUS. In addition to the Base Salary, Executive shall be eligible for an
annual cash bonus (either pursuant to a bonus or incentive plan or program of
the Company or otherwise) for each fiscal year during the Employment Term.
Executives target annual cash bonus will be equal to 60% (the Target Bonus
Rate) of his Base Salary in effect at the beginning of the relevant fiscal
year. The amount of the annual cash bonus, which may be higher or lower than
the Target Bonus Rate, shall be determined by the Board of Directors or a
duly authorized committee thereof based upon applicable corporate and
individual performance targets established by the Board of Directors or such
committee in its sole discretion (the Annual Bonus). For all purposes under
this Agreement, Executives Annual Bonus shall include any amount which is deferred
under any nonqualified plan or arrangement of the Company. |
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(ii) |
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LONG-TERM OR
SUPPLEMENTAL INCENTIVE COMPENSATION. Executive shall be eligible to
participate in any supplemental and/or long-term incentive compensation plans
or programs (which may consist of stock options, restricted stock, long-term
cash awards or other forms of long-term or supplemental incentive
compensation) generally made available to full-time senior executive officers
of the Company. |
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(c) |
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BENEFIT PLANS.
Executive shall be eligible to participate in and receive benefits under all
retirement, health and welfare benefit plans, programs and arrangements which
are |
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from time to time available
to full-time senior executive officers of the Company in accordance with the
terms and conditions of such plans, programs and arrangements in effect from
time to time. Such benefit plans, programs and arrangements will include family
medical, family dental and family vision benefit plans and short-term and
long-term disability plans, and may include, without limitation, life
insurance plans, accidental death insurance plans, travel accident insurance
plans, savings and retirement plans and pension plans (all such benefit
plans, the Benefit Plans). At his option, Executive may pay directly the
premiums for coverage under the above-mentioned disability plans and have the
Company pay to him, as additional income, an amount equal to the amount of
those premiums. Executive agrees to submit to a physical examination from
time to time as requested by the Company to facilitate Executives
participation in one or more Benefit Plans. The Company may terminate or
reduce benefits under any such plans, programs or arrangements to the extent
such reductions apply uniformly to all full-time senior executive officers of
the Company, and Executives benefits shall be reduced or terminated
accordingly. The Companys obligations under this Section 4(c) are expressly
conditioned on Executive and his family dependents taking all reasonable
actions (including but not limited to enrolling in all health and welfare
benefit programs, plans and arrangements which are from time to time
available to the Companys full-time senior executive officers as and when
Executive and his family dependents become eligible to participate in such
programs, plans and arrangements) and providing all information as the
Company shall reasonably request and as is necessary for the Company to
fulfill such obligations. |
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(d) |
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VACATION. In
addition to normal statutory holidays recognized by the Company, Executive
shall be entitled to the greater of (a) four weeks of paid vacation for
each fiscal year during the Employment Term and (b) such other amount of
paid vacation as may be afforded executive officers under the Companys
policies in effect from time to time (Vacation Time). |
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(e) |
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EXPENSE
REIMBURSEMENT. The Company shall promptly reimburse Executive for travel and
other out-of-pocket expenses incident to his position in accordance with the
Companys customary practices applicable to full-time senior executive
officers. To the extent that these expense reimbursements are reportable as
taxable income, they will be grossed up to include the tax due on them. |
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(f) |
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FRINGE BENEFITS
AND PERQUISITES. Executive shall be eligible to participate in and receive
benefits under all fringe benefit plans, practices, policies and programs of
the Company to the same extent, and subject to the same terms and conditions,
as those arrangements are made available to full-time senior executive
officers of the Company. |
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5. |
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TERMINATION
OF EMPLOYMENT. |
Executives employment under
this Agreement may be terminated under any of the circumstances set forth in
this Section 5. Upon termination, Executive (or his beneficiaries or
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estate as the case may be)
shall be entitled to receive the compensation and benefits described in
Section 6 and, if applicable, Section 7 below.
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(a) |
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DEATH.
Executives employment hereunder shall terminate automatically upon
Executives death. |
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(b) |
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TOTAL
DISABILITY. The Company may terminate Executives employment hereunder, by
written notice to Executive delivered in accordance with Sections 5(g) and 16
hereof, upon a determination pursuant to this Section 5(b) that Executive is
Totally Disabled. For purposes of this Agreement, For the purposes of this
provision, Totally Disabled shall have the same meaning as it has under the
long-term disability policy covering Executive pursuant to paragraph 4(c)
herein. Executives receipt of disability benefits under the Companys
long-term disability plan shall be deemed conclusive evidence of Total
Disability for purposes of this Agreement. |
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(c) |
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TERMINATION BY
THE COMPANY FOR CAUSE. The Company may terminate Executives employment
hereunder for Cause at any time, by written notice to Executive delivered
in accordance with Sections 5(g) and 15 hereof. |
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(i) |
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For purposes of
this Agreement, the term Cause shall mean any of the following:
(A) conviction of a crime (including conviction on a nolo contendre
plea) involving the commission by Executive of a felony or of a misdemeanor
involving, in the good faith judgment of the Board of Directors, fraud,
dishonesty or moral turpitude; (B) Executives deliberate and continual
refusal to perform the duties and responsibilities assigned to Executive
under this Agreement (other than as a result of vacation permitted under this
Agreement, sickness, illness or injury); (C) fraud or embezzlement by
Executive, determined in accordance with the Companys normal, internal
investigative procedures consistently applied; (D) gross misconduct or
gross negligence by Executive in connection with the business of the Company
or an Affiliate (as defined herein) unless Executive reasonably believed, in
good faith, that his acts or omissions were in or not opposed to the best
interests of the Company (without intent of Executive to gain therefrom,
directly or indirectly, a profit to which he was not legally entitled); or
(E) any material breach by Executive of any of the provisions of
Section 8 of this Agreement or of any provisions of the Confidentiality
and Proprietary Information Agreement (as defined herein); provided, however,
that the occurrence of an act or omission covered by clauses (B), (D) or
(E) of this paragraph 5(c)(i) shall not constitute Cause if Executive
remedies such act or omission within ten (10) business days after
delivery by the Company of written notice to Executive in accordance with
Section 15 hereof specifying in reasonable detail the facts and circumstances
believed by the Company to constitute such Cause. |
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(ii) |
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Any
determination of Cause under this Agreement shall be made by resolution duly
adopted by the affirmative vote of at least two-thirds of the members of the |
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Board of Directors (not
including Executive if Executive is a member of the Board of Directors) at a
meeting of the Board of Directors called and held for that purpose; provided
that Executive shall have been given written notice of such meeting by
certified mail at least ten (10) business days prior to the meeting and
shall have been given the opportunity to be heard by the Board of Directors
before such resolution is passed. The failure by the Company to follow the
procedures set forth in this Section 5(c)(ii) shall result in the
termination of the Executives employment being deemed to be a termination by
the Company without Cause. |
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(d) |
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TERMINATION BY
EXECUTIVE FOR GOOD REASON. Executive may terminate his employment hereunder
for Good Reason after delivery by Executive of written notice to the Company
in accordance with Sections 5(g) and 15 hereof within sixty (60) days
after the occurrence of a Good Reason Event (as hereinafter defined). For
purposes of this Agreement, Good Reason means the occurrence of any of the
following events (each a Good Reason Event) without Executives written
consent during the Employment Term: |
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(i) |
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A change in
Executives responsibilities or titles or any other action by the Company
which represents a material diminution of Executives position, status or
authority, except in connection with or as a result of the termination of
Executives employment pursuant to any provision of this Section 5 (a
Dimunition); provided, however that such Dimunition shall not
constitute Good Reason or a Good Reason Event if the Company remedies
such Dimunition within ten (10) business days after delivery by
Executive of written notice to the Company in accordance with Section 15
hereof specifying in reasonable detail the facts and circumstances believed
by Executive to constitute such Dimunition. |
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(ii) |
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A reduction by
the Company in Executives Base Salary. |
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(iii) |
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A material
breach by the Company of Section 4(c) hereof; provided, however
that such a breach shall not constitute Good Reason or a Good Reason
Event if the Company remedies such breach within ten (10) business days
after delivery by Executive of written notice to the Company in accordance
with Section 15 hereof specifying in reasonable detail the facts and
circumstances believed by Executive to constitute a material breach of
Section 4(c). |
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(iv) |
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The failure by
the Company to pay Executive any material amount of his Base Salary, or any
material amount of other compensation, that is due and payable under this
Agreement within ten (10) business days after Executive makes written
demand for such amount. |
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(v) |
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The failure by
the Company to enter into a written agreement with any entity that purchases
all or substantially all of the assets of the Company or any entity into
which the Company is merged (each a Successor) pursuant to which such |
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Successor agrees to assume
all of the obligations of the Company under this Agreement at and effective
as of the closing of such sale of assets or merger. |
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(e) |
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VOLUNTARY
TERMINATION BY EXECUTIVE. Executive may terminate his employment hereunder
without Good Reason at any time during the Employment Term after providing
thirty (30) days written notice to the Company delivered in accordance
with Sections 5(g) and 15 hereof. |
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(f) |
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TERMINATION BY
THE COMPANY WITHOUT CAUSE. At any time during the Employment Term, the
Company may terminate Executives employment hereunder without Cause by
written notice to Executive delivered in accordance with Sections 5(g) and 15
hereof. For purposes of this Agreement, Executives employment will be deemed
to have been terminated Without Cause if Executive is terminated by the
Company for any reason other than Death pursuant to Section 5(a), Total
Disability pursuant to Section 5(b), or Cause pursuant to
Section 5(c). |
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(g) |
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NOTICE OF
TERMINATION. Any termination of Executives employment by the Company for
Cause pursuant to Section 5(c), without Cause pursuant to
Section 5(f), or as a result of Executives Total Disability pursuant to
Section 5(b), or by Executive for Good Reason pursuant to
Section 5(d), shall be communicated by Notice of Termination to the
other party hereto given in accordance with this Agreement. For purposes of
this Agreement, a Notice of Termination means a written notice which
(i) indicates the specific termination provision in this Agreement
relied upon, (ii) sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of Executives
employment under the provision so indicated, and (iii) specifies the
effective date of termination, if such date is other than the date of receipt
of such notice (which effective date shall not be (A) less than ten (10)
business days after the giving of such notice in the case of termination by
Executive for Good Reason or (B) more than 15 days after the giving
of such notice in all other cases). Any voluntary termination of Executives
employment by Executive pursuant to Section 5(e) shall be communicated by
written notice to the Company specifying (i) that Executive wishes to
terminate his employment with the Company pursuant to Section 5(e) hereof and
(ii) indicating the effective date of termination (which effective date
shall not be less than 30 days after the giving of such notice). |
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6. |
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COMPENSATION
AND BENEFITS FOLLOWING TERMINATION OF EMPLOYMENT. |
In the event that Executives
employment hereunder is terminated, Executive shall be entitled to the
following compensation and benefits upon such termination:
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(a) |
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COMPENSATION
AND BENEFITS PAYABLE FOLLOWING TERMINATION FOR ANY REASON. The following
compensation and benefits shall be payable upon termination of Executives
employment under this Agreement for any reason: |
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(i) |
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Executive or
his beneficiaries or estate shall be entitled to receive, within fourteen
(14) days after the effective date of termination, any accrued but
unpaid Base Salary for services rendered by Executive to the Company prior to
the date of termination, any accrued but unpaid expenses required to be
reimbursed under this Agreement, and cash compensation (at a rate per day
equal to the Base Salary divided by the number of business days in the
relevant year) for any accrued Vacation Time that remained unused by the
Executive at the time of termination; and |
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(ii) |
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Any earned
benefits to which Executive (or his beneficiaries or estate) may be entitled
pursuant to the plans, policies and arrangements referred to in
Sections 4(b), 4(c) and 4(g) hereof shall be determined and paid in
accordance with the terms of such plans, policies and arrangements. In the
case of compensation previously deferred by Executive, all amounts previously
deferred and not yet paid by the Company shall be paid to Executive (or his
beneficiaries or estate) within fourteen (14) days after the effective
date of termination unless such payment is inconsistent with the terms of any
payment election made by Executive with respect to such deferred
compensation. |
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(b) |
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TERMINATION BY
REASON OF DEATH. In the event that Executives employment is terminated by
reason of Executives death, the Company shall pay Executives estate the
following compensation and benefits in addition to the compensation and
benefits provided for in Section 6(a) above: |
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(i) |
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Executives
estate shall be entitled to be paid: |
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(A) |
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Executives
Base Salary at the rate in effect immediately prior to Executives date of
death on the Companys regular pay days for a period of two (2) years
from the effective date of termination as if his employment had continued
until the end of such two (2)-year period; and |
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(B) |
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an aggregate
amount equal to two (2) times the average of the Annual Bonuses paid to
Executive in the two (2) most recently completed fiscal years preceding
the effective date of termination, without regard to whether the
payment of all or any portion of such Annual Bonus has been deferred (such
average being hereinafter referred to as the Bonus Average), which shall be
paid in equal installments on the Companys regular pay days over the course
of twenty-four (24) months from the effective date of termination; provided,
however, that if at the time of termination Executive has not been
employed by the Company for two fiscal years, the Bonus Average shall be
deemed for all purposes of this Agreement to equal Executives Target Bonus
Rate multiplied by his Base Salary at the rate in effect immediately prior to
the effective date of termination. The Company may purchase insurance to
cover all or any part of the obligations set forth in this Section 6(b)(i)
and Executive agrees to submit to a physical examination from time to time to
facilitate the |
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procurement or renewal of
such insurance. Any proceeds of such insurance paid to Executive or his
beneficiaries or estate shall be considered a portion of the payments
required to be made to Executive pursuant to this Section 6(b)(i) and
shall not be in addition thereto. |
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(ii) |
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Executives
dependents shall be entitled to continue to receive medical, dental and
vision insurance coverage at least equal in type and amount to that made
available to dependents of full-time senior executives of the Company
immediately prior to Executives death for a period of two (2) years
from the effective date of termination, or until Executives dependents
become eligible for substantially equivalent employer-provided health
insurance benefits from any other person or business entity, whichever occurs
first. In the event that participation in any such plan, program or
arrangement of the Company is prohibited, the Company will arrange to provide
benefits substantially similar to those benefits which Executives dependents
would have been entitled to receive under such plan, program or arrangement
for such period. |
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(iii) |
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All of
Executives then outstanding options to purchase shares of the Companys
common stock shall be vested and exercisable in accordance with the terms of
the stock option plan of the Company pursuant to which such options were
granted (the Governing Stock Option Plan) as then in effect. |
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(c) |
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TERMINATION BY
REASON OF TOTAL DISABILITY. In the event that Executives employment is
terminated by reason of Executives Total Disability pursuant to Section 5(b)
hereof, the Company shall pay Executive the following compensation and
benefits in addition to the compensation and benefits provided for in Section
6(a) above: |
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(i) |
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Subject to
Section 6(c)(ii) below, Executive shall be entitled to be paid: |
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(A) |
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his Base Salary
at the rate in effect immediately prior to the effective date of termination
on the Companys regular pay days for a period of two (2) years from the
effective date of termination as if his employment had continued until the
end of such two (2) year period; and |
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(B) |
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an aggregate
amount equal to two (2) times the Bonus Average, which shall be paid in
equal installments on the Companys regular pay days over the course of
twenty-four (24) months from the effective date of termination. |
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(ii) |
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Whenever
compensation is payable to Executive under Section 6(c)(i) during a
period in which he is partially or totally disabled, and such disability
would (except for the provisions hereof) entitle Executive to disability
income or salary continuation payments from the Company according to the
terms of any plan or program presently maintained or hereafter established by
the Company, the disability income or salary continuation paid to Executive
pursuant to any such |
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