Document:

EXHIBIT 10.1

 

Exhibit 10.1

NRG Energy, Inc.

NEO 2004AIP Payout and 2005 Base Salary Table

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	2004 Annual Incentive Plan Payout	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Deferred	 	2005 Base
	Name	 	Title	 	Total Value	 	Cash	 	Stock Units	 	Salary
	David W. Crane

	 	President and Chief
Executive Officer
	 	$	1,312,500	 	 	$	590,625	 	 	$	721,875	 	 	$	919,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Robert C. Flexon

	 	Executive Vice
President and Chief
Financial Officer
	 	$	400,000	 	 	$	185,000	 	 	$	215,000	 	 	$	450,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	John P. Brewster

	 	Executive Vice
President,
International
Operations and
Regional President,
South Central
Region
	 	$	216,000	 	 	$	96,750	 	 	$	119,250	 	 	$	309,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Scott J. Davido

	 	Executive Vice
President and
Regional President,
Northeast Region
	 	$	210,000	 	 	$	93,750	 	 	$	116,250	 	 	$	309,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Timothy W. J.
O’Brien

	 	Vice President,
General Counsel and
Secretary
	 	$	203,000	 	 	$	90,625	 	 	$	112,375	 	 	$	299,000EMPLOYMENT AGREEMENT

 

EMPLOYMENT AGREEMENT

BETWEEN

NATIONAL WATERWORKS, INC.

AND

PHILIP KEIPP

MARCH 1, 2005

 

 

          THIS EMPLOYMENT AGREEMENT dated as of March 1, 2005 between National Waterworks, Inc., a
Delaware corporation, (the “Company”), and Philip Keipp (the “Executive”).

          The Company will engage in the business (the “Subject Business”) of the sale and
distribution of waterworks products for building and rehabilitating water and wastewater
infrastructure and any other related business in which the Company may be engaged.

          Prior to the date hereof, Executive has been and will continue as an officer of the Company
and, as such, has substantial experience that is valuable to the Subject Business and the Company.

          The Company desires to employ the Executive, and the Executive desires to accept such
employment, on the terms and subject to the conditions hereinafter set forth.

          NOW, THEREFORE, in consideration of the covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

     Section 1. Employment.

          The Company shall employ the Executive, and the Executive accepts employment with the Company,
upon the terms and conditions set forth in this Agreement for the period beginning on the Effective
Date and ending on the Termination Date determined pursuant to Section 4(a) (the
“Employment Period”).

     Section 2. Position and Duties.

          (a) During the Employment Period, the Executive shall serve as the Chief Financial Officer of
the Company and shall have the usual and customary duties, responsibilities and authority of a
Chief Financial Officer subject to the power of the Chief Executive Officer and the Board (i) with
the Executive’s consent, to expand or limit such duties, responsibilities and authority and (ii) to
override the actions of the Executive. The Executive acknowledges and agrees that he owes a
fiduciary duty of loyalty to the Company to discharge his duties and otherwise act in a manner
consistent with the best interests of the Company and its Subsidiaries.

          (b) During the Employment Period, the Executive shall devote his best efforts and all of his
working time, attention and energies to the performance of his duties and responsibilities under
this Agreement (except for vacations to which he is entitled pursuant to Section 3(a) and
except for illness or incapacity). During the Employment Period, the Executive shall not engage in
any business activity which, in the reasonable judgment of the Board (excluding the Executive if he
should be a member of the Board at the time of such determination), conflicts with the duties of
the Executive hereunder, whether or not such activity is pursued for gain, profit or other
pecuniary advantage.

 

 

     Section 3. Base Salary and Benefits.

          (a) Base Salary. During the Employment Period, the Executive’s base salary shall be
$188,513.62 per annum, or such higher rate as the Compensation Committee of the Board (excluding
the Executive if he should be a member of the Board or the Compensation Committee at the time of
such determination) may designate from time to time (the “Base Salary”), which salary shall
be payable in such installments as is customary for other senior executives of the Company. In
addition, during the Employment Period, the Executive shall be entitled to participate in all
employee benefit programs for which other senior executives of the Company are generally eligible
and the Executive shall be eligible to participate in all insurance plans available generally to
other senior executives of the Company. The Executive shall be entitled to take four (4) weeks of
paid vacation annually. The Board shall conduct a review of the Executive’s Base Salary on an
annual basis.

          (b) Bonus. Executive shall be entitled to receive, in addition to the Base Salary, an
annual bonus (the “Bonus”) for services rendered during such year determined as follows:

               (i) For each calendar year commencing on or after January 1, 2005, there shall be no Bonus
unless the Company exceeds 90% of the Target EBITDA (as defined below) in any calendar year. If
the Company exceeds 90% of Target EBITDA for any calendar year, the Bonus shall be the percentage
of Base Salary between 10% and 50%, calculated on a straight line basis, as corresponds to the
relative achievement of Target EBITDA, with 10% corresponding to 90% of Target EBITDA and 50%
corresponding to 100% of Target EBITDA. The Bonus shall be 50% of the Base Salary if the Target
EBITDA (as defined below) is achieved for any calendar year and shall be 100% of the Base Salary if
110% of the Target EBITDA is achieved or exceeded in any calendar year. If EBITDA (as defined
below) for any calendar year exceeds 100% of the Target EBITDA but does not exceed 110% of the
Target EBITDA, the Bonus shall be a percentage of the Base Salary between 50% and 100%, calculated
on a straight-line basis, as corresponds to the relative achievement of Target EBITDA, with 50%
corresponding to 100% Target EBITDA and 100% corresponding to 110% of Target EBITDA.

               (ii) “EBITDA” shall mean the Company’s earnings before reduction for interest, income
tax, depreciation and amortization for any period calculated in the same manner as the monthly
reporting package presented to the Board. “Target EBITDA” shall be the targeted EBITDA for
the Company for any calendar year established annually, and subject to adjustments for acquisitions
by the Company, by the Board in consultation with the Company’s Chief Executive Officer.

               (iii) Each Bonus, if any, shall be paid within thirty (30) days following the completion of
the Company’s audited financial statements for the relevant calendar year subject to Executive’s
continued employment with the Company as of the last date of such calendar year, except as
specifically provided in Section 5(a)(ii) hereof.

          (c) Option Agreement. Concurrent with the date hereof, National Waterworks Holdings,
Inc. (“Parent”), shall issue 95,628 Options (as defined in the Option Agreement) to the
Executive pursuant to the Option Agreement.

- 2 -

 

          (d) The Company shall reimburse the Executive for all reasonable expenses incurred by him in
the course of performing his duties under this Agreement which are consistent with the Company’s
policies in effect from time to time with respect to travel, entertainment and other business
expenses, subject to the Company’s requirements with respect to reporting and documentation of such
expenses.

          (e) The Company shall deduct from any payments to be made by it to the Executive under this
Agreement any amounts required to be withheld in respect of any Federal, state or local income or
other taxes.

     Section 4. Termination.

          (a) Termination Date. The Executive’s employment under this Agreement shall terminate
upon the earliest to occur (the date of such occurrence being the “Termination Date”) of
(i) the fourth anniversary of the Effective Date (the “Initial Term”), as may be extended
under Section 4(c) below, (ii) the effective date of the Executive’s resignation (a
“Resignation”), (iii) the Executive’s death or Disability (an “Involuntary
Termination”), (iv) the effective date of a termination of the Executive’s employment for Cause
by the Board (a “Termination for Cause”), (v) the effective date of Executive’s resignation
for Good Reason (a “Termination for Good Reason”) and (vi) the effective date of a
termination of the Executive’s employment by the Board for reasons that do not constitute Cause (a
“Termination Without Cause”). The effective date of a Resignation shall be as determined
under Section 4(b); the effective date of an Involuntary Termination shall be the date of
death or, in the event of a Disability, the date specified in a notice delivered to the Executive
by the Company; the effective date of a Termination for Good Reason shall be the date specified in
a notice delivered to the Company by the Executive of such termination and the effective date of a
Termination for Cause or a Termination Without Cause shall be the date specified in a notice
delivered to the Executive by the Company of such termination.

          (b) Resignation. The Executive shall give the Company and the Board at least 30 days’
prior written notice of a Resignation, with the effective date of such Resignation specified
therein. The Board may, in its discretion, accelerate the effective date of the Resignation.

          (c) Renewal. This Agreement may be renewed for additional one (1) year terms by
mutual agreement of the Company and the Executive within one year and 90 days (450 days) prior to
the expiration of the Initial Term. Nothing stated in this Agreement or represented orally or in
writing to either party shall create an obligation to renew this Agreement.

     Section 5. Effect of Termination; Severance.

          (a) In the event of a Termination Without Cause, a Termination for Good Reason or an
Involuntary Termination, the Executive or his beneficiaries or estate shall have the right to
receive the following:

               (i) the Base Salary provided by Section 3(a) hereof for a period of twelve (12)
months from the Termination Date, such amount to be deemed liquidated damages and payable at
the applicable payroll periods; provided, however, that in the

- 3 -

 

event of a breach by the Executive of Section 6, 7, 8, or
9 on or after the Termination Date, the provisions of Section 11 shall
apply;

               (ii) a pro rata amount of any Bonus which is earned by the Executive for the calendar
year in which such termination occurs determined after the end of the calendar year in which
such termination occurs and equal to the amount which would have been payable to the
Executive if Executive’s employment had not been terminated during such calendar year
multiplied by a fraction, the numerator of which is the number of whole months the Executive
was employed by the Company and the denominator of which is 12. The Bonus shall be paid out
as set forth in Section 3(b)(iii); and

               (iii) reimbursement for any expenses for which the Executive shall not have been
previously reimbursed, as provided in Section 3(d).

          (b) In the event of a Termination for Cause or Resignation, the Executive or his beneficiaries
or estate shall have the right to receive the following:

               (i) the unpaid portion of the Base Salary, computed on a pro rata basis
to the Termination Date; and

               (ii) reimbursement for any expenses for which the Executive shall not have been
previously reimbursed, as provided in Section 3(d).

          (c) Upon any termination, neither the Executive nor his beneficiaries or estate shall have any
further rights under this Agreement or any rights arising out of this Agreement other than as
provided in Sections 5(a) and (b) above. The rights of the Executive set forth in
this Section 5 are intended to be the Executive’s exclusive remedy for termination and, to
the greatest extent permitted by applicable law, the Executive waives all other remedies.

     Section 6. Nondisclosure and Nonuse of Confidential Information.

          The Executive will not disclose or use at any time, either during the Employment Period or
thereafter, any Confidential Information of which the Executive is or becomes aware, whether or not
such information is developed by him, except to the extent that (i) such disclosure or use is
directly related to and required by the Executive’s performance of duties assigned to the Executive
by the Company, (ii) to the extent that such disclosure is required in connection with any action
by the Executive to enforce rights under this Agreement, or (iii) such disclosure is required by a
court of law, governmental agency, or by any administrative or legislative entity with jurisdiction
to order the Executive to divulge or disclose such Confidential Information; provided,
that, the Executive shall provide ten (10) days prior written notice, if practicable, to the
Company of such disclosure so that the Company may seek a protective order or similar remedy; and,
provided, further, that, in each case set forth above, the Executive informs the recipients that
such information or communication is confidential in nature.

     Section 7. Inventions and Patents.

          The Executive agrees that all Work Product belongs to the Company. The Executive will
promptly disclose such Work Product to the Board and perform all actions

- 4 -

 

reasonably requested by the Board (whether during or after the Employment Period) to establish
and confirm such ownership (including, without limitation, the execution and delivery of
assignments, consents, powers of attorney and other instruments) and to provide reasonable
assistance to the Company in connection with the prosecution of any applications for patents,
trademarks, trade names, service marks or reissues thereof or in the prosecution or defense of
interferences relating to any Work Product.

     Section 8. Non-Compete, Non-Solicitation, Non-Disparagement.

          The Executive acknowledges and agrees with the Company that during the course of the
Executive’s employment with the Company, the Executive has had and will continue to have the
opportunity to develop relationships with existing employees, customers and other business
associates of the Company and its Subsidiaries which relationships constitute goodwill of the
Company, and the Company would be irreparably damaged if the Executive were to take actions that
would damage or misappropriate such goodwill. Accordingly, the Executive agrees as follows:

          (a) The Executive acknowledges that the Company currently conducts the Subject Business
throughout North America (the “Territory”). Accordingly, during the term hereof and until
one year from the Termination Date (the “Non-Compete Period”), the Executive shall not,
directly or indirectly, enter into, engage in, assist, give or lend funds to or otherwise finance,
be employed by or consult with, or have a financial or other interest in, any business which
engages in the Subject Business within the Territory, whether for or by himself or as an
independent contractor, agent, stockholder, partner or joint ventures for any other person. To the
extent that the covenant provided for in this Section 8(a) may later be deemed by a court
to be too broad to be enforced with respect to its duration or with respect to any particular
activity or geographic area, the court making such determination shall have the power to reduce the
duration or scope of the provision, and to add or delete specific words or phrases to or from the
provision. The provision as modified shall then be enforced.

          (b) Notwithstanding the foregoing, the aggregate ownership by the Executive of no more than
two percent (on a fully-diluted basis) of the outstanding equity securities of any person, which
securities are traded on a national or foreign securities exchange, quoted on the NASDAQ stock
market or other automated quotation system, and which person competes with the Company (or any part
thereof) within the Territory, shall not be deemed to be a violation of Section 8(a). In
the event that any person in which the Executive has any financial or other interest directly or
indirectly enters into a line of business during the Non-Compete Period that competes with the
Company or engages in the Subject Business within the Territory, the Executive shall divest all of
his interest (other than as permitted to be held pursuant to the first sentence of this Section
8(b)) in such person within 15 days after such person enters into such line of business that
competes with the Company or that engages in the Subject Business within the Territory.

          (c) The Executive covenants and agrees that during the period commencing with the Effective
Date and ending on the third anniversary of the Termination Date, the Executive will not, directly
or indirectly, either for himself or for any other person (A) solicit any employee or consultant of
the Company or any of its Subsidiaries to terminate his or her

- 5 -

 

employment or consulting relationship with the Company or any of its Subsidiaries or employ
any such individual during his or her employment or consulting relationship with the Company or any
of its Subsidiaries and for a period of one year after such individual terminates his or her
employment with the Company or any of its Subsidiaries, (B) solicit any customer of the Company or
any of its Subsidiaries to purchase or distribute information, products or services of or on behalf
of the Executive or such other person that are competitive with the information, products or
services provided by the Company or any of its Subsidiaries, or (c) take any action that may cause
injury to the relationships between the Company or any of its Subsidiaries or any of their
employees and any lessor, lessee, vendor, supplier, customer, distributor, employee, consultant or
other business associate of the Company or any of its Subsidiaries as such relationship relates to
the Company’s or any of its Subsidiaries’ conduct of their business.

          (d) The Executive understands that the foregoing restrictions may limit his ability to earn a
livelihood in a business similar to the business of the Company and any of its Subsidiaries, but he
nevertheless believes that he has received and will receive sufficient consideration and other
benefits as an employee of the Company and as otherwise provided hereunder or as described in the
recitals hereto to clearly justify such restrictions which, in any event (given his education,
skills and ability), the Executive does not believe would prevent him from otherwise earning a
living.

     Section 9. Delivery of Materials Upon Termination of Employment.

          The Executive shall deliver to the Company at the termination of the Employment Period or at
any time the Company may request all memoranda, notes, plans, records, reports, computer tapes and
software and other documents and data (and copies thereof) relating to the Confidential
Information, Work Product or the Subject Business which he may then possess or have under his
control regardless of the location or form of such material and, if requested by the Company, will
provide the Company with written confirmation that all such materials have been delivered to the
Company.

     Section 10. Insurance.

          The Company may, for its own benefit, maintain “keyman” life and disability insurance policies
covering the Executive. The Executive will cooperate with the Company and provide such information
or other assistance as the Company may reasonably request in connection with the Company obtaining
and maintaining such policies.

     Section 11. Enforcement.

          Because the Executive’s services are unique and because the Executive has access to
Confidential Information and Work Product, the parties hereto agree that money damages would be an
inadequate remedy for any breach of this Agreement. Therefore, in the event of a breach or
threatened breach of this Agreement, the Company or its successors or assigns may, in addition to
other rights and remedies existing in their favor, apply to any court of competent jurisdiction for
specific performance and/or injunctive or other relief in order to enforce, or prevent any
violations of, the provisions hereof (without posting a bond or other security). In addition to
the foregoing, and not in any way in limitation thereof, or in limitation of any right or

- 6 -

 

remedy otherwise available to the Company, if the Executive violates any provision of the
foregoing Sections 6, 7, 8 or 9, any payments then or thereafter
due from the Company to the Executive pursuant to Section 5(a)(i) and Section
5(a)(ii) shall be terminated forthwith and the Company’s obligation to pay and the Executive’s
right to receive such payments shall terminate and be of no further force or effect, in each case
without limiting or affecting the Executive’s obligations under such Sections 6, 7,
8 and 9 or the Company’s other rights and remedies available at law or equity.

     Section 12. Representations.

          Each party hereby represents and warrants to the other party that (a) the execution, delivery
and performance of this Agreement by such party does not and will not conflict with, breach,

violate or cause a default under any agreement, contract or instrument to which such party is a
party or any judgment, order or decree to which such party is subject, and (b) upon the execution
and delivery of this Agreement by such party, this Agreement will be a valid and binding obligation
of such party, enforceable in accordance with its terms, except as enforcement hereof may be
limited by any applicable bankruptcy, reorganization, insolvency or other laws affecting creditors’
rights generally or by general principles of equity. In addition, the Executive represents and
warrants to the Company that the Executive is not a party to or bound by any employment agreement,
consulting agreement, non-compete agreement, confidentiality agreement or similar agreement with
any other person, all of which shall be terminated effective as of the Closing. The Company and
the Executive hereby terminate all existing employment or consulting agreements between them, if
any, to the extent such agreements may be in effect after the date hereof.

     Section 13. Termination of Existing Employment Arrangements.

          Effective upon the Effective Date, any and all prior agreements or understandings related to
employment matters between the Company or its affiliates and the Executive shall be terminated and
shall be of no further force or effect and the Executive hereby agrees to take all action necessary
to affect such termination.

     Section 14. Definitions.

          “Board” shall mean the board of directors of the Company.

          “Business Day” shall mean any day that is not a Saturday, Sunday, or a day on which
banking institutions in New York are not required to be open.

          “Cause” shall mean (i) the failure by the Executive to perform such duties as are
reasonably requested by the Board which is not cured within thirty (30) days of receipt by the
Executive of written notice detailing the same from the Board, (ii) the Executive’s willful
disregard of his duties or failure to act, where such action would be in the ordinary course of the
Executive’s duties, (iii) the failure by the Executive to observe all written material Company
policies and written material policies of all Affiliates of the Company generally applicable to
executives of the Company and/or its Affiliates of which the Executive has notice, (iv) gross
negligence or willful misconduct by the Executive in the performance of his duties, (v) the
commission by the Executive of any act of fraud, theft or financial dishonesty with respect to the

- 7 -

 

Company or any of its Affiliates, or any felony or criminal act involving moral turpitude,
(vi) the material breach by the Executive of (a) this Agreement, including, without limitation, any
breach by the Executive of the provisions of Paragraph 6, Paragraph 7 or Paragraph 8, (b) the
Option Agreement, or (c) any Stockholders’ Agreement to which the Company or the Executive may
become a party, or (vii) chronic absenteeism. For purposes of this Agreement, “Affiliates”
means the Company (or its successors and assigns) and all Subsidiaries thereof.

          “Confidential Information” means information that is not generally known to the public
and that is or was used, developed or obtained by U.S. Filter Distribution, Inc.
(“Distribution”) or the Company or any of its Subsidiaries in connection with the Subject
Business, including, but not limited to, (i) information, observations, procedures and data
obtained by the Executive while employed by the Company (including those obtained by the Executive
while employed at Distribution prior to the date of this Agreement) concerning the business or
affairs of Distribution or the Company or any of its Subsidiaries, (ii) products or services, (iii)
costs and pricing structures, (iv) analyses, (v) drawings, photographs and reports, (vi) computer
software, including operating systems, applications and program listings, (vii) flow charts,
manuals and documentation, (viii) data bases, (ix) accounting and business methods, (x) inventions,
devices, new developments, methods and processes, whether patentable or unpatentable and whether or
not reduced to practice, (xi) customers, vendors, suppliers and customer, vendor and supplier
lists, (xii) other copyrightable works, (xiii) all production methods, processes, technology and
trade secrets, and (xiv) all similar and related information in whatever form. Confidential
Information will not include any information that has been published in a form generally available
to the public prior to the date the Executive proposes to disclose or use such information.
Confidential Information will not be deemed to have been published merely because individual
portions of the information have been separately published, but only if all material features
comprising such information have been published in combination.

          “Disability” shall mean the physical or mental inability of the Executive (i) to
substantially perform all of his duties under this Agreement for a period of 90 consecutive days or
longer or for any 90 days in any period of 365 consecutive days, or (ii) that, in the opinion of a
physician selected by the Board (excluding the Executive if the Executive is a member of the Board
at such time), but reasonably acceptable to the Executive, is likely to prevent the Executive from
substantially performing all of his duties under this Agreement for more than 90 days in any period
of 365 consecutive days.

          “Effective Date” shall mean January 5, 2005.

          “Good Reason” shall mean the occurrence of any of the following events without the
prior consent of the Executive: (i) a material reduction in the Executive’s duties and
responsibilities which has not been cured within ten (10) days of the receipt of the written notice
detailing the same from the Executive to the Company, (ii) a reduction in the Base Salary and (iii)
a relocation of the offices where Executive is to perform his duties to a location which is greater
than fifty (50) miles from the offices where Executive currently performs his duties.

          “Option Agreement” means the Parent’s Stock Option Agreement approved by the Board as
of the Effective Date.

- 8 -

 

          “Subsidiary” of the Company means and includes (i) any corporation more than 50% of
whose stock of any class or classes having by the terms thereof ordinary voting power to elect a
majority of the directors of such corporation (irrespective of whether or not at the time stock of
any class or classes of such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time owned by the Company or indirectly through
Subsidiaries and (ii) any partnership, association, joint venture or other entity (other than a
corporation) in which the Company directly or indirectly through Subsidiaries, has more than a 50%
equity interest at the time.

          “Work Product” shall mean all inventions, innovations, improvements, technical
information, systems, software developments, methods, designs, analyses, drawings, reports, service
marks, trademarks, tradenames, logos and all similar or related information (whether patentable or
unpatentable) which relates to the Company’s or any of its Subsidiaries’ actual or anticipated
business, research and development or existing or future products or services and which are
conceived, developed or made by the Executive (whether or not during usual business hours and
whether or not alone or in conjunction with any other person) while employed by the Company
(including those conceived, developed or made prior to the date of this Agreement) together with
all patent applications, letters patent, trademark, tradename and service mark applications or
registrations, copyrights and reissues thereof that may be granted for or upon any of the
foregoing.

     Section 15. General Provisions.

          (a) Severability. It is the desire and intent of the Parties hereto that the
provisions of this Agreement be enforced to the fullest extent permissible under the laws and
public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any
particular provision of this Agreement shall be adjudicated by a court of competent jurisdiction to
be invalid, prohibited or unenforceable for any reason, such provision, as to such jurisdiction,
shall be ineffective, without invalidating the remaining provisions of this Agreement or affecting
the validity or enforceability of this Agreement or affecting the validity or enforceability of
such provision in any other jurisdiction. Notwithstanding the foregoing, if such provision could
be more narrowly drawn so as not to be invalid, prohibited or unenforceable in such jurisdiction,
it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such provision in any
other jurisdiction.

          (b) Notices. All notices, requests, demands, claims and other communications
hereunder shall be in writing and sufficient if (i) delivered personally, (ii) delivered by
certified United States Post Office mail, return receipt requested, (iii) telecopied or (iv) sent
to the recipient by a nationally-recognized overnight courier service (charges prepaid) and
addressed to the intended recipient as set forth below:

	 	 	 	 	 
	

	 	(i)
	 	if to the Executive, to him at:
	 
	 	 	 	 
	

	 	 	 	c/o National Waterworks Holdings, Inc.

1805 Borman Circle Drive

- 9 -

 

	 	 	 	 	 
	

	 	 	 	St. Louis, Missouri 63146
	

	 	 	 	Telephone: (314) 432-4700
	

	 	 	 	Telecopier: (314) 432-8481
	 
	 	 	 	 
	

	 	(ii)
	 	if to the Company, to:
	 
	 	 	 	 
	

	 	 	 	National Waterworks, Inc.
	

	 	 	 	American Plaza
	

	 	 	 	200 West Highway 6
	

	 	 	 	Suite 620
	

	 	 	 	Waco, Texas 76712
	

	 	 	 	Attention: President
	

	 	 	 	Telephone: (254) 772-5355
	

	 	 	 	Telecopier: (254) 772-5716
	 
	 	 	 	 
	

	 	with copies to:	 	 
	 
	 	 	 	 
	

	 	 	 	J.P. Morgan Partners, LLC
	

	 	 	 	c/o J.P. Morgan Partners, L.P.
	

	 	 	 	1221 Avenue of the Americas
	

	 	 	 	New York, New York 10020
	

	 	 	 	Attention: Stephen Murray;
	 
	 	 	 	 
	

	 	 	 	Thomas H. Lee Partners, L.P.
	

	 	 	 	100 Federal Street
	

	 	 	 	Boston, Massachusetts 02110
	

	 	 	 	Attention: Todd Abbrecht;
	 
	 	 	 	 
	

	 	 	 	O’Melveny & Myers
	

	 	 	 	30 Rockefeller Plaza
	

	 	 	 	New York, New York 10112
	

	 	 	 	Attention: Gregory A. Gilbert, Esq.
	

	 	 	 	Telecopier: (212) 408-2420;
	 
	 	 	 	 
	

	 	 	 	and
	 
	 	 	 	 
	

	 	 	 	Weil, Gotshal & Manges LLP
	

	 	 	 	101 Federal Street
	

	 	 	 	Boston, Massachusetts 02110
	

	 	 	 	Attention: James Westra, Esq.
	

	 	 	 	Telecopier: (617) 772-8333

or such other address as the recipient party to whom notice is to be given may have furnished to
the other party in writing in accordance herewith. Any such communication shall be deemed to have
been delivered and received (a) in the case of personal delivery, on the date of such delivery, (b)
in the case of delivery by mail, on the third Business Day following such mailing, (c) if
telecopied, on the date telecopied, and (d) in the case of delivery by nationally-recognized,
overnight courier, on the Business Day following dispatch.

- 10 -

 

          (c) Entire Agreement. This Agreement, the Option Agreement, and the documents
expressly referred to herein embody the complete agreement and understanding among the parties and
supersede and preempt any prior understandings, agreements or representations by or among the
parties, written or oral, which may have related to the subject matter hereof in any way;
provided, however, that nothing set forth herein shall supersede or preempt the
Executive Subscription Agreement between the Executive and Parent dated as of November 22, 2002 or
the Restricted Stock Agreement between the Executive and Parent dated as of November 22, 2002.

          (d) Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original and all of which together shall constitute one and the same
instrument.

          (e) Successors and Assigns. Except as otherwise provided herein, this Agreement shall
bind and inure to the benefit of and be enforceable by the Executive and the Company and their
respective successors, assigns, heirs, representatives and estate, as the case may be;
provided, however, that the obligations of the Executive under this Agreement shall
not be assigned without the prior written consent of the Company.

          (f) Amendment and Waiver. The provisions of this Agreement may be amended and waived
only with the prior written consent of the Company and the Executive, and no course of conduct or
failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding
effect or enforceability of this Agreement or any provision hereof.

          (g) Governing Law. This Agreement shall be governed by and construed in accordance
with the domestic laws of the State of Delaware without giving effect to any choice or conflict of
law provision or rule that would cause the application of the laws of any jurisdiction other than
the State of Delaware.

          (h) Descriptive Headings; Nouns and Pronouns. Descriptive headings are for
convenience only and shall not control or affect the meaning or construction of any provision of
this Agreement. Whenever the context may require, any pronouns used herein shall include the
corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns
shall include the plural and vice-versa.

          (i) Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT.

* * * * *

- 11 -

 

          IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the date
first written above.

	 	 	 	 	 	 	 
	 	 	NATIONAL WATERWORKS, INC.
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Harry K. Hornish, Jr.	 	 
	

	 	 	 	 
	

	 	 	 	Name: Harry K. Hornish, Jr.	 	 
	

	 	 	 	Title: President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Philip Keipp
	 	 	 
	 	 	Philip Keipp, individually

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00079-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00079-of-00352.parquet"}]]