Document:

EX 10.5 Harris Empl Agmt

 

Exhibit 10.5

EMPLOYMENT AGREEMENT
THIS EMPLOYMENT AGREEMENT (the "Agreement") is effective as of October 5, 2011 (the "Effective Date"), by and between LENDER PROCESSING SERVICES, INC., a Delaware corporation (the "Company"), and Hugh R. Harris (the "Employee").  In consideration of the mutual covenants and agreements set forth herein, the parties agree as follows:
1.    Purpose and Release.  The purpose of this Agreement is (i) except as otherwise specifically provided in this Agreement, to terminate all prior agreements between the Company, and any of its affiliates, and Employee relating to the subject matter of this Agreement, (ii) to recognize Employee's significant contributions to the overall financial performance and success of the Company, (iii) to protect the Company's business interests through the addition of restrictive covenants, and (iv) to provide a single, integrated document which shall provide the basis for Employee's continued employment by the Company. In consideration of the execution of this Agreement and the termination of all such prior agreements (except to the extent otherwise specifically provided in this Agreement), the parties each release all rights and claims that they have, had or may have arising under such prior agreements.
2.    Employment and Duties.  Subject to the terms and conditions of this Agreement, the Company employs Employee to serve as its President and Chief Executive Officer. Employee accepts such employment and agrees to undertake and discharge the duties, functions and responsibilities commensurate with the aforesaid position and such other duties and responsibilities as may be prescribed from time to time by the Chairman or (the “Chairman”) or the Board of Directors of the Company (the “Board”).  Employee shall devote substantially all of his business time, attention and effort to the performance of his duties hereunder and shall not engage in any business, profession or occupation, for compensation or otherwise without the express written consent of the Chairman or Board, other than personal, personal investment, charitable, or civic activities or other matters that do not conflict with Employee’s duties.
3.    Term.  This Agreement shall commence on the Effective Date and, unless terminated as set forth in Section 9, continue through December 31, 2014.  This Agreement shall be extended automatically for successive one (1) year periods (the initial period and any extensions being collectively referred to as the “Employment Term”), unless either party terminates this Agreement as of the end of the then-current period by giving written notice at least thirty (30) days prior to the end of that period. Notwithstanding any termination of this Agreement or Employee's employment, Sections 9 and 10 shall remain in effect until all obligations and benefits that accrued prior to termination are satisfied.
4.    Salary.  During the Employment Term, Company shall pay Employee an annual base salary, before deducting all applicable withholdings, of no less than $880,000 per year, payable at the time and in the manner dictated by Company's standard payroll policies.  Such minimum annual base salary may be periodically reviewed and increased (but not decreased without Employee's express written consent) at the discretion of the Board or Compensation Committee of the Board (the “Committee”) to reflect, among other matters, cost of living increases and performance results (such annual base salary, including any increases pursuant to this Section 4, the “Annual Base Salary”).
5.    Other Compensation and Fringe Benefits.  In addition to any executive bonus, pension, deferred compensation and long-term incentive plans which Company or an affiliate of Company may from time to time make available to Employee, Employee shall be entitled to the following during the Employment Term: 

1

 
		
	(a)
	the standard Company benefits enjoyed by Company's other top executives as a group, including, without limitation, participation in the Company’s retirement and profit sharing plans;

		
	(b)
	medical and other insurance coverage (for Employee and any covered dependents) provided by Company to its other top executives as a group, including, without limitation, an annual executive physical examination;

		
	(c)
	supplemental disability insurance sufficient to provide two-thirds of Employee's pre-disability Annual Base Salary;

		
	(d)
	beginning January 1, 2012, an annual incentive bonus opportunity under Company's annual incentive plan ("Annual Bonus Plan") with such opportunity to be earned based upon attainment of performance objectives established by the Board or Committee ("Annual Bonus").  Employee's target Annual Bonus under the Annual Bonus Plan shall be no less than 165% of Employee's Annual Base Salary, with a maximum of up to 330% of Employee’s Annual Base Salary (collectively, the target and maximum are referred to as the “Annual Bonus Opportunity”). Employee's Annual Bonus Opportunity may be periodically reviewed and increased (but not decreased without Employee's express written consent) at the discretion of the Committee. The Annual Bonus shall be paid no later than the March 15th first following the calendar year to which the Annual Bonus relates. For calendar year 2012, the extent to which Employee has earned the Annual Bonus between the threshold and target levels shall be based upon the achievement of the performance goals described on Annex A hereto, and Employee’s achievement of the performance goals above the target level up to the maximum level shall be determined using the same performance goals used for other executives under the Annual Bonus Plan for 2012. For all other years during the Employment Term, the extent to which Employee has earned the Annual Bonus at any level shall be determined using the same performance goals used for other executives under the Annual Bonus Plan for that year (unless otherwise determined by the Committee);

		
	(e)
	Employee shall receive a retention incentive of $375,000, to be paid no later than March 15, 2012, if Employee continues to be employed as Company’s President and Chief Executive Officer on March 1, 2012;

		
	(f)
	On the Effective Date, or as soon thereafter as may be approved by the Committee, Employee shall receive (i) an award of non-qualified options to purchase 801,300 shares of Company’s common stock (the “2011 Option Award”), and (ii) 191,200 shares of restricted stock of the Company (the “2011 Restricted Stock Award”). The stock options shall vest, and the restrictions on the restricted stock shall lapse, in roughly equivalent amounts 

on an annual basis over a three (3) year period (subject to the satisfaction of performance-based vesting criteria that must be met for any of the restricted shares to vest) except as otherwise provided by this Agreement or the applicable equity incentive plan or award agreement. Except as stated below, the stock options and restricted stock shall otherwise generally be subject to the same terms and conditions as the annual equity incentive awards made to Company’s other executives in 2011; provided that the stock options in the 2011 Option Award shall become immediately vested in the event of a Change in Control;
		
	(g)
	subject to approval by the Committee, Company shall grant to Employee from time to time restricted stock, restricted stock units, stock options, stock appreciation rights and/or other long-term incentive compensation under the Company’s equity incentive plans; and

		
	(h)
	reimbursement of up to $15,000 annually in financial and tax planning fees.

6.    Vacation.  For and during each calendar year within the Employment Term, Employee shall be entitled to reasonable paid vacation periods consistent with Employee’s position and in accordance with Company's standard policies, or as the Board or Committee may approve. In addition, Employee shall be entitled to such holidays consistent with Company's standard policies or as the Board or Committee may approve.
7.    Expense Reimbursement.  In addition to the compensation and benefits provided herein, Company shall, upon receipt of appropriate documentation, reimburse Employee each month for his reasonable travel, lodging, entertainment, promotion and other ordinary and necessary business expenses to the extent such reimbursement is permitted under Company's expense reimbursement policy. 
8.    Indemnification.  To the maximum extent permitted under applicable law, and in addition to any other indemnification to which Employee may be entitled under state statute or any articles of incorporation, bylaws, resolution, or agreement (but without duplication of payments with respect to indemnified amounts), Company hereby agrees to hold harmless and indemnify Employee to the full extent allowed under applicable law, including, but not limited to, holding harmless and indemnifying Employee against any and all expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the Employee in connection with any threatened, pending, or completed action, lawsuit, or proceeding, whether civil, criminal, administrative, or investigative (including an action by or in the right of Company), to which the Employee is, was, or at any time becomes a party, or is threatened to be made a party, by reason of the fact that the Employee is, was, or at any time becomes a director, officer, employee or agent of Company, or is or was serving or at any time serves at the request of Company as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise. For purposes of clarity, under no circumstances shall the indemnification provided for in this Section 8 obligate Company to indemnify Employee against any expenses (including attorneys’ fees), judgments, fines and/or amounts paid in settlement which relate to actions taken by Employee which were outside of or beyond the scope of his employment with Company or his 

position as a director of Company.  
9.    Termination of Employment.  Company or Employee may terminate Employee's employment at any time and for any reason in accordance with Subsection 9(a) below. The Employment Term shall be deemed to have ended on the last day of Employee's employment.  The Employment Term shall terminate automatically upon Employee's death.
		
	(a)
	Notice of Termination.  Any purported termination of Employee's employment (other than by reason of death) shall be communicated by written Notice of Termination (as defined herein) from one party to the other in accordance with the notice provisions contained in Section 26. For purposes of this Agreement, a "Notice of Termination" shall mean a notice that indicates the Date of Termination (as that term is defined in Subsection 9(b)) and, with respect to a termination due to Cause (as that term is defined in Subsection 9(d)), Disability (as that term is defined in Subsection 9(e)) or Good Reason (as that term is defined in Subsection 9(f)), sets forth in reasonable detail the facts and circumstances that are alleged to provide a basis for such termination.  A Notice of Termination from Company shall specify whether the termination is with or without Cause or due to Employee's Disability. A Notice of Termination from Employee shall specify whether the termination is with or without Good Reason or due to Disability. 

		
	(b)
	Date of Termination.  For purposes of this Agreement, "Date of Termination" shall mean the date specified in the Notice of Termination (but in no event shall such date be earlier than the thirtieth (30th) day following the date the Notice of Termination is given) or the date of Employee's death. 

		
	(c)
	No Waiver.  The failure to set forth any fact or circumstance in a Notice of Termination, which fact or circumstance was not known to the party giving the Notice of Termination when the notice was given, shall not constitute a waiver of the right to assert such fact or circumstance in an attempt to enforce any right under or provision of this Agreement.

		
	(d)
	Cause.  For purposes of this Agreement, a termination for "Cause" means a termination by Company based upon Employee's: (i) persistent failure to perform duties consistent with a commercially reasonable standard of care (other than due to a physical or mental impairment or due to an action or inaction directed by Company that would otherwise constitute Good Reason); (ii) willful neglect of duties (other than due to a physical or mental impairment or due to an action or inaction directed by Company that would otherwise constitute Good Reason); (iii) conviction of, or pleading nolo contendere to, criminal or other illegal activities involving dishonesty; (iv) material breach of this Agreement; or (v) failure to materially cooperate with or impeding an investigation authorized by the Board.  If the Company seeks to terminate Employee for Cause under Subsections 9(d)(i), (ii) or (v), the Notice of Termination shall provide for a period of sixty (60) days to cure 

the Cause detailed in the Notice of Termination under Subsection 9(d)(i) or (ii), or for a period of five (5) days to cure the Cause detailed in the Notice of Termination under Subsection 9(d)(v).  In the event such Cause as stated in the Notice of Termination is not cured within the applicable cure period (which may be extended at the discretion of the Board), then the termination for Cause shall be effective at the end of the cure period.
		
	(e)
	Disability.  For purposes of this Agreement, a termination based upon "Disability" means a termination by Company based upon Employee’s entitlement to long-term disability benefits under Company's long-term disability plan or policy, as the case may be, as in effect on the Date of Termination.

		
	(f)
	Good Reason.  For purposes of this Agreement, a termination for "Good Reason" means a termination by Employee during the Employment Term based upon the occurrence (without Employee's express written consent) of any of the following:

		
	(i)
	a material diminution in Employee's position or title, or the assignment of duties to Employee that are materially inconsistent with Employee's position or title;

		
	(ii)
	a material change in the geographic location of Employee’s principal place of employment, which is currently Jacksonville, Florida (i.e., the Company has determined that a relocation of more than thirty-five (35) miles would constitute such a material change);

		
	(iii)
	within six (6) months immediately preceding or within two (2) years immediately following a Change in Control: (A) a material adverse change in Employee’s status, authority or responsibility (e.g., the Company has determined that a change in the department or functional group over which Employee has managerial authority would constitute such a material adverse change); (B) a change in the person to whom Employee reports that results in a material adverse change to the Employee’s service relationship or the conditions under which Employee performs his duties; (C) a material adverse change in the position to whom Employee reports or a material diminution in the authority, duties or responsibilities of that position; or (D) a material diminution in the budget over which Employee has managing authority;

		
	(iv)
	a material diminution in Employee's Annual Base Salary or Annual Bonus Opportunity; or

		
	(v)
	a material breach by the Company of any of its obligations under this Agreement.

Notwithstanding the foregoing, Employee being placed on a paid leave for up to sixty (60) days pending a determination of whether there is a basis to terminate Employee for Cause shall not constitute Good Reason. Employee's continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder; provided, however, that no such event described above shall constitute Good Reason unless: (1) Employee gives Notice of Termination to Company specifying the condition or event relied upon for such termination either: (x) within ninety (90) days of the initial existence of such event; or (y) in the case of an event predating a Change in Control, within ninety (90) days of the Change in Control; and (2) Company fails to cure the condition or event constituting Good Reason within thirty (30) days following receipt of  Employee's Notice of Termination.
10.    Obligations of Company Upon Termination.
		
	(a)
	Termination by Company for a Reason Other than Cause, Death or Disability and Termination by Employee for Good Reason.  If Employee's employment is terminated by: (1) Company for any reason other than Cause, Death or Disability; or (2) Employee for Good Reason: 

		
	(i)
	Company shall pay Employee the following (for the avoidance of doubt, the amounts payable under this Section 10(a)(i) shall be referred to collectively as the "Accrued Obligations"): (A) within five (5) business days after the Date of Termination, any earned but unpaid Annual Base Salary; (B) within a reasonable time following submission of all applicable documentation, any expense reimbursement payments owed to Employee for expenses incurred prior to the Date of Termination; and (C) no later than March 15th of the year in which the Date of Termination occurs, any earned but unpaid Annual Bonus payments relating to the prior calendar year;

		
	(ii)
	Company shall pay Employee no later than March 15th of the calendar year following the year in which the Date of Termination occurs, a prorated Annual Bonus based upon the actual Annual Bonus that would have been earned by Employee for the year in which the Date of Termination occurs (based upon the target Annual Bonus opportunity in the year in which the Date of Termination occurred, or the prior year if no target Annual Bonus opportunity has yet been determined, and the actual satisfaction of the applicable performance measures, but ignoring any requirement under the Annual Bonus plan that Employee must be employed on the payment date) multiplied by the percentage of the calendar year completed before the Date of Termination;

		
	(iii)
	Company shall pay Employee, on the 60th day following termination of employment, a lump-sum payment equal to 300% of the sum of: (A) Employee's Annual Base Salary in effect immediately prior to the Date of Termination (disregarding any reduction in Annual Base 

Salary to which Employee did not expressly consent in writing); and (B) the highest Annual Bonus paid to Employee by Company within the three (3) years preceding his termination of employment or, if higher, the target Annual Bonus opportunity in the year in which the Date of Termination occurs;
		
	(iv)
	All stock options, restricted stock and other equity-based incentive awards granted by Company that were outstanding but not vested as of the Date of Termination shall become immediately vested and/or payable, as the case may be, unless the equity incentive awards are based upon satisfaction of performance criteria, in which case they will vest or their restrictions shall lapse only pursuant to their express terms (which may include the ability to meet the performance criteria following the termination of Employee’s employment); and 

		
	(v)
	As long as Employee pays the full monthly premiums for COBRA coverage, Company shall provide Employee and, as applicable, Employee's eligible dependents with continued medical and dental coverage, on the same basis as provided to Company's active executives and their dependents until the earlier of: (i) the first date on which Employee is no longer eligible to receive COBRA coverage under the Company’s medical and dental plans; or (ii) the date Employee is first eligible for medical and dental coverage (without pre-existing condition limitations) with a subsequent employer.  In addition, on the 60th day following termination of employment, Company shall pay Employee a lump sum cash payment equal to thirty-six monthly medical and dental COBRA premiums based on the level of coverage in effect for the Employee (e.g., employee only or family coverage) on the Date of Termination.

		
	(b)
	Termination by Company for Cause and by Employee without Good Reason.  If Employee's employment is terminated by Company for Cause or by Employee without Good Reason, Company's only obligation under this Agreement shall be payment of any Accrued Obligations.

		
	(c)
	Termination due to Death or Disability.  If Employee's employment is terminated due to death or Disability, Company shall pay Employee (or to Employee's estate or personal representative in the case of death), within thirty (30) days following termination of employment, a lump-sum payment equal to the sum of: (i) any Accrued Obligations; plus (ii) a prorated Annual Bonus based upon the target Annual Bonus opportunity in the year in which the Date of Termination occurred (or the prior year if no target Annual Bonus opportunity has yet been determined) multiplied by the percentage of the calendar year completed before the Date of Termination; plus (iii) the unpaid portion of the Annual Base Salary for the remainder of the Employment Term.

		
	(d)
	Six-Month Delay.  To the extent Employee is a “specified employee,” as defined in Section 409A(a)(2)(B)(i)of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and other guidance promulgated thereunder and any elections made by the Company in accordance therewith, notwithstanding the timing of payment provided in any other Section of this Agreement, no payment, distribution or benefit under this Agreement that constitutes a distribution of deferred compensation (within the meaning of Treasury Regulation Section 1.409A-1(b)) upon separation from service (within the meaning of Treasury Regulation Section 1.409A-1(h)), after taking into account all available exemptions, that would otherwise be payable during the six-month period after separation from service, will be made during such six-month period, and any such payment, distribution or benefit will instead be paid on the first business day after such six-month period.

11.    Change in Control.  
		
	(a)
	Definition of Change in Control.  For purposes of this Agreement, the term "Change in Control" shall mean any one of the following: 

		
	(i)
	the acquisition, directly or indirectly, by any "person" (within the meaning of Section 3(a)(9) of the Securities and Exchange Act of 1934, as amended (the "Exchange Act") and used in Sections 13(d) and 14(d) thereof) of "beneficial ownership" (within the meaning of Rule 13d-3 of the Exchange Act) of securities of Company possessing more than 50% of the total combined voting power of all outstanding securities of Company; 

		
	(ii)
	a merger or consolidation in which Company is not the surviving entity, except for a transaction in which the holders of the outstanding voting securities of Company immediately prior to such merger or consolidation hold, in the aggregate, securities possessing more than 50% of the total combined voting power of all outstanding voting securities of the surviving entity immediately after such merger or consolidation; 

		
	(iii)
	a reverse merger in which Company is the surviving entity but in which securities possessing more than 50% of the total combined voting power of all outstanding voting securities of Company are transferred to or acquired by a person or persons different from the persons holding those securities immediately prior to such merger; 

		
	(iv)
	during any period of two (2) consecutive years during the Employment Term or any extensions thereof, individuals, who, at the beginning of such period, constitute the Board, cease for any reason to constitute at least a majority thereof, unless the election of each director who was not a director at the beginning of such period has 

been approved in advance by directors representing at least two-thirds of the directors then in office who were directors at the beginning of the period;
		
	(v)
	the sale, transfer or other disposition (in one transaction or a series of related transactions) of assets of Company that have a total fair market value equal to or more than one-third of the total fair market value of all of the assets of Company immediately prior to such sale, transfer or other disposition, other than a sale, transfer or other disposition to an entity (x) which immediately following such sale, transfer or other disposition owns, directly or indirectly, at least 50% of Company's outstanding voting securities or (y) 50% or more of whose outstanding voting securities is immediately following such sale, transfer or other disposition owned, directly or indirectly, by Company.  For purposes of the foregoing clause, the sale of stock of a subsidiary of Company (or the assets of such subsidiary) shall be treated as a sale of assets of Company; or 

		
	(vi)
	the approval by the stockholders of a plan or proposal for the liquidation or dissolution of Company.

12.    Non-Delegation of Employee's Rights.  The obligations, rights and benefits of Employee hereunder are personal and may not be delegated, assigned or transferred in any manner whatsoever, nor are such obligations, rights or benefits subject to involuntary alienation, assignment or transfer. 
13.    Confidential Information.  Employee acknowledges that he will occupy a position of trust and confidence and will have access to and learn substantial information about Company and its affiliates and their operations that is confidential or not generally known in the industry including, without limitation, information that relates to purchasing, sales, customers, marketing, and the financial positions and financing arrangements of Company and its affiliates. Employee agrees that all such information is proprietary or confidential, or constitutes trade secrets and is the sole property of Company and/or its affiliates, as the case may be. Employee will keep confidential, and will not reproduce, copy or disclose to any other person or firm, any such information or any documents or information relating to Company's or its affiliates' methods, processes, customers, accounts, analyses, systems, charts, programs, procedures, correspondence or records, or any other documents used or owned by Company or any of its affiliates, nor will Employee advise, discuss with or in any way assist any other person, firm or entity in obtaining or learning about any of the items described in this Section 13. Accordingly, Employee agrees that during the Employment Term and at all times thereafter he will not disclose, or permit or encourage anyone else to disclose, any such information, nor will he utilize any such information, either alone or with others, outside the scope of his duties and responsibilities with Company and its affiliates.
14.    Non-Competition.
		
	(a)
	During Employment Term. Employee agrees that, during the Employment 

Term, he will devote such business time, attention and energies reasonably necessary to the diligent and faithful performance of the services to Company and its affiliates, and he will not engage in any way whatsoever, directly or indirectly, in any business that is a direct competitor with Company's or its affiliates' principal business, nor solicit customers, suppliers or employees of Company or affiliates on behalf of, or in any other manner work for or assist any business which is a direct competitor with Company's or its affiliates' principal business. In addition, during the Employment Term, Employee will undertake no planning for or organization of any business activity competitive with the work he performs as an employee of Company, and Employee will not combine or conspire with any other employee of Company or any other person for the purpose of organizing any such competitive business activity.
		
	(b)
	After Employment Term.  The parties acknowledge that Employee will acquire substantial knowledge and information concerning the business of Company and its affiliates as a result of his employment.  The parties further acknowledge that the scope of business in which Company and its affiliates are engaged as of the Effective Date is national and very competitive and one in which few companies can successfully compete.  Competition by Employee in that business after the Employment Term would severely injure Company and its affiliates. Accordingly, for a period of one (1) year after Employee's employment terminates for any reason whatsoever, except as otherwise stated herein below, Employee agrees: (1) not to become an employee, consultant, advisor, principal, partner or substantial shareholder of any firm or business that directly competes with Company or its affiliates in their principal products and markets; and (2), on behalf of any such competitive firm or business, not to solicit any person or business that was at the time of such termination and remains a customer or prospective customer, a supplier or prospective supplier, or an employee of Company or an affiliate.

15.    Return of Company Documents.  Upon termination of the Employment Term, Employee shall return immediately to Company all records and documents of or pertaining to Company or its affiliates and shall not make or retain any copy or extract of any such record or document, or any other property of Company or its affiliates.
16.    Improvements and Inventions.  Any and all improvements or inventions that Employee may make or participate in during the Employment Term, unless wholly unrelated to the business of Company and its affiliates and not produced within the scope of Employee's employment hereunder, shall be the sole and exclusive property of Company. Employee shall, whenever requested by Company, execute and deliver any and all documents that Company deems appropriate in order to apply for and obtain patents or copyrights in improvements or inventions or in order to assign and/or convey to Company the sole and exclusive right, title and interest in and to such improvements, inventions, patents, copyrights or applications.

17.    Actions.  The parties agree and acknowledge that the rights conveyed by this Agreement are of a unique and special nature and that Company will not have an adequate remedy at law in the event of a failure by Employee to abide by its terms and conditions, nor will money damages adequately compensate for such injury. Therefore, it is agreed between and hereby acknowledged by the parties that, in the event of a breach by Employee of any of the obligations of this Agreement, Company shall have the right, among other rights, to damages sustained thereby and to obtain an injunction or decree of specific performance from any court of competent jurisdiction to restrain or compel Employee to perform as agreed herein. Employee hereby acknowledges that obligations under Sections and Subsections 13, 14(b), 15, 16, 17 and 18 shall survive the termination of employment and be binding by their terms at all times subsequent to the termination of employment for the periods specified therein. Nothing herein shall in any way limit or exclude any other right granted by law or equity to Company.
18.    Release.  Notwithstanding any provision herein to the contrary, Company may require that, prior to payment of any amount or provision of any benefit under Section 10 (other than due to Employee's death), Employee shall have executed a complete release of Company and its affiliates and related parties in such form as is reasonably required by Company, and any waiting periods contained in such release shall have expired.  With respect to any release required to receive payments owed pursuant to Section 10: (i) Company must provide Employee with the form of release no later than seven (7) days after the Date of Termination; (ii) the release must be signed by Employee and returned to Company effective and irrevocable, no later than sixty (60) days after the Date of Termination as applicable; and (iii) payments owed under Section 10 shall be paid on the sixtieth (60th) day following the Date of Termination, unless Section 10 provides that such payments shall be made on a later date.  The Company shall not be required to make these termination payments in the absence of the execution by Employee of the release provided under this Section 18.
19.    No Mitigation.  Company agrees that, if Employee's employment hereunder is terminated during the Employment Term, Employee is not required to seek other employment or to attempt in any way to reduce any amounts payable to Employee by Company hereunder.  Further, the amount of any payment or benefit provided for hereunder (other than pursuant to Subsection 10(a)(v) hereof) shall not be reduced by any compensation earned by Employee as the result of employment by another employer, by retirement benefits or otherwise.
20.    Entire Agreement and Amendment.  This Agreement embodies the entire agreement and understanding of the parties hereto in respect of the subject matter of this Agreement, and, except as expressly provided otherwise in this Agreement) supersedes and replaces all prior agreements, understandings and commitments with respect to such subject matter. This Agreement may be amended only by a written document signed by both parties to this Agreement.
21.    Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction. Any litigation pertaining to this Agreement shall be adjudicated in courts located in Duval County, Florida.

22.    Successors.  This Agreement may not be assigned by Employee. In addition to any obligations imposed by law upon any successor to Company, Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the stock, business and/or assets of Company, to expressly assume and agree to perform this Agreement in the same manner and to the same extent that Company would be required to perform it if no such succession had taken place.  Failure of Company to obtain such assumption by a successor shall be a material breach of this Agreement. Employee agrees and consents to any such assumption by a successor of Company, as well as any assignment of this Agreement by Company for that purpose. As used in this Agreement, "Company" shall mean Company as herein before defined as well as any such successor that expressly assumes this Agreement or otherwise becomes bound by all of its terms and provisions by operation of law.
23.    Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
24.    Attorneys' Fees.  If any party finds it necessary to employ legal counsel or to bring an action at law or other proceedings against the other party to interpret or enforce any of the terms hereof, the party prevailing in any such action or other proceeding shall be promptly paid by the other party its reasonable legal fees, court costs, litigation expenses, all as determined by the court and not a jury, and such payment shall be made by the non-prevailing party no later than the end of the Employee's tax year following the Employee's tax year in which the payment amount becomes known and payable; provided, however, that on or after a Change in Control, and following Employee’s termination of employment with the Company, if any party finds it necessary to employ legal counsel or to bring an action at law or other proceedings against the other party to interpret or enforce any of the terms hereof, Company shall pay (on an ongoing basis) to Employee to the fullest extent permitted by law, all legal fees, court costs and litigation expenses reasonably incurred by Employee or others on his behalf (such amounts collectively referred to as the "Reimbursed Amounts"); provided, further, that Employee shall reimburse Company for the Reimbursed Amounts if it is determined that a majority of Employee's claims or defenses were frivolous or without merit. Requests for payment of Reimbursed Amounts, together with all documents required by the Company to substantiate them, must be submitted to Company no later than ninety (90) days after the expense was incurred. The Reimbursed Amounts shall be paid by Company within ninety (90) days after receiving the request and all substantiating documents requested from Employee.  The payment of Reimbursed Amounts during Employee's tax year will not impact the Reimbursed Amounts for any other taxable year. The rights under this Section 24 shall survive the termination of employment and this Agreement until the expiration of the applicable statute of limitations.
25.    Severability.  If any section, subsection or provision hereof is found for any reason whatsoever to be invalid or inoperative, that section, subsection or provision shall be deemed severable and shall not affect the force and validity of any other provision of this Agreement.  If any covenant herein is determined by a court to be overly broad thereby making the covenant unenforceable, the parties agree and it is their desire that such court shall substitute a reasonable judicially enforceable limitation in place of the offensive part of the covenant and that as so modified the covenant shall be as fully enforceable as if set forth herein by the parties themselves in the modified form.  The covenants of Employee in this Agreement shall each be construed as an 

agreement independent of any other provision in this Agreement, and the existence of any claim or cause of action of Employee against Company, whether predicated on this Agreement or otherwise, shall not constitute a defense to the enforcement by Company of the covenants in this Agreement.
26.    Notices.  Any notice, request, or instruction to be given hereunder shall be in writing and shall be deemed given when personally delivered, when delivered by a reputable overnight courier, or three (3) days after being sent by United States Certified Mail, postage prepaid, with Return Receipt Requested, to the parties at their respective addresses set forth below:
To Company:    
Lender Processing Services, Inc.
601 Riverside Avenue
Jacksonville, Florida  32204
Attention: General Counsel

To Employee:
Hugh R. Harris
112 Cutter Court
Ponte Vedra Beach, Florida 32082

27.    Waiver of Breach.  The waiver by any party of any provisions of this Agreement shall not operate or be construed as a waiver of any prior or subsequent breach by the other party.
28.    Tax Withholding.  Company or an affiliate may deduct from all compensation and benefits payable under this Agreement any taxes or withholdings Company is required to deduct pursuant to state, federal or local laws.
29.    Code Section 409A.  To the extent applicable, it is intended that this Agreement and any payment made hereunder shall comply with the requirements of Section 409A of the Code, and any related regulations or other guidance promulgated with respect to such Section by the U.S. Department of the Treasury or the Internal Revenue Service ("Code Section 409A").  For purposes of this Agreement, a termination of employment will be determined consistent with the rules relating to a “separation from service” as defined in Code Section 409A.  To the extent any provision of this Agreement is ambiguous as to its compliance with Code Section 409A, the provision will be read in such a manner so that all payments hereunder comply with Code Section 409A.  To the extent any payment under this Agreement may be classified as a “short-term deferral” within the meaning of Code Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an exemption from Code Section 409A under another provision of Section 409A.  Payments pursuant to Sections 5, 11 and 12 hereof are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.  Any provision that would cause the Agreement or any payment hereof to fail to satisfy Code Section 409A shall have no force or effect until amended to comply with Code Section 409A, which amendment may be retroactive to the extent permitted by Code Section 409A.

[Signature page follows.]

IN WITNESS WHEREOF the parties have executed this Agreement to be effective as of the date first set forth above.
	
			
	 
	 
	LENDER PROCESSING SERVICES, INC.

	 
	 
	 

	 
	 
	 

	 
	By:
	/s/ Lee A. Kennedy

	 
	Name:
	Lee A. Kennedy

	 
	Its:
	Executive Chairman

	 
	 
	 

	 
	 
	 

	 
	 
	 

	 
	 
	  /s/ Hugh R. Harris

	 
	 
	Hugh R. Harris

Annex A
    
As described in Section 5(d) of the Employment Agreement between Company and Employee to which this Annex A is attached and made a part of, for calendar year 2012, the extent to which Employee has earned the Annual Bonus described in such Section 5(d) from the threshold level up to and including the target level shall be based upon the achievement of the performance goals described below. For performance between the threshold and target performance goals, the Committee shall use interpolation to determine the Amount of Award. 
	
			
	 
	Operating Margin 
Goal (1)(2)
	Percent of Base Salary

	Threshold
	15.50%
	82.50%

	Target
	16.50%
	165.00%

_________________
		
	(1)
	“Operating Margin” is defined as the Company’s GAAP operating margin adjusted for the impact of certain items, if applicable, including the impact of any federal or state regulatory actions, non-budgeted acquisitions, major restructuring charges (as identified in the GAAP to non-GAAP reconciliation exhibit included with the Company’s quarterly earnings releases) and non-budgeted discontinued operations. For purposes of computing achievement of the Performance Objective, the acquisition of PCLender is assumed to be included as a budgeted acquisition and the discontinuance of Verification Bureau (including Fraud), Watterson Prime, Tax Services (excluding National Tax Net and Tax Desktop) and RealEstate Group (excluding MLS) are assumed to be excluded as budgeted discontinued operations.

		
	(2)
	For every 1.0% decline in the consolidated weighted average industry volumes for refinancing originations and foreclosure starts (based upon the relative weighting of the Company’s revenues from refinancing originations and foreclosure starts) during the Determination Period, the threshold and target performance goals shall each be decreased by 0.5%. Refinancing Originations will be based on the Mortgage Bankers Associations Monthly Mortgage Finance Report published after the measurement period (This is a forecast and also contains historical numbers which are regularly updated with each report). Foreclosure Starts will be based on reported numbers for Default Notices in the RealtyTrac monthly Foreclosure Activity Report published after the measurement period.

Employee’s achievement of the performance goals above the target level up to and including the maximum level shall be determined using the same performance goals used for other executives under the Annual Bonus Plan for 2012. Further, for all years after calendar year 2012, the extent to which Employee has earned the Annual Bonus at any level shall be determined using the same performance goals used for other executives under the Annual Bonus Plan for that year (unless otherwise determined by the Committee).EX 10.6 Harris Restr Stock Swd Agmt

Exhibit 10.6

Lender Processing Services, Inc.
Amended and Restated 2008 Omnibus Incentive Plan

Notice of Performance-Based Restricted Stock Grant

You (the “Grantee”) have been granted the following award of restricted Common Stock of Lender Processing Services, Inc. (the “Company”), par value $0.0001 per share (the “Shares”), pursuant to the Lender Processing Services, Inc. Amended and Restated 2008 Omnibus Incentive Plan (the “Plan”):

	
		
	Name of Grantee:
	Hugh R. Harris

	Number of Shares of Restricted Stock Granted:
	191,200

	Effective Date of Grant:
	October 5, 2011

	Period of Restriction:
	See Appendix A

By your signature and the signature of the Company’s representative below, you and the Company agree and acknowledge that this grant of restricted stock is granted under and governed by the terms and conditions of the Plan and the Restricted Stock Agreement, which are incorporated herein by reference, and that you have been provided with a copy of the Plan and Restricted Stock Agreement (including Appendix A).

	
					
	Stock Recipient:
	 
	Lender Processing Services, Inc.

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	By:
	/s/ Hugh R. Harris
	 
	By:
	/s/ Thomas L. Schilling

	Print Name:
	Hugh R. Harris
	 
	 
	Thomas L. Schilling

	Date:
	10/21/2011
	 
	 
	Executive Vice President and

	 
	 
	 
	 
	Chief Financial Officer

	 
	 
	 
	 
	 

1

Appendix A
Period of Restriction
This grant is subject to both service and performance-based vesting conditions described below.  The period beginning on the Effective Date of Grant and ending upon satisfaction of both vesting conditions is referred to as the “Period of Restriction.”
Performance Restriction
In order for the Restricted Stock to vest, the Company must achieve an annual “Operating Margin” (as defined below) of 16.5% during any twelve (12) month period commencing on October 1, 2011 and ending on June 30, 2013 (the “Performance Objective”). The Company’s achievement of the Performance Objective shall be evaluated and certified by the Committee as of the following dates (each a “Calculation Date”):
September 30, 2012            December 31, 2012
March 31, 2013            June 30, 2013

“Operating Margin” is defined as the Company’s GAAP operating margin adjusted for the impact of certain items, if applicable, including the impact of any federal or state regulatory actions, non-budgeted acquisitions, major restructuring charges (as identified in the GAAP to non-GAAP reconciliation exhibit included with the Company’s quarterly earnings releases) and non-budgeted discontinued operations. For purposes of computing achievement of the Objective Performance Goal, the acquisition of PCLender is assumed to be included as a budgeted acquisition and the discontinuance of Verification Bureau (including Fraud), Watterson Prime, Tax Services (excluding National Tax Net and Tax Desktop) and RealEstate Group (excluding MLS) are assumed to be excluded as budgeted discontinued operations.
In order to take into consideration the difficult economic and industry conditions facing the Company, the Committee approved an adjustment to be made to the Objective Performance Goal in the following circumstances:  For every 1.0% decline in the consolidated weighted average industry volumes for refinancing originations and foreclosure starts (based upon the relative weighting of the Company’s revenues from refinancing originations and foreclosure starts) during the Performance Period, the Performance Objective of Operating Margin of 16.5% shall be decreased by 0.5%. Refinancing Originations will be based on the Mortgage Bankers Associations Monthly Mortgage Finance Report published after the measurement period (This is a forecast and also contains historical numbers which are regularly updated with each report). Foreclosure Starts will be based on reported numbers for Default Notices in the RealtyTrac monthly Foreclosure Activity Report published after the measurement period.
Service Restriction
In addition to satisfaction of the Performance Objective, except as otherwise provided in the Award Agreement or the Plan, the Grantee must remain employed through the anniversary dates set forth in the following table in order for the Restricted Stock to vest:

	
			
	“Anniversary Date”
	 
	% of Restricted Stock

	First (1st) anniversary of the Effective Date of Grant
	 
	331⁄3%

	Second (2nd) anniversary of the Effective Date of Grant
	 
	331⁄3%

	Third (3rd) anniversary of the Effective Date of Grant
	 
	331⁄3%

Vesting

If the Performance Objective has been achieved on or prior to an Anniversary Date specified in the above table, the percentage of the Restricted Stock indicated next to each Anniversary Date shall vest. If the Performance Objective has not been achieved on or prior to an Anniversary Date, the percentage of Restricted Stock that did not vest on such Anniversary Date will vest on a Calculation Date if on such Calculation Date the Performance Objective has been achieved. If the Performance Objective is not achieved on or before June 30, 2013, none of the Restricted Stock granted hereunder shall vest and, for no consideration, all shares of Restricted Stock granted hereunder will automatically forfeit to the Company.

                    
Lender Processing Services, Inc.
Amended and Restated 2008 Omnibus Incentive Plan

Performance-Based Restricted Stock Award Agreement

SECTION 1.    GRANT OF RESTRICTED STOCK

(a)    Restricted Stock.  On the terms and conditions set forth in the Notice of Restricted Stock Grant (including Appendix A) and this Performance-Based Restricted Stock Award Agreement (the “Agreement”), the Company grants to the Grantee on the Effective Date of Grant the Restricted Stock set forth in the Notice of Restricted Stock Grant.  
(b)    Plan and Defined Terms.  The Restricted Stock is granted pursuant to the Plan.  All terms, provisions, and conditions applicable to the Restricted Stock set forth in the Plan and not set forth herein are hereby incorporated by reference herein.  To the extent any provision hereof is inconsistent with a provision of the Plan, the provisions of the Plan will govern.  All capitalized terms that are used in the Notice of Restricted Stock Grant (including Appendix A) or this Agreement and not otherwise defined therein or herein shall have the meanings ascribed to them in the Plan.
SECTION 2.    FORFEITURE AND TRANSFER RESTRICTIONS
(a)    Forfeiture Restrictions.  If the Grantee’s employment or service as a Director or Consultant, as the case may be, is terminated for any reason other than (i) death, (ii) Disability (as defined below) or (iii) termination by the Company and its Subsidiaries without Cause (as defined below), the Grantee shall, for no consideration, forfeit to the Company the Shares of Restricted Stock to the extent such Shares are subject to a Period of Restriction at the time of such termination. If the Grantee’s employment or service as a Director or Consultant, as the case may be, terminates due to the Grantee’s death or Disability while Shares of Restricted Stock are subject to a Period of Restriction, the Period of Restriction with respect to such Shares shall lapse, and the Shares shall vest and become free of the forfeiture and transfer restrictions described in this Section 2 on the date of the Grantee’s termination of employment or service.  If the Grantee’s employment or service as a Director or Consultant, as the case may be, is terminated by the Company and its Subsidiaries without Cause, the service-based vesting conditions applicable to such Shares shall lapse on the date of the Grantee’s termination of employment or service, but the Performance Objective shall continue to apply and the Shares of Restricted Stock shall become free of the forfeiture and transfer restrictions described in this Section 2 (except the mandatory holding period described in Section 2(d), which shall remain in effect for the period specified therein) if and only if the Performance Objective is attained.  For avoidance of doubt, if the Performance Objective has not been attained as of the final Calculation Date, a Grantee whose employment or service as a Director or Consultant, as the case may be, is terminated by the Company and its Subsidiaries without Cause shall, for no consideration, forfeit to the Company all of the Shares of Restricted Stock.
(i)    The term “Cause” shall have the meaning ascribed to such term in the Grantee’s employment agreement with the Company or any Subsidiary.  If the Grantee’s employment 

agreement does not define the term “Cause,” or if the Grantee has not entered into an employment agreement with the Company or any Subsidiary, the term “Cause” shall mean (A) the willful engaging by the Grantee in misconduct that is demonstrably injurious to the Company or any Subsidiary (monetarily or otherwise), as determined by the Company in its sole discretion, (B) the Grantee’s conviction of, or pleading guilty or nolo contendere to, a felony involving moral turpitude, or (C) the Grantee’s violation of any confidentiality, non-solicitation, or non-competition covenant to which the Grantee is subject.

(ii)    The term “Disability” shall have the meaning ascribed to such term in the Grantee’s employment agreement with the Company or any Subsidiary.  If the Grantee’s employment agreement does not define the term “Disability,” or if the Grantee has not entered into an employment agreement with the Company or any Subsidiary, the term “Disability” shall mean the Grantee’s entitlement to long-term disability benefits pursuant to the long-term disability plan maintained by the Company or in which the Company’s employees participate.  

(b)    Transfer Restrictions.  During the Period of Restriction, the Restricted Stock may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of to the extent such Shares are subject to a Period of Restriction.
(c)    Lapse of Restrictions.  The Period of Restriction shall lapse as to the Restricted Stock in accordance with Appendix A of the Notice of Restricted Stock Grant.  Subject to the terms of the Plan and Sections 2(d) and 4(a) hereof, upon lapse of the Period of Restriction, the Grantee shall own the Shares that are subject to this Agreement free of all restrictions otherwise imposed by this Agreement.
(d)    Mandatory Holding Period.  Notwithstanding anything contained in the Notice of Restricted Stock Grant (including Appendix A), this Agreement or the Plan to the contrary, the Holding Period Shares (as defined in the following sentence) may not be sold, assigned, pledged, exchanged, hypothecated or otherwise transferred, encumbered or disposed of for a period of six (6) months following the lapse of the Period of Restriction.  For purposes of the prior sentence, the term “Holding Period Shares” shall mean, with respect to each tranche of Shares of Restricted Stock with respect to which the Period of Restriction lapses, the number of such Shares equal to the product of (x) multiplied by (y), rounded up to the nearest whole share, where (x) is the number of Shares of Restricted Stock with respect to which the Period of Restriction lapses, reduced by the number of Shares withheld by the Company pursuant to Section 4(a) hereof to satisfy the minimum statutory withholding obligations (based on minimum statutory withholding rates for federal, state and local tax purposes, as applicable, including payroll taxes) and (y) is fifty percent (50%).

SECTION 3.    STOCK CERTIFICATES
As soon as practicable following the grant of Restricted Stock, the Shares of Restricted Stock shall be registered in the Grantee’s name in certificate or book-entry form.  If a certificate is issued, it shall bear an appropriate legend referring to the restrictions and it shall be held by the Company, or its agent, on behalf of the Grantee until the Period of Restriction has lapsed.  If the Shares are registered in book-entry form, the restrictions shall be placed on the book-entry registration.  The Grantee may be required to execute and return to the Company a blank stock 

power for each Restricted Stock certificate (or instruction letter, with respect to Shares registered in book-entry form), which will permit transfer to the Company, without further action, of all or any portion of the Restricted Stock that is forfeited in accordance with this Agreement.
Except for the transfer restrictions, and subject to the following provisions in this Section 3 and such other restrictions, if any, as determined by the Committee, the Participant shall have all other rights of a holder of Shares, including the right to receive dividends paid (whether in cash or property) with respect to the Restricted Stock and the right to vote (or to execute proxies for voting) such Shares.  Unless otherwise determined by the Committee, if all or part of a dividend in respect of the Restricted Stock as to which the Period of Restriction has not yet lapsed is paid in Shares or any other security issued by the Company, such Shares or other securities shall be held by the Company subject to the same restrictions as the Restricted Stock in respect of which the dividend was paid.  If all or part of a dividend in respect of the Restricted Stock as to which the Period of Restriction has not yet lapsed is paid in cash, such cash dividend shall not be paid to the Grantee unless and until the Period of Restriction with respect to such Restricted Stock lapses, at which time the cash shall be paid as soon as practicable (but not later than thirty (30) days) thereafter.  For purposes of determining whether a cash dividend is attributable to Restricted Stock as to which the Period of Restriction has lapsed, all cash dividends with a record date on or prior to the date of the lapsing of the Period of Restriction of the Restricted Stock shall be deemed attributable to such Restricted Stock.
SECTION 4.    MISCELLANEOUS PROVISIONS

(a)    Tax Withholding.  Pursuant to Article 20 of the Plan, the Committee shall have the power and right to deduct or withhold, or require the Grantee to remit to the Company, an amount sufficient to satisfy any federal, state and local taxes (including the Grantee’s FICA obligations) required by law to be withheld with respect to this Award.  The Committee may condition the delivery of Shares upon the Grantee’s satisfaction of such withholding obligations.  The Grantee’s acceptance of this Award constitutes the Grantee’s instruction and authorization to the Company to withhold, from the Shares of Restricted Stock with respect to which the Period of Restriction lapses, a number of such Shares having an aggregate Fair Market Value equal to the minimum statutory withholding (based on minimum statutory withholding rates for federal, state and local tax purposes, as applicable, including payroll taxes) that could be imposed on the transaction, and, to the extent the Committee so permits, amounts in excess of the minimum statutory withholding to the extent it would not result in additional accounting expense; provided, however, that, unless otherwise determined by the Committee, a Grantee may elect to satisfy such tax withholding requirements by timely remittance of such amount by cash or check or by such other method that is acceptable to the Company, rather than by withholding of shares.  The Committee may, in its sole discretion, choose to permit, not permit, approve or not approve such elections and, subject to applicable law, may establish and/or change from time to time any terms and conditions applicable to such elections as it may deem appropriate.
(b)    Ratification of Actions.  By accepting this Agreement, the Grantee and each person claiming under or through the Grantee shall be conclusively deemed to have indicated the Grantee’s acceptance and ratification of, and consent to, any action taken under the Plan or this Agreement 

and Notice of Restricted Stock Grant (including Appendix A) by the Company, the Board or the Committee.

(c)    Notice.  Any notice required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery or upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid.  Notice shall be addressed to the Company at its principal executive office and to the Grantee at the address that he or she most recently provided in writing to the Company.
(d)    Choice of Law.  This Agreement and the Notice of Restricted Stock Grant (including Appendix A) shall be governed by, and construed in accordance with, the laws of Florida, without regard to any conflicts of law or choice of law rule or principle that might otherwise cause the Agreement or Notice of Restricted Stock Grant (including Appendix A) to be governed by or construed in accordance with the substantive law of another jurisdiction.
(e)    Modification or Amendment.  This Agreement may only be modified or amended by written agreement executed by the parties hereto; provided, however, that the adjustments permitted pursuant to Section 4.3 of the Plan may be made without such written agreement. 
(f)    Severability.  In the event any provision of this Agreement shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining provisions of this Agreement, and this Agreement shall be construed and enforced as if such illegal or invalid provision had not been included.
(g)    References to Plan.  All references to the Plan shall be deemed references to the Plan as may be amended from time to time.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}]]