Document:

Filed by Bowne Pure Compliance

 

EXHIBIT 10-1

The Navigators Group, Inc.

6 International Drive

Rye Brook, NY 10573

April 24, 2008

Mr. Paul J. Malvasio

Dear Paul:

This will confirm our agreement with respect to your retirement from employment as Chief
Financial Officer of the Company, which will be effective August 15, 2008 (the “Retirement Date”).
As we have discussed, the Company plans to issue a public announcement of your retirement within
the next several days and will begin a search for a new Chief Financial Officer.

You will continue to serve as the Company’s Chief Financial Officer until the earlier of the
Retirement Date or the date on which a new Chief Financial Officer becomes employed by the Company.
If the new Chief Financial Officer joins the Company prior to the Retirement Date, you will
continue your employment, providing services to the Company in connection with the transition, and
will continue to receive your base salary until the Retirement Date.

In consideration of your continued performance of your responsibilities until the Retirement
Date and your execution, on or shortly before the Retirement Date, of the Retirement Agreement
accompanying this letter, and subject to your compliance with the terms of the Retirement
Agreement, you will be entitled to the following:

(1) All of the outstanding stock options and Annual Incentive Program stock awards granted to
you (as set forth below) shall immediately vest upon the Retirement Date. The stock and option
awards consists of the following:

	 	(a)	 	Options to purchase 5,000 shares of the Company’s common stock at
a purchase price of $33.00 per share, pursuant to a March 8, 2005 grant;

	 
	 	(b)	 	829 shares of the Company’s common stock, pursuant to a March 8,
2005 grant;

	 
	 	(c)	 	1,226 shares of the Company’s common stock, pursuant to a
February 28, 2006 grant;

	 
	 	(d)	 	2,273 shares of the Company’s common stock, pursuant to a March
2, 2007 grant; and

	 
	 	(e)	 	2,687 shares of the Company’s common stock; pursuant to a March
7, 2008 grant.

 

 

 

As provided in the Company’s 2005 Stock Incentive Plan, you will have six months from the
Retirement Date to exercise your outstanding stock options.

(2) The grant of 10,000 shares of the Company’s common stock on March 22, 2006 under the
Company’s Admirals Program will continue to vest, in accordance with the terms of such grant, in
equal installments on the third, fourth and fifth anniversaries of the grant date. These are the
only shares that you will receive under the Admirals Program.

(3) The Company will pay to you, upon the later of (a) the Retirement Date or (b) the first
business day following the expiration of the “Revocation Period” (as described in the Retirement
Agreement) the amount, less applicable payroll deductions, of the unvested portion of the
contributions made by the Company through the Retirement Date, for your account, to the Money
Purchase Plan, grossed up for income tax purposes.

Please indicate your agreement with the above by signing and indicating the date of your
signature where indicated below. The accompanying Retirement Agreement should be reviewed by you
and, as indicated in the Retirement Agreement, reviewed by your attorney. It should be signed and
returned to the Company on or shortly before the Retirement Date. Please let us have, at your
earliest convenience, any comments you may have with respect to the Retirement Agreement.

	 	 	 	 	 
	 	THE NAVIGATORS GROUP, INC.

 	 
	 	By:  	/s/ Elliot S. Orol
	 

AGREED AS TO THE

ABOVE TERMS:

	 	 	 	 	 
	 	By:  	/s/ Paul J. Malvasio
 	 
	 	 	Dated:  April 24, 2008 	 

 

 

 

	 	 	 	 	 

RETIREMENT AGREEMENT 

THIS RETIREMENT AGREEMENT (the “Agreement”) is entered into by and between PAUL J. MALVASIO
(the “Executive”) and THE NAVIGATORS GROUP, INC. (the “Company”).

W I T N E S S E T H

WHEREAS:

(A) Executive will retire from employment with the Company, effective August 15, 2008 (the
“Retirement Date”).

(B) The Company has indicated to Executive its willingness to accelerate the vesting of the
grant of a certain option to purchase shares of the Company’s common stock and the grant of certain
shares of common stock under the Company’s Annual Incentive Program; the Company will cause the
continued vesting after the Retirement Date of a grant of certain shares of common stock under the
Admirals Program; and the Company will make a payment to Executive with respect to the unvested
contributions made by the Company to Executive’s Money Purchase Plan account, all as set out in the
Company’s April 24, 2008 letter to Executive which accompanied this Agreement, provided that
Executive enters into this Agreement.

NOW, THEREFORE, in consideration of the mutual promises, releases, covenants and agreements
herein contained, it is agreed as follows:

	 	1.	 	Executive’s
Retirement. Executive hereby confirms his retirement from
the Company, effective as of the Retirement Date.

	 
	 	2.	 	Severance Payment, Accelerated Vesting, Continued Vesting of Stock Options
and Stock Grants. Subject to the provisions of Section 10, the Company shall:

	 	A.	 	Pay to Executive the amount, less applicable payroll deductions, of the
unvested portion of the contributions made by the Company through the Retirement
Date, for the Executive’s account, to the Company’s Money Purchase Plan, grossed up
for income tax purposes (the “Severance Payment”), payable in a lump sum on the
later of the (i) Retirement Date or (ii) the first business day following the
expiration of the “Revocation Period”, as described in Section 10;

	 
	 	B.	 	Cause all of the outstanding stock options and Annual Incentive Program
stock awards granted to Executive (as hereinafter set forth) to immediately vest
upon the Retirement Date. The stock and option awards consist of the following: (i)
an option to purchase 5,000 shares of the Company’s common stock at a purchase price
of $33.00 per share, pursuant to a March 8, 2005 grant; (ii) 829 shares of the
Company’s common stock, pursuant to a March 8, 2005 grant; (iii) 1,226 shares of the
Company’s common stock, pursuant to a February 28, 2006 grant; (iv) 2,273 shares of
the Company’s common stock, pursuant to a March 2, 2007 grant; and (v) 2,687 shares
of the Company’s common stock, pursuant to a March 7, 2008 grant. As provided in
the Company’s 2005 Stock Incentive Plan, Executive will have six months from the
Retirement Date to exercise the outstanding stock option.

 

 

 

	 	C.	 	Cause the grant of 10,000 shares of the Company’s common stock on March
22, 2006 under the Company’s Admirals Program to continue to vest, in accordance
with the terms of such grant, in equal installments on the third, fourth and fifth
anniversaries of the grant date. These are the only shares that Executive will
receive under the Admirals Program.

	 	3.	 	Releases.

	 	A.	 	As a material inducement to the Company to enter into this Agreement and
in consideration of the Company’s obligations under this Agreement to make the
Severance Payment and cause the vesting of the stock grants and stock option, as
described in Section 2 of this Agreement, Executive hereby irrevocably,
unconditionally and generally releases the Company, its current and former officers,
directors and employees, and the heirs, executors, administrators, receivers,
successors and assigns of the foregoing, as applicable (collectively, “Releasees”),
from, and hereby waives and/or settles any and all actions, causes of action, suits,
debts, promises, damages, or any liability, claims or demands, known or unknown and
of any nature whatsoever and which Executive ever had, now has or hereafter can,
shall or may have, for, upon, or by reason of any matter, cause or thing whatsoever
up to the date of this release (collectively, “Claims”), whether or not arising
directly or indirectly pursuant to or out of Executive’s employment with the Company
or the termination of such employment and, specifically, without limitation, any
rights and/or Claims (a) arising under any federal, state, local or other statutes,
orders, laws, ordinances, regulations or the like that relate to the employment
relationship and/or specifically that prohibit discrimination based upon age, race,
religion, gender, national origin, disability, sexual orientation or any unlawful
bases, including, without limitation, as amended, the Age Discrimination in
Employment Act of 1967, Title VII of the Civil Rights Act of 1964, the Civil Rights
Act of 1991, the Americans with Disabilities Act of 1990, the New York State Human
Rights Law, and any applicable rules and regulations promulgated pursuant to or
concerning any of the foregoing statutes; (b) arising under or pursuant to any
contract, express or implied, written or oral; (c) for tort, tortious or harassing
conduct, infliction of emotional distress, interference with contract, fraud, libel
or slander; and (d) for damages, including, without limitation, for attorneys’ fees,
expenses, costs, wages, vacation, injunctive or equitable relief. Notwithstanding
the foregoing, (i) this release shall not apply to any claim Executive may have for
a breach of this Agreement or for coverage under the Company’s directors’ and
officers’ liability insurance policy, and (ii) if coverage under the Company’s
directors’ and officers’ liability insurance policy with respect to a Claim shall be
unavailable to the Executive as a result of his retirement from the Company, then
the Company will, unless prohibited from doing so under law, defend and hold
harmless the Executive against such Claim.

	 
	 	B.	 	As a material inducement to the Executive to enter into this Agreement
and in consideration of the Executive’s obligations under this Agreement, including
his agreement to refrain from soliciting for employment any of the Company’s
employees and from soliciting any of the Company’s insureds, as set forth in Section
6, the Company hereby irrevocably, unconditionally and generally releases the
Executive, his heirs, executors, and administrators, from, and hereby waives and/or
settles any and all actions, causes of action, suits, debts, promises, damages or
any liability, claims or demands, known or unknown, up to the date of this release,
except for any act or omission by Executive which is fraudulent or unlawful and not,
as of the date of this Agreement, known to the Company.

 

 

 

	 	4.	 	Confidentiality.

	 	A.	 	Executive acknowledge that, as the Chief Financial Officer of the
Company, Executive has had access to confidential information relating to the
business operations of the Company and further acknowledges that such information,
as described below, is the Company’s exclusive property and that the Company has
legitimate need to protect such confidential information from disclosure. Such
confidential information includes, but is not limited to, software programs, product
development information, sales figures and forecasts, financial projections,
methods, procedures, techniques, lists of insureds, clients or prospective clients
and their contact information, information concerning the Company’s revenues,
expenses, employees, marketing plans, business strategies and other proprietary
information concerning the Company (collectively, the “Confidential Information”).
Executive hereby covenants and agrees that Executive will not at any time hereafter
use for Executive’s personal benefit or for the benefit of any third party or
disclose to any third party any of the Confidential Information.

	 
	 	B.	 	The Company and the Executive each agree to maintain the terms of this
Agreement as confidential and neither party, nor any person or entity acting on such
party’s behalf, shall disclose such terms to any third party, except to such party’s
attorneys or tax advisors, provided that they have agreed to maintain
confidentiality with respect to such terms. The obligations of Executive and the
Company hereunder shall not prohibit either from cooperating with any government or
regulatory inquiry or as may be required by law or responding to any court order or
subpoena.

	 	5.	 	Non-Disparagement. Each of the Company and the Executive covenant and
agree that such party will not publish or communicate to any person or entity
derogatory or disparaging comments or statements concerning the other party or any
Releasee that criticize or impugn the character, honesty, integrity, morality, business
acumen or abilities of the other party or that is likely to adversely affect the
business reputation of the other party. The obligations of the parties hereunder shall
not prohibit either party from cooperating with any government inquiry or responding to
any court order or subpoena.

	 
	 	6.	 	Non-Solicitation. Executive covenants and agrees that for the
thirty-one month period following the Retirement Date during which the grant of the
 shares of the Company’s common stock under the Admirals Program continues to vest, and
in consideration of such continued vesting, Executive shall not, on his own behalf or
on the behalf of any other person or entity:

	 	A.	 	Solicit, hire or otherwise encourage the resignation of any current
officer or employee of the Company or any such person who has been an officer or
employee of the Company during the six month period preceding the Retirement Date;
or

	 
	 	B.	 	Solicit, induce or seek to induce any of the Company’s current insureds
to discontinue any business relationship with the Company or refrain from entering
into a business relationship with the Company, or otherwise interfere with the
Company’s business relationships.

 

 

 

	 	7.	 	Return of Company Property. Executive agrees that he will return to
the Company on or prior to the Retirement Date, all property of the Company in his
possession, custody or control, including but not limited to, all documents, records, files, manuals, Company
equipment, laptop computer, blackberry, notes, reports, lists of insureds and their
contact information, all material pertaining to Confidential Information and all copies
of such materials, whether of a technical, business or financial nature, and whether on
hard copy, tape, disk or any other format.

	 
	 	8.	 	Survival of Covenants and Agreements. The covenants and agreements
contained herein shall survive the execution and delivery of this Agreement.

	 
	 	9.	 	Judicial Modification; Injunctive and Other Judicial Relief.

	 	A.	 	The parties hereto agree that, if the scope or enforceability of the
covenants and restrictions set forth in Sections 4, 5 and 6 hereof are determined by
a court of competent jurisdiction to be unreasonable, unenforceable, or invalid,
such covenants and restrictions shall be limited by the court to the extent
necessary to be enforceable and only to such extent.

	 
	 	B.	 	Executive acknowledges that the remedies at law for the breach of
Executive’s covenants, restrictions and agreements set forth in Section 4(A), 6, and
7 are inadequate and that compliance with such covenants, restrictions and
agreements is necessary to protect the business and goodwill of the Company.
Executive further acknowledges that a breach of such covenants, restrictions and
agreements will cause irreparable damage to the Company. Therefore, Executive
agrees that the Company shall be entitled to obtain injunctive relief in any court
of competent jurisdiction to enjoin any breach or threatened breach of any of the
covenants, restrictions and agreements set forth in Sections 4(A), 6 and 7 to obtain
the specific performance of such covenants, restrictions and agreements, without
having to prove the inadequacy of the available remedies at law and without being
required to post a bond or security; to obtain monetary compensation for damages
sustained as a result of any breach of such covenants, restrictions and agreements;
and to recover reasonable attorneys’ fees, costs and expenses incurred as a result
of such breach or threatened breach. In the event that a court of competent
jurisdiction determines that the Company is not entitled to obtain such injunctive
relief, the Executive shall be entitled to recover reasonable attorneys’ fees, costs
and expenses incurred as a result of his successful defense against the Company’s
attempt to obtain such relief.

	 	10.	 	Review Period and Rescission Right.

	 	A.	 	(i) Executive is hereby advised by the Company to consult with an
attorney before executing this Agreement; (ii) Executive has until the Retirement
Date (which is more than twenty-one (21) days) to review and consider whether to
sign this Agreement; and (iii) Executive is hereby advised that he has seven (7)
days following his execution of this Agreement to revoke it (the “Revocation
Period”).

	 
	 	B.	 	This Agreement will not be effective or enforceable until the Revocation
Period has expired and the Severance Payment and other benefits described in Section
2 will not be payable or will not be enforceable until after the expiration of the
Revocation Period. Such revocation shall only be effective if an originally
executed written notice thereof is delivered to the Company, Attention Elliot S.
Orol, Esq., Senior Vice President, General Counsel and Secretary, at the Company’s
office at 6 International Drive, Rye Brook, New York 10573, on or before 5:00 p.m. on the seventh day after Executive’s
execution of this Agreement. If so revoked, this Agreement shall be deemed to be
void ab initio and of no further force and effect.

 

 

 

	 	C.	 	Executive acknowledges and represents that he has read this Agreement and
fully understands the terms of this Agreement. Executive, understanding that this
Agreement contains a full and final release of all claims he may have against the
Company, is voluntarily and knowingly entering into this Agreement.

	 	11.	 	Miscellaneous. This Agreement:

	 	A.	 	constitutes the sole and complete understanding and agreement between the
parties hereto with respect to the matters set forth herein and there are no other
agreements or understandings, whether written or oral and whether made
contemporaneously or otherwise that are binding upon the parties hereto;

	 
	 	B.	 	may not be amended unless in a writing signed by the parties hereto;

	 
	 	C.	 	shall be subject to, governed by and construed and enforced in accordance
with the internal laws of the State of New York, without reference to its conflicts
of law provisions; and

	 
	 	D.	 	shall inure to the benefit of and be binding upon the heirs, devisees,
legatees, executors, administrators, successors, assigns, and officers of each of
the parties hereto, as applicable.

	 	12.	 	Choice of Forum. The parties agree that any suit, action or proceeding
with respect to this Agreement shall be brought exclusively in the New York State
Supreme Court for New York County, or in the Federal District Court for the Southern
District of New York.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date set forth
opposite their respective signatures.

	 	 	 	 	 	 	 
	 	 	THE NAVIGATORS GROUP, INC.
	 
	 	 	 	 	 	 
	Dated:
                                        , 2008

	 	By:	 	 	 	 
	 

	 	 	 	 

	 
	 	 	 	 	 	 
	Dated:                                         , 2008
	 	 	 	 	 	 
	 	 	   
	 	 	PAUL J. MALVASIOFiled by Bowne Pure Compliance

 

EXHIBIT 10.37

SECOND AMENDMENT TO LEASE

This Second Amendment To Lease (“Amendment”), is made effective as of March 21, 2008, by and
between Alaska Consolidated DE LLC, YABQ DE LLC, and KDC Idaho DE LLC known as Lakepointe Centre I
Co-Tenancy, successor to M&S Prime Properties, Ltd. (“Landlord”) and American Ecology Corporation
(“Tenant”).

WITNESSETH:

WHEREAS, Landlord and Tenant entered into that certain Lease Agreement dated April 18, 2002 and
amended by the First Amendment to Lease dated November 18, 2005 (“Lease”) for that certain parcel
of real property and the improvements located thereon known as Lakepointe Centre I, 300 East
Mallard Drive, Suite 300, Boise, Idaho (“Premises”);

WHEREAS, Landlord and Tenant desire to expand the Premises of the Lease and to amend the Lease in
certain respects as provided below.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

1. Construction. Any capitalized term not defined in this Amendment shall have the meaning
given to it in the Lease. In the event of any inconsistency between the provisions of the Lease
and this Amendment, the provision of this Amendment shall control. The recitals are incorporated
herein by reference and shall be used to construe the meaning of this Amendment.

2. Premises. Section 6 of the Basic Lease Information of the Lease is amended to add part
of the southeastern portion of Suite 370 to the Premises containing approximately 567 rentable
square feet as shown in Exhibit A attached hereto, which will make the total Premises 11,492
rentable square feet.

3. Base Rent. The Base Rent provided in Section 10 of the Basic Lease Information of the
Lease shall be amended as follows:

	 	 	 	 	 
	PERIOD	 	MONTHLY INSTALLMENTS	 
	Months	 	OF BASE RENT	 
	 
	 	 	 	 
	04/01/08-01/31/09
	 	$18,195.67 (at an annual rate of $19.00 per rsf)
	02/01/09-01/31/10
	 	$18,674.50 (at an annual rate of $19.50 per rsf)
	02/01/10-01/31/11
	 	$19,153.33 (at an annual rate of $20.00 per rsf)

4. Tenant’s Proportionate Share: Section 13 of the Basic Lease Information for Tenant’s
share of the operating expenses shall be amended from 17.17% to 17.99%.

5. Improvements.  At Tenant’s sole costs and expense, Tenant shall construct a demising
wall between Suite 370 and Suite 300, secure and/or sheetrock break room door between Suite 300 and
Suite 370. All additional tenant improvements being constructed by Tenant in Tenant’s existing
Premises shall be at Tenant’s sole cost and expense. In addition, Tenant shall be responsible for
all costs required for fire, life, or safety changes and/or or fire sprinkler modifications to the
Premises per the attached space plan shown in Exhibit A and as required by the City of Boise Code.
Tenant shall provide Landlord with architectural plans for the construction of the demising wall
and tenant improvements pursuant to Section 9 of the Lease for Landlord to approve. Tenant shall
obtain any necessary permits for such construction.

6. Other Provisions. Except as modified by this Amendment, all other terms and conditions
of the Lease shall remain in full force and effect.

 

1

 

7. Counterparts. This Amendment may be executed in counterparts, each of which shall
constitute an original, and all of which, together, shall constitute one document.

8. Execution by Both Parties. Submission of this instrument for review or
signature by Tenant does not constitute a reservation of or option to lease, and it is not
effective as an amendment or otherwise binding upon either Landlord or Tenant until this Amendment
has been executed and delivered by both Landlord and Tenant.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date and year
first above written.

[SIGNATURES ON NEXT PAGE]

 

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	 	LANDLORD:

Alaska Consolidated DE LLC, YABQ DE LLC and KDC Idaho DE LLC, Delaware limited liability companies

 	 
	 	By:  	Alaska Consolidated LLC
 	 
	 	 	 
	 	By:  	                                              /s/ Stuart C. Bond
 	 
	 	 	Stuart C. Bond, Managing Member 	 
	 	 	 	 
	 	TENANT:

American Ecology Corporation

 	 
	 	By:  	/s/ Jeffrey R. Feeler
 	 
	 	 	Name:  	Jeffrey R. Feeler 	 
	 	 	Title:  	VP & CFO 	 
	 

 

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