Document:

ex10_1.htm

Exhibit 10.1

 

EMPLOYMENT AGREEMENT

 

 

This Agreement, made and entered into on January 11, 2012 by and between Raymond James Financial, Inc (“Employer”) and John Carson (“Employee”), is hereby amended and restated as of April 20, 2012.

 

WHEREAS, Employee and Employer desire to enter into an employment relationship on the terms and conditions set forth in this agreement (“Agreement”), and

 

WHEREAS, Employee has been employed by Alpha and Company Inc. (“Alpha”) for approximately ___ years and over that time period has obtained a significant amount of Employer Confidential Information (as defined below) and as a member of Alpha’s senior management has significant influence and persuasion over Alpha’s employees, and

 

WHEREAS, Employee is being employed by Employer in conjunction with the execution of an agreement by Raymond James Financial, Inc. (“RJF”), and Rho Financial Corporation, wherein upon consummation of the transactions described therein (collectively, the “Transaction”), RJF will own all of the outstanding shares of Alpha (“Stock Purchase Agreement”), and

 

WHEREAS, this Agreement is a critical component of RJF’s decision to execute the Stock Purchase Agreement and Employer is relying upon Employee’s agreement to abide by the terms and conditions herein.

 

NOW, THEREFORE, in consideration of the promises and mutual covenants herein contained, Employer and Employee agree as follows:

 

1. Employment Term. Employer agrees to employ Employee under the terms of this Agreement, and Employee agrees to be so employed, for a two (2) year term commencing on the date of consummation of the Transaction and terminating on the second anniversary thereof (“Employment Term”), for the purpose of Employee rendering services to Employer.

 

2. Conditions to Employer’s and Employee’s Obligations. It is a condition precedent to Employee’s employment and continued employment under this Agreement that:

 

(a) The Stock Purchase Agreement referenced above is fully executed, and the Transaction anticipated under the Stock Purchase Agreement is consummated. In the event that the Stock Purchase Agreement is not executed and/or the Transaction is not consummated, this Agreement will be null and void.

 

(b) Employee holds and maintain in good standing (without limitations) all licenses, permits and certifications necessary to carry out Employee’s duties for Employer.

 

(c) Employee shall have no obligation under this Agreement in the event that the Stock Purchase Agreement is not executed and/or the Transaction is not consummated by September 31, 2012 (or such later date as agreed to by Employee), or if prior to the consummation of the Transaction, Employee’s employment with Alpha is terminated as a result of his death or disability.

 

  

  

  

 

 

3. Employee Representation:  Employee acknowledges and agrees that this Agreement contains Employer’s confidential and proprietary information and, therefore, constitutes Employer’s Confidential Information (as defined below). Accordingly, Employee represents and agrees that Employee will not disclose this Agreement to anyone except for Employee’s tax, legal or other advisors or family members, except as otherwise provided by law and in paragraph 10(g) below. Employee further represents and agrees that Employee will abide by all of the requirements set forth in Section 11 below with respect to the disclosure of Confidential Information pursuant to an order of a court of competent jurisdiction or other judicial authority.

 

4. Compensation.

 

(a) For services rendered under this Agreement, Employee shall receive a salary of $300,000 per annum and bonuses as follows for the Employment Term.  For the period April through September 2012, Employee will be eligible for a guaranteed bonus of $100,000, and a bonus of $1.25 million subject to satisfaction of the Retained Revenue Performance Metric, both payable in December 2012.  For the period October 2012 through September 2013, Employee shall receive a guaranteed bonus of $2.7 million (“2013 Bonus”), payable in December 2013.  For the period October 2013 through March 2014, Employee shall receive a guaranteed bonus of $1.35 million (“2014 Bonus”), payable in May 2014.  The 2013 Bonus and 2014 Bonus may be subject to performance metrics to the extent agreed by Employee and Employer.  The salary and bonuses referenced above will be paid less any applicable deductions and withholdings. In addition, any bonus awards in excess of $250,000 shall be paid, in part, in RJF restricted stock units (RSU’s) subject to the price, vesting and other provisions of RJF’s 2012 Stock Incentive Plan then in effect. Furthermore, in order to receive any bonus awards, Employee must be in an “active working status at the time of payment of such bonus award. For purposes of this Agreement, “active working status” means that Employee has not been terminated (or been given notice of Employee’s termination) or resigned (or given notice of Employee’s resignation).

 

(b) In addition to the salary, bonus and restricted stock opportunity described above, Employer shall provide Employee such other benefits as are routinely provided by Employer to similarly-situated employees (e.g., paid vacation, group health insurance, 401(k) plan).

 

(c) For purposes of this Agreement, the “Retained Revenue Performance Metric” shall be deemed satisfied if, as determined by the Compensation Committee of Employer’s Board of Directors, during Employee’s employment the “Retained Revenue” results for the lines of business identified  in Sections 2.3(a)(i), (ii) and (iii) of the Stock Purchase Agreement in the aggregate equal or exceed for the performance period ending on the “Purchase Price Measurement Date” (as defined in the Stock Purchase Agreement)  seventy-two percent (72%) of the “2011 Gross Revenues” as defined in Section 2.3(b) of the Stock Purchase Agreement.

 

  

  

  

 

 

5. Conditions of Employment. Employee hereby accepts employment with Employer on the terms and conditions set forth in this Agreement. Employee agrees that, during the employment, Employee will devote full time and attention to the rendition of services on behalf of Employer and to the furtherance of Employer’s best interests. Any Employee outside business activities and investments must be submitted in advance for approval by Employer. Employee agrees that any such outside business activities and/or investments must not be competitive with Employer and must not interfere with Employee’s duties to Employer under this Agreement. Employee agrees that, in the rendition of services to Employer and in all other aspects of Employee’s employment, Employee will comply with the policies, standards, work rules, and regulations established by Employer from time to time (including, without limitation, its “insider trading” prohibitions) and with the applicable laws, regulations and codes of ethics relating to or regulating the profession and the industry.

 

6. Employee’s Duties.

 

(a) Employee shall serve Employer as President, RJF, and shall generally have similar responsibilities and job functions as currently performed by Employee for Alpha and such other duties as may be assigned by Employer from time-to-time. Employee will not engage in similar activity during Employee’s employment except as an employee of Employer unless otherwise authorized in writing by Employer.

 

(b) Employee shall have no authority to enter into any contracts or obligations binding upon Employer except as such contracts or obligations shall be specifically authorized by Employer.

 

7. Retention Bonus: Employee will be eligible to receive a special retention bonus of $3.5 million dollars in RSU’s (“Retention Bonus”) to be granted on or about the date of the next regularly scheduled RJF Board of Directors meeting (“date of grant”).  Subject to satisfaction of the “Retained Revenue Performance Metric,” the Retention Bonus shall vest and settle at the end of three (3) years from the date of the grant.  Except as otherwise provided herein, the Retention Bonus shall be subject to the pricing, and other provisions of RJF’s 2012 Stock Incentive Plan in effect on the date of grant.  Again subject to satisfaction of the Retained Revenue Performance Metric, if Employee is terminated by Employer other than “for Cause,” (as defined below), or Employee resigns from employment with Good Reason (as defined below), then the Retention Bonus RSU’s shall continue to vest and settle on the third anniversary of the date of grant, provided Employee is not in breach of the Non-Competition and Non-Solicitation provisions set forth in Section 10 below on such scheduled date of vesting/settlement, and Employee signs a severance agreement containing a release of all claims against Employer (in a customary form to be supplied by Employer to Employee). Notwithstanding the foregoing, nothing in this provision is intended to extend the term of Employee’s employment set forth above or otherwise alter the at will status of Employee’s employment.

 

  

  

  

 

 

8. Termination.

 

(a) Employee’s employment under this Agreement may be terminated immediately by Employer for Cause. “Cause” as used in this Agreement shall mean (1) Employee ceases to be properly licensed/permitted/certified as necessary to perform Employee’s duties for Employer (excluding where Employee provides satisfactory justification for any such failure to remain licensed/permitted/certified and any such period of non-compliance is immaterial, as determined by Employer in good faith, and Employee cures such defect within 30 days) or (2) After notice to Employee and a reasonable opportunity to cure, Employee shall fail to comply in any material respect with the policies, standards, work rules, or regulations established by Employer from time to time or (3) Employee shall fail to comply diligently, carefully and satisfactorily with Employee’s obligations under this Agreement, including fulfilling the duties described in Section 6 hereof, in any material respect, as reasonably determined by Employer in good faith or (4) Employee is arrested and charged with a felony or a criminal misdemeanor alleging fraud, theft or other crime of integrity or (5) Employee is arrested and charged with any other felony which materially compromises Employee’s ability to perform services for Employer, as reasonably determined by Employer in good faith or (6) Employee otherwise engages in activities that bring Employer into public disrepute or (7) that causes or is reasonably expected to cause material harm to Employer. In any such termination “for Cause,” Employee shall receive only such salary as Employee has accrued through the date of termination and nothing further. Employee’s employment under this Agreement, may also be terminated as a result of Employee’s resignation for “Good Reason” within sixty (60) days following the occurrence, without Employee’s express written consent, of any of the following events: (A) a change in the geographic location of Employee’s principal place of performance of his services hereunder from Memphis, Tennessee that increases his one-way commute from his primary residence at the time of such change by at least thirty (30) miles or (B) a material breach by Employer of this Agreement, in each case, that is not cured by Employer within thirty (30) days after receiving written notice from Employee (specifying in detail the event or circumstances) with such notice having been provided within thirty (30) days after Employee has knowledge that an event constituting Good Reason has occurred. Any resignation by Employee for Good Reason shall be treated as a termination by Employer other than “for Cause”. A termination of employment at the end of the Employment Term shall be treated as a resignation by Employee for Good Reason.

 

  

  

  

 

 

(b) Employee’s employment under this Agreement may also be terminated immediately by Employer for Cause or if for other than “for Cause” upon thirty (30) days advance notice to Employee. If Employee is terminated by Employer other than “for Cause,” or Employee resigns for “Good Reason”, Employee will receive (1) any salary and guaranteed minimum bonus payments that Employee would have otherwise received during the remaining Employment Term (in cash), (2) any bonuses subject to performance metrics will be paid to the extent such performance metrics are satisfied, and (3) any unvested RJF RSU’s issued to Employee during the term of this Agreement including but not limited to the Retention Bonus RSUs shall vest and settle in accordance with their original vesting and settlement schedule, provided that Employee signs a severance agreement containing a release of all claims against Employer (in a customary form, to be supplied by Employer). Such severance benefits will be paid sixty (60) days after the date of termination provided that Employer receives from Employee the valid severance agreement and release and the release becomes effective prior to such date, and shall be paid less any applicable deductions and withholdings.  Notwithstanding the foregoing, in that event bonuses subject to performance metrics shall be paid to the extent performance metrics are satisfied pursuant to their payment terms.  Except as otherwise set forth herein, Employee will not receive any additional salary or bonus amounts whatsoever.

 

(c) If Employee wishes to resign employment under this Agreement, Employee must provide ninety (90) days’ written notice to Employer. Employer may, at its option, then place Employee on a paid leave of absence for the notice period (during which period Employee will be paid only a pro-rated portion of Employee’s annual salary) or, notwithstanding any other provisions of this agreement or any Employer policies to the contrary, Employer may change Employee’s duties and responsibilities in any manner as it deems appropriate during the 90-day notice period. Employee will not receive any severance pay in conjunction with a resignation of employment without Good Reason.

 

(d) On termination of this Agreement, or whenever requested by Employer, Employee will immediately return to Employer all property, including keys, cell phones, credit cards, access cards, passwords, file-access methods or protocols, computers/laptops/PDAs (including all software, drives and peripherals), and all originals and copies of documents, files or information (whether the originals/copies are hardcopies or are stored on a computer drive or in any electronic media) in Employee’s custody or control which Employee obtained from Employer or any of its customers, vendors or employees (all documents, files and information being returned unaltered and unencrypted).

 

9. Employer-Employee Relationship.

 

(a) Employee acknowledges that only Employer shall manage its business. The hiring and firing of Employer’s other personnel shall be at the sole and absolute discretion of Employer. Nothing herein contained shall be construed to give Employee any interest in the tangible or intangible assets of Employer.

 

(b) Employee’s employment with Employee is on an at will basis.

 

  

  

  

 

 

10. Non-competition and Non-solicitation.

 

(a) Employer and Employee agree that, due to Employer’s efforts, it is the owner of numerous trade secrets and sensitive business information, and it has developed significant goodwill among Employer’s customers, investors, employees and the general public, and that each of those assets would be very valuable to Employer’s competitors. Employer and Employee agree that Employee is or will be given possession of such trade secrets and sensitive information, that Employee will enjoy the benefits of Employer’s goodwill and that Employee will develop valuable contacts and relationships with Employer’s customers, potential customers, vendors, employees and members of the general public because of Employee’s employment by Employer. Employee and Employer also acknowledge that RJF’s willingness to enter into the Purchase Agreement is predicated upon the continued services of Alpha’s key employees, including Employee. Therefore, Employee and Employer agree that Employee will not without Employer’s prior written consent:

 

(i) for the two-year Employment Term or for a one (1) year period after Employee’s last day of employment in the event that Employee’s employment ends during the Employment Term, whichever period ends later, engage with any Competing Business, directly or indirectly, within a radius of 100 miles of any Employer office, whether Employee is engaged with the Competing Business as an employee, consultant, contractor, agent, owner, partner, member, joint venturer, officer, director or stockholder; a “Competing Business” is any person or entity that competes with Employer or is engaged in, or endeavoring to engage in any business or service conducted or offered by Employer including, without limitation, financial and investment advisory services and products, research or development of financial products, corporate finance and capital markets activities or which provides such advice/services that Employee provided on behalf of Employer during the last twenty-four months of employment; however, nothing in this Agreement prevents Employee from owning not more than 2% of the equity of a publicly-traded entity;

 

(ii) for the two-year Employment Term or for a one (1) year period after Employee’s last day of employment in the event that Employee’s employment ends during the Employment Term, whichever period ends later, persuade or attempt to persuade, directly or indirectly, any customer, vendor, contractor, or other person or entity that has a relationship or potential relationship with Employer to not do business with Employer, to cease doing business with Employer or to otherwise alter a relationship with Employer; or

 

(iii) for two (2) years after the end of Employee’s employment by Employer (whether or not the employment ends during or after the term of this Agreement), solicit or induce, or assist others in soliciting or inducing, directly or indirectly, any Employer employee, independent contractor or consultant, or person known by Employee to be recruited by Employer to become an employee, independent contractor or consultant, to end, modify or forego a relationship or potential relationship with Employer or to work for or engage with any Competing Business.

 

  

  

  

 

 

(b) Furthermore, Employer and Employee agree that this Agreement constitutes Employer’s Confidential Information (as defined below) and that during the course of Employee’s employment and of being offered the opportunity to enter into this Agreement, Employee has become familiar with, among other things, valuable information about Employer’s business, customers and potential business ventures. Therefore, in consideration of Employer’s offer of employment and providing this Agreement, Employee agrees that if Employee executes this Agreement prior to the execution of the Stock Purchase Agreement and/or prior to the Transaction being consummated, and Employee revokes or otherwise cancels (Cancelation) his or her acceptance of this Agreement at any time prior to the transaction being consummated, and the transaction is subsequently consummated, Employee will not, during the period between such Cancelation and:

 

(i) beginning on the date that the transaction is consummated and continuing through twelve (12) month thereafter, engage with any Competing Business, directly or indirectly, within a radius of 100 miles of any Employer office in any capacity defined above in subsection (a)(i);

 

(ii) beginning on the date that the transaction is consummated and continuing through twelve (12) months thereafter, persuade or attempt to persuade, directly or indirectly, any customer, vendor, contractor or other person or entity that has a relationship or potential relationship with Employer not to do business with Employer, to cease doing business with Employer or to otherwise alter a relationship with Employer; or

 

(iii) beginning on the date that the transaction is consummated and continuing through twelve (12) months thereafter, solicit or induce, or assist others in soliciting or inducing, directly or indirectly, any Employer employee, independent contractor or consultant, or person known by Employee to be recruited by Employer to become an employee, independent contractor or consultant, to end, modify or forego a relationship or potential relationship with Employer or to work for or engage with any Competing Business.

 

(c) Notwithstanding any other provisions of this section to the contrary, if Employee’s employment with Employer is terminated on the second anniversary or if Employee resigns more than two years after Employee’s execution of this Agreement or if Employee’s employment is terminated by Employer other than “for Cause” (as “Cause” is defined above) or Employee resigns for Good Reason at any time, Employee will not be bound by the provisions of paragraphs 10(a)(i) and 10(a)(ii), above, but Employee will remain bound by paragraph 10(a)(iii).

 

(d) Employer and Employee agree that, if any portion of this section is held to be unreasonable, arbitrary, or against public policy by any court or tribunal, or if the applicable law on which this section is founded is changed in any manner so as to limit its enforceability, the section shall be enforced against Employee for a shorter period of time or in a smaller geographic area or otherwise as is determined by the tribunal to be reasonable, non-arbitrary and not against public policy.

 

(e) Employee agrees that Employee’s breach of any part of this section will not be adequately compensated by monetary damages and, therefore, Employee consents to the entering of an injunction to enforce this section. If Employer shall make application for injunctive relief to enforce this section, then and in that event the period of time for the application of the restrictive covenant shall be tolled for a period commencing with Employee’s acts which create the claim for injunctive relief and terminating with the date of final adjudication of the petition for injunctive relief, if granted.

 

  

  

  

 

 

(f) Employee agrees that the restrictions contained in this section are reasonable and necessary to protect and preserve Employer’s legitimate business interests. Employee agrees that the duration of the restrictions in this section will be extended by, and their expirations tolled during, any period of time in which Employee is in breach of the restrictions.

 

(g) Employee agrees to participate in an exit interview at the time of leaving employment by Employer and, at that meeting, to disclose Employee’s future business/employment plans and to reaffirm in writing Employee’s post-employment obligations to Employer. Further, Employee agrees to notify potential employers of Employee’s post-employment obligations to Employer under this Agreement.

 

11. Confidentiality.

 

(a) Employee will be dealing with Employer’s Confidential Information (as defined below) that is Employer’s property, is used in the course of Employer’s business and is critical to Employer’s success. Therefore, Employee agrees that, including during and after employment by Employer, Employee will not at any time, in any fashion, form, or manner, either directly or indirectly, disclose, remove or communicate to any person or entity in any manner whatsoever any Confidential Information of any kind, nature, or description without regard to whether any or all such information would be deemed by Employee to be confidential, material, or important except as such disclosure, removal or communication is necessary in the ordinary course of Employee performing services for Employer or is authorized in writing by Employer. Further, Employee will take reasonable precautions to ensure that Confidential Information is not improperly disclosed, removed or communicated by other employees.

 

(b) “Confidential Information” means information which is in print, audio, visual, digital, electronically-stored or in other forms and formats which Employer has acquired and keeps confidential or is not otherwise known publicly or known to Employer’s competitors.  Confidential Information includes Employer’s trade secrets, information about Employer’s business or potential business ventures, the names and account information of Employer’s customers or potential customers (e.g., customer lists, contact and account information), business or marketing plans and strategies, financial data (including profit, profit-margin and pricing data and information about the compensation Employer obtains or has obtained for its products and services), business research reports and data, operations processes, methodologies and innovations, personnel files and information about Employer’s employees and applicants, or any other non-public information concerning the business of Employer, its manner of operation or its plans, processes, personnel or other data of any kind, nature, or description which is maintained in confidence and provides competitive advantage to Employer or would be hurtful to it if known by a Competing Business. “Confidential Information” does not include any information known by Employee prior to employment by Employer or information generally known to the public or information which Employee is required to disclose pursuant to an order of a court of competent jurisdiction or other judicial authority (providing that, in the latter situation, Employee will provide Employer at least three business days’ notice in writing of the disclosure obligation and Employee takes reasonable steps to ensure that the information is disclosed only subject to a protective order or under seal). Employer and Employee hereby agree that, as between them, the Confidential Information is important, material and confidential, and gravely affects the effective and successful conduct of Employer’s business and its goodwill, and that any breach of the terms of this section is a material breach of this Agreement that will subject Employee to claims for substantial damages.

 

  

  

  

 

 

(c) Employee and Employer agree that any inconsistency between the provisions of this section and the provisions of Employer’s business ethics policy Certification will be resolved in favor of the provision providing the greatest protection for Employer’s confidential or trade secret information.

 

12. Death.  If Employee dies during the term of employment under this Agreement, Employer shall pay to Employee’s estate (a) the salary which would otherwise have been payable to Employee up to the end of the month in which death occurs, and (b) a payment equal to a pro-rata amount of the bonus that likely would be payable to Employee for that portion of the fiscal year that Employee had completed based on the number of full months that Employee worked in such fiscal year. Both the salary and bonus payments will be paid as soon as administratively practicable subsequent to the date of Employee’s death, and less any applicable deductions and withholdings. Any RSU’s awarded to Employee prior to death pursuant to this Agreement shall immediately vest upon his death. Employer shall have no further financial obligations to Employee or to his estate.

 

13. Enforcement.

 

(a) Any dispute between Employer and Employee arising out of this Agreement or Employee’s employment under this Agreement shall be resolved pursuant to the arbitration procedures of the Financial Industry Regulatory Authority (“FINRA”) and its Code of Arbitration Procedures then in effect. Simultaneously with the institution of an arbitration proceeding by either party, Employer may at its option file for an injunction seeking to restrain Employee’s breach (or threatened breach) of this Agreement pursuant to paragraph 10(e), above. In any such arbitration, a party shall be entitled to specific performance, injunctive relief and all other remedies as determined by a panel of duly-appointed arbitrators. Any dispute resolution proceedings between Employer and Employee arising out of this agreement must be held in Memphis, Tennessee unless it shall become necessary for Employer to institute proceedings in a different tribunal or a different jurisdiction in order to obtain an order restraining or enjoining Employee’s breach (or anticipated breach) of this Agreement.

 

(b) In the event it should become necessary for either party to retain the services of an attorney to enforce the terms of this Agreement, or to appear in any proceeding seeking a declaration of the parties’ rights under this Agreement, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and costs, including any attorneys’ fees and costs incurred as a result of appellate proceedings (regardless of the party initiating the appeal).

 

14. Miscellaneous.

 

(a) Employee represents that Employee is free to be employed by and perform services tor Employer, that is, there are no legal or contractual restraints arising from any prior employment or business activity which may limit Employee’s activities on behalf of Employer and Employer represents that it has the full authority to enter into this Agreement.

 

(b) This Agreement shall not supersede, replace or diminish Employee’s common law obligations to Employer (both during and after employment).

 

(c) The performance and interpretation of this Agreement will be governed by the laws of the State of Tennessee without reference to its conflicts of laws principles.

 

  

  

  

 

 

(d) Waiver by Employer of Employee’s breach of any provision of this Agreement, or Employer’s waiver of a breach of any similar agreement with any other employee of Employer, shall not operate or be construed as a waiver by Employer of any subsequent breach by Employee. Further, any claims of Employee against Employer will not relieve Employee of the post-employment obligations imposed by this Agreement or constitute a defense to Employer’s enforcement of this Agreement.

 

(e) This Agreement shall be binding upon and shall inure to the benefit of Employer and Employee and their respective successors, heirs, and legal representatives. Employee expressly agrees that Employer may assign this Agreement without notice to or additional consent of Employee.

 

(f) Any notices required or permitted to be given under this Agreement shall be sufficient if in writing and sent by registered or certified mail to the party entitled to such notice.

 

(g) If any provisions of this Agreement are held to be unenforceable for any reason by any court or tribunal, such unenforceability shall not affect the remainder of this Agreement which shall remain in full force and effect and be enforceable in accordance with its terms.

 

(h) As used in this Agreement, the term “Employer” shall mean Raymond James Financial, Inc as well as its past, present and future (i) parents, subsidiaries and affiliated organizations; (ii) insurers, benefit plans, trustees, and benefit administrators and their respective pension, profit-sharing, savings, health, trusts, and other employee benefit plans of any nature as well as their respective trustees and administrators; (iii) directors, officers, employees, agents, attorneys, representatives and shareholders as well as those of its parents, subsidiaries and affiliated organizations and (iv) the heirs, personal representatives, successors and assigns of the persons or entities described in the preceding portions of this subparagraph.

 

15. Code Section 409A.

 

(a) Each payment and benefit payable under this Agreement is intended to constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.  Any amount paid under this Agreement that satisfies the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the regulations issued under Section 409A of the Code (the “Treasury Regulations”) shall not constitute Deferred Compensation Separation Benefits for purposes of Section 15(b) below, and consequently shall be paid to Executive promptly following termination as required by Section 8(b) of this Agreement. It is intended that all cash severance payments under this Agreement, if any, satisfy the short-term deferral rule.

 

  

  

  

 

 

(b) Notwithstanding anything to the contrary in this Agreement, no Deferred Compensation Separation Benefits (as defined in this Section 15(b)) will become payable under this Agreement until Employee has a “separation from service” within the meaning of Section 409A of the Code, and any proposed or final regulations and guidance promulgated thereunder (“Section 409A”). Further, if Employee is a “specified employee” within the meaning of Section 409A at the time of Employee’s separation from service (other than due to Employee’s death), and the severance payable to Employee, if any, pursuant to this Agreement, when considered together with any other severance payments or separation benefits, are considered deferred compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”), such Deferred Compensation Separation Payments that are otherwise payable within the first six (6) months following Employee’s termination of employment will become payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Employee’s separation from service. All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, if Employee dies following his or her separation from service but prior to the six (6) month anniversary of his or her separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Employee’s death and all other Deferred Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit.

 

(c) Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit (as defined below) shall not constitute Deferred Compensation Separation Benefits for purposes of Section 15(b) above. For purposes of this Section 15(c), “Section 409A Limit” will mean two (2) times the lesser of: (i) Employee’s annualized compensation based upon the annual rate of pay paid to Employee during Employee’s taxable year preceding the Employee’s taxable year of Employee’s separation from service as determined under Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1); or (ii) the maximum amount that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Employee’s separation from service occurs.

 

(d) The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply.  Employer and Employee agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Employee under Section 409A.

 

  

  

  

 

 

16. Entire Agreement. This Agreement and Employer’s annual business ethics policy and certification contain the entire agreement between the parties concerning Employee’s employment by Employer. The Agreement and the provisions of this paragraph may not be changed or amended except by a subsequent agreement in writing signed both by Employer and Employee.

 

 

 

IN WITNESS WHEREOF Employer and Employee have executed this Agreement.

 

 

/s/ John C. Carson, Jr.                                                        Raymond James Financial, Inc

Employee

 

Date:   April 25, 2012                                                          By: /s/ Paul C. Reilly

 

  Date:   April 25, 2012ex10_1.htm

 

Exhibit 10.1

 

SEPARATION AND RELEASE AGREEMENT

 

This Separation and Release Agreement (“Release”) is entered into this 24th day of April, 2012 by and between Gary L. McBride (“Employee”) and Compressco Partners GP Inc., a Delaware corporation (“Employer”), and the general partner of Compressco Partners L.P. (“Compressco Partners”), as follows:

 

WHEREAS, Employee and Employer desire to resolve all issues relating to the employment of Employee by Employer.

 

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth in this Release, the parties agree as follows:

 

1.           Separation Payments and Conditions.

 

(a)       Employer and Employee hereby acknowledge, agree and confirm that the Employee’s employment with Employer shall be terminated effective October 5, 2012, unless sooner terminated by the Employee (which termination will occur upon written notice by the Employee or upon Employee’s acceptance of employment with any third party) or by Employer as herein provided (hereinafter the date of termination being referred to as the “Effective Termination Date”).  In consideration for Employee’s promises and undertakings contained herein, and provided that Employee does not revoke the Age Discrimination in Employment Act (“ADEA”) release contained in Paragraph 3 below, Employer will, subject to the provisions of Paragraph 1(b) and Paragraph 5(b) below, provide Employee the following separation benefits: (i) Employee will continue to be employed through the Effective Termination Date and Employer will pay to Employee Employee’s base salary in the amount of $6,942.31 paid bi-weekly, minus normal federal, state and local tax withholdings, during such continued employment period to be paid in accordance with Employer’s standard pay practices, (ii) Employee will continue to be eligible to participate in Employer’s group health and dental insurance benefit plans as an “inactive employee” until the Effective Termination Date, and (iii) Employee will continue to vest in all outstanding equity awards previously granted by TETRA Technologies, Inc. (“TETRA”) and Compressco Partners through the Effective Termination Date.  In addition to the foregoing and conditioned upon the Employee’s (i) execution and delivery of the Release Agreement attached hereto as Exhibit A (the “Subsequent Release Agreement”) upon the Effective Termination Date and (ii) non-revocation of the release of ADEA claims contained in the Subsequent Release Agreement, and subject to the provisions of Paragraph 1(b) and Paragraph 5(b) below, (x) all of Employee’s vested options previously granted by TETRA will, as of the date that is eight (8) days following the Effective Termination Date, continue to be exercisable for a period of two and one-half months after December 31, 2012, and (y) upon the date that is eight (8) days following the Effective Termination Date, all of Employee’s unvested Compressco Partners restricted unit awards as of the Effective Termination Date will become fully vested on that date. Employee acknowledges that he is not entitled to the separation benefits described in this Paragraph 1(a) except as a result of his execution of this Release, the Subsequent Release Agreement, as applicable, and his agreement to be bound by the terms and provisions contained herein and therein.

 

  

  

  

 

(b)       In the event Employee accepts employment with a third party prior to October 5, 2012, and Employee has not otherwise taken any action giving rise to Employer’s right to terminate Employee for “cause” (as herein defined), Employer will, subject to the Employee’s execution of the Subsequent Release Agreement upon the Effective Termination Date and non-revocation of the release of ADEA claims contained therein within seven (7) days thereafter, (i) pay Employee the remaining amount of Employee’s base salary through October 5, 2012, less legally required withholdings, in a lump sum payment within ten (10) days of the Effective Termination Date, and (ii) to the extent Employee is no longer eligible to participate in Employer’s group health and dental insurance benefit plans as an “inactive employee” after Employee has accepted such third-party employment, Employer shall comply with its COBRA obligations and upon written request of Employee, Employer shall waive or otherwise pay any contribution that would otherwise be required by the Employee for such COBRA benefits, but in no event to exceed ninety (90) days after the Effective Termination Date.  Employer agrees to provide written notice to its COBRA administrator within two (2) business days following the Effective Termination Date.  If Employee’s continuing employment is terminated for cause prior to October 5, 2012, Employee will no longer be entitled to receive any of the benefits provided in Paragraph 1(a) above.  For the avoidance of doubt, upon any termination for cause (i) any vested options previously granted by TETRA shall remain exercisable only for the applicable period following such termination as set forth in the respective plan and clause (x) in Paragraph 1(a) above shall no longer be effective, and (ii) any unvested restricted unit awards previously granted by Compressco Partners shall be automatically forfeited upon such termination and clause (y) in Paragraph 1(a) above shall no longer be effective.  In addition to the foregoing, if any time after the Effective Termination Date and prior to expiration of the extended exercise period provided in clause (x) in Paragraph 1(a) above, Employee revokes the release of the age discrimination claims contained in the Subsequent Release Agreement or breaches or violates any of the covenants and obligations contained in Paragraphs 4, 5 and 9 below, the extension of the exercise period for Employee’s vested TETRA options shall no longer be effective and such options shall remain exercisable only for the applicable period following the Effective Termination Date as set forth in the respective plan.  For purposes herein, “cause” shall be deemed to occur if Employee shall breach, violate any of the covenants and obligations contained in Paragraphs 4, 5 and 9 set forth below.

 

(c)       Notices shall be mailed to Employee’s address as follows:

 

3217 Silvercliffe Court

Edmond, Oklahoma 73012

 

The payments and other compensation in this Paragraph 1 shall be reported on a Form W-2 issued to Employee.  Said payments will be paid by automatic deposit to Employee’s account on file with Employer.  All notices to Employer shall be mailed to Ronald J. Foster, President, Compressco Partners GP, Inc., 101 Park Avenue, Suite 1200, Oklahoma City, OK 73102, with a copy to Linden Price, 24955 Interstate 45 North, The Woodlands, Texas 77380.  Either party may change their address for notice purposes by 

 

  

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providing written notice thereof in accordance with the foregoing provisions.

 

2.           General Release.  Employee hereby fully, finally, and completely releases Employer, Compressco Partners, its predecessors, successors, subsidiaries, stockholders, parent and affiliates and the officers, directors, managers, control persons, employees, agents, attorneys, representatives and assigns of any of them (collectively, the “Released Parties”), of and from any and all liabilities, claims, actions, losses, expenses, demands, costs, fees, damages and/or causes of action, of whatever kind or character, whether now known or unknown (collectively, “Claims”), arising from, relating to, or in any way connected with, any facts or events occurring on or before the execution of this Release, if any, that he may have against Employer or any Released Parties, including, but not limited to any such Claims arising out of or in any way related to Employee’s employment with the Employer, or any predecessor or affiliate thereof, or the termination of such employment, including but not limited to, any violation of any federal, state or local statute, any breach of contract, any wrongful termination, or other tort or cause of action.  Employee confirms that this Release was not procured by fraud, nor signed under duress or coercion.  Further, Employee waives and releases Employer from any Claims that this Release was procured by fraud or signed under duress or coercion so as to make the Release not binding.  Employee understands and agrees that by signing this Release, he is giving up the right to pursue any legal Claims released herein that he may currently have against the Employer or any Released Parties, and specifically agrees and covenants not to bring any legal action for any Claims released herein.  Excluded from this Release are claims arising after the date Employee signs this Release, including any such future claims arising out of Employer’s group health and dental insurance plans, the Compressco Partners, L.P. 2011 Long Term Incentive Plan, TETRA 2006 Equity Incentive Compensation Plan, TETRA 2007 Long Term Incentive Compensation Plan and the equity awards previously granted by TETRA or Compressco Partners to Employee thereunder.

 

3.           ADEA Release.  Employee hereby completely and forever releases and irrevocably discharges the Released Parties, of and from any and all Claims arising under the ADEA on or before the date Employee signs this Release, and hereby acknowledges and agrees that: (i) this Release was negotiated at arm’s length; (ii) this Release is worded in a manner that Employee fully understands; (iii) Employee specifically waives any rights or claims under the ADEA; (iv) Employee knowingly and voluntarily agrees to all of the terms set forth in the Release; (v) Employee acknowledges and understands that any claims under the ADEA that may arise after the date of this Release are not waived; (vi) the rights and claims waived in this Release are in exchange for consideration over and above anything to which Employee was already undisputedly entitled; (vii) Employee has been and hereby is advised in writing to consult with an attorney prior to executing the Release; (viii) Employee acknowledges that he received this Release on April 4, 2012, and Employee understands that he has been given a period of up to twenty-one (21) days from receipt of this Release to consider the release contained in this Paragraph 3 (the “ADEA Release”) prior to executing it; (ix) Employee 

 

  

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acknowledges and agrees that any discussions between Employee and Employer concerning the terms of this Release and any change in the terms of this Release after April 4, 2012 shall not affect or restart such twenty-one (21) day consideration period; and (x) Employee understands that he has been given a period of seven (7) days from the date of the execution of this Release to revoke the ADEA Release, and understands and acknowledges that the ADEA Release will not become effective or enforceable until the revocation period has expired.  If Employee elects to revoke this ADEA Release, revocation must be in writing and presented to Ronald J. Foster, President, Compressco Partners GP, Inc., 101 Park Avenue, Suite 1200, Oklahoma City, OK 73102, within seven (7) days from the date of the execution of the Release.

 

4.           Confidentiality/Non-Disparagement.

 

(a)           Both Employer and Employee agree not to make any statements or otherwise do anything that will disparage or damage the reputation of the other party or their respective affiliates.  If Employer is contacted in the future by another employer or prospective employer concerning Employee’s employment with Employer or termination from employment, Employer shall give only a neutral job reference consisting of dates of employment and final job title with Employer.  If Employee is contacted by customers of Employer, or other inquiries as to why he left Employer, Employee will say that he has chosen to seek other employment opportunities.

 

(b)     Employee agrees not to use or divulge to any other person or entity any confidential or proprietary information that was previously received or developed by Employee during his employment by Employer and its predecessors.

 

(c)           Employee further agrees that for a period of two (2) years following the Effective Termination Date, Employee will not, directly, (i) on Employee’s own behalf or on behalf of any other person or entity, solicit, encourage, induce or attempt to solicit, encourage, or induce anyone employed within the six month period prior to that time by Employer, Compressco Partners and/or TETRA to cease or leave their employment with any of the foregoing parties to work in any capacity for a competitor of Compressco Partners or TETRA or any other employer in the same or similar capacity as such employee worked for Employer, Compressco Partner and/or TETRA during the eighteen (18) months preceding the Effective Termination Date (any such competitor or other employer being referred to herein as a “Restricted Employer”), or (ii) hire, on Employee’s own behalf or on behalf of any Restricted Employer, anyone who has been employed by Employer, Compressco Partners and/or TETRA within the six month period prior to that time.  The foregoing provisions of this Paragraph 4(c) shall be restricted to the States of Oklahoma and Texas.

 

5.           Current and Continuing Obligations.

 

(a)           Nothing in this Release shall be deemed to affect or relieve Employee from the following continuing obligations: (i) Paragraphs 6 (which shall be applicable 

 

  

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during the period of Employee’s continued employment by Employer), 7 and 8 of the TETRA Employment Agreement executed by Employee on July 22, 2008; (ii) Sections 6(a), 6(b), 6(d), 8(a), 8(b) and 10 of the Employment and Noncompetition Agreement dated June 21, 2004 between Employee and Compressco, Inc.; and (iii) the obligations of Employer with respect to any equity awards previously granted to Employee by TETRA and Compressco Partners.  Employee further acknowledges that as a condition of his employment with Employer, Employee agreed to comply with Employer’s and TETRA’s policies regarding Conflicts of Interest and Confidential Information.  Employee acknowledges that much of Employer’s and TETRA’s confidential financial data, strategic plans, manufacturing and process technologies, supplier and customer information and lists, pricing, information technology infrastructure and related data to which Employee was provided or given access during his employment are considered proprietary and/or trade secrets and Employee is obligated to keep all such information (hereinafter “Confidential Information”) confidential during and after the end of his employment with Employer or its affiliates.

 

(b)           Employee's entitlement to the separation benefits referenced in Paragraph 1 is expressly contingent on Employee's strict compliance with the obligations contained in this Paragraph 5 and Paragraphs 4 and 9 herein.  Employee acknowledges and reaffirms these obligations to Employer and further acknowledges that this reaffirmation is material to this Release.

 

6.           No Oral Modification.  This Release cannot be modified orally and can only be modified through a written document signed by all parties.

 

7.           Severability.  If any provision contained in this Release is determined to be void, illegal or unenforceable, in whole or in part, then the other provisions contained herein shall remain in full force and effect as if the provision which was determined to be void, illegal or unenforceable had not been contained herein.

 

8.           Reinstatement.  Employee acknowledges and agrees that by execution of this Release, he waives all rights or claims for reinstatement of employment with Employer and its Affiliates.

 

9.           Return of Property.  Employee acknowledges that all property of the Employer and its affiliates in Employee’s possession or control including, without limitation, documents, files, records, manuals, handbooks, client and customer lists and information, manuals, maintenance manuals, and other documentation and information (whether in paper or electronic form) relating to the business of the Employer or any affiliate, and any and all equipment, computers, digital data storage devices and the like furnished to Employee in connection with his employment with Employer (collectively, “Recipient Materials”) shall at all times be the property of Employer.  Employee shall return to Employer all Recipient Materials and any copies thereof which to Employee’s knowledge are in his possession, custody or control, including Recipient Materials retained by Employee in his office or at his home, within 3 business days of any request by Employer. In the event that Employee has electronic version(s) of Recipient Materials in 

 

  

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his possession, Employee will return a copy of the electronic version of Recipient Materials and delete all copies of the electronic version(s) of Recipient Materials in his possession.  Further, if Employee discovers Recipient Materials after the 3 business days have passed, he will immediately return all copies to Employer and delete any electronic version(s) of the Recipient Materials.  In addition, Employee acknowledges that he will keep strictly confidential all Confidential Information of the Employer that he had access to while employed by Employer and agrees not to use or disclose such Confidential Information without Employer’s prior written permission.

 

10.           Arbitration.  The parties agree that any unresolved legal  dispute between them that involves legal rights or remedies arising from this Agreement shall be settled solely by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association (“AAA”) in Oklahoma City, Oklahoma, and any judgment on the award rendered by the arbitrator may be entered by any court having jurisdiction thereof.  The arbitrator shall be selected by mutual agreement of the parties, if possible.  If the parties fail to reach agreement upon appointment of an arbitrator within thirty (30) days following receipt by either party of the other's notice of desire to arbitrate, the arbitrator shall be selected from a panel or panels of persons submitted by the AAA.  The selection process shall be that which is set forth in the AAA Commercial Arbitration Rules then prevailing, except that, if the parties fail to select an arbitrator from one or more panels, AAA shall not have the power to make an appointment but shall continue to submit additional panels until an arbitrator has been selected.  Unless otherwise awarded by the arbitrator, the costs of the arbitration will be borne equally by the parties.  This Paragraph is intended to be subject to and enforceable under the provisions of the Federal Arbitration Act.  For purposes of this Paragraph 10, Employee’s notice of desire to arbitrate must be in writing and presented to Ronald J. Foster,  President, Compressco Partners GP, Inc. 101 Park Avenue, Suite 1200, Oklahoma City, OK 73102, and Employer’s notice of desire to arbitrate must be in writing and presented to Employee at the address set forth on the signature page below.

 

11.           Miscellaneous.   The parties hereto agree that each party shall pay its respective costs, including attorney's fees, if any, associated with this Release.

 

12.           Choice of Law/Venue.  This Release shall be interpreted under and governed by, construed and enforced in accordance with, and subject to, the laws of the State of Oklahoma, without giving effect to any principles of conflicts of law.

 

13.           Fully Understood/Sufficiency of Benefits.  By signing this Release, Employee acknowledges and affirms that he has read and understands the foregoing Release, had the ability to consult with counsel, agreed to the terms of the Release, and acknowledges receipt of a copy of the Release.  Employee also hereby acknowledges and affirms the sufficiency of the benefits recited therein.  Employee further acknowledges that upon receipt of the benefits in accordance with the terms and conditions set forth herein, Employee shall not be entitled to any further payment, compensation or remuneration of any kind from the Employer, with respect to Employee’s employment with the Employer or otherwise.

 

  

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14.           Entire Agreement.  This Release sets forth the entire agreement between Employer and Employee with respect to the termination of Employee’s employment with Employer and supersedes and replaces any and all prior oral or written agreements or understandings concerning any severance payment and benefits otherwise payable upon Employee’s termination of employment.  Employee agrees that this Release resolves all outstanding issues arising from Employee’s first contact with Employer (or its predecessor) to the date of Employee’s signing of this Release, and that, other than the payments and other compensation payable in accordance with the terms and conditions set forth herein, Employee will not receive anything further from Employer.

 

 

	  	  	  	  
	
COMPRESSCO PARTNERS GP INC.

 

By: /s/Ronald J. Foster                              

Its:    President                                           

Date:  4/25/2012                                         

 

	
GARY L. MCBRIDE

 

/s/Gary L. McBride                                     

 

Date:  4-24-12                                           

Address: 3217 Silvercliffe Court

                Edmond, Oklahoma 73012

 

 

 

  

7

  

 

EXHIBIT A

 

RELEASE AGREEMENT

 

This Release Agreement (“Release Agreement”) is entered into by and between Gary L. McBride (“Employee”) and Compressco Partners G.P. Inc. (“Employer”), as follows:

 

WHEREAS, Employee and Employer have entered into that certain Separation and Release Agreement (the “Separation Agreement”) dated April 24, 2012 which sets forth certain covenants and agreements between the parties relating to Employer’s resignation and resulting termination of employment including, without limitation, certain payments and benefits to be provided by Employer to Employee; and

 

WHEREAS, the Separation Agreement contemplates that Employee will execute and deliver to Employer this Release Agreement upon the Effective Termination Date (as defined in the Separation Agreement) and the Employee and Employer desire to execute this Release Agreement to resolve all issues relating to the employment of Employee by Employer.

 

NOW THEREFORE, in consideration of the mutual promises and covenants set forth herein and in the Separation Agreement, the parties agree as follows:

 

1.           Definitions.  All capitalized terms not otherwise defined in this Release Agreement shall have the meaning ascribed thereto in the Separation Agreement.

 

2.           Separation Payments and Conditions.

 

(a)       Employee and Employer acknowledge and agree that the Effective Termination Date is _______________, 2012.

 

(b)       Subject to the terms and conditions of the Separation Agreement, including Employer’s execution and delivery of this Release Agreement and non-revocation of the ADEA Release contained herein, Employer agrees that (i) all of the Employer’s vested options previously granted by TETRA will, as of the date that is eight (8) days following the Effective Termination Date, continue to be exercisable for a period of two and one-half months after December 31, 2012, and (ii) upon the date that is eight (8) days following the Effective Termination Date, all of the Employee’s unvested Compressco Partners restricted unit awards as of the Effective Termination Date will become fully vested on that date.

 

3.           General Release.  In consideration of the benefits set forth herein and in the Separation Agreement, Employee hereby fully, finally, and completely releases Employer, its predecessors, successors, subsidiaries, stockholders, parent and affiliates and the officers, directors, managers, control persons, employees, agents, attorneys, representatives and assigns of any of them (collectively, the “Released Parties”), of and from any and all liabilities, claims, actions, losses, expenses, demands, costs, fees, damages and/or causes of action, of whatever kind or character, whether now known or unknown (collectively, “Claims”), arising from, relating to, or in any way connected 

 

  

  

  

 

with, any facts or events occurring on or before the execution of this Release Agreement, if any, that he may have against Employer or any Released Parties, including, but not limited to any such Claims arising out of or in any way related to Employee’s employment with the Employer, or any predecessor or affiliate thereof, or the termination of such employment, including but not limited to, any violation of any federal, state or local statute, any breach of contract, any wrongful termination, or other tort or cause of action.  Employee confirms that this Release Agreement was not procured by fraud, nor signed under duress or coercion.  Further, Employee waives and releases Employer from any Claims that this Release Agreement was procured by fraud or signed under duress or coercion so as to make the Release Agreement not binding.  Employee understands and agrees that by signing this Release Agreement, he is giving up the right to pursue any legal Claims released herein that he may currently have against the Employer or any Released Parties, and specifically agrees and covenants not to bring any legal action for any Claims released herein.  Excluded from this Release Agreement are claims arising after the date Employee signs this Release Agreement, including any such future claims arising out of Employer’s group health and dental insurance plans, the Compressco Partners, L.P. 2011 Long Term Incentive Plan, TETRA 2006 Equity Incentive Compensation Plan, TETRA 2007 Long Term Incentive Compensation Plan and the equity awards previously granted by TETRA or Compressco Partners to Employee thereunder.

 

4.           ADEA Release.  Employee hereby completely and forever releases and irrevocably discharges the Released Parties, of and from any and all Claims arising under the Age Discrimination in Employment Act (“ADEA”) on or before the date Employee signs this Release Agreement, and hereby acknowledges and agrees that: (i) this Release Agreement was negotiated at arm’s length; (ii) this Release Agreement is worded in a manner that Employee fully understands; (iii) Employee specifically waives any rights or claims under the ADEA; (iv) Employee knowingly and voluntarily agrees to all of the terms set forth in the Release Agreement; (v) Employee acknowledges and understands that any claims under the ADEA that may arise after the date of this Release Agreement are not waived; (vi) the rights and claims waived in this Release Agreement are in exchange for consideration over and above anything to which Employee was already undisputedly entitled; (vii) Employee has been and hereby is advised in writing to consult with an attorney prior to executing the Release Agreement; (viii) Employee acknowledges that he received this Release Agreement on ________________, 2012, and Employee understands that he has been given a period of up to twenty-one (21) days from receipt of this Release Agreement to consider the release contained in this Paragraph 4 (the “ADEA Release”) prior to executing it; (ix) Employee acknowledges and agrees that any discussions between Employee and Employer concerning the terms of this Release Agreement and any change in the terms of this Release Agreement shall not affect or restart such twenty-one (21) day consideration period; and (x) Employee understands that he has been given a period of seven (7) days from the date of the execution of this Release Agreement to revoke the ADEA Release, and understands and acknowledges that the ADEA Release will not become effective or enforceable until the revocation period has expired.  If Employee elects to revoke this ADEA Release, revocation must be in writing and presented to 

 

  

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Ronald J. Foster, President, Compressco Partners GP, Inc., 101 Park Avenue, Suite 1200, Oklahoma City, OK 73102, within seven (7) days from the date of the execution of the Release Agreement.

 

5.           Miscellaneous.  This Release Agreement is being executed and delivered pursuant to the terms and provisions of the Separation Agreement and shall not affect or diminish any of the rights and obligations of the parties thereunder which shall continue to be effective and survive the execution of this Release Agreement.  This Release Agreement shall be subject to the terms and provisions of Paragraphs 6, 7, 10, 11, 12 and 13 of the Separation Agreement which are incorporated herein, mutatis mutandis.

 

 

	
COMPRESSCO PARTNERS GP INC.

 

By: _______________________________

Its: _______________________________

Date: _____________________________

 

	
GARY L. MCBRIDE

 

________________________________

 

Date: __________________________

Address: ________________________

               ________________________

 

 

 

 

 A-3

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