Document:

Exhibit

Exhibit 10.1

Bhavesh V. (Bob) Patel                                    
Chief Executive Officer

October 7, 2019

Michael McMurray 
[Address omitted]

Dear Michael,

We are pleased to extend an offer of employment to you for the position of Executive Vice President and Chief Financial Officer of LyondellBasell (“LYB”) and Lyondell Chemical Company (the “Company”), reporting directly to me. This offer of employment is conditioned on your satisfactory completion of certain requirements, as more fully explained in this letter, which override anything said to you during your interviews or any other discussions about your potential employment with the Company. You will serve as a member of LYB’s Leadership Team and will be designated as a Section 16 Officer by LYB’s Board of Directors.
Duties and Commencement 
In your capacity as Executive Vice President and Chief Financial Officer, you will perform duties and responsibilities that are reasonable and consistent with such position as may be assigned to you from time to time. You agree to devote your full business time, attention, and best efforts to the performance of your duties and to the furtherance of LYB’s interests. Notwithstanding the foregoing, your employment with the Company will not prevent you from participating in charitable and community activities, provided that the activities do not interfere with the performance of your employment duties and responsibilities or create a conflict of interest.
Location
Your principal place of employment shall be at our corporate headquarters in Houston, Texas, subject to business travel as needed to fulfill your employment duties and responsibilities. Those responsibilities may include spending at least 10% of your work time on an annual basis in the United Kingdom.
Start Date
Subject to satisfaction of the conditions described in this letter, your Start Date will be Tuesday, November 5, 2019 (“Start Date”).

Compensation Package
In consideration for your services to the Company, your compensation package will include the following:
Base Salary
You will be paid an initial base salary of $800,000 per year, payable in accordance with the standard payroll practices of the Company. Your base salary will be subject to review annually by the Company in accordance with the Company’s standard payroll practices and by the Compensation Committee of LYB’s Board of Directors. Currently in the U.S., base salaries are adjusted on April 1 of each year.
Incentive Compensation
You will be eligible to participate in the following incentive programs. Participation in these incentive programs is subject to the terms and conditions of the programs, which may be modified by LYB or the Company at any time and commonly change from year to year.
Short-Term Incentive Plan. You will be eligible to participate in the LyondellBasell Industries Short-Term Incentive Plan (the “STI Plan”). Your STI Plan target opportunity will be 90% of your annual base salary ($720,000), and your maximum bonus opportunity will be 200% of target ($1,440,000). The actual payout depends on corporate and individual performance. Regardless of when you are hired, in the first calendar year of your employment you will be eligible to receive your full award under the STI Plan without pro-ration.
Long-Term Incentive Plan. You will also be eligible to participate in the LyondellBasell Industries Long-Term Incentive Plan (the “LTI Plan”), under which you will receive equity-based incentive awards in the first quarter of each year. Currently, your annual LTI Plan target is 310% of your annual base salary ($2,480,000), divided among awards as follows:
		
	•
	50% in Performance Share Units or “PSUs” ($1,240,000 target value) with a three-calendar-year performance period. Currently, PSUs payout from 0% to 200% of target based on the Company’s Total Shareholder Return (“TSR”) compared to peers over each of the three year performance periods. 

		
	•
	25% in Restricted Stock Units or “RSUs” ($620,000 based on the value of the underlying shares as of the grant date). RSUs are subject to cliff vesting on the third anniversary of the date of grant.

		
	•
	25% in Stock Options ($620,000 Black-Scholes value as of date of grant). Options vest in one-third installments on each of the first three anniversaries of the date of grant.

You will receive the full LTI Plan awards described above beginning in 2020. 

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New Hire Awards. In addition to the ongoing incentive programs described above, you will receive the following one-time awards:
		
	•
	Cash Award. As soon as practicable following the Start Date, you will receive a one-time bonus in the amount of $750,000, payable on January 1, 2020. If your employment is terminated by the Company for cause or if you terminate your employment voluntarily prior to the first anniversary of your Start Date, you agree to repay the full amount (100%) of this bonus within 30 days following your termination date. If your employment is terminated by the Company for cause or if you terminate your employment voluntarily following the first anniversary, but prior to the second anniversary of your Start Date, you agree to repay fifty percent (50%) of this bonus within 30 days following your termination date.

		
	•
	Equity Award. Effective as of your Start Date, you will receive a new hire equity grant with a total estimated value of $3,750,000, as follows: 

		
	◦
	60% in RSUs ($2,250,000 based on the value of the underlying shares as of the grant date). The award will vest in one-third installments on each of the first three anniversaries of the date of grant.

		
	◦
	40% in Stock Options ($1,500,000 Black-Scholes value as of date of grant). Options vest in one-third installments on each of the first three anniversaries of the date of grant. 

Please find a summary of your overall compensation package enclosed. As an executive officer of LYB, future grants of incentive compensation will also be subject to approval by the Compensation Committee of LYB’s Board of Directors.
Benefits and Perquisites 
Employee Benefit Plans. You will be eligible to participate in the employee benefit plans and programs generally available to the Company’s senior executives, including group medical, dental, vision and life insurance coverage, disability benefits, and retirement benefits, subject to the terms and conditions of the plans and programs. You will receive information regarding these benefits, including enrollment instructions, during your first week of employment. 
Holidays. You will be eligible for paid holidays designated by the Company as well as floating holidays. You will also be entitled to 200 hours of paid vacation per year. Eligibility for paid holidays and vacation is subject to the terms and conditions of the Company’s applicable policies.

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Relocation. The Company will reimburse you for all reasonable relocation expenses you incur in relocating to Houston, Texas. If your employment is terminated by the Company for cause or if you terminate your employment voluntarily prior to the first anniversary of your Start Date, you agree to repay the full amount (100%) of the total relocation reimbursement within 30 days following your termination date. If your employment is terminated by the Company for cause or if you terminate your employment voluntarily following the first anniversary of your Start Date, but prior to the second anniversary of your Start Date, you agree to repay fifty percent (50%) of the total relocation reimbursement within 30 days following your termination date.
Other. You will also be entitled to the fringe benefits and perquisites that are made available to other similarly situated executives. The Company reserves the right to amend, modify or terminate any of its benefit plans or programs at any time and for any reason.
Severance
As an executive of LYB, you will participate in the Executive Severance Plan (the "Severance Plan”), which generally provides severance benefits to you if your employment with the Company is severed without "cause" or you leave for "good reason,” as defined in the Severance Plan. To participate, you must execute a Participation Agreement that evidences your agreement to participate in the Severance Plan and to comply with the terms, conditions, and restrictions of the Participation Agreement and the Severance Plan, including confidentiality provisions and restrictive covenants. A copy of the form of Participation Agreement and Severance Plan are enclosed for reference purposes.
Withholding Taxes
All forms of compensation referred to in this letter are subject to reduction to reflect applicable withholding and payroll taxes and other deductions required by law.
At-Will Employment
Your employment with the Company will be for no specific period. Rather, your employment will be at-will, meaning that you or the Company may terminate the employment relationship at any time, with or without cause, and with or without notice and for any reason or no particular reason. Although your compensation and benefits may change from time to time, the at-will nature of your employment may only be changed by an express written agreement signed by an authorized officer of the Company. 
Contingent Offer
This offer is contingent upon:
		
	a.
	Verification of your right to work in the United States, as demonstrated by your completion of an I-9 form upon hire and your submission of acceptable documentation (as noted on the I-9 form) verifying your identity and work authorization within three days of your Start Date. For your convenience, a copy of the I-9 Form’s List of Acceptable Documents is enclosed for your review.

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	b.
	Successfully passing a pre-employment drug screening within 30 days prior to the Start Date. A Company representative will contact you to schedule an appointment for the test. Please complete the enclosed Drug Test Authorization Form and take it to the appointment. Please note that the Company performs random and for cause drug and alcohol testing in compliance with local law and submitting to testing when requested is a continuing condition of employment with the Company. 

		
	c.
	Satisfactory completion of a background investigation, for which the required consent from is attached to this letter.

		
	d.
	Your execution of the enclosed Personal Details Form.

This offer will be withdrawn if any of the above conditions are not satisfied. 
Stock Ownership Requirements
As an LYB executive, you will be subject to the LyondellBasell Share Ownership Guidelines. In summary, these guidelines require you to accumulate LYB shares at a rate equal to a multiple of your base salary, which multiple varies based on Leadership Team level.
Company Policies
We require that our employees review and comply with LYB and Company policies procedures and guidelines, which will be made available to you, including the LyondellBasell Code of Conduct. Please review the Code of Conduct and complete the enclosed Receipt and Certification Form. Then based on the Code of Conduct, complete the Disclosure of Interest Form.
Governing Law
This offer letter shall be governed by the laws of the state of Texas, without regard to conflict of law principles.
Representations
By accepting this offer, you represent that you can accept this job and carry out the work that it would involve without breaching any legal restrictions on your activities, such as non-competition, non-solicitation or other work-related restrictions imposed by a current or former employer. You also represent that you will inform the Company about any such restrictions and provide the Company with as much information about them as possible, including any agreements between you and your current or former employer describing such restrictions on your activities. You further confirm that you will not remove or take any documents or proprietary data or materials of any kind, electronic or otherwise, with you from your current or former employer to the Company without written authorization from your current or former employer, nor will you use or disclose any such confidential information during the course and scope of your employment with the Company. If you have any questions about the ownership of documents or other information, you should discuss such questions with your former employer before removing or copying the documents or information.

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We are excited at the prospect of you joining our team. If you have any questions about the above details, please reach out to Dale Friedrichs at 713-309-7721. If you wish to accept this position, please sign below and return this letter to me no later than Wednesday, October 9, 2019 at Noon. If you do not accept this offer by October 9, 2019 it will be deemed to be withdrawn. 

Sincerely, 

   /s/ Bhavesh V. (Bob) Patel                    
By:    Bhavesh V. (Bob) Patel
Chief Executive Officer
Acceptance of Offer
I have read and understood, and I accept all the terms of the offer of employment as set forth in the foregoing letter. I have not relied on any representations, express or implied, that are not set forth expressly in this letter, and this letter supersedes all prior and communications, both written and oral, relating to my employment with the Company.
Michael McMurray

Signed:     /s/ Michael McMurray       
Date:  October 10, 2019

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Exhibit 10.1

 

POSITIVE PHYSICIANS HOLDINGS, INC.

 

850 Cassatt Road

Suite 220

Berwyn, PA 19312

 

 

September 5, 2019

 

 

Mr. Donovan Augustin, CPA

402 Glendale Road

Collegeville, PA 19426

 

 

Dear Donovan,

 

On behalf of Positive Physicians Holdings, Inc. (“PPHI”), Positive Physicians Insurance Company (“PPIC”) and Diversus Inc. (“Diversus”) (collectively PPHI, PPIC and Diversus are referred to as the “Company”), I am pleased to offer you employment with the Company as Chief Financial Officer of PPHI and PPIC.  This offer is made in accordance with the Diversus terms and conditions of employment contained in the Diversus employee handbook, which may be amended from time to time.  This offer is contingent upon you signing and returning this offer letter within seven (7) days of your receipt thereof.

 

	
1.
	
Employment.  The Company agrees to employ you as Chief Financial Officer of PPHI and PPIC.  While employed by the Company, you will report directly to the Chief Executive Officer (“CEO”) and faithfully perform and discharge such duties consistent with your position as may be assigned to you from time to time by the CEO or other responsible manager of the Company designated by the CEO (each such person being referred to herein as the “Designated Manager”).  You will devote your full time, attention and energies to the business of the Company and you shall not be employed in any other business activity during your employment whether or not such activity is pursued for gain, profit or other pecuniary advantage.  

 

	
2.
	
Base Salary and Signing Bonus.  Your base salary will be $180,000.00 per annum, paid to you in bi-weekly payments in arrears on the last Friday of each two week period.  In addition, you will receive a bonus upon the date of commencement of your employment with the Company in the amount of $25,000.00 (the “Signing Bonus”).  If your employment with the Company is terminated for any reason by you within 12 months of the date your employment commences with the Company, you shall immediately repay in full to the Company the $25,000 Signing Bonus.  In addition, if your employment with the Company is terminated for cause by the Company, you shall immediately repay in full to the Company the $25,000 Signing Bonus.  For purposes of this section “cause” shall mean:

 

	
 
	
i)
	
dishonesty, breach of trust, misconduct (e.g. insubordination), or criminal  activity;  

 

 

 

	
 
	
ii)
	
failure to finalize and deliver to the Company and to the satisfaction of the board of directors of the Company quarterly and annual statutory and GAAP financial statements within applicable regulatory time frames;

	
 
	
iii)
	
failure to finalize and deliver to the Company and to the satisfaction of the board of directors of the Company quarterly and annual management’s discussion and analysis and financial planning and analysis to accompany the financial statements.

 

	
3.
	
Discretionary Bonus.  During your employment with the Company, the Company may grant you an annual bonus in an amount, if any, and at such times as the Company’s Board of Directors, in its sole discretion, may determine based upon the assessment of the Company’s financial performance and performance of your duties on behalf of the Company.  You must be an active employee on the day payment is made in order for you to receive the bonus.  

 

	
4.
	
Employee Benefits.  You are entitled to Holidays, Paid Time Off (“PTO”) and Sick Time in accordance with the Diversus employee handbook, prorated for the remainder of 2019, except that your annual vacation time shall be three weeks, prorated as set forth above.  Additionally, you will be eligible to participate in the Diversus healthcare benefit and life insurance program as described in the employee handbook. As an employee of the Company you will also be provided with customary ancillary benefits and support necessary to fulfil your duties, including, without limitation, a laptop computer and company credit card. 

 

	
5.
	
Participation in Equity incentive Plans.  At the sole discretion of the Company, you shall be eligible to participate in equity incentive plans established by Diversus and by PPHI (upon the establishment of the equity incentive plans).

 

	
6.
	
Performance Objectives and Review.  Each individual's personal objectives and measures are established in writing in the first quarter of each year.  The progress towards achievement of the objectives and measures is reviewed formally at least once a year and informally on an ongoing basis.  The granting of any increase or bonus (as outlined above) is at the complete discretion of the Company and shall not be construed as a promise or guarantee.

 

	
7.
	
Confidentiality.  In light of the highly competitive nature of the industry in which the Company’s business is conducted, you agree that you will not, at any time during or after your employment, disclose any confidential or proprietary information of the Company or any of its subsidiaries or affiliates or any company to which Diversus provides management services, including but not limited to PPHI, PPIC, and the subsidiaries and affiliates of PPHI and PPIC:  trade secrets, private or secret business processes; identities of customers or insureds; underwriting, claims handling, and sales techniques; policy terms, rates, credits, and debits; identities of and pricing paid by any and all insureds; distribution and broker network and techniques; financial statements and other financial data; and other information concerning their products, services, and development activities (collectively “Proprietary Information”) obtained by you as a result of your employment with the Company to any person or other entity for any reason or purpose whatsoever, except as necessary in the performance of your duties as an employee of the Company, and then only upon a written confidentiality agreement in such form and content as requested by the Company.  You further agree that you will not make use of any Proprietary Information for your own purposes or for 

 

 

 

		
the benefit of any person or entity except the Company under any circumstances at any time during or after your employment with the Company; provided, however, that you shall be permitted to make disclosure of such information to the extent it is required under applicable law or court order so long as reasonable advance written notice of the is furnished to the Company prior to such disclosure.

 

	
8.
	
Prior Employment Agreements and Pre-Employment Screenings.  In accepting the Company’s offer of employment, you are representing that you are not a party to any agreement with a prior or current employer which purports to restrict in any way your ability to engage in the insurance or reinsurance business.  This offer of employment is contingent upon the satisfactory results of routine reference and background checks and your providing proof of your status as either a United States Citizen or an authorized alien worker.

 

	
9.
	
Termination of Employment:  You are an employee “at will.”  Your employment may be terminated by you or the Company at any time for any reason or no reason at all by notice to the other in writing, given at least thirty (30) days prior to the effective date of termination.  Notwithstanding the foregoing, the Company has the right to immediately terminate your employment without notice for reasons of your dishonesty, breach of trust, misconduct (e.g. insubordination), or criminal activity.  

 

	
10.
	
Covenant Not To Compete.  You acknowledge and recognize the highly competitive nature of the Company’s business and you do hereby covenant and agree in consideration for the offer of employment and the compensation provided herein, during your employment and for a period of twelve (12) months following termination of your employment, whether voluntary or involuntary, and whether with or without cause, you will not directly or indirectly, on your own behalf or on behalf of anyone else, (i) engage in or assist others in engaging in any Restricted Business (defined below); (ii) have an interest in any person that engages directly or indirectly in any Restricted Business in any capacity, including as a partner, shareholder, proprietor, director, member, employee, principal, agent, trustee or consultant; or (iii) intentionally interfere in any material respect with the business relationships between Diversus, PPHI and PPIC and their subsidiaries and affiliates and their respective customers, accounts, vendors, agents, brokers, insureds or suppliers.  For purposes of this Section, “Restricted Business” means selling, soliciting, attempting to obtain, offering, accepting, writing, servicing, brokering or otherwise transacting medical malpractice insurance business or medical malpractice insurance products of any kind or otherwise engaging in the operation of a medical malpractice insurance agency or brokerage in any State in which the Company provides medical malpractice insurance.

 

	
11.
	
Non-Solicitation.  

 

	
 
	
11.1
	
You acknowledge and recognize the highly competitive nature of the Company’s business and you do hereby covenant and agree in consideration for the offer of employment and the compensation provided herein, during your employment and for a period of twelve (12) months following termination of your employment, whether voluntary or involuntary, and whether with or without cause, you will not directly or indirectly, solicit any business from (a) any insured of any insurance company member of the Company, (b) any retail insurance broker that places business with or through the Company, (c) any other customer with which the Company does business, and/or (d) any “Active 

 

 

 

	
 
		
Prospect.”  “Active Prospect” means any potential insured, broker or other customer which the Company solicited or worked to obtain, secure or develop during the twelve month period prior to the termination of your employment with the Company.  

 

	
 
	
11.2
	
You further agree that for a period of and for a period of twelve (12) months following termination of your employment, whether voluntary or involuntary, and whether with or without cause, you will not directly or indirectly, solicit for employment any employee of the Company or otherwise encourage an employee of any member of the Company to leave his/her employment.

 

	
 
	
11.3
	
You acknowledge and agree that (i) the covenants contained in Sections 10 and 11 hereof are made by you as a condition of your employment with the Company and in consideration of the increased salary and other benefits to be provided hereunder, and (ii) the Company would not have made this offer of continued employment to you without obtaining the benefits of the covenants contained in Section 10 and 11 hereof.

 

	
12.
	
Assignment.  You consent to be bound by the provisions of this Agreement for the benefit of the Company or any subsidiary or affiliate to whose employ you may be transferred without the necessity that this Agreement be re-executed at the time of such transfer.  Rights of the Company may be assigned, without your consent, to any successor of the Company, whether by merger, or a purchase of all or substantially all of the assets of the Company.  You acknowledge and agree that this letter agreement is not assignable or delegable by you. 

 

	
13.
	
Remedies.  You acknowledge that the Company’s remedy at law for a threatened or actual breach of any of the provisions of paragraphs 7, 10 and 11 would be inadequate.  Accordingly, in the event of a breach or threatened breach by you of any provision of such, in addition to its remedy at law, the Company shall be entitled to equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy then available, without requiring the Company to post any bond or other security (other than a nominal bond or other nominal security).  You agree not to oppose the Company’s request for such relief.  Such relief is cumulative and in addition to all other remedies available to the Company.  If a final judicial determination is made by a court having jurisdiction that time, territory or any other restriction contained in paragraphs 7, 10 and/or 11 is unreasonable or otherwise unenforceable, the provisions of paragraphs 7, 10 or 11, as appropriate, shall not be rendered void but shall be deemed amended to apply as to such maximum extent as such court may determine or indicate to be reasonable.

 

	
14.
	
Miscellaneous.  The invalidity or unenforceability of any provision hereof shall in no event affect the validity or enforceability of any other provision.  This offer letter contains the entire agreement of the parties relating to your employment, supersedes and replaces in its entirety any existing employment or similar agreement relating thereto, and may not be modified except by an agreement in writing signed by both parties.  This Agreement is governed by the substantive laws of the Commonwealth of Pennsylvania, without regard to the principles of conflicts of laws of any jurisdiction.

 

 

 

 

Should you have any questions relating to the above, do not hesitate to contact me or your direct supervisor.  If you decide to accept this offer, please confirm your acceptance by signing this offer letter where indicated below, and returning it to us within seven (7) days.  

 

Failure to return this letter and documentation by the specified dates may result in our offer being withdrawn. 

 

We look forward to you joining us and hope that our association will be a long and mutually satisfying one.

 

 

Sincerely,

 

 

 

		
	
/s/ Lewis Sharps, MD
	
 

	
Lewis Sharps, MD
	
 

	
Chief Executive Officer
	
 

 

 

 

 

 

Agreed by:

 

Donovan Augustin

 

 

							
	
/s/ Donovan Augustin
	
 
	
September 6, 2019
	
 
	
 

	
Signature
	
 
	
Date

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