Document:

Exhibit 10.1

 

	

    	
Mark P. Frissora
    
	
999   Vanderbilt Beach Road, Suite 300
    	
Chairman of the Board and Chief Executive Officer
    
	
Naples,   FL 34108
    	
Phone: 239-552-5555
    
	
 
    	
Fax: 866-777-9726
    

 

November 20, 2013

 

Mr. Tom Kennedy

8300 Spring Hill Farm Drive

McLean, VA  22102

 

Dear Tom,

 

We are pleased to confirm our offer of employment with The Hertz Corporation for the position of Senior Executive Vice President and Chief Financial Officer.  The position will be based out of Estero, Florida. This position reports directly to Mark Frissora, Chairman and Chief Executive Officer.  Your start date is expected to be in early December.

 

Your base salary, paid on a bi-weekly basis, will be $25,384.62, which equates to an annualized salary of $660,000.  This offer is contingent upon verification of your education, previous employment, satisfactory references, passing the drug test and criminal background check, presentation of legally required documentation establishing your right to work in the United States, including compliance with Federal immigration employment law requirements, and agreement to enter into and signing an Employee Confidentiality & Non Competition Agreement.

 

You are eligible to participate in the Hertz Incentive Plan for 2014, which provides for a target payment of 85% of your eligible earnings.  Actual payout is contingent upon the Company’s financial performance, your performance and your start date. Hertz retains the right and sole discretion to amend, modify or rescind such plan at any time and for any reason.

 

	
You   will be eligible for an annual discretionary equity grant in 2014.   Generally, equity grants are subject to   approval by the Compensation Committee of the Hertz Board of Directors and   generally take place annually in the first quarter of the year, and are   subject to its sole and exclusive discretion for all key executives and key   employees.  Generally awards are based   upon, or denominated as, a dollar value and may be all or partially granted   in the form of Restricted Stock Units, Performance-based Restricted Stock   Units, and Stock Options and are subject to the Committee’s sole and   exclusive discretion.

 

You are eligible for a   sign-on bonus in the gross amount of $75,000 payable following thirty (30)   days of employment.  Your acceptance of   that amount is contingent upon you remaining with the Company for at least   twelve months following the payment
    	

    

 

 

date.  Should you voluntarily end your employment or be terminated for cause prior to that time, you will be required to pay back the entire amount.

 

You will also be eligible for service vehicle privileges in this role. This privilege provides for the use of a Hertz service vehicle for personal and professional use.  The service vehicle use policy will be reviewed with you upon commencement of your employment.

 

You will be eligible for 20 days of vacation per the terms and conditions of The Hertz Corporation vacation policy.

 

You will be provided with a relocation benefit. The Company will provide reimbursement for expenses related to the sale and purchase of your primary home in addition to movement of your household goods through a vendor selected by the Company.  Temporary housing assistance will be provided to you for up to eight weeks following the start of your new role.  All relocation expenses are expected to be reasonable and customary for the area and are subject to pre-approval by the Company.  This assistance will be available for twelve (12) months following the initiation of your relocation.   The terms and conditions of the relocation agreement will be provided for in a separate relocation agreement upon acceptance and initiation of the relocation.  Prior to the initiation of the relocation as well as receiving any relocation reimbursement, you will be required to execute a separate relocation agreement.

 

Hertz provides you the opportunity to participate in a comprehensive employee benefits program. On the first day of the third month following your date of employment, you are eligible to enroll in the Hertz Custom Benefit Program.

 

This benefits program offers you numerous coverage options for:

 

	
·
    	
Medical
    	
·    Accidental Death and Dismemberment
    
	
·
    	
Dental
    	
·    Long Term Disability
    
	
·
    	
Vision
    	
·    Dependent Care Flexible Spending Account
    
	
·
    	
Life   Insurance
    	
·    Health Care Flexible Spending Account
    
	
·
    	
Dependent   Life Insurance
    	
 
    

 

Additionally, you are eligible to participate in The Hertz Retirement Plan and 401(k) Savings Plan.

 

·                  Retirement Plan

 

After one year of continuous service, as defined by the Plan, you are eligible to participate in the Retirement Plan to which Hertz currently credits an amount equal to 3% to 5% of your annual pensionable pay based upon your length of service assuming you commence employment before December 31, 2013.  Details of this plan will be provided to you upon commencement of your employment.  In accordance

 

 

with the Plan, Hertz retains the right and sole discretion to amend, modify or rescind such plan at any time and for any reason.

 

·                  401(k) Savings Plan

 

After three months of continuous service as defined by the plan, you are eligible to participate in the Income Savings Plan.  Currently, participants may contribute up to 30% (6% maximum for employees earning over $115,000 annually) of their base salary on a pre-tax basis subject to IRS contribution limits. After twelve months of continuous service the company matches your contributions to the plan. For every dollar you save up to 6% of your “eligible compensation,” Hertz adds 50 cents.  Details of this plan will be provided to you upon commencement of your employment.  In accordance with the Plan, Hertz retains the right and sole discretion to amend, modify or rescind such plan at any time and for any reason.

 

·                  Executive Perquisites

 

Hertz also provides a number of executive benefits and perquisites that are listed below:

 

·            Physical Exam: the Company provides for an annual exam through Johns Hopkins.

 

·            Financial Planning: the Company will reimburse you up to a maximum of $4000 per year for financial planning services provided by certified professionals.

 

·            Free car rental privileges worldwide.

 

·            Supplemental Executive Retirement Plan II (SERP II): a non-qualified retirement plan for a select group of employees, which provides benefits in excess of the Qualified Cash Balance Plan. Vesting occurs at the age of 55 and five years of service. Eligibility occurs after one year of service.

 

·            Change-In-Control Agreement and Executive Severance Benefits will be provided.

 

It is a fundamental term and condition of your employment that you must execute and deliver to the undersigned the enclosed Employee Confidentiality & Non-Solicitation Agreement.  Please review this document carefully and obtain independent legal advice if you wish.

 

It is also a fundamental term and condition of your employment that:

 

(i) You represent and warrant that you have not and will not disclose any confidential information or trade secrets that you may have form any third party, including but not limited to any current or former employer.

 

 

(ii) You represent and warrant to the Company and agree that the negotiation, entering into or performance of your employment with the Company has not resulted in and must not result in any breach by you of any agreement, duty or other obligation (including but not limited to a Confidentiality, Non Competition and/or Non Solicitation duty, agreement, or obligation), to any third party, including but not limited to any current or prior employer.

 

(iii) You confirm and agree that you must not bring and will not transfer to the Company or use in the performance of your duties and functions with the Company any confidential material, documents of information or property, whether electronic or otherwise, of any third party, including but not limited to any current or former employer.  You agree that you will not remove or possess any documents of information, whether electronic or otherwise, from such third party and you will not transfer any such documents or information to the Company at any time or otherwise use such documents or information in the scope of your employment with the Company.

 

(iv) During your employment with the Company you will not engage in any activity that competes with or adversely affects the Company, nor will you begin to organize or develop any competing entity (or assist anyone else in doing).

 

(v) You will not disclose at any time (except for business purposes on behalf of the Company) any confidential or proprietary material of the Company.  That material shall include, but is not limited to, the names and addresses of customers, customer contacts, contracts, bidding information, business strategies, pricing information and the Company’s policies and procedures.

 

(vi) You agree that all documents (paper or electronic) and other information related in any way to the Company shall be the property of the Company, and will be returned to the Company upon the end of your employment with the Company.

 

(vii) You agree that should a court issue injunctive relief to enforce any term of this Agreement, or if a court (or jury) determine that you breached any provision of this Agreement, you will reimburse the Company for all attorney’s fees and costs incurred in enforcing the terms of the Agreement, and you will also be liable for any other damages or relief permitted by law.

 

(viii) You agree that any disputes over the above terms shall be governed by New Jersey law, shall be resolved in a New Jersey Court or in a federal Court located in New Jersey, and that the terms of this agreement may be enforced by the Company or its successors or assigns.

 

The forgoing terms and conditions and representation and warranty will survive and will continue in full force and effect following the commencement of your employment with the Company.  Should you at any time be in breach of the forgoing terms and conditions or should the forgoing representation and warranty be inaccurate or false, it will result in your immediate termination from the Company.  In addition, you agree that you will

 

 

indemnify and save harmless to the Company and its directors, officers, employees and agents from any and all claims and demands incurred by any of them directly or indirectly arising from any breach of the foregoing terms or conditions or any inaccuracy or misrepresentation of the forgoing representation and warranty.

 

Per Hertz’s standard policy, this letter is not intended nor should it be considered as an employment contract for a definite or indefinite period of time.  Employment with Hertz is at will, and either your or the Company may terminate employment at any time, with or without cause.  In addition, by signing this letter, you acknowledge that this letter sets forth the entire agreement between you and the Company regarding your employment with the Company, and fully supersedes any prior agreements or understandings, whether written or oral.

 

Very truly yours,

 

	
/s/   Mark P. Frissora
    	
 
    
	
 
    	
 
    
	
Mark   P. Frissora
    	
 
    
	
Chairman   of the Board
    	
 
    
	
Chief   Executive Officer
    	
 
    

 

ACCEPTANCE

 

I, Thomas C. Kennedy, have read, understand, and having had the opportunity to obtain independent legal advice hereby voluntarily accept and agree to the terms and conditions for employment as outlined in this letter and I agree to do all things and to execute all documents necessary to give effect to the terms and conditions of employment as outlined in this letter, including but not limited to my execution of the Employee Confidentiality & Non-Competition Agreement.

 

	
/s/   Thomas C. Kennedy
    	
 
    	
12/2/13
    	
 
    
	
Name:
    	
 
    	
Date:
    	
 
    

 

cc: LeighAnne BakerJames Newman Employment amendment

		

			Exhibit 10.1

		

		
			AMENDMENT TO 
		

		
			AMENDED AND RESTATED EMPLOYMENT AGREEMENT
		

		
			(James F. Newman)
		

		
			THIS AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this  “Amendment”), is made and entered into effective as of November 1, 2013 (the “Effective Date”), by and between BASIC ENERGY SERVICES, INC., a Delaware corporation (hereafter “Company”), and JAMES F. NEWMAN (hereafter “Executive”), an individual and resident of Texas.  This Amendment hereby amends that AMENDED AND RESTATED EMPLOYMENT AGREEMENT dated effective as of October 1, 2011 (the “Agreement”) by and between the Company and Executive.  Defined terms used herein shall have the meanings ascribed thereto in the Agreement.
		

		
			WITNESSETH:
		

		
			 
		

		
			WHEREAS, the Executive has been promoted as an executive officer with a different title of the Company, and Executive has relocated to the principal executive offices of the Company in Fort Worth, Texas; and
		

		
			 
		

		
			WHEREAS, the Company and Executive desire to amend the Agreement to reflect certain changes in connection with the same.
		

		
			 
		

		
			NOW, THEREFORE, in consideration of Executive’s employment with the Company, and the premises and mutual covenants contained herein, the Parties hereto agree as follows.
		

		
			 
		

		
			1.  Section 1 of the Agreement is hereby amended and restated as follows:
		

		
			 
		

		
			1.Employment.  During the Employment Period (as defined in Section 4 hereto), the Company shall employ Executive, and Executive shall serve as, Senior Vice President, Region Operations.  Executive’s principal place of employment shall be in Fort Worth, Texas.
		

		
			2.Section 2(a) of the Agreement is hereby amended and restated as follows:
		

		
			(a) Salary.  The Company shall pay to Executive during the Employment Period a base salary of $400,000 per year, as adjusted pursuant to the subsequent provisions of this paragraph (the “Base Salary”).  The Base Salary shall be payable in accordance with the Company’s normal payroll schedule and procedures for its executives.  The Base Salary shall be subject to at least annual review and may be increased (but not decreased without Executive’s express consent) by the Compensation Committee (the “Compensation Committee”) of the Board of Directors of the Company (the “Board”) at any time.  Nothing contained herein shall preclude the payment of any other compensation to Executive at any time.
		

		
			3.Section 3 of the Agreement is hereby amended and restated as follows:
		

		

		

		 

		

			 

		

 

		

			 

		

		3. Duties and Responsibilities of Executive. During the Employment Period, Executive shall devote his services full-time to the business of the Company and perform the duties and responsibilities assigned to him under the Company’s Bylaws or by the Company to the best of his ability and with reasonable diligence.  In determining Executive’s duties and responsibilities, the Company shall not assign duties and responsibilities to Executive that are inappropriate for his position as Senior Vice President, Region Operations.  This Section 3 shall not be construed as preventing Executive from (a) engaging in reasonable volunteer services for charitable, educational or civic organizations, or (b) investing his assets in such a manner that will not require a material amount of his time or services in the operations of the businesses in which such investments are made; provided, however, no such other activity shall conflict with Executive’s loyalties and duties to the Company.  Executive shall at all times use his best efforts to in good faith comply with United States laws applicable to Executive’s actions on behalf of the Company and its Affiliates (as defined in Section 6(d)).  Executive understands and agrees that he may be required to travel from time to time for purposes of the Company’s business.
		

		
			4.Section 4 of the Agreement is hereby amended and restated as follows:
		

		
			4. Term of Employment.  Executive’s initial term of employment with the Company under this Agreement shall be for the period from the Effective Date through December 31, 2014 (the “Initial Term of Employment”).  Thereafter, the employment period hereunder shall be automatically extended repetitively for an additional one (1) year period on January 1, 2015, and each one-year anniversary thereafter, unless Notice of Termination (pursuant to Section 7) is given by either the Company or Executive to the other Party at least 90 days prior to the end of the Initial Term of Employment, or any one-year extension thereof, as applicable, that the Agreement will not be renewed for a successive one-year period after the end of the current period.  The Company and Executive shall each have the right to give Notice of Termination at will, with or without cause, at any time subject, however, to the terms and conditions of this Agreement regarding the rights and duties of the Parties upon termination of employment.  The Initial Term of Employment and any one-year extension of employment hereunder, shall each be referred to herein as a “Term of Employment.” The period from the Effective Date through the date of Executive’s termination of employment for whatever reason shall be referred to herein as the “Employment Period.”
		

		
			5.Section 5(a) of the Agreement is hereby amended and restated as follows:
		

		
			(a) Reimbursement of Business Expenses.  The Company shall pay or reimburse Executive for all reasonable travel, entertainment and other expenses paid or incurred by Executive in the performance of his duties hereunder in accordance with the Company’s policies in effect from time to time.  The Company shall also provide Executive with suitable office space, including staff support.
		

		
			6.Section 30 of the Agreement is hereby amended to delete “the City of Midland, Texas” and to replace such location reference with “the City of Fort Worth, Texas”.
		

		

		

		 

		

			2

		

 

		

			 

		

		7.Section 36 of the Agreement is hereby amended to replace the Company’s address with the following address for notices:
		

		
			Basic Energy Services, Inc.
		

		
			Attn:  Chief Executive Officer
		

		
			801 Cherry Street, Suite 2100
		

		
			Fort Worth, Texas 76102
		

		
			8.Entire Agreement; Amendment and Termination.  This Amendment and the Agreement contain the entire agreement of the Parties hereto with respect to the matters covered by the Agreement and this Amendment; moreover, the Agreement, as amended by this Amendment, supersedes all prior and contemporaneous agreements and understandings, oral or written, between the Parties concerning the subject matter hereof.   The Agreement, as amended by this Amendment, may be amended, waived or terminated only by a written instrument that is identified as an amendment or termination hereto and that is executed on behalf of both Parties.
		

		
			9.Counterparts.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument.  Each counterpart may consist of a copy hereof containing multiple signature pages, each signed by one party hereto, but together signed by both parties.  The facsimile transmission of any signed document shall be the same as delivery of an original.  At the request of either party, the parties will confirm facsimile transmitted signatures by signing an original document for delivery between the parties.
		

		
			 
		

		

		

		 

		

			3

		

 

		

			 

		

		
		

		
			IN WITNESS WHEREOF, Executive has hereunto set his hand and Company has caused this Agreement to be executed in its name and on its behalf by its duly authorized officer, to be effective as of the Effective Date.
		

		
			 
		

		
			
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						EXECUTIVE:

				
	
					
						 

					
					
						 

				
	
					
						Signature:

					
					
						/s/ James F. Newman

				
	
					
						Name:

					
					
						James Newman

				
	
					
						Date:

					
					
						November 25, 2013

				

		
			 
		

		
			 
		

			
					
						yy

					
					
						 

				
	
					
						BASIC ENERGY SERVICES, INC.

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Thomas M. Patterson

				
	
					
						 

					
					
						Thomas M. Patterson, 

				
	
					
						 

					
					
						President & Chief Executive Officer

				
	
					
						Date:

					
					
						November 25, 2013

				

		
			 
		

		
			 
		

		 

		

			4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}]]