Document:

Executive Employment Agreement

EXHIBIT 10.15 
 
 
EXECUTIVE EMPLOYMENT AGREEMENT

 

	 PARTIES:
	  	 FLIR Systems, Inc. (“Company”)

	 	  	 16505 S.W. 72nd Avenue

	 	  	 Portland, Oregon 97224

	
	 	  	 Earl Lewis (“Executive”)

	 	  	 58 Ford Road

	 	  	 Sudbury, Massachusetts 01776

 
EFFECTIVE DATE:  January 1, 2003 
 
 
RECITALS: 
 
Company wishes to obtain the services of Executive for the duration of this Agreement, and the Executive wishes to provide his services for such period,
all upon the terms and conditions set forth in this Agreement. 
 
Therefore, in consideration of the mutual promises contained herein, the parties agree as follows: 
 
 
ARTICLE I 
DEFINITIONS 
 
1.1    “Base Salary”    means regular cash compensation paid on a periodic basis exclusive of
benefits, bonuses or incentive payments. 
 
1.2    “Board”    means the Board of Directors of Company. 
 
1.3    “Cause”    means Executive committed any one or more of the following: (i) the repeated
failure to perform any material duties under this Agreement or negligence of Executive in the performance of such duties, and if such failure or negligence is susceptible of cure, the failure to effect such cure within 30 days after written notice
of such failure or negligence is given to Executive; (ii) use of alcohol or illegal drugs which interferes with the performance of Executive’s duties hereunder; (iii) theft, embezzlement, fraud, misappropriation of funds, other acts of
dishonesty or the violation of any law, ethical rule or fiduciary duty relating to Executive’s employment by Company; (iv) a felony or any act involving moral turpitude; (v) the violation of any confidentiality or proprietary rights agreement
between Executive and Company, or (vi) the violation of Company policy or procedure, or the breach of any material provision of this Agreement, and if such violation or breach is susceptible of cure, the failure to effect such cure within 30 days
after written notice of such breach is given to Executive. 

1.4    “Disability”    means the inability
of Executive to perform his duties under this Agreement, with or without reasonable accommodation, because of physical or mental incapacity for a continuous period of five (5) months, as determined by the Board. 
 
1.5    “FLIR”    shall mean FLIR Systems, Inc., and its wholly owned subsidiaries. 
 
 
ARTICLE II 
EMPLOYMENT, DUTIES AND TERM 
 
2.1    Employment.    Upon the terms and conditions set forth in this Agreement, Company hereby employs
Executive as President and Chief Executive Officer, and Executive accepts such employment. Except as expressly provided herein, termination of this Agreement by either party shall also terminate Executive’s employment by Company. 

 
2.2    Duties.    Executive shall devote his full-time and best efforts to Company and to fulfilling the duties of President and Chief Executive Officer, which shall include such duties
as may from time to time be assigned him by the Board, provided that such duties are reasonably consistent with Executive’s education, experience and background. Executive shall comply with Company’s policies and procedures to the extent
they are not inconsistent with this Agreement in which case the provisions of this Agreement prevail. Executive shall also be permitted to serve on outside boards, commissions and partnerships to the extent such service to does not conflict with the
provisions of this Agreement. 
 
2.3    Term.    The term of this Agreement shall be until January 1, 2005, unless earlier terminated in accordance with Article IV. This Agreement may be extended by mutual agreement of
the parties. 
 
 
ARTICLE III 
COMPENSATION AND EXPENSES 
 
3.1    Base Salary.    For all
services rendered under this Agreement during the term of Executive’s employment, Company shall pay Executive a minimum annual Base Salary of $500,000 for 2003 and 2004. 
 
3.2    Bonus.    Executive shall be eligible for an annual Bonus of up to one
hundred percent (100%) of Executive’s Base Salary, based upon the achievement of objectives agreed upon by the Board, and if no objectives are agreed upon, one hundred percent (100%) of such eligible bonus shall be deemed earned. 
 

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3.3    Stock Options.    Executive shall annually be
eligible for grants of options to purchase shares of FLIR stock, based upon achievement of objectives and for such quantity of options as determined by the Board. 
 
3.4    Vacation.    Executive shall have four weeks of paid vacation annually.

 
3.5    Benefits.    Executive shall be eligible to participate in all Company-sponsored health and welfare benefit plans made available to other executives of the Company until age 65.

 
3.6    Supplemental Employee Retirement
Plan.    Company shall make all contributions to its Supplemental Employee Retirement Plan on behalf of Executive for each Plan year based on Executive’s total compensation for that year. For purposes of calculating the
amount of such annual contribution, Executive’s annual compensation shall include all bonuses earned for that year. 
 
3.7    Housing and Relocation.    Company shall pay for reasonable housing for Executive’s use while
in Portland. In the event Executive elects to relocate from Boston to Portland, Company shall pay Executive’s moving expenses. 
 
3.8    Automobile.    Company shall pay for an automobile for Executive’s use while in Portland.

 
3.9    Travel
Expenses.    Company shall pay for reasonable travel expenses for Executive and his wife between Boston and Portland. 
 
3.10    Business Expenses.    Company shall, in accordance with, and to the extent of, its policies in
effect from time to time, bear all ordinary and necessary business expenses reasonably incurred by Executive in performing his duties as an employee of Company, provided that Executive accounts promptly for such expenses to Company in the manner
prescribed from time to time by Company. 
 
3.11    Taxes and Withholding.    All amounts payable to Executive under this Agreement shall be net of amounts required to be withheld by law. To the extent there is any tax consequence
to Executive in connection with the provision of housing or payment for work between two states, Executive’s Base Salary shall be grossed up to cover the tax consequence to Executive. 
 
 
ARTICLE IV 
EARLY TERMINATION 
 
4.1    Early Termination.    This Article sets forth the terms for early termination of this Agreement.

 

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4.2    Termination for Cause.    Company may terminate this
Agreement for Cause immediately upon written notice to Executive. In the event of termination for Cause pursuant to this Section 4.2, Executive shall be paid at the then current rate of Executive’s Base Salary through the date of termination.

 
4.3    Termination Without
Cause.    Either Executive or Company may terminate this Agreement and Executive’s employment without Cause on no less than 30 days’ written notice. In the event Executive terminates this Agreement without Cause
pursuant to this Section 4.3, Executive shall be paid his base salary through the date of termination. In the event Company terminates Executive without Cause pursuant to this Section 4.3, Company shall pay to Executive either an amount equal to
Executive Base Salary in effect at the time of termination for a period of eighteen months, or for the duration of the remaining term of the Agreement, whichever is greater. Further, in the event Company terminates Executive without Cause pursuant
to this Section 4.3, all options granted to Executive shall immediately vest and Executive shall have a period of one year within which to exercise those options. Executive shall also be entitled to a prorated portion of the annual bonus to be paid
for that year as determined by the Board. 
 
4.4    Termination in the Event of Death or Disability.    This Agreement shall terminate in the event of death or disability of Executive. 
 

	 	(a)	 	In the event of Executive’s death, Company shall pay all accrued wages owing through the date of termination, plus an amount equal to one years’ Base
Salary. Such amount shall be paid (1) to the beneficiary or beneficiaries designated in writing to Company by Executive, (2) in the absence of such designation, to the surviving spouse, or (3) if there is no surviving spouse, or such surviving
spouse disclaims all or any part, then the full amount, or such disclaimed portion, shall be paid to the executor, administrator or other personal representative of Executive’s estate. The amount shall be paid as a lump sum as soon as
practicable following Company’s receipt of notice of Executive’s death. 

 

	 	(b)	 	In the event of Disability, Base Salary shall be paid through the final day of the fifth month referenced in the definition of “Disability.”

 
4.5    Entire Termination
Payment.    The compensation provided for in this Article IV shall constitute Executive’s sole remedy for termination pursuant to this Article. Executive shall not be entitled to any other termination or severance
payment which may be payable to Executive under any other agreement between Executive and Company or under any policy in effect at, preceding or following the date of termination. 
 
4.6    Moving Expenses.    Upon termination of this Agreement pursuant to
either Sections 4.2, 4.3 or 4.4, Company shall pay all of Executive’s moving expenses from Portland to Boston, or to any other location designated by Executive. 
 

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ARTICLE V 
CONFLICT OF INTEREST 
 
5.1    During the term of employment with Company, Executive will engage in no activity or employment which may conflict with the interest of Company, and will comply with
Company’s policies and guidelines pertaining to business conduct and ethics. 
 
 
ARTICLE VI 
GENERAL PROVISIONS 
 
6.1    Successors and Assigns.    Except as otherwise provided in Article VI, This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors
and assigns, administrators, executors, legatees, and heirs. In that this Agreement is a personal services contract, it shall not be assigned by Executive. 
 
6.2    Notices.    All notices, requests and demands given to or made pursuant hereto shall, except as
otherwise specified herein, be in writing and be delivered or mailed to any such party at its address as set forth at the beginning of this Agreement. Either party may change its address, by notice to the other party given in the manner set forth in
this Section. Any notice, if mailed properly addressed, postage prepaid, registered or certified mail, shall be deemed dispatched on the registered date or that stamped on the certified mail receipt, and shall be deemed received within the third
business day thereafter or when it is actually received, whichever is sooner. 
 
6.3    Caption.    The various headings or captions in this Agreement are for convenience only and shall not affect the meaning or interpretation of this Agreement. 
 
6.4    Governing Law and
Jurisdiction.    The validity, construction and performance of this Agreement shall be governed by the laws of the State of Oregon, which shall be the exclusive jurisdiction for any action to interpret or enforce this
Agreement. 
 
6.5    Mediation.    In the case of any dispute arising under this Agreement which cannot be settled by reasonable discussion, the parties agree that, prior to commencing any proceeding,
they will first engage the services of a professional mediator agreed upon by the parties and attempt in good faith to resolve the dispute through confidential nonbinding mediation. Each party shall bear one-half (1⁄2) of the mediator’s fees
and expenses and shall pay all of its own attorneys’ fees and expenses related to the mediation. This Section 6.5 shall not apply to any action to enforce Executive’s obligations under a confidentiality or proprietary rights agreement.

 
6.6    Attorney
Fees.    In the event of any suit, action or arbitration to interpret or enforce this Agreement, the prevailing party shall be entitled to recover its attorney fees, costs and out-of-pocket expenses at trial and on appeal.

 
6.7    Construction.    Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of
Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder of such provision or the remaining provisions of this
Agreement. 
 

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6.8    Waivers.    No failure on the part of either party
to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any
other right or remedy granted hereby or by any related document or by law. 
 
6.9    Modification.    This Agreement may not be and shall not be modified or amended except by written instrument signed by the parties hereto. 
 
6.10    Entire
Agreement.    This Agreement constitutes the entire agreement between the parties and supersedes all prior or contemporaneous oral or written understandings, statements, representations or promises with respect to its subject
matter. This Agreement was the subject of negotiation between the parties and, therefore, the parties agree that the rule of construction requiring that the agreement be construed against the drafter shall not apply to the interpretation of this
agreement. 
 
 

	 EARL R. LEWIS
	 	 	 	 FLIR SYSTEMS, INC.

	
	 /S/    EARL R.
LEWIS        

	 	 	 	 By:
	 	 /S/    JOHN C.
HART        

	 	 	 	 	 	 	 Title:    Director

 
 
 

6Amendment to Lease

EXHIBIT 10.16 
 
 
LEASE AMENDMENT

 
DATED:    December 19, 2000

 

	 BETWEEN: 
	 PACIFIC REALTY ASSOCIATES, L.P., 

	 A Delaware limited partnership 
	 LANDLORD 

 

	     AND: 
	 FLIR SYSTEMS, INC., 

	 An Oregon corporation 
	 TENANT 

 
By written lease dated February 11, 1985, Tenant leased from Landlord approximately 20,118 square feet of office, production and storage
space located in Building F, PacTrust Business Center, 16505 S.W. 72nd Avenue, Portland, Oregon 97224. By Lease
Amendment dated on May 19, 1986, the Lease was amended and the term extended. By Lease Amendment dated March 6, 1989, Tenant leased an additional approximately 24,650 square feet of warehouse and office space and the Lease was extended. By Lease
Amendment dated February 28, 1990, the Lease was amended. By Lease Amendment dated July 31, 1990, Tenant leased an additional approximately 2,656 square feet of office and storage space. By Lease Amendment dated August 29, 1991, the Lease was
amended. By Lease Amendment June 24, 1992, Tenant leased an additional approximately 5,400 square feet of office and warehouse space located in Building D, PacTrust Business Center, 16195 S.W. 72nd Avenue, Portland, Oregon 97224. By Lease Amendment dated January 21, 1993, Tenant leased an additional approximately 3,850 square feet of warehouse and office
space in Building D and the term of the Lease was extended. By letter agreement dated February 5, 1993, the Lease was amended. By Lease Amendment dated August 26, 1993, Tenant leased an additional approximately 6,590 square feet of warehouse and
office space in Building D and the Lease was amended. By Lease Amendment dated November 22, 1993, the Lease was amended. By Lease Amendment dated September 5, 1995, Tenant leased an additional approximately 9,160 square feet of office and warehouse
space in Building D and the Lease was amended and extended. By Lease Amendment dated April 15, 1996, the Lease was amended. By Lease Amendment dated January 28, 1997, Tenant leased an additional approximately 12,415 square feet of office and
warehouse space located in Building E, PacTrust Business Center, 16280 S.W. Upper Boones Ferry Road, Portland, Oregon 97224 (hereinafter referred to as the “Seventh Additional Space”). Tenant’s leased area within Building D now totals
approximately 25,000 square feet of office space. Tenant’s leased area within Building E now totals approximately 12,415 square feet of office and warehouse space. Tenant’s leased area within Building F now totals approximately 47,424
square feet of office, production, warehouse and storage space. Tenant’s leased area within Buildings D, E and F now totals approximately 84,839 square feet of office, production, warehouse and storage space (hereinafter referred to as the
“Premises”). By Lease Amendment dated April 28, 1999, Tenant leased an additional approximately 4,500 square feet of office and warehouse space (hereinafter referred to as the “Eighth Additional Space”) and an additional
approximately 6,789 square feet of office and warehouse space (hereinafter referred to as the “Ninth Additional space”), both located in Building E and the term of the Lease was extended. Tenant’s total leased area increased from
approximately 84,839 to approximately 96,128 square feet of office, production, warehouse and storage space. Such documents are hereinafter jointly referred to as “the Lease.” The Lease expires September 30, 2005. 
 
Tenant now wishes to relinquish approximately 10,923 square
feet of office space in the Seventh Additional Space (hereinafter referred to as the “First Relinquished Space”), the entire Eighth Additional space (hereinafter referred to as the “Second Relinquished Space”), and the entire
Ninth Additional Space (hereinafter referred to as the “Third Relinquished Space”), and as further referenced on Exhibit A. 

NOW, THEREFORE, the parties agree as follows: 
 

	 	1.	 	Commencing January 15, 2001, Tenant’s office space in Building E, PacTrust Business Center, 16280 S.W. Upper Boones Ferry Road, Portland, Oregon 97224 shall be
reduced by approximately 21,582 square feet. Tenant shall retain approximately 2,122 square feet of warehouse space in the Seventh Additional Space (hereinafter referred to as the “Retained space”). Tenant’s total leased area shall
decrease from approximately 96,128 to approximately 74,546 square feet of office, production, warehouse and storage space. 

	 	2.	 	Base rent shall decrease according to the following schedule: 

 

	 Period

	  	 Building D

	  	 Building E

	  	 Building F

	  	 Total Base
 Rent
 Per Month

	 January 15, 2001 through September 30, 2005
	  	 $23,250.00
	  	 $2,000.00
	  	 $48,847.00
	  	 $74,097.00

 

	 	3.	 	This Lease Amendment shall be contingent upon Landlord obtaining a fully executed lease agreement from another party for approximately 10,293 square feet of office
space (the First Relinquished Space), approximately 4,500 square feet of office space (the Second Relinquished Space), and approximately 6,789 square feet of office space (the Third Relinquished Space). 

	 	4.	 	Except as expressly modified hereby, all terms of the Lease shall remain in full force and effect and shall continue through the existing term.

 
IN WITNESS WHEREOF, the parties
hereto have executed this Agreement on the respective dates set opposite their signatures below, but this Agreement on behalf of such party shall be deemed to have been dated as of the date first above written. 
 
 

	 	 	 	 	 LANDLORD:
  
 PACIFIC REALTY ASSOCIATES, L.P.,
 a Delaware limited partnership

	
	 	 	 	 	 By:
	 	 PacTrust Realty, Inc.,
 a Delaware corporation,
 its General Partner

	
	 Date:    January 4, 2001
	 	 	 	 	 	 By:
	 	 /S/  DAVID G.
HICKS

	 	 	 	 	 	 	 	 	 Name:
	 	 David G. Hicks

	 	 	 	 	 	 	 	 	 Title:
	 	 Vice President

	
	 	 	 	 	 TENANT:
  
 FLIR SYSTEMS, INC.,
 an Oregon corporation

	
	 Date:    December 27, 2000
	 	 	 	 	 	 By:
	 	 /S/  STEPHEN M.
BAILEY

	 	 	 	 	 	 	 	 	 Name:
	 	 Stephen M. Bailey

	 	 	 	 	 	 	 	 	 Title:
	 	 Senior Vice President, Finance and Chief Financial Officer

 
 

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