Document:

Exhibit 10.9

 

 

 

TECO DIVERSIFIED, INC. 

RETENTION AND CONFIDENTIALITY AGREEMENT AND GENERAL RELEASE

 

 

 

THIS RETENTION AND CONFIDENTIALITY AGREEMENT AND GENERAL RELEASE (the "Agreement") is made and entered into this 14 day of August, 2014 by and between TECO DIVERSIFIED, INC. (the "Company"), and CLARK TAYLOR (the "Employee").

 

WHEREAS, the Employee is currently employed by a subsidiary of the Company; and

 

WHEREAS, the Company is considering selling TECO Coal Corporation and its subsidiaries (collectively “TCC”) (the “Potential Transaction”); and

 

WHEREAS, the Employee’s continued employment through the Closing (defined as the transfer of ownership of TCC to an unrelated third party) of the Potential Transaction (“Closing Date”) is critical to the success of both the Company and the Potential Transaction; and

 

WHEREAS, the parties have mutually agreed to enter into the following Agreement.

 

NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is hereby agreed as follows:

 

1. PURPOSE OF AGREEMENT

 

The Company desires the continued employment and cooperation of the Employee during the period commencing as of the date hereof through the Closing Date (the “Employment Period”). However, notwithstanding anything to the contrary in this Agreement, the Employee shall continue to be an “at will” employee.

 

2. TERMINATION OF THE AGREEMENT

 

This Agreement will terminate and the Company will not owe the Employee any payment under this Agreement on the earliest to occur of the following, however, the Employee's obligations relating to confidentiality and the Company’s rights under Sections 5. and 6. will survive such termination:

 

(a)  the date that Employee either voluntarily terminates his employment or is terminated for Cause prior to the end of the Employment Period;

 

(b)  the date that the Employee receives notice that the Company has decided to not pursue the Potential Transaction.

 

3. CAUSE DEFINITION

 

For purposes of this Agreement, termination by TCC of the Employee’s employment for “Cause” shall mean a termination following TCC's Employee Job Performance Discipline process.

 

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4. RETENTION PAYMENT

 

In accordance with the terms of this Section, the Company shall pay or cause TCC to pay the Employee a retention payment of $489,600.00 (the “Retention Amount”).  The payment of the Retention Amount is contingent on:  (i) the Employee delivering to the Company a signed Release attached as Exhibit A effective through the Closing Date and not revoking the Release before its effective date (the “Release”) and (ii) the Employee remaining employed with TCC through the Closing Date.  If the contingencies are met the payment shall be paid within twenty (20) days following the Closing Date. The payment made to the Employee shall be reduced to reflect the withholding of all required applicable taxes.

 

5. CONFIDENTIALITY AND OTHER CONDUCT

 

(a) The Employee recognizes and acknowledges that during the course of his employment with TCC, he has been exposed to, has had access to, and has had disclosed to him information and material developed specifically by and for the benefit of TCC and sensitive and/or proprietary information, business planning and operations information, strategic, financial, business and plant security information, business practices and procedures, and specific TCC procedures related thereto and to other matters, including without limitation trade secrets, trademarks, service marks, trademarked and copyrighted material, patents, patents pending, financial and data processing information, data bases, interfaces, and/or source codes, TCC procedures, specifications, commercial information or other TCC or customer records including any information or material belonging to others which has been provided to TCC on a confidential basis, all of which are hereinafter referred to as "Confidential Information."

 

(b) The Employee also agrees to maintain in strict confidence the Confidential Information and agrees not to make any unauthorized disclosures to any third party or to use same to benefit himself or any third party.  The Employee shall be prohibited from using, duplicating, reproducing, copying, distributing, or disclosing all covered information regardless of form or purpose, including without limitation, verbal disclosure, data, documents, electronic media or any other media form.  The Employee agrees to abide by the non-disclosure and non-use obligations relating to TCC records, information, and property contained in TECO Energy’s Code of Ethics and Business Conduct.

 

(c) The restrictions on the Employee's disclosure of Confidential Information set out herein do not apply to such information that (i) is now, or hereafter becomes, through no act or failure to act on the part of the Employee, generally known or available to the public or (ii) is required to be disclosed by a court of competent jurisdiction or by an administrative or quasi‐judicial body having jurisdiction over the subject matter after the Employee has given TCC reasonable prior notice of such disclosure requirement.

 

(d) The restrictions herein do not apply to the use for the benefit of any purchaser of TCC of Confidential Information that is predominately related to TCC and is transferred with TCC as part of the Potential Transaction described in the recitals above.

 

(e) The Employee agrees to conduct himself in all actions or conduct relating to TCC in a manner consistent with existing TCC policy and to refrain from engaging in any conduct that holds TCC up to ridicule in the community or that jeopardizes or adversely affects the business or reputation of TCC.

 

(f) For the purpose of this section the term " TCC" shall mean TECO Energy, Inc., TECO Diversified, Inc., TECO Coal Corporation, and all of their subsidiaries and affiliates.

 

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6. REMEDIES FOR BREACH BY EMPLOYEE

 

Employee acknowledges that damages at law will be an insufficient remedy if Employee violates the terms of this Agreement, and that the Company would suffer a decrease in value and irreparable damage as a result of such violation.  Accordingly, upon a violation by Employee of any of the covenants set forth herein, particularly the confidentiality provisions contained in Section 5., the Company without excluding or limiting any other available remedy, shall be entitled to the following remedies:

 

(1) Upon posting a reasonable bond and filing with a court of competent jurisdiction an appropriate pleading and affidavit specifying each obligation breached by Employee, automatic entry by a court having jurisdiction of an order granting an injunction or specific performance compelling Employee to comply with that obligation, without proof of monetary damage or an inadequate remedy at law; and

 

(2) Repayment by the Employee to the Company of the Retention Payment made to the Employee pursuant to Section 4.

 

(3) Reimbursement of all costs and expenses incurred by the Company in enforcing those obligations or otherwise defending or prosecuting any litigation arising out of Employee’s obligations, including premiums for bonds, fees for experts and investigators, and legal fees, costs, and expenses incurred before a lawsuit is filed and in trial, appellate, bankruptcy and judgment-execution proceedings.

 

The foregoing remedies are cumulative to all other remedies afforded by law or in equity, and the Company may exercise any such remedy concurrently, independently or successively.  

 

7. EFFECT ON PREVIOUS AGREEMENTS

 

This Agreement supersedes and replaces any other previous agreement between the parties concerning retention payments or the matters addressed in this Agreement.  All such earlier Agreements shall be null and void with neither party having remaining obligations under the Agreements.

 

8. SURVIVAL OF THE AGREEMENT

 

Neither completion of payment hereunder nor termination of this Agreement shall be deemed to relieve Employee or Company of any rights or obligations hereunder which by their very nature survive the completion of payment by Company, including without limitation, Sections 5. and 6. hereof.

 

9. ENTIRE AGREEMENT

 

The Employee acknowledges and agrees that this Agreement contains the entire agreement between himself and Company, including TCC, and that no statements or promises have been made by either party concerning the contents of this Agreement other than as expressly contained in this document.

 

10. EFFECTIVE DATE

 

This Agreement shall be governed by the laws of the State of Kentucky and shall become effective upon the execution and delivery of both parties to the Agreement.

 

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11. STATEMENT OF UNDERSTANDING

 

The Release attached as Exhibit “A” contains the notices setting forth the rights of the Employee under the Older Workers’ Benefit Protection Act (29 USC §626) relating to the forty-five (45) day consideration period commencing on the date hereof and the rescission period relating to the Employee's execution of the Release.

 

IN WITNESS WHEREOF, TECO DIVERSIFIED, INC. and CLARK TAYLOR have caused this instrument to be executed as of the date first written above.

 

TECO DIVERSIFIED, INC.,

A FLORIDA CORPORATION

 

BY: /s/ Sandra W. Callahan

Sandra W. Callahan

Vice President and Assistant Secretary

 

 

CAUTION! READ BEFORE SIGNING

 

 

 

BY: /s/ Clark Taylor

Clark Taylor

DATE SIGNED: 8/14/14

 

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CLARK TAYLOR

TECO DIVERSIFIED, INC.

EXHIBIT A

RELEASE OF CLAIMS

 

 

 

 

For and in consideration of the payment to be made to the Employee pursuant to Section 4. of the Retention and Confidentiality Agreement and General Release ("Agreement"), the Employee, for himself, his heirs, executors, administrators, successors and assigns acknowledges that the payment being made as consideration is in addition to anything of value to which he is entitled and accordingly hereby releases and agrees to hold harmless the Company and TCC (which, for purposes of this section includes their subsidiaries and affiliates, and any agent, officer, director or employee thereof) from all claims, rights, causes of action or liabilities of whatever nature, whether at law or in equity, or damages (compensatory, consequential or punitive) against the Company and TCC that the Employee, his heirs, executors, administrators, successors, and assigns, may now have or hereafter can, shall or may have for, upon, or by reason of any matter, cause or thing, whatsoever, that has happened, developed, accrued or occurred on or before the date of execution of this Release, arising out of the Employee's employment with TCC while TECO Energy, Inc. was the indirect owner of TCC or the Agreement (other than Workers' Compensation claims pending or otherwise related to such employment or failure to make the payment under Section 4. of the Agreement) with or termination of employment from TCC while it was a subsidiary of TECO Energy, Inc. or retirement hereunder, including, but not limited to, claims for wrongful termination, discrimination, retaliation, invasion of privacy, defamation, slander, and/or intentional infliction of emotional distress, any rights to a grievance proceeding and those arising under any federal, state, or local discrimination or civil rights or labor laws and/or rules or regulations, and/or common law, whether in contract or in tort, as they relate to the employment relationship of the Employee/Employer (including without limitation claims arising under the Age Discrimination in Employment Act, the Older Workers' Benefit Protection Act (29 USC §626), Title VII of the Civil Rights Act of 1964, Worker Adjustment and Retraining Notification Act (29 USC §2101-2109), the Americans with Disabilities Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, and any other Kentucky statues relating to employment other than Workers’ Compensation laws, as such laws have been or may be amended from time to time).

 

The Company and the Employee agree that by entering into this Release the Employee does not waive claims that may arise after the date of execution of this Release.

 

The Employee acknowledges and agrees that this Release shall not be construed as an admission by the Company of any improper or unlawful actions or of any wrongdoing whatsoever against the Employee or any other person, and the Company expressly denies any wrongdoing whatsoever against the Employee or any other employee.

 

For the purposes of this Release, "TCC" shall include TECO Diversified, Inc., TECO Coal Corporation, its ultimate parent, TECO Energy, Inc. and their subsidiaries and affiliates, and any agent, officer, director, or employee thereof.

 

 

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THE EMPLOYEE ACKNOWLEDGES THAT HE HAS CAREFULLY READ THIS RELEASE, KNOWS AND UNDERSTANDS THE CONTENTS CONTAINED IN IT, HAS BEEN GIVEN THE OPPORTUNITY TO CONSIDER THE RELEASE FOR AT LEAST FORTY-FIVE (45) DAYS COMMENCING THE DAY AFTER THE EMPLOYEE RECEIVED THE RETENTION AND CONFIDENTIALITY AGREEMENT.  THE COMPANY HAS ADVISED HIM TO CONSULT AN ATTORNEY IF HE DESIRES, AND HE HAS BEEN GIVEN THE OPPORTUNITY TO DO SO.  FURTHER, THE EMPLOYEE UNDERSTANDS THAT HE MAY RESCIND THE RELEASE AT ANY TIME DURING THE SEVEN (7) DAYS IMMEDIATELY FOLLOWING ITS EXECUTION.  THE EMPLOYEE DOES FREELY AND VOLUNTARILY ASSENT TO ALL OF ITS TERMS AND CONDITIONS AND SIGNS THIS RELEASE AS HIS OWN FREE ACT AND RECOGNIZES THAT BY DOING SO HE IS RELEASING THE COMPANY AND TCC FROM ANY LIABILITY UNDER THE OLDER WORKERS’ BENEFIT PROTECTION ACT.

 

This Release will be governed by the Laws of the State of Kentucky and shall become effective at the close of business on the seventh day following the execution and delivery of the Release by the Employee (the “Rescission Period”).  At any time during the Rescission Period the Employee may rescind this Release by giving written notice to the Company at its Human Resources Department.

 

 

 

WITNESSES

 

	
 
	
 
	
BY:  EXHIBIT ONLY – DO NOT SIGN

	
 
	
 
	
Clark Taylor

DATE SIGNED: _____________________

 

-6-exhibit_4-1.htm

Exhibit 4.1

 

CERTIFICATE OF INCORPORATION

 

OF

 

MICRONET ENERTEC TECHNOLOGIES, INC.

 

January 31, 2002

 

As amended April 23, 2002, October 17, 2002, March 14, 2013 and October 1, 2014

 

The undersigned, for the purpose of organizing a corporation for conducting the business and promoting the purposes hereinafter stated, under the provisions and subject to the requirements of the laws of the State of Delaware (particularly Chapter 1, Title 8 of the Delaware Code and the acts amendatory thereof and supplemental thereto, and known, identified, and referred to as the “General Corporation Law of the State of Delaware”), hereby certifies that:

 

ARTICLE I

 

NAME OF CORPORATION

 

The name of the corporation is Micronet Enertec Technologies, Inc. (the “Corporation”).

 

ARTICLE II

 

REGISTERED OFFICE

 

The address, including street, number, city, and county, of the registered office of the corporation in the State of Delaware is 615 South DuPont Highway, Dover, Delaware 19901, County of Kent; and the name of the registered agent of the corporation  in the State of Delaware at such address is National Corporate Research, Ltd.

 

ARTICLE III

 

PURPOSE

 

The purpose of the Corporation is to engage in any lawful act or activity for which corporations may be organized under the General Corporation Law of the State of  Delaware (the “GCL”).

 

ARTICLE IV

 

AUTHORIZED STOCK

 

The total number of shares of all classes of stock which the Corporation shall have authority to issue shall be thirty million (30,000,000) shares, of which twenty five million (25,000,000) shares shall be common stock, par value $0.001 per share (the “Common Stock”), and five million (5,000,000) shares shall be preferred stock, par value $0.001 per share (the “Preferred Stock”). All of the shares of Common Stock shall be of one class.

 

  

  

  

 

Upon the Certificate of Amendment becoming effective pursuant to the General Corporation Law of the State of Delaware (the “Effective Date”), the Corporation shall implement a reverse stock split of its Common Stock (the “Reverse Split”), whereby every two (2) shares of Common Stock issued and outstanding of record immediately prior to the Effective Date (the “Old Common Stock”) shall be automatically reclassified as, and converted into, one (1) share of Common Stock (the “New Common Stock”).

 

Notwithstanding the provisions of the foregoing paragraph, no fractional shares of New Common Stock shall be issued in connection with the Reverse Split. In lieu of receipt of fractional shares in the Reverse Split, each holder shall receive an amount in cash equal to the product of (i) the fractional share of New Common Stock that a holder would otherwise be entitled to, multiplied by (ii) a price determined by the Board in its discretion as the fair market value per share of New Common Stock on the business day prior to the effective date of this Certificate of Amendment.

 

Each stock certificate that immediately prior to the Effective Date represented shares of Old Common Stock shall, from and after the Effective Date, be exchanged for a stock certificate that represents that number of whole shares of New Common Stock into which the shares of Old Common Stock represented by such certificate shall have been reclassified; provided, however, that the Reverse Split will occur without any further action on the part of stockholders and without regard to the date or dates on which certificates formerly representing shares of Old Common Stock are physically surrendered. Upon the consummation of the Reverse Split, each certificate formerly representing shares of Old Common Stock, until surrendered and exchanged for certificates representing shares of New Common Stock, will be deemed for all corporate purposes to evidence ownership of the resulting number of shares of New Common Stock.

 

The shares of Preferred Stock shall be undesignated Preferred Stock and may be issued from time to time in one or more series pursuant to a resolution or resolutions providing for such issuance and duly adopted by the Board of Directors of the Corporation, authority to do so being hereby expressly vested in the Corporation's Board of Directors.  The Board of Directors is further authorized to determine or alter the rights, preferences, privileges and restrictions granted to or imposed upon any wholly unissued series of Preferred Stock and to fix the number of shares of any series of Preferred Stock and the designation of any such series of Preferred Stock.  The Board of Directors of the Corporation, within the limits and restrictions stated in any resolution or resolutions of the Board of Directors originally fixing the number of shares constituting any series, may increase or decrease (but not below the number of shares in any such series then outstanding) the number of shares of any series subsequent to the issuance of shares of that series.

 

The authority of the Board of Directors of the Corporation with respect to each  such class or series of Preferred Stock shall include, without limitation of the foregoing, the right to determine and fix:

 

the distinctive designation of such class or series and the number of shares to constitute such class or series;

 

  

  

  

 

the rate at which dividends on the shares of such class or series shall be declared and paid or set aside for payment, whether dividends at the rate so determined shall be cumulative or accruing, and whether the shares of such class or series shall be entitled to any participating or other dividends in addition to dividends at the rate so determined, and if so, on what terms;

 

the right or obligation, if any, of the Corporation to redeem shares of the particular class or series of Preferred Stock and, if redeemable, the price, terms and manner of such redemption;

 

the special and relative rights and preferences, if any, and the amount or amounts per share, which the shares of such class or series of Preferred Stock shall be entitled to receive upon any voluntary or involuntary liquidation, dissolution or winding up of the Corporation;

 

the terms and conditions, if any, upon which shares of such class or series shall be convertible into, or exchangeable for, shares of capital stock of any other class or series, including the price or prices or the rate or rates of conversion or exchange and the terms of adjustment, if any;

 

the obligation, if any, of the Corporation to retire, redeem or purchase shares of such class or series pursuant to a sinking fund or fund of a similar nature or otherwise, and the terms and conditions of such obligations;

 

voting rights, if any, on the issuance of additional shares of such class or series or any shares of any other class or series of Preferred Stock;

 

limitations, if any, on the issuance of additional shares of such class or series or any shares of any other class or series of Preferred Stock;

 

such other preferences, powers, qualifications, special or relative rights and privileges thereof as the Board of Directors of the Corporation, acting in accordance with this Certificate of Incorporation, may deem advisable and are not inconsistent with the law and the provisions of this Certificate of Incorporation.

 

ARTICLE V

 

INCORPORATOR

 

The incorporator of the Corporation is Kaplan Gottbetter & Levenson, LLP, having a mailing address of 630 Third Avenue, 5th Floor, New York, New York 10017.

 

  

  

  

 

ARTICLE VI

 

ELECTION OF DIRECTORS

 

The election of directors of the Corporation need not be by written ballot unless otherwise required by the by-laws of the Corporation.

 

ARTICLE VII

 

BY-LAWS

 

In furtherance and not in limitation of the powers conferred by the laws of the State of Delaware, the Board of Directors of the Corporation is expressly authorized  to make, alter and repeal by-laws of the Corporation, subject to the power of the stockholders of the Corporation to alter or repeal any by-law, whether adopted by them or otherwise.

 

ARTICLE VIII

 

NUMBER OF DIRECTORS

 

The number of directors that constitutes the entire Board of Directors of the Corporation shall be as specified in the by-laws of the Corporation.

 

ARTICLE IX

 

MEETINGS OF STOCKHOLDERS

 

Meetings of stockholders of the Corporation may be held within or without the State of Delaware, as the by-laws of the Corporation may provide.  The books of the Corporation may be kept (subject to any provisions of applicable statutes) outside the State of Delaware at such place or places as may be designated from time to time by the Board of Directors of the Corporation.

 

ARTICLE X

 

LIMITATION ON LIABILITY OF DIRECTORS;

 

INDEMNIFICATION OF DIRECTORS AND OFFICERS;

 

PERSONAL LIABILITY OF DIRECTORS

 

The Corporation shall indemnify each of the Corporation's directors and officers in each and every situation where, under Section 145 of the GCL, as amended from time to time (“Section 145”), the Corporation is permitted or empowered to make such indemnification. The Corporation may, in the sole discretion of the Board of Directors of the Corporation, indemnify any other person who may be indemnified pursuant to Section 145 to the extent that the Board of Directors deems advisable, as permitted by Section 145.

 

No director shall be personally liable to the Corporation or its stockholders for monetary damages for breach of fiduciary duty as a director, provided, however, that the foregoing shall not eliminate or limit the liability of a director of the Corporation (i) for any breach of the director's duty of loyalty to the Corporation or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) under Section 174 of the GCL or (iv) for any transaction from which the director derived an improper personal benefit.  If the GCL is subsequently amended to further eliminate or limit the liability of a director, then a director of  the  Corporation, in addition to the circumstances in which a director is not personally liable as set forth in the preceding sentence, shall not be liable to the fullest extent permitted by the amended GCL.  For purposes of this Article X, “fiduciary duty as a director” shall include any fiduciary duty arising out of service at the Corporation's request as a director of another corporation,  partnership, joint venture or other enterprise, and “personal liability to the Corporation or its stockholders” shall include any liability to such other corporation, partnership, joint venture, trust or other enterprise and any liability to the Corporation in its capacity as a security holder, joint venturer, partner, beneficiary, creditor or investor of or in any such other corporation, partnership, joint venture, trust or other enterprise.

 

  

  

  

 

Neither any amendment nor repeal of this Article X nor the adoption of any provision of this Certificate of Incorporation inconsistent with this Article X shall eliminate or reduce the effect of this Article X in respect of any matter occurring, or any cause of action, suit or claim that, but for this Article X, would accrue or arise, prior to such amendment, repeal or adoption of an inconsistent provision.

 

ARTICLE XI

 

COMPROMISE OR ARRANGEMENT

 

Whenever a compromise or arrangement is proposed between this Corporation and its creditors or any class of them and/or between this Corporation and its stockholders or any class of them, any court of equitable jurisdiction within the State of Delaware may, on the application in a summary way of this Corporation or on the application of any receiver or receivers appointed for this Corporation under Section 291 of the GCL or on the application of trustees in dissolution or of any receiver or receivers appointed for this Corporation under Section 279 of the GCL, order a meeting of the creditors or class of creditors, and/or of the stockholders or class of stockholders of this Corporation, as the case may be, to be summoned in such manner as the said court directs.  If a majority in number representing three-fourths in value of the creditors or class of creditors, and/or of the stockholders or class of stockholders of this Corporation, as the case may be, agree to any compromise or arrangement and to any reorganization of this Corporation as consequence of such compromise or arrangement, the said compromise or arrangement and the said reorganization shall, if sanctioned by the court to which the said application has been made, be binding on all the creditors or class of creditors, and/or on all the stockholders or class of stockholders of this Corporation as the case may be, and also on this Corporation.

 

  

  

  

 

ARTICLE XII

 

AMENDMENT OF PROVISIONS OF CERTIFICATE OF INCORPORATION

 

The Corporation reserves the right at any time, and from time to time, to amend, alter, change or repeal any provisions contained in this Certificate of Incorporation, and other provisions authorized by the State of Delaware at the time in force may be added or inserted, in the manner now or hereafter prescribed by statute, and all rights conferred upon stockholders herein are granted subject to this reservation.

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