Document:

EXHIBIT 10.19

 

CONSULTING AGREEMENT

 

This Consulting Agreement (“Agreement”) is made between Tower Hill Mines (US) LLC and International Tower Hill Mines Ltd. (hereafter collectively referred to as the “Company”) and Donald C. Ewigleben, Attorney at Law (hereafter referred to as “Consultant”).  The Company and Consultant are referred to collectively as the “Parties” and individually as a “Party.”

 

WHEREAS, the Company desires to retain the services of Consultant and Consultant desires to perform certain services for the Company and its affiliates pursuant to an independent contractor relationship and this Agreement;

 

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

 

1.                                      Effective Date.  This Agreement is effective on January 3, 2014.

 

2.                                      Term.  The Term of this Agreement will be from January 3, 2014 through December 31, 2014; provided, however, that the Company may request Consultant cease providing services hereunder but may not discontinue the monthly compensation described in Section 4 of this Agreement unless the Company terminates the Agreement with cause, which means: (a) if  Consultant intentionally or through gross negligence fails to materially perform his responsibilities hereunder in a manner that meets the substantive specifications provided by this Agreement; (b) if Consultant materially breaches this Agreement; or (c) if Consultant materially breaches the Severance, Waiver and Release Agreement.

 

3.                                      Description of Independent Contractor Services.  Consultant agrees to provide the Company with consulting services described in further detail on Exhibit A attached hereto, to be performed by Consultant consistent with generally accepted industry standards for Consultant’s customary services and products (the “Services”).

 

4.                                      Compensation and Expenses.  The Company will pay Consultant compensation in the amount of $16,667 per calendar month during the Term pursuant to a check made payable to Donald C. Ewigleben, Attorney at Law.  The check for a particular calendar month, beginning with the check for January 2014, shall be paid within five (5) business days after the end of each such calendar month during the Term.  Consultant shall generally not work more than 32 hours per month, it being the intention of the Parties that this Agreement shall not delay Consultant’s “Separation from Service” from the Company (as such term is defined for purposes of Section 409A of the Internal Revenue Code, as amended) that otherwise occurs as result of Consultant’s termination of employment on December 31, 2013.

 

In accordance with the Company’s expense reimbursement policy, the Company will reimburse Consultant’s reasonable travel and other business expenses incurred in connection with performing the Services hereunder, provided that Consultant submits documentation of such expenses to the Company within 30 business days of incurring such expenses.

 

5.                                      Agreement to Perform Services as Independent Contractor.  As recognized in Colorado Revised Statutes Section 8-40-202(2)(b)(II) and Section 8-70-115(1)(c), the Parties agree that the Company will not:

 

a.                                      Require Consultant to work exclusively for the Company, provided that Consultant shall abide by all other agreements he has with the Company, including the non-compete agreement;

 

b.                                      Establish a quality standard for Consultant, except that the Company may provide plans and specifications regarding the Services but will not oversee the actual work or instruct Consultant as to how the work is to be performed; provided that the Parties agree as stated 

 

 

in Section 3 that Consultant’s Services will be consistent with generally accepted industry standards for Consultant’s customary services and products;

 

c.                                       Pay Consultant a salary or hourly rate, but rather will pay Consultant a fixed monthly rate;

 

d.                                      Terminate Consultant’s current services for particular work Consultant accepts from the Company unless Consultant violates the terms of this Agreement or fails to produce a result that meets the specifications provided by this Agreement;

 

e.                                       Provide more than minimal training for Consultant;

 

f.                                        Provide tools or benefits to Consultant;

 

g.                                       Dictate the time of performance;

 

h.                                      Pay any individual pursuant to this Agreement; instead, the Company will make all compensation checks payable to “Donald C. Ewigleben, Attorney at Law,” the business name under which Consultant does business; or

 

i.                                          Combine its business operations in any way with Consultant’s business, but instead both Parties will maintain their own operations as separate and distinct.

 

6.                                      Consultant’s Separate Business.  As specified in Colorado Revised Statutes Sections 8-40-202(2)(a) and 8-70-115(1)(b), Consultant represents that Consultant is customarily engaged in an independent trade, occupation, profession or business related to the services Consultant will perform for the Company.  The Parties recognize and agree Consultant may actually and customarily provide similar services to others at the same time Consultant is providing services to the Company.

 

7.                                      No Unauthorized Use of the Company’s Name.  Consultant agrees not to use the Company’s name in any advertisement, promotion, business card, etc. without the Company’s prior written consent.  Consultant further agrees not to advertise, promote or represent to any customer, potential customer, supplier or any other third party that Consultant is the Company’s employee or agent. Instead, Consultant may represent only that the Parties have an independent contractor relationship under which Consultant may from time to time be offered by and may accept from the Company an opportunity to provide Consultant’s customary services and products.

 

8.                                      Insurance.

 

a.                                      No Insurance Through The Company.  During the term of this Agreement, the Company will not include Consultant or any individuals working for Consultant as an insured under any policy the Company has for itself, including, without limitation, any liability, automobile, life, collision, comprehensive, health, medical, workers’ compensation or unemployment compensation insurance policy as a result of any services performed under or relationship created by this Agreement.

 

b.                                      Consultant to Obtain, Maintain and Manage Insurance, Including Workers’ Compensation and Unemployment Compensation Insurance for its Employees, and Legal Malpractice Insurance.  Consultant agrees that Consultant will have in place on the effective date of this Agreement and will maintain during the term of this Agreement all necessary or required insurance, if any, including but not limited to workers’ compensation  insurance and unemployment compensation insurance, covering Consultant and each of his employees who provides any services or products to the Company or related to this Agreement (Consultant’s “Employees”).   Consultant will procure legal malpractice insurance and will 

 

2

 

not provide legal services to the Company until such legal malpractice insurance is in place.  Consultant will also have liability insurance and automobile insurance.

 

Consultant will be solely responsible for managing and will be solely liable for any damages or award and will defend and indemnify the Company with regard to, any occupational injury claim or unemployment claim, appeal or related proceeding brought by or on behalf of any Employee of Consultant, unless such claim, appeal or related proceeding is the result of the Company’s negligence or wrongful act in which case the Company will indemnify the Consultant from any claim, appeal or related proceeding based upon a workplace injury.  Upon request, Consultant must provide proof reasonably satisfactory to the Company and its insurers that Consultant has all necessary or required insurance, if any, including but not limited to legal malpractice insurance, workers’ compensation insurance and unemployment compensation insurance policies in place providing the required coverage for Consultant or Consultant’s Employees.

 

9.                                      NO WITHHOLDING OR BENEFITS FROM THE COMPANY AND CONSULTANT’S OBLIGATION TO PAY TAXES.  As provided in Colorado Revised Statutes Sections 8-40-202(2)(b)(IV) and 8-70-115(2), Consultant expressly agrees that, as an independent contractor, Consultant is not entitled to any employee benefits from the Company with respect to his Services hereunder, including, but not limited to, any employer withholdings or liability for: taxes, FICA, Medicare or Medicaid; medical or disability insurance; vacation or leave; pension; unemployment insurance; or worker’s compensation insurance (collectively, “Employee Benefits/Taxes”).  Consultant is obligated to, and hereby warrants and represents that Consultant shall timely pay all federal and state income tax, and any other applicable taxes, on any moneys paid pursuant to the Parties’ contractual relationship hereunder.

 

10.                               Independent Contractor Status.  Consultant and the Company understand and intend that Consultant and any individuals affiliated therewith shall perform the Services specified under this Agreement as an independent contractor and not as an employee of the Company.  The manner of and means by which Consultant executes and performs its obligations hereunder are to be determined by Consultant in its reasonable discretion.  Consultant is not authorized to assume or create any obligation or responsibility, express or implied, on behalf of, or in the name of, the Company or to bind the Company in any manner, unless, in each instance, Consultant receives the prior written approval of the Company to so assume, obligate, or bind the Company.

 

11.                               Consultant’s Duties to Its Employees.  In addition to the obligations regarding workers’ compensation and unemployment compensation insurance, Consultant will comply with all laws, regulations, municipal codes and ordinances and other workplace requirements and standards applicable to Consultant’s Employees, if any, including, without limitation, federal and state laws governing wages and overtime, equal employment, safety and health, employees’ citizenship, withholdings, pensions, reports and record keeping.

 

12.                               Consultant’s Qualifications.  On the effective date of this Agreement, and during the term of this Agreement, Consultant will be fully qualified and will have all approvals and registrations needed to perform its obligations under this Agreement. Consultant will have and maintain all licenses, permits, certificates and registrations needed to perform its Services pursuant to this Agreement.

 

13.                               Confidential Information.

 

a.                                      Except in connection with the performance of Consultant’s Services hereunder, Consultant shall maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for Consultant’s benefit or the benefit of any person, firm, corporation or other entity any confidential or proprietary information or trade secrets of or relating to the Company or any of its affiliates (including, without limitation, business plans, business strategies and methods, acquisition targets, intellectual property in the form of patents, trademarks and copyrights and applications therefor, ideas, 

 

3

 

inventions, works, discoveries, improvements, information, documents, formulae, practices, processes, methods, developments, source code, modifications, technology, techniques, data, programs, other know-how or materials, owned, developed or possessed by the Company, whether in tangible or intangible form, and information with respect to the Company’s operations, processes, products, inventions, business practices, finances, principals, vendors, suppliers, customers, potential customers, marketing methods, costs, prices, contractual relationships, regulatory status, or prospects) (collectively, the “Confidential Information”), or deliver to any person, firm, corporation or other entity any document, record, notebook, computer program or similar repository of or containing any such Confidential Information except pursuant to the express written permission of the Company to deliver any such information. The Parties hereby stipulate and agree that, as between them, any item of Confidential Information is important, material and confidential and affects the successful conduct of the businesses of the Company (and any successor or assignee of the Company).  Notwithstanding the foregoing, Confidential Information shall not include any information that has been published in a form generally available to the public prior to the date Consultant proposes to disclose or use such information, provided, that such publishing of the Confidential Information shall not have resulted from Consultant directly or indirectly breaching its obligations under this Agreement, or from any third-party breaching its confidentiality obligations to the Company.  For the purposes of the previous sentence, Confidential Information will not be deemed to have been published or otherwise disclosed merely because individual portions of the information have been separately published, but only if all material features comprising such information have been published.

 

b.                                      Upon termination of Consultant’s Agreement with the Company for any reason, Consultant will promptly destroy or, upon the Company’s written request, deliver to the Company all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, and any other documents or property (including but not limited to the laptop computer) belonging to the Company or the Company’s affiliates or in any way concerning the Company’s customers, business plans, computer programs, marketing strategies, products, property or processes.

 

c.                                       The Parties agree that the Company’s Confidential Information includes trade secrets, as such term is defined under Colorado Uniform Trade Secrets Act, Colorado Revised Statutes Sections 7-74-101 to 7-74-110, and that Consultant shall protect and not misappropriate such trade secrets in connection with Consultant’s Services provided under this Agreement.

 

14.                               Inventions.  All rights to discoveries, inventions, improvements and innovations (including all data and records pertaining thereto) related to the business of the Company, whether or not patentable, copyrightable, registrable as a trademark, or reduced to writing, that Consultant may discover, invent or originate during the term of this Agreement, either alone or with others and whether or not by the use of the property or facilities of the Company (“Inventions”), shall be the exclusive property of the Company. Consultant shall promptly disclose all Inventions to the Company, shall execute at the request of the Company any assignments or other documents the Company may deem reasonably necessary to protect or perfect its rights therein, and shall assist the Company, upon reasonable request and at the Company’s expense, in obtaining, defending and enforcing the Company’s rights therein.  Consultant hereby appoints the Company as Consultant’s attorney-in-fact to execute on its behalf any assignments or other documents reasonably deemed necessary by the Company to protect or perfect its rights to any Inventions.

 

15.                               Agreement to Avoid Conflicts of Interest.  Although, as provided herein, Consultant may provide similar services to others at the same time it is providing services to the Company, Consultant will avoid conflicts of interest in providing its services under this Agreement.  Consultant will not use any of the Company’s facilities, equipment, labor or supplies for any outside business or communicate to any third party that any outside work is in any way by or for the Company.

 

4

 

16.                               Relief.  The Parties agree that if either Party violates this Agreement, it would be difficult to determine the damages the other Party would suffer including, but not limited to, losses attributable to lost confidential information.  Accordingly, each Party agrees that if it breaches this Agreement, the other Party will be entitled to an Order for injunctive relief and/or for specific performance, or their equivalent, from a court, including requirements that the subject Party take action or refrain from action to preserve the secrecy of the Company’s Confidential Information and to protect the other Party from additional damages.  The Parties agree that neither Party needs to post a bond to obtain an injunction and waives the right to require such a bond.  Such relief will be in addition to any other remedy which may be available at law or in equity to either Party.

 

17.                               Indemnity.

 

By the Company in favor of the Consultant.  The Company will indemnify and hold harmless Consultant from and against any loss, liability, claim, demand, damage and expense (including reasonable legal fees) (each a “Claim” and collectively “Claims”) in connection with the provision of the Services hereunder and arising out of or relating to conduct by the Consultant or the Company during the Term of this Agreement; provided, however, that the indemnity shall not extend or apply to any Claim: (a) arising out of the fraud, intentional misconduct, gross negligence or criminal act of the Consultant as the case may be; (b) arising out of or relating to a material breach of this Agreement by the Consultant; or (c) as otherwise prohibited by law.

 

By the Consultant in favor of the Company.  The Consultant will indemnify and hold harmless the Company and any of its directors, officers, employees, contractors and agents for any Claim relating to or arising out of the fraud, intentional misconduct, criminal act or gross negligence of Consultant as the case may be, or relating to or arising out of a material breach of this Agreement by the Consultant.

 

Claims.  In the event that any action, suit or proceeding is brought against either Consultant or the Company (in this Section, an “Indemnified Party”) in respect of which indemnity may be sought against the other Party (in this Section, an “Indemnifying Party”), as the case may be, the Indemnified Party shall give the Indemnifying Party prompt written notice of any such action, suit or proceeding of which the Indemnified Party has knowledge and the Indemnifying Party shall undertake an investigation and defense thereof on behalf of or in addition to the Indemnified Party, and shall employ counsel acceptable to such Indemnified Party, and make payment of all reasonable expenses.

 

No admission of liability and no settlement of any action, suit or proceeding shall be made without the consent of the Indemnifying Party and the Indemnified Parties affected, such consent not to be unreasonably withheld.

 

Notwithstanding that the Indemnifying Party shall undertake an investigation and the defense of any action, suit or proceeding, an Indemnified Party shall have the right to employ separate counsel in any such action, suit or proceeding and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of the Indemnified Party unless:

 

a.                                      employment of such counsel has been authorized by the Indemnifying Party;

 

b.                                      the Indemnifying Party has not assumed the defense of the action, suit or proceeding within a reasonable period of time after receiving notice thereof; 

 

c.                                       the named parties to any such action, suit or proceeding include both the Indemnifying Party and the Indemnified Party and the Indemnified Party shall have been advised by counsel that there may be a conflict of interest between the Indemnifying Party and the Indemnified Party; or

 

5

 

d.                                      there are one or more legal defense available to the Indemnified Party which are different from or in addition to those available to the Indemnifying Party.

 

The foregoing rights of indemnification shall not be exclusive of any other rights to which the Indemnified Parties may be entitled as a matter of law or which may be lawfully granted to such Indemnified Parties.

 

The indemnity set forth in this Section shall not extend or apply to any Claim between the Consultant and the Company or its affiliates.

 

18.                               Notices.  All notices required or permitted under this Agreement shall be in writing and shall be deemed effective upon personal delivery or upon sending via electronic mail or upon deposit in the United States Post Office, by registered or certified mail, postage prepaid, addressed to the other Party at the following addresses:

 

If to the Company:

 

Tower Hill Mines (US)/ITH

Attention:  Chair of the Board

Suite 350 - 9635 Maroon Circle, Suite 350

Englewood, Colorado 80112

Facsimile:  720/881-7645

 

With a copy to (provided, however, the copy shall not constitute the notice required pursuant to this Section):

 

Sybil Kisken

Davis Graham & Stubbs LLP

1550 17th Street, Suite 500

Denver, Colorado  80202

Facsimile:  303/893-1379

 

If to Consultant, addressed to:

 

Donald C. Ewigleben

7423 S. Chapparal Circle East

Centennial, Colorado  80016

 

With a copy to (provided, however, the copy shall not constitute the notice required pursuant to this Section):

 

Mary L. Will

Faegre Baker Daniels

3200 Wells Fargo Center

1700 Lincoln Street

Denver, Colorado 80203-4532

Facsimile:  303/607-3600

 

If a Party’s address changes, the new address shall be the notice address pursuant to this Section, provided that such new address has been furnished to the other Party in writing in accordance with this Section 19.

 

19.                               Entire Agreement.  This Agreement contains the entire agreement between the Parties with respect to the consulting services to be provided by Consultant.  No promises or representations have been made by the Company or Consultant regarding the subject matter of this Agreement other than those contained in this Agreement.

 

6

 

20.                               Amendment.  This Agreement may be amended or modified only by a written instrument executed by both Parties.

 

21.                               Assignment; Subcontracting.  Consultant may not assign this Agreement or any of its rights hereunder, or delegate or subcontract any of its obligations hereunder, without the prior written consent of the Company.  The Company may assign this Agreement to any successor, and the Consultant expressly consents to such assignment, provided the successor abides by all terms and conditions of this Agreement.

 

22.                               Governing Law and Forum.  This Agreement and all disputes arising hereunder shall be subject to, governed by, and construed in accordance with the laws of the State of Colorado, without regard to conflict of laws provisions.  All disputes arising under or relating to this Agreement shall be resolved in the federal or state courts of Colorado.

 

23.                               Waiver.  No delay or omission by either Party in exercising any right under this Agreement shall operate as a waiver of that or any other right.  A waiver or consent given by either Party on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion.

 

24.                               Severability.  In the event that any provision of this Agreement shall be invalid, illegal, or otherwise unenforceable, the validity, legality, and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

 

25.                               Construction.  This Agreement shall be deemed drafted equally by both the Parties.  Its language shall be construed as a whole and according to its fair meaning.  Any presumption or principle that the language is to be construed against any Party shall not apply.  The headings in this Agreement are only for convenience and are not intended to affect construction or interpretation.

 

26.                               Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement.  Signatures delivered electronically or by facsimile shall be deemed effective for all purposes.

 

[The remainder of the page left intentionally blank — signature page follows on next page]

 

7

 

IN WITNESS OF THE PARTIES’ AGREEMENTS, the Parties have executed this Agreement on the date(s) indicated below.

 

CONSULTANT

 

	
/s/ Donald C. Ewigleben
    	
 
    
	
By: Donald C. Ewigleben
    	
 
    
	
Its:
    	
 
    

 

STATE OF COLORADO                                                           )

)                                            ss.

COUNTY OF DOUGLAS                                                         )

 

The foregoing Agreement was signed and acknowledged before me this 31st day of December, 2013, by Donald C. Ewigleben.

 

	
/s/ Nicholas W. Hernon
    	
 
    
	
Witness my hand and official seal.
    	
 
    
	
Notary Public
    	
 
    

 

My Commission Expires: June 24, 2017

 

THE COMPANY

 

	
/s/ Tom S. Q. Yip
    	
 
    
	
By: Tom Yip
    	
 
    
	
Its: CFO
    	
 
    

 

STATE OF COLORADO                                                           )

)                                            ss.

COUNTY OF DOUGLAS                                                         )

 

The foregoing Agreement was signed and acknowledged before me this 31st day of December, 2013, by Tom Yip.

 

	
/s/ Nicholas W. Hernon
    	
 
    
	
Witness my hand and official seal.
    	
 
    
	
Notary Public
    	
 
    
	
My Commission Expires: June 24, 2017
    	
 
    

 

8

 

Exhibit A

 

In order to have an effective transition from the Company’s present Chief Executive Officer to a new Chief Executive Officer (hereafter the “CEO”), the Company has contracted with Consultant to provide certain limited legal, advisory and general business consulting services to the Company between January 3, 2014 through December 31, 2014.  The Consultant will:

 

·                  Review the Company and/or its affiliates’ disclosures for the 2013 SEC Management Disclosures and Analysis and Proxy Statement;

 

·                  Advise the CEO on certain investor relations matters;

 

·                  Facilitate the transfer of investor relations contacts and relationships to the CEO;

 

·                  Advise the CEO on certain business development activities;

 

·                  Advise the CEO regarding certain confidentiality and other agreements;

 

·                  Provide the Company and/or its affiliates with general corporate management and strategic planning services;

 

·                  Advise the CEO with respect to the design and implementation of certain marketing and communications initiatives, including participation in meetings with existing and potential shareholders and investors;

 

·                  Advise the CEO on potential capital market funding initiatives;

 

·                  Advise the Company and/or its affiliates with respect to ongoing exploration and development work at the Livengood Gold Project;

 

·                  Provide the Company and/or its affiliates with strategy and business advice;

 

·                  Assist the Company and/or its affiliates with the development of strategic alliances;

 

·                  Assist the Company and/or its affiliates with negotiating future agreements; and

 

·                  Provide other legal, advisory and general business consultative services as the CEO and/or Company and/or its affiliates may reasonably request from time to time consistent with Consultant’s skills and expertise and the terms and conditions of the Consulting Agreement;

 

altogether, collectively, the “Services.”

 

9Exhibit 10.1

 

March 6, 2014

 

Mr. Michael S. Burke
 555 South Flower Street
 Los Angeles, CA 90071

 

Dear Michael,

 

This letter is intended to update the terms and conditions of your employment with AECOM Technology Corporation (“AECOM”) in connection with your appointment to the position of Chief Executive Officer of AECOM, effective as of March 6, 2014 (the “Effective Date”).

 

Base Salary

 

As of the Effective Date, your annual base salary will be $1,000,000, payable in accordance with AECOM’s payroll practices as in effect from time to time (the “Base Salary”), which Base Salary shall be subject to review by the Compensation/Organization Committee (the “C/O Committee”) of the Board of Directors of AECOM.  In addition, as of the Effective Date, your perquisite allowance pursuant to the existing perquisite policy shall be increased to $40,000 per year.

 

Annual Incentive Award

 

You will continue to participate in AECOM’s Executive Incentive Plan (or any successor thereto) and will be eligible to earn an annual cash incentive award thereunder.  As of the Effective Date, your target annual cash incentive award under the Executive Incentive Plan shall equal 150% of your Base Salary; provided, however, that for the 2014 fiscal year, your target annual cash incentive award shall be prorated such that (a) for the portion of the fiscal year prior to the Effective Date your target annual cash incentive award will be based upon your existing target (110% of base salary immediately prior to the Effective Date) and (b) for the portion of the fiscal year after the Effective Date your target annual cash incentive award will be based upon your new target (150% of Base Salary).  Any annual cash incentive award to you shall be subject to the terms and conditions of the Executive Incentive Plan and such other terms and conditions as established by the C/O Committee in its discretion.

 

Long-Term Incentive Award

 

You will be eligible to receive annual long-term incentive awards in the forms and amounts determined by the C/O Committee in its discretion.  In addition, in connection with your election to the position of Chief Executive Officer, you shall be entitled to receive an additional long-term incentive award, which award shall have a value on grant equal to $1,400,000 (the “Promotion Award”).  The Promotion Award was granted to you on March 5, 2014 and will be provided 60% in the form of performance earnings program (“PEP”) units and 40% in the form of restricted stock units (“RSUs”), which awards, in each case, shall be subject to the terms and conditions of the AECOM Technology Corporation 2006 Stock Incentive Plan (the “2006 SIP”) and forms of award agreement used in connection therewith for performanceearnings program awards and restricted stock unit awards granted to you on November 20, 2013 (your PEP14 and RSU14 awards, respectively).

 

 

Special Long-Term Incentive Award

 

In addition to the Promotion Grant, in connection with your election to the position of Chief Executive Officer you shall receive a special, one-time award of performance-vested stock options (the “Special LTI Award”).  The Special LTI Award was granted to you on March 5, 2014 (the “Grant Date”) in the form of an option to acquire shares of AECOM common stock having an aggregate fair value equal to $5,000,000 (equivalent to 638,570 shares) based upon the closing price of AECOM’s common stock on the Grant Date and at an exercise price per share equal to the closing price of AECOM’s common stock on the Grant Date.  The Special LTI Award, which will have a ten-year life from the Grant Date, will vest on the fifth anniversary of the Grant Date subject to: (1) your continued employment with AECOM through such vesting date and (2) the achievement of the stock price performance goals described herein.  The Special LTI Award becomes eligible to vest the first time the trailing 20-day average closing price of AECOM’s common stock equals or exceeds the following stock price performance hurdles (with such performance hurdles to be subject to adjustment in accordance with Section 12 of the 2006 SIP):

 

	
Stock Price Hurdle
   (equals or exceeds)
    	
 
    	
% Eligible to Vest
    	
 
    
	
Exercise Price plus $2.50
    	
 
    	
10
    	
%
    
	
Exercise Price plus $5.00
    	
 
    	
20
    	
%
    
	
Exercise Price plus $7.50
    	
 
    	
30
    	
%
    
	
Exercise Price plus $10.00
    	
 
    	
40
    	
%
    
	
Exercise Price plus $12.50
    	
 
    	
50
    	
%
    
	
Exercise Price plus $15.00
    	
 
    	
60
    	
%
    
	
Exercise Price plus $17.50
    	
 
    	
70
    	
%
    
	
Exercise Price plus $20.00
    	
 
    	
80
    	
%
    
	
Exercise Price plus $22.50
    	
 
    	
90
    	
%
    
	
Exercise Price plus $25.00
    	
 
    	
100
    	
%
    

 

Notwithstanding anything herein to the contrary, the Special LTI Award will be forfeited in full in the event that your employment with AECOM terminates prior to the fifth anniversary of the Grant Date for any reason other than your death or Total and Permanent Disablement (as defined in this letter agreement).  In the event of the termination of your employment with AECOM prior

 

2

 

to the fifth anniversary of the Grant Date as a result of your death or Total and Permanent Disablement, the Special LTI Award shall be eligible to vest at that time based upon the achievement of the stock price performance goals through the date of termination of employment. The remaining unvested portion of the Special LTI Award is forfeited upon termination.

 

Employee Benefits and Perquisites

 

You will continue to be eligible to participate in such employee benefit plans, programs, policies and arrangements maintained by AECOM from time to time for the benefit of its senior executives generally, subject to the terms and conditions thereof as in effect from time to time. These programs are subject to change in accordance with the terms thereof.

 

Severance

 

You will continue to participate in the AECOM Technology Corporation Change in Control Severance Policy (the “CIC Policy”) in accordance with the terms and conditions thereof, however, effective as of the Effective Date, your severance payment multiple under the CIC Policy shall be 2.0.

 

Your employment status with AECOM remains employment “at will”. However, in addition to your participation in the CIC Policy, in the event that your employment with AECOM is terminated (i) by AECOM for any reason other than Cause (as defined in the CIC Policy) or your death or disability or (ii) by you for Good Reason (as defined in the CIC Policy), and such termination does not occur within the Protection Period (as defined under the CIC Policy or any successor thereto) then, AECOM will pay to you your Accrued Compensation (as defined below), payable within 30 days after your termination (with the payment date during such 30 day period to be determined by AECOM in its sole discretion), a pro rata portion of the annual cash incentive award you would have received for the fiscal year in which your employment terminates (based on AECOM’s actual performance over the entire year and the number of full months of your actual service to AECOM during such fiscal year), which pro rata portion will be payable to you at the same time bonuses are paid to executives generally for the applicable fiscal year, and:

 

(1)                                 AECOM will pay to you a lump sum cash payment equal to two (2) times the sum of your Base Salary plus the average annual cash incentive award you earned for the three fiscal years preceding the fiscal year in which such termination occurs, payable within 30 days after your termination (with the payment date during such 30 day period to be determined by AECOM in its sole discretion);

 

(2)                                 for up to twenty-four (24) months after such termination, to the extent you and/or your covered dependent(s) continue to participate in AECOM’s group health plan(s) pursuant to COBRA after your termination of employment and to the extent permitted by applicable law, AECOM will provide reimbursement of COBRA coverage premiums paid by you and your covered dependent(s) so that you and your covered dependent(s) enjoy coverage at the same benefit level and to the same extent and for the same effective contribution, if any, as participation is available to other executive officers of AECOM;

 

3

 

(3)                                 if such termination of employment occurs prior to the third anniversary of the Effective Date, (a) your then-outstanding PEP awards will remain outstanding and continue to be eligible to vest in accordance with their existing terms (and as if you remained employed and based on actual performance through the end of the applicable performance period), but only with respect to the portions of awards for which the performance period has either been completed prior to such termination of employment or will be completed at the end of the fiscal year in which such termination of employment occurs; (b) your unearned PEP awards (or portions thereof) for which the performance period is scheduled to end after the fiscal year in which such termination of employment occurs shall be forfeited immediately upon such termination of employment; (c) the vesting of the Applicable Portion (as defined below) of your outstanding and unvested time-based RSUs shall accelerate upon such termination of employment, with any remaining unvested time-based RSUs immediately forfeited; (d) your Special LTI Award shall be immediately forfeited and (e) all other outstanding equity-based compensation awards shall be treated as set forth in the applicable award agreements; and

 

(4)                                 if such termination of employment occurs on or after the third anniversary of the Effective Date, (a) your then-outstanding PEP awards will remain outstanding and continue to be eligible to vest in accordance with their existing terms (and as if you remained employed and based on actual performance through the end of the applicable performance period); (b) the vesting of 100% of your outstanding and unvested time-based RSUs shall accelerate upon such termination of employment; (c) your Special LTI Award, to the extent then unvested, shall be immediately forfeited and (d) all other outstanding equity-based compensation awards shall be treated as set forth in the applicable award agreements.

 

For purposes of paragraph (3)(c) and 4(c) above, the “Applicable Portion” means the following: (i) if your termination of employment occurs within 12 months following the grant date of an RSU award, one-third of the number of shares subject to such award; (ii) if your termination of employment occurs between 12 and 24 months following the grant date of an RSU award, two-thirds of the number of shares subject to such award and (iii) if your termination of employment occurs more than 24 months following the grant date of an RSU award, 100% of the number of shares subject to such award.

 

In the event that your employment is terminated by AECOM for Cause, by you without Good Reason, upon your Retirement or as a result of your death or disability, you will not be entitled to the severance compensation described above, but instead will only be entitled to payment of the Accrued Compensation through the date your employment terminates, payable within 30 days after your termination (with the payment date during such 30 day period to be determined by AECOM in its sole discretion), and your outstanding PEP and RSU awards shall be treated as set forth in the applicable award agreements; provided, however, that, notwithstanding anything in such award agreements to the contrary, in the event of a termination as a result of your Retirement, you shall be entitled to full vesting as if you had remained employed through the end of each applicable vesting period, rather than pro-rated vesting, with respect to the then unvested portion of your then outstanding equity awards that were granted to you on or after the Effective Date (which awards will, in all events, remain subject to any performance-based vesting criteria to which such awards are subject in accordance with the terms of such award agreements).  In addition, notwithstanding anything in any award agreement to the contrary, for all purposes under any equity-based compensation awards granted to you on

 

4

 

or after the Effective Date, (i) the term “Retirement” shall mean (x) your resignation without Good Reason after attaining the age of 60 or (y) your resignation at any time if the Board determines, in its sole discretion, that an adequate succession is in place and you and the Board mutually agree that your separation from service is in the best interests of AECOM, and (ii) the term “Total and Permanent Disablement” shall mean (as determined by the Compensation/Organization Committee of the Board) your inability to perform the duties of your position of employment by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 6 months; provided, however, that with respect to the payment (but not vesting) of any amounts that would be considered deferred compensation for purposes of Section 409A of the Code and for which payment is triggered as a result of your Total and Permanent Disablement, such payment will only be triggered to the extent permissible at that time under Section 409A without the imposition of any additional or penalty taxes under Section 409A.

 

Notwithstanding anything in this letter to the contrary, other than the payment of the Accrued Compensation through the date of termination of your employment, you shall not be entitled to any severance payments or benefits hereunder unless and until you execute and deliver to AECOM, within twenty-one (21) days of the date of termination of your employment, a unilateral general release of all known and unknown claims against AECOM and its officers, directors, employees, agents and affiliates in a form acceptable to AECOM, and such release becomes fully effective and irrevocable under applicable law.  In addition, promptly following any termination of the your employment (other than by reason of your death), you will deliver to AECOM reasonably satisfactory written evidence of your resignation from all positions that you may then hold as an employee or officer of AECOM or any affiliate.

 

For purposes of this letter “Accrued Compensation” means, as of any date, the amount of any unpaid Base Salary earned by you through the date of the termination of your employment, any annual cash incentive award earned by you, but not yet paid, for the most recently completed fiscal year prior to the termination of your employment and your accrued and unpaid paid time off as of the date of termination of your employment.

 

Clawback Policy

 

As an executive officer of AECOM, you hereby acknowledge and agree that you will continue to be subject to the terms and conditions of the AECOM Technology Corporation Clawback Policy, as in effect from time to time, a current copy of which has already been provided to you.

 

Section 409A Compliance

 

This letter is intended to comply with the requirements of Section 409A of the Code and the regulations and guidance promulgated thereunder (“Section 409A”) or an exemption from Section 409A.  Each payment under this letter shall be treated as a separate payment for purposes of Section 409A.  A termination of employment shall not be deemed to have occurred for purposes of any provision of this letter providing for the payment of any amounts or benefits upon or following a termination of employment unless such termination is also a “separation

 

5

 

from service” within the meaning of Section 409A and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.”  Notwithstanding anything herein to the contrary, in the event that you are a “specified employee” within the meaning of that term under Section 409A(a)(2)(B) of the Code, then with regard to any payment or the provision of any benefit (whether under this letter or otherwise) that is considered deferred compensation under Section 409A payable on account of a “separation from service,” and that is not exempt from Section 409A as involuntary separation pay or a short-term deferral (or otherwise), to the extent necessary to avoid the imposition of excise taxes under Section 409A, such payment or benefit shall be made or provided at the date which is the earlier of (a) the expiration of the six (6)-month period measured from the date of such “separation from service” or (b) the date of your death (the “Delay Period”).  Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this paragraph (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to you in a lump sum without interest, and any remaining payments and benefits due under this letter shall be paid or provided in accordance with the normal payment dates specified for them herein. With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A, all such payments shall be made on or before the last day of calendar year following the calendar year in which the expense occurred.

 

Withholding

 

All amounts payable to you hereunder will be subject to customary tax and other withholdings.

 

Acceptance

 

Upon your acceptance of this offer of continued employment, please acknowledge your agreement with the terms set forth in this letter by signing in the designated space below. A copy of this letter is enclosed for your records.

 

Sincerely,

 

	
/s/   John M. Dionisio
    	
 
    	
 
    
	
John M.   Dionisio 
    	
 
    	
 
    
	
Executive   Chairman
    	
 
    	
 
    

 

ACCEPTED:

 

	
/s/   Michael S. Burke
    	
 
    	
March 10,   2014
    
	
Michael   S. Burke
    	
 
    	
Date
    

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00227-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00227-of-00352.parquet"}]]