Document:

exv10w5

 

Exhibit 10.5

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT dated effective as of June 20, 2004, between Perficient, Inc. a
Delaware corporation (the “Company”), and Jeffrey S. Davis (“Employee”).

WITNESSETH:

     WHEREAS, the Company desires that Employee continue to be employed by it and render services
to it, and Employee is willing to be so employed and to render such services to the Company, all
upon the terms and subject to the conditions contained herein.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

     1. EMPLOYMENT. Subject to and upon the terms and conditions contained in this Agreement, the
Company hereby agrees to continue to employ Employee and Employee agrees to continue in the employ
of the Company, for the period set forth in Paragraph 2 hereof, to render to the Company, its
affiliates and/or subsidiaries the services described in Paragraph 3 hereof.

     2. TERM. Employee’s term of employment under this Agreement shall be two years, commencing as
of the date hereof and continuing through and including June 30, 2006, unless extended in writing
as provided below or earlier terminated pursuant to the terms and conditions set forth herein (the
“Employment Term”).

     3. DUTIES.

          (a) Employee shall serve as President and Chief Operating Officer of the Company. Employee
shall perform all duties and services incident to the positions held by him.

          (b) Employee agrees to abide by all By-laws and policies of the Company promulgated from time
to time by the Company.

 

 

     4. BEST EFFORTS. Employee agrees to devote his best efforts, energies and skill to the
discharge of the duties and responsibilities attributable to his position.

     5. COMPENSATION.

          (a) As compensation for his services and covenants hereunder, Employee shall receive a salary
(“Salary”), payable pursuant to the Company’s normal payroll procedures in place from time to time,
at the rate of $205,000 per annum, less all necessary and required federal, state and local payroll
deductions. Employee shall be entitled to receive salary increases as may be determined from time
to time by the Chief Executive Officer and/or the Board of Directors of the Company.

          (b) Employee shall be entitled to a bonus equal to fifty percent (50%) of his Salary at plan,
less all necessary and required federal, state and local payroll deductions. The criteria for
determining the amount of Employee’s bonus, and the conditions to be satisfied for the receipt
thereof, shall be determined in a manner consistent with that used to date and agreed upon by the
Chief Executive Officer and/or the Board of Directors of the Company and Employee.

          (c) In addition, Employee shall be entitled to receive such other bonuses as may be determined
from time to time by the Chief Executive Officer and/or the Board of Directors of the Company and
shall be eligible to receive stock options entitling Employee to acquire shares of Common Stock
under the Company’s 1999 Stock Option/Stock Issuance Plan, and successor plans, pursuant to the
policies of the Company from time to time to generally make available stock options, to executive
employees. Notwithstanding anything to the contrary in any stock option agreement between Employee
and the Company, all stock options granted to Employee shall continue to vest in accordance with
their schedule and shall not terminate if Employee ceases to be an employee of the Company as long
as Employee continues to serve as an officer, director or consultant of the Company.

     6. EXPENSES. Employee shall be reimbursed for, and entitled to advances (subject to repayment
to the Company if not actually incurred by Employee) with respect to those business expenses
incurred by him which are reasonable and necessary for Employee to perform his duties under this
Agreement in accordance with policies established from time to time by the Company. Employee shall
receive reimbursement for other expenses consistent with past practice and as approved by the Chief
Executive Officer and/or Chief Executive Officer and/or Compensation Committee of the Board of
Directors.

     7. EMPLOYEE BENEFITS.

          (a) During the Employment Term and any severance period hereunder, Employee shall be entitled
to such insurance, disability and health and medical benefits and be entitled to participate in
such retirement plans or programs as are from time to time generally made available to executive
employees of the Company pursuant to the policies of the Company; PROVIDED THAT Employee shall be
required to comply with the conditions attendant to

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coverage by such plans and shall comply with and be entitled to benefits only in accordance with
the terms and conditions of such plans. The Company may withhold from any benefits payable to
Employee all federal, state, local and other taxes and amounts as shall be permitted or required to
be withheld pursuant to any applicable law, rule or regulation.

          (b) Employee shall be entitled to vacation in accordance with the Company’s policy in effect
for executive staff, which shall be taken at such time or times as shall be mutually agreed upon
with the Company.

     8. DEATH AND DISABILITY.

          (a) The Employment Term shall terminate on the date of Employee’s death, in which event
Employee’s Salary, reimbursable expenses and benefits owing to Employee through the date of
Employee’s death shall be paid to his estate, plus a lump sum equal to one year’s Salary.
Employee’s estate will not be entitled to any other compensation upon termination of this Agreement
pursuant to this subparagraph 8(a).

          (b) The Employment term shall terminate upon Employee’s Disability. For purposes of this
Agreement, “Disability” shall mean a physical or mental disability or infirmity that prevents the
material performance by Employee of his duties hereunder lasting for a continuous period of six
months or longer. The reasoned and good faith judgment of the Company’s Board of Directors as to
Disability shall be based on such competent medical evidence as shall be presented to it by
Employee or by any physician or group of physicians or other competent medical experts employed by
Employee or the Company to advise the Company’s Board of Directors. In case of such termination,
Employee shall be entitled to receive his Salary, reimbursable expenses and benefits owing to
Employee through the date of termination. In addition, the Company shall pay to Employee, within 60
days of the date of Employee’s termination, in a lump-sum, an amount equal to Employee’s then
annual Salary. Employee will not be entitled to any other compensation upon termination of his
employment pursuant to this subparagraph 8(b).

     9. TERMINATION.

     (a) The Company shall have the right, upon delivery of written notice to the Employee, to
terminate the Employee’s employment hereunder prior to the expiration of the Employment Term (i)
pursuant to a Termination for Cause or (ii) pursuant to a Without Cause Termination (all as defined
below). The Employee shall have the right, upon delivery of written notice to the Company, to
terminate his employment hereunder prior to the expiration of the Employment Term by providing the
Company with not less than 30 days prior written notice.

     (b) In the event that the Company terminates the Employee’s employment pursuant to a Without
Cause Termination (other than in connection with or following a Change in Control (as defined
below)), the Company shall make a payment to the Employee in an amount equal to one year’s Salary,
payable in installments through regular payroll, and shall pay

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Employee his reimbursable expenses and benefits owing to Employee through the day on which Employee
is terminated. Employee shall also be entitled to benefits during such period pursuant to Section
7. No other payments shall be made, or benefits provided, by the Company under this Agreement in
the event of a Without Cause Termination. In the event of a Without Cause termination, any and all
options, agreements or rights to purchase securities of the Company granted to the Employee shall
vest in their entirety, regardless of the satisfaction of any conditions contained therein.

     (c) In the event that the Company terminates the Employee’s employment hereunder due to a
Termination for Cause or the Employee terminates employment with the Company, the Company shall be
released from any and all further obligations under this Agreement, except that the Company shall
be obligated to pay Employee his Salary, reimbursable expenses and benefits owing to Employee
through the day on which Employee is terminated. Employee will not be entitled to any other
compensation upon termination of this Agreement pursuant to this Paragraph 9(c).

     (d) For purposes of this Agreement, the following terms have the following meanings:

     (i) The term “Termination for Cause” means, to the maximum extent permitted by applicable law,
a termination of the Employee’s employment by the Company attributed to (a) the repeated willful
failure of Employee substantially to perform his duties hereunder (other than any such failure due
to physical or mental illness) that has not been cured reasonably promptly after a written demand
for substantial performance is delivered to Employee by the Company’s Board of Directors, which
demand identifies the manner in which the Company’s Board of Directors believes that Employee has
not substantially performed his duties hereunder; (b) conviction of, or entering a plea of nolo
contendere to, a crime that constitutes a felony; (c) Employee’s engaging in conduct that is
intentional or grossly negligent that results in material injury to the Company; or (d) the
material breach by Employee of any written covenant or agreement with the Company under this
Agreement or otherwise, including, but not limited to, an agreement not to disclose any information
pertaining to the Company or not to compete with the Company, including (without limitation) the
covenants and agreements contained in paragraph 11 hereof.

     (ii) The term “Without Cause Termination” means a termination of the Employee’s employment by
the Company other than due to (a) a Termination for Cause, (b) Disability, (c) the Employee’s
death, or (d) the expiration of this Agreement.

     10. CHANGE IN CONTROL — TERMINATION OF EMPLOYMENT AND COMPENSATION IN EVENT OF TERMINATION.

          (a) After a Change in Control (as defined below) of the Company has occurred, if the Company
(or any successor thereto) terminates Employee’s employment with the Company, pursuant to a Without
Cause Termination, Employee shall be entitled to receive a lump-sum payment (the “Termination
Compensation”), in cash, on the Termination Date, in an

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amount of one year’s Salary and target bonus. In addition, and notwithstanding anything contained
in any other agreement, including any stock option agreement between the Company and the Employee,
immediately prior to a Change of Control, any and all options, agreements or rights to purchase
securities of the Company granted to the Employee shall vest in their entirety, regardless of the
satisfaction of any conditions contained therein. In addition, for a period of one year following
such Termination Date, Employee shall also be entitled to benefits pursuant to Section 7 hereof.

          (b) For purposes hereof, a “Change In Control” shall be deemed to have occurred if: (i) any
“person” or “group” (as such terms are used in Sections 3(a)(9) and 13(d)(3) of the Securities
Exchange Act of 1934, as amended (the “ Act”)) becomes a “beneficial owner” (as such term is used
in Rule13d-3 promulgated under the Act), after the date hereof, directly or indirectly, of
securities of the Company representing 50% or more of the combined voting power of the Company’s
then outstanding securities; (ii) a change in “control” of the Company (as the term “control” is
defined in Rule 12b-2 under the act or any successor rule promulgated under the Act) shall have
occurred; (iii) the stockholders of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or substantially all of
the Company’s assets; or (iv) the stockholders of the Company approve a merger or consolidation of
the Company with any other company, other than a merger or consolidation which would result in the
combined voting power of the Company’s voting securities outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) more than 50% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately after such merger or
consolidation. Notwithstanding the foregoing, any transaction involving a leveraged buyout or other
acquisition of the Company which would otherwise constitute a Change in Control, in which Employee
participates in the surviving or successor entity (other than solely as an employee or consultant),
shall not constitute a Change in Control.

     11. DISCLOSURE OF TRADE SECRETS AND OTHER PROPRIETARY INFORMATION; RESTRICTIVE COVENANTS.

          (a) Employee acknowledges that he is bound by the terms of the Company’s Confidentiality and
Intellectual Property Agreement.

          (b) Employee will not, during the term of this Agreement, directly or indirectly, as an
employee, employer, consultant, agent, principal, partner, manager, stockholder, officer, director,
or in any other individual or representative capacity, engage in or participate in any business
that is competitive with the business of the Company. The ownership by Employee of 5% or less of
the issued and outstanding shares of a class of securities which is traded on a national securities
exchange or in the over-the-counter market, shall not cause Employee to be deemed a shareholder
under this subparagraph 11(b) or constitute a breach of this subparagraph 11(b).

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          (c) Employee will not, during the term of this Agreement and for a period of 24 months
thereafter, directly or indirectly, work as an employee, employer, consultant, agent, principal,
partner, manager, stockholder, officer, director, or in any other individual or representative
capacity for any person or entity who or which was competitive with the business of providing
virtual professional services organizations to Internet service corporations during the term of
Employee’s employment with the Company. The ownership by Employee of 5% or less of the issued and
outstanding shares of a class of securities which is traded on a national securities exchange or in
the over-the-counter market, shall not cause Employee to be deemed a shareholder under this
subparagraph 11(c) or constitute a breach of this subparagraph 11(c).

          (d) Employee will not, during the term of this Agreement and for a period of 24 months
thereafter, on his behalf or on behalf of any other business enterprise, directly or indirectly,
under any circumstance other than at the direction and for the benefit of the Company, (i) hire (or
assist another in hiring) or solicit for employment any person employed by the Company or any of
its subsidiaries, or (ii) call on, solicit, or take away any person or entity who or which was a
customer of the Company or any of its subsidiaries or affiliates during Employee’s employment with
the Company for a business that is competitive with the business of the Company.

          (e) It is expressly agreed by Employee that the nature and scope of each of the provisions set
forth above in this Paragraph 11 are reasonable and necessary. If, for any reason, any aspect of
the above provisions as it applies to Employee is determined by a court of competent jurisdiction
to be unreasonable or unenforceable, the provisions shall only be modified to the minimum extent
required to make the provisions reasonable and/or enforceable, as the case may be. Employee
acknowledges and agrees that his services are of unique character and expressly grants to the
Company or any subsidiary or affiliate of the Company or any successor of any of them, the right to
enforce the above provisions through the use of all remedies available at law or in equity,
including, but not limited to, injunctive relief.

          (f) This Paragraph 11 and Paragraphs 12 and 13 hereof (and Paragraphs 14 through 19 hereof as
they may apply to such Paragraphs) shall survive the expiration or termination of this Agreement
for any reason.

     12. COMPANY PROPERTY.

          (a) Any patents, inventions, discoveries, applications or processes designed, devised,
planned, applied, created, discovered or invented by Employee in the course of Employee’s
employment under this Agreement and which pertain to any aspect of the Company’s or its
subsidiaries’ or affiliates’ business as described above shall be the sole and absolute property of
the Company, and Employee shall promptly report the same to the Company and promptly execute any
and all documents that may from time to time reasonably be requested by the Company to assure the
Company the full and complete ownership thereof.

          (b) All records, files, lists, including computer generated lists, drawings, documents,
equipment and similar items relating to the Company’s business which Employee

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shall prepare or receive from the Company shall remain the Company’s sole and exclusive property.
Upon termination of this Agreement, Employee shall promptly return to the Company all property of
the Company in his possession. Employee further represents that he will not copy or cause to be
copied, print out or cause to be printed out any software, documents or other materials originating
with or belonging to the Company. Employee additionally represents that, upon termination of his
employment with the Company, he will not retain in his possession any such software, documents or
other materials.

     13. EQUITABLE RELIEF. It is mutually understood and agreed that Employee’s services are
special, unique, unusual, extraordinary and of an intellectual character giving them a peculiar
value, the loss of which cannot be reasonably or adequately compensated in damages in an action at
law. Accordingly, in the event of any breach of this Agreement by Employee, including, but not
limited to, the breach of any of the provisions of Paragraphs 11 or 12 hereof, the Company shall be
entitled to equitable relief by way of injunction or otherwise in addition to any damages which the
Company may be entitled to recover. In addition, the Company shall be entitled to reimbursement
from Employee, upon request, of any and all reasonable attorneys’ fees and expenses incurred by it
in enforcing any term or provision of this Agreement.

     14. CONSENT TO TEXAS JURISDICTION AND VENUE. The Employee hereby consents and agrees that
state courts located in Travis County, Texas and the United States District Court for the Western
District of Texas each shall have personal jurisdiction and proper venue with respect to any
dispute between the Employee and the Company. In any dispute with the Company, the Employee will
not raise, and hereby expressly waives, any objection or defense to any such jurisdiction as an
inconvenient forum.

     15. NOTICE. Except as otherwise expressly provided, any notice, request, demand or other
communication permitted or required to be given under this Agreement shall be in writing, shall be
sent by one of the following means to the Employee at his address set forth on the signature page
of this Agreement and to the Company at its address set forth on the signature page of this
Agreement, Attention: Chief Executive Officer (or to such other address as shall be designated
hereunder by notice to the other parties and persons receiving copies, effective upon actual
receipt), and shall be deemed conclusively to have been given: (a) on the first business day
following the day timely deposited with Federal Express (or other equivalent national overnight
courier) or United States Express Mail, with the cost of delivery prepaid or for the account of the
sender; (b) on the fifth business day following the day duly sent by certified or registered United
States mail, postage prepaid and return receipt requested; or (c) when otherwise actually received
by the addressee on a business day (or on the next business day if received after the close of
normal business hours or on any non-business day).

     16. INTERPRETATION; HEADINGS. The parties acknowledge and agree that the terms and provisions
of this Agreement have been negotiated, shall be construed fairly as

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to all parties hereto, and shall not be construed in favor of or against any party. The section
headings contained in this Agreement are for reference purposes only and shall not affect the
meaning or interpretation of this Agreement.

     17. SUCCESSORS AND ASSIGNS; ASSIGNMENT; INTENDED BENEFICIARIES. Neither this Agreement, nor
any of Employee’s rights, powers, duties or obligations hereunder, may be assigned by Employee.
This Agreement shall be binding upon and inure to the benefit of Employee and his heirs and legal
representatives and the Company and its successors. Successors of the Company shall include,
without limitation, any corporation or corporations acquiring, directly or indirectly, all or
substantially all of the assets of the Company, whether by merger, consolidation, purchase, lease
or otherwise, and such successor shall thereafter be deemed “the Company” for the purpose hereof.

     18. NO WAIVER BY ACTION. Any waiver or consent from the Company respecting any term or
provision of this Agreement or any other aspect of the Employee’s conduct or employment shall be
effective only in the specific instance and for the specific purpose for which given and shall not
be deemed, regardless of frequency given, to be a further or continuing waiver or consent. The
failure or delay of the Company at any time or times to require performance of, or to exercise any
of its powers, rights or remedies with respect to, any term or provision of this Agreement or any
other aspect of the Employee’s conduct or employment in no manner (except as otherwise expressly
provided herein) shall affect the Company’s right at a later time to enforce any such term or
provision.

     19. COUNTERPARTS; TEXAS GOVERNING LAW; AMENDMENTS; ENTIRE AGREEMENT. This Agreement may be
executed in two counterpart copies, each of which may be executed by one of the parties hereto, but
all of which, when taken together, shall constitute a single agreement binding upon all of the
parties hereto. This Agreement and all other aspects of the Employee’s employment shall be governed
by and construed in accordance with the applicable laws pertaining in the State of Texas (other
than those that would defer to the substantive laws of another jurisdiction). Each and every
modification and amendment of this Agreement shall be in writing and signed by the parties hereto,
and any waiver of, or consent to any departure from, any term or provision of this Agreement shall
be in writing and signed by each affected party hereto. This Agreement contains the entire
agreement of the parties and supersedes all prior representations, agreements and understandings,
oral or otherwise, between the parties with respect to the matters contained herein.

[Signature page follows.]

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     IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date first
above written.

	 	 	 	 	 
	 	 	PERFICIENT, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Name:
	 	John T. McDonald
	

	 	Title:
	 	Chief Executive Officer
	 
	 	 	 	 
	 	 	 
	 	 	Jeffrey S. Davis, Individually

9<PAGE>
                                                                    Exhibit 10.5

                                                                January _7, 2005

Mr. George T. Haymaker, Jr.
c/o Kaiser Aluminum & Chemical Corporation
5847 San Felipe, Suite 2500
Houston, Texas 77057

     Re: Non-Executive Chairman of the Boards Agreement

Dear George:

     On behalf of the Boards of Directors (the "Boards") of Kaiser Aluminum
Corporation ("KAC") and Kaiser Aluminum & Chemical Corporation ("KACC") this
letter agreement confirms the terms of our offer to you to continue as the
non-executive Chairman of the Boards of KAC and KACC, effective from January 1,
2005.

     The terms of our offer are as follows:

     1. POSITION: The Boards offer to, and upon your acceptance of this
agreement do hereby, continue your service in the capacity of non-executive
Chairman of the Boards of KAC and KACC. Including your other duties as a
Director of the Boards, you are committed to make available up to an average of
sixteen (16) hours each calendar month for devotion to the affairs of KAC and
KACC as directed by the Chief Executive Officer or by the Boards, with
particular focus on assisting with development and implementation of the
strategic plan and plan of reorganization for KAC and KACC.

     2. TERM: The term of this agreement is for the period January 1, 2005
through the earlier of (i) December 31, 2005 and (ii) the effective date of the
"plan(s)" under chapter 11 of the U.S. Bankruptcy Code (the "Code") or the other
disposition under the Code of the chapter 11 cases, of KAC and KACC; provided
that if the effective date of such plan(s) or other disposition is different for
KAC and KACC, the date used for purposes of this clause (ii) shall be the later
of such effective dates. The parties have no obligation to renew this agreement
at the end of the term. This agreement may be terminated earlier (i) at the sole
discretion of the Boards, (ii) by your death or disability (as defined in KAC's
Long Term Disability Plan that covers executives and directors of KAC, (iii) for
cause (as defined below), (iv) the mutual agreement of the parties hereto, or
(v) by you, with sixty days notice to the Boards unless shorter notice is agreed
in the sole discretion of the Boards.

     For purposes of this letter agreement, the term "cause" shall mean:

     (a)  Your conviction for, or plea of nolo contendere to, a felony; or

     (b)  Your commission of an act involving fraud or intentional dishonesty,
          which act is intended to result in substantial personal enrichment at
          the expense of KAC or any of its subsidiaries; or

     (c)  Your breach of any material provision of this letter agreement which
          remains uncorrected for 30 days after written notice from the Boards
          or the Chief Executive Officer and an opportunity to correct; or
<PAGE>
Mr. George T. Haymaker, Jr.
January 7, 2005

     (d)  Your knowing and willful misconduct in the performance of your duties,
          which continues for 30 days after written notice from the Boards or
          the Chief Executive Officer and which results in material injury to
          the reputation, business or operation of KAC or any of its
          subsidiaries.

The existence of "cause" shall be determined by an affirmative vote of not less
than two-thirds of the members of each of the Boards. If the requisite
affirmative vote by two-thirds of the members of each of the Boards is not
obtained, this letter agreement may not be terminated for cause.

     3. COMPENSATION:

     (a)  Your base fee as a Director of $50,000 per full year shall continue
          unmodified. The amount earned each quarter is $12,500. Some or all of
          such compensation may be deferred at your option into a "phantom
          stock" and/or interest-bearing account to the same extent as other
          Directors of KAC and KACC are permitted an election to do so pursuant
          to the Deferred Fee Agreement. Amounts which otherwise would be
          payable to you during the term of this letter agreement under KAC's
          and KACC's Directors' compensation policies for attendance at meetings
          of the Boards and committees thereof and for service as Chairman or a
          member of such committees shall be deemed to be included in the
          compensation payable under Paragraph 3.(b) of this letter agreement.

     (b)  Your base fee for services as non-executive Chairman of both Boards
          will be computed at the rate of $73,000 per full year, which shall be
          payable in cash, quarterly in arrears, in the first week of the first
          month following the completion of each calendar quarter in which such
          compensation is earned. The amount earned each quarter is $18,250.00.

Subject to the provisions of paragraph 5 hereof, if this agreement is terminated
or expires prior to December 31, 2005, the parties agree that with respect to
the final calendar quarter of this letter agreement in which this letter
agreement terminates or expires, you shall be entitled to a pro rata portion of
the quarterly increment set forth in each of paragraphs 3.(a) and 3.(b) above,
determined by multiplying each such increment by a fraction, the numerator of
which shall be the number of days in such final calendar quarter prior to the
termination or expiration of this letter agreement, and the denominator of which
shall be 90.

     You shall be solely liable and responsible for complying with all laws,
rules and regulations regarding timely payment of applicable taxes including,
without limitation, federal and state income, self-employment and/or disability
taxes that may apply to such compensation.

     4. INDEPENDENT CONTRACTOR: The relationship between the parties shall be
that of independent contracting parties and shall not constitute or be deemed
for any purpose to be that of employer and employee. The Boards and KAC and KACC
expressly acknowledge and agree that neither shall have the right to direct you
with respect to the means or manner in which you fulfill your obligations and
responsibilities under his letter agreement. The Boards and KAC and KACC are
solely interested in the results obtained by you in connection with your
performance of services required hereunder.

     5. TERMINATION: Although your service as non-executive Chairman of the
Boards is terminable at the sole discretion of the Boards, if your service as
non-executive Chairman of the Boards is terminated by KAC and KACC without cause
(as defined above), you will continue to receive the compensation specified
under Paragraph 3.(b) of this agreement for the balance of the term of the
agreement. However, if your engagement as non-executive Chairman of the Boards
is terminated for cause (as defined above) then you will have no right to any
compensation under Paragraph 3.(b) of this agreement with respect to any period
of time after the date of such termination. During the term of this agreement,
you will continue to receive the fees paid under Section 3.(a) of this agreement
so long as you remain a Director of KAC and KACC.

     6. AMENDMENT; BENEFIT: This letter agreement may not be amended, modified,
or supplemented in any respect except by a subsequent written agreement between
all of the parties hereto. This letter agreement shall be

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<PAGE>
Mr. George T. Haymaker, Jr.
January 7, 2005

binding upon, and shall inure to the benefit of, KAC and its successors and
assigns, KACC and its successors and assigns, and you and your heirs, executors,
administrators, and personal representatives.

     7. GOVERNING LAW: This letter agreement shall be governed and construed in
accordance with the laws of the State of Texas, without regard to principles of
choice of law.

     George, the Boards are very pleased that you are willing to continue the
duties of non-executive Chairman of the Boards. We look forward to continuing to
work with you.

     If the terms of this offer are acceptable, please sign in the space
provided below and return this letter agreement to me.

                                          Very truly yours,

                                          /s/ John Barneson
                                          --------------------------------------
                                          John Barneson
                                          Senior Vice President and
                                          Chief Administrative Officer

The foregoing is agreed to and accepted
effective as of January 1, 2005

/s/ George T. Haymaker, Jr.
---------------------------------------
George T. Haymaker, Jr.

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