Document:

EMPLOYMENT AGREEMENT

 

Exhibit 10.13

EMPLOYMENT AGREEMENT

     This Employment Agreement is made and entered into as of this
             day of
April, 2002 by and between KROLL INC., an Ohio corporation (the “Company”), and
Steven Ford (the “Executive”).

     WHEREAS, the Executive and the Company desire to embody in this Agreement
the terms and conditions of the Executive’s employment by the Company;

     NOW, THEREFORE, in consideration of the premises and mutual promises
contained in this Agreement, including the compensation paid to the Executive,
the parties hereby agree:

ARTICLE 1

Employment, Duties and Responsibilities

     1.1     Employment. The Company shall employ the Executive as Executive Vice
President and Chief Financial Officer. The Executive hereby accepts such
employment. The Executive agrees to devote his best efforts to promote the
interests of the Company, and, if requested by the Board of Directors of the
Company, for any affiliate of the Company.

     1.2     Duties and Responsibilities. The Executive shall have such duties
and responsibilities as are consistent with his position and shall perform such
services not inconsistent with his position as shall, from time to time, be
reasonably assigned to him by the Board of Directors of the Company or any
other officer of the Company in a position superior to the Executive.

ARTICLE 2

Term

     2.1     Term. Executive’s employment shall commence on June 3, 2002. The
term of the Executive’s employment under this Agreement (the “Term”) shall
continue until May 31, 2005, unless sooner terminated pursuant to Article V
hereof.

ARTICLE 3

Compensation

     3.1     Salary, Bonuses and Benefits. As compensation and consideration for
the performance by the Executive of his obligations to the Company under this
Agreement, the Executive shall be entitled to the compensation and benefits
described in the attached Exhibit A (subject, in each case, to the provisions
of ARTICLE 5 hereof).

 

 

     3.2     Expenses. The Company will reimburse the Executive for reasonable
business-related expenses incurred by him in connection with the performance of
his duties hereunder during the Term, subject, however, to the Company’s
written policies relating to business-related expenses as in effect, from time
to time, during the Term, a copy of which has previously been provided to the
Executive.

ARTICLE 4

Exclusivity, Confidentiality and Noncompetition

     4.1     Exclusivity, Etc. The Executive agrees to perform his duties,
responsibilities and obligations hereunder efficiently and to the best of his
ability. The Executive agrees that he will devote his entire working time,
care and attention and best efforts to such duties, responsibilities and
obligations throughout the Term, subject to any obligations to third parties in
existence as of the date hereof, which obligations may not be in conflict with
Section 4.2(d) hereof. The Executive also agrees that he will not engage in
any other business activities pursued for gain, profit or other pecuniary
advantage that are competitive with the activities of the Company, except as
permitted in Section 4.2 below. The Executive agrees that all of his
activities as an employee of the Company shall be in conformity with all
policies, rules and regulations and directions of the Company not inconsistent
with this Agreement.

     4.2     Confidentiality and Noncompetition.

     (a)     The term “Confidential Information,” as employed in this Agreement,
means, except to the extent such information is otherwise publicly available
and such public availability was not caused in any manner by the Executive, (i)
any object, material, device, substance, data, report, record, forecast,
interpretation or information, whether written or oral, not in the public
domain and relating to or reflecting any product, design, process, procedure,
formula, research, idea, invention, discovery, improvement, equipment,
scientific or technical information, method of production, business plan,
financial information, listing of names, addresses or telephone numbers, trade
secret and/or know how, and all matters pertaining thereto, of the Company and
its subsidiaries and affiliates, whether or not contained in any written
document, which are or have been directly or indirectly communicated to,
acquired by, or learned by the Executive as a result of his relationship
(whether as an employee or otherwise) with the Company or any of its
subsidiaries or affiliates and (ii) any analysis, compilation, note, study,
sample, drawing, sketch, computer program, computer file or other document,
whether prepared by or under the direction of the Company or any of its
affiliates, the Executive or others, and all copies, facsimiles, replicas,
photographs, and reproductions thereof, which contain, relate to, or reflect
any of the aforementioned items.

     (b)     The Executive shall not, directly or indirectly, either disclose any
Confidential Information, except to the extent required in the performance of
his duties as an employee of the Company or use any Confidential Information
for the benefit of himself or any person, firm, corporation, or association
other than the Company or any of its affiliates, during the Term or thereafter.

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     (c)     All samples, drawings, sketches, documents and written information of
any kind reflecting any of the Confidential Information or relating to the
Company’s or any of its affiliates’ business or products which come into the
possession of the Executive shall remain the sole property of the Company or
such affiliate and shall not be copied, photocopied, reprinted or otherwise
reproduced or disseminated by the Executive, except in the performance of his
duties as an employee of the Company. Upon the earlier of the Company’s
request therefor or the termination of the Executive’s employment by the
Company, the Executive shall return all such samples, drawings, sketches,
documents and written information, and all copies, facsimiles, replicas,
photocopies, and reproductions of them, to the Company.

     (d)     The Executive hereby covenants and agrees to refrain, during the Term
hereof and any extension (including month-to-month extensions) or renewal
thereof and for a period of two (2) years after the date of termination of the
Executive’s employment during the Term (i) if such termination during the Term
was for Cause (as hereinafter defined) or (ii) if the Executive terminates
employment during the Term on his own volition, from, directly or indirectly,
(a) engaging on his own behalf in the Company’s business (as hereinafter
defined), or (b) owning any interest in or engaging in or performing any
service for any person, firm, corporation or other entity, either as a partner,
owner, employee, consultant, agent officer, director or shareholder that (A)
derives a meaningful portion of its revenues from the Company’s business or (B)
is a meaningful competitor in the Company’s business. Notwithstanding the
foregoing, for purposes of this Section 4.2(d), the term “Term” shall not
include any month-to-month extensions of this Agreement. The Executive will
not at any time during the period of the Executive’s employment by the Company
and for a period of two (2) years thereafter induce or assist others to induce
or attempt to induce, in any manner, directly or indirectly, any employee,
agent, representative, customer or any other person or concern dealing with or
in any way associated with the Company or any of its affiliates to terminate or
to modify in any other fashion to the detriment of the Company or any of its
affiliates such association with the Company or any of its affiliates. The
Executive represents that his experience and capabilities are such that the
provisions of this paragraph will not prevent him from earning a livelihood.
Notwithstanding any provision of this Section 4.2(d), (i) it shall not be a
violation of this Section 4.2(d) for the Executive to own two percent (2%) or
less of a public company, provided that the Executive does not exert or have
the power to exert any management or other control over such public company,
and (ii) the Executive shall not be required to sell or transfer the
Executive’s ownership interest in any company involved in the Company’s
business which the Executive owns as of the date of this Agreement. The
Company’s business shall include the investigations and intelligence business,
forensic and other financial accounting and valuation services, corporate
recovery services, employment screening, video surveillance services, substance
abuse testing, security consulting and protection services, and computer
forensics and data recovery services.

     (e)     The parties hereto agree that the Executive’s agreements contained in
paragraph (b) through (d) of this Article relate to matters of unique character
and peculiar value impossible of replacement, that breach of such agreements by
the Executive will cause the Company great and irreparable injury therefor,
that the remedy at law for any breach of the agreements contained in (b)
through (d) will be inadequate and that the Company, in addition to any other
relief available to it, shall be entitled to seek temporary restraining orders
and temporary and permanent injunctive relief or other equitable relief without
the necessity of proving actual damage or of providing any bond so

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as to prevent a breach of any of the agreements contained in (b) through (d) of
this Article and to secure the enforcement thereof.

ARTICLE 5

Termination

     5.1     Termination by the Company. The Company shall have the right to
terminate the Executive’s employment at any time, with or without “Cause.” For
purposes of this Agreement, “Cause” shall mean (i) willfulness or negligence by
the Executive in the non-performance of his duties as described in this
Agreement, which is not cured within fifteen (15) days after written notice of
such failure, (ii) a breach by the Executive of any of the other material terms
and conditions of this Agreement, (iii) conduct grossly insubordinate or
disloyal to the Company, (iv) pleading no contest or guilty to a felony charge
or being convicted of a felony.

     5.2     Death. In the event the Executive dies during the Term, this
Agreement shall automatically terminate, such termination to be effective on
the date of the Executive’s death.

     5.3     Disability. In the event that the Executive shall suffer a
disability which shall have prevented him from performing satisfactorily his
obligations hereunder for a period of at least ninety (90) consecutive days or
one hundred eighty (180) non-consecutive days within any three hundred
sixty-five (365) day period, the Company shall have the right to terminate the
Executive’s employment, such termination to be effective upon the giving of
notice thereof to the Executive in accordance with Section 6.2 hereof.

     5.4     Effect of Termination. (a) In the event of termination of the
Executive’s employment for any reason, the Company shall pay to the Executive
(or his beneficiary, heirs or estate in the event of his death) any unpaid
earned base salary or other compensation in accordance with the normal pay
practices of the Company upon a termination of employees for similar reasons.

     (b)     In the event of termination of the Executive’s employment (i) by the
Company for Cause, (ii) by the Executive for any reason, (iii) because of the
Executive’s death, or (iv) pursuant to Section 5.3, because of the Executive’s
disability, neither the Executive nor any beneficiary, heir or estate of the
Executive shall be entitled to any further compensation other than the amounts
described in Section 5.4(a) hereof.

     (c)     In the event of termination of the Executive’s employment by the
Company other than for Cause, the Company shall pay the Executive, in addition
to the amounts described in Section 5.4(a) hereof, the greater of (i) an amount
equal to the value of the continued payment of the Executive’s then current
base salary for the remainder of the Term or (ii) an amount equal to
Executive’s then current base salary for one (1) year. Such amount shall be
payable, at the discretion of the Company, either (A) in a lump sum or (B) in
equal monthly installments.

     (d)     In the event that the Company fails to offer before the end of the
Term to renew the term of this Agreement for at least one (1) year following
the end of the Term with an annual salary

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at least as favorable to Executive’s then current base salary, the Company
shall pay Executive an amount equal to Executive’s then current base salary for
one (1) year.

ARTICLE 6

Miscellaneous

     6.1     Benefit of Agreement; Assignment; Beneficiary. (a) This Agreement
shall inure to the benefit of and be binding upon the Company and their
successors and assigns (but only to the extent the Agreement relates to such
entity), including, without limitation, any corporation or person which may
acquire all or substantially all of the Company’s assets or business or with or
into which the Company may be consolidated or merged. This Agreement shall
also inure to the benefit of, and be enforceable by, the Executive and his
personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. If the Executive should die while
any amount would still be payable to the Executive hereunder if he had
continued to live, all such amounts shall be paid in accordance with the terms
of this Agreement to the Executive’s beneficiary, devisee, legatee or other
designee, or if there is no such designee, to the Executive’s estate.

     (b)  The Company shall require any successor (whether direct or indirect,
by operation of law, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place.

     6.2     Notices. Any notice required or permitted hereunder shall be in
writing and shall be sufficiently given if personally delivered or if sent by
registered or certified mail, postage prepaid, with return receipt requested,
addressed: (a) in the case of the Company to the General Counsel of the
Company, and (b) in the case of the Executive, to the Executive’s last known
address as reflected in the Company’s records, or to such other address as the
Executive shall designate by written notice to the Company. Any notice given
hereunder shall be deemed to have been given at the time of receipt thereof by
the person to whom such notice is given if personally delivered or at the time
of mailing if sent by registered or certified mail.

     6.3     Entire Agreement; Amendment. This Agreement contains the entire
agreement of the parties hereto with respect to the terms and conditions of the
Executive’s employment during the Term and supersedes any and all prior
agreements and understandings, whether written or oral, between the parties
hereto with respect to compensation due for services rendered hereunder. This
Agreement may not be changed or modified except by an instrument in writing
signed by both of the parties hereto.

     6.4     Waiver. The waiver of either party of a breach of any provision of
this Agreement shall not operate or be construed as a continuing waiver or as a
consent to or waiver of any subsequent breach hereof.

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     6.5     Headings. The Article and Section headings herein are for
convenience of reference only, do not constitute a part of this Agreement and
shall not be deemed to limit or affect any of the provisions hereof.

     6.6     Governing Law. This Agreement shall be governed by, and construed
and interpreted in accordance with, the internal laws of the State of New York
without reference to the principles of conflict of laws.

     6.7     Agreement to Take Actions. Each party hereto shall execute and
deliver such documents, certificates, agreements and other instruments and
shall take such other actions, as may be reasonably necessary or desirable in
order to perform his/her or its obligations under this Agreement or to
effectuate the purposes hereof.

     6.8     Venue and Jurisdiction. Any action or proceeding seeking to enforce
any provision of, or based on any right arising out of, this Agreement may be
brought against any of the parties hereto in the courts of the State of New
York, County of New York or in the United States District Court for the
Southern District of New York, and each of the parties hereto consents to the
jurisdiction of such courts (and the appropriate appellate courts) in any such
action or proceeding and waives any objections to venue laid therein.

     6.9     Survivorship. The respective rights and obligations of the parties
hereunder shall survive any termination of this Agreement to the extent
necessary effectuate to the intended preservation of such rights and
obligations.

     6.10     Validity. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of
any other provision or provisions of this Agreement, which shall remain in full
force and effect. If any provision of this Agreement is held to be invalid,
void or unenforceable, any court so holding shall substitute a valid,
enforceable provision that preserves, to the maximum lawful extent, the terms
and intent of this Agreement.

     6.11     Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

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     IN WITNESS WHEREOF, each of the parties hereto has duly executed this
Agreement effective as of the date first written above.

	 	 	 
	 	KROLL INC.
	 
	 
	 	By:
	 	 	

	 	Name:
	 	 	

	 	Title:
	 	 	

	 
	 
	 	EXECUTIVE:
	 
	 
	 
	 	

	 	Steven Ford

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EXHIBIT A TO EMPLOYMENT AGREEMENT

     The Executive shall receive as compensation for his performance under the
attached Employment Agreement the following:

     (a)     Salary. The Company shall pay the Executive a base salary during the
Term, payable in accordance with the normal payment procedures of the Company,
subject to such withholdings and other normal employee deductions as may be
required by law, at the annual rate of not less than $260,000. The Board of
Directors of the Company shall review such compensation during the Term, but
any adjustment in Executive’s salary may only be upward.

     (b)     Annual Bonus. In addition to base salary, the Company shall pay the
Executive 15% of his annual salary as a bonus payment and such amount will be
paid in accordance with Company practice regarding when the bonus is paid and
less necessary withholdings and other deductions. The bonus payment for the
year 2002 will be paid based on the total amount of earned salary. The
Executive shall be eligible to earn further incentive compensation, up to an
additional 15% of his annual salary (excluding any other bonus payment made),
contingent upon the Company achieving its budgeted operating profit for the
fiscal year. Any such additional bonus payment would also be paid in
accordance with Company practice as described herein and may be paid in the
form of shares of stock of Kroll Inc. in accordance with a plan to be
applicable to other senior executives of the Company.

     (c)     Benefits. The Executive shall participate during the Term in such
pension, life insurance, health, death, disability and major medical insurance
plans, and in such other employee benefit plans and programs, for the benefit
of the employees of the Company, as may be maintained, from time to time,
during the Term, in the Company’s discretion, in each case to the extent and in
the manner available to other senior employees of the Company and subject to
the terms and provisions of such plans or programs. The Company shall procure
on Executive’s behalf an additional term life insurance policy so that
Executive is eligible for life insurance benefits comparable to other employees
who have been employed by the Company for at least three years (the “Additional
Term Policy”.) The Company’s obligation to obtain the Additional Term Policy
will terminate when the Executive is otherwise eligible for such comparable
benefits. Nothing herein shall limit the Company’s ability to change, modify,
cancel or amend any such employee pension, life insurance, health, death,
disability or major medical insurance plans.

     (d)     Vacation. The Executive shall be entitled to paid vacation in
accordance with Company policy during the Term, but in no event less than three
(3) weeks.

     (e)     Stock Options. Management will recommend to the Kroll Inc. Board of
Directors that Executive be granted 35,000 Kroll stock options at the next
regularly scheduled Board of Directors’ meeting in which stock options are
granted following execution of this Agreement. Thereafter, the Executive shall
be eligible for other grants of Kroll Inc. stock options at the discretion and
approval of the Compensation Committee and/or the Board of Directors of the
Company. All options granted shall vest as provided in the Kroll Inc. Stock
Option plan.

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     (f)     Relocation. The Company shall pay to Executive a one-time payment of
$10,000 to assist with household relocation expenses from the Atlanta, Georgia
metropolitan area to the New York City metropolitan area. Such payment will be
made upon submission of supporting invoices or similar documents.

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Exhibit 10.14

EMPLOYMENT AGREEMENT

     This Employment Agreement is made and entered into as of the 1st day of
January 2002, by and between KROLL ASSOCIATES, INC., a Delaware corporation,
with its principal place of business at 900 Third Avenue, New York, New York
(the “Company”), and James R. Bucknam (the “Executive”).

     WHEREAS, the Executive and the Company desire to embody in this Agreement
the terms and conditions of the Executive’s employment by the Company;

     NOW, THEREFORE, in consideration of the premises and mutual promises
contained in this Agreement, including the compensation paid to the Executive,
the parties hereby agree:

ARTICLE 1

Employment, Duties and Responsibilities

     1.1 Employment. The Company shall employ the Executive as Senior
Managing Director and Vice President for Operations. The Executive hereby
accepts such employment. The Executive agrees to devote his best efforts to
promote the interests of the Company, and, if requested by the Board of
Directors of the Company, for any affiliate of the Company.

     1.2 Duties and Responsibilities. The Executive shall have such duties
and responsibilities as are consistent with his position and shall perform such
services not inconsistent with his position as shall, from time to time, be
reasonably assigned to him by the Board of Directors of the Company or any
other officer of the Company in a position superior to the Executive. The
Company shall not, without the Executive’s consent, permanently relocate the
Executive outside of the New York City Metropolitan area.

ARTICLE 2

Term

     2.1 Term. The term of the Executive’s employment under this Agreement
(the “Term”) shall commence on the date hereof and shall continue for a term of
one year, until December 31, 2004, unless sooner terminated pursuant to Article
V hereof. Thereafter, the Term shall continue on a monthly basis unless
terminated by either party upon one month’s prior written notice.

 

 

ARTICLE 3

Compensation

     3.1 Salary, Bonuses and Benefits. As compensation and consideration for
the performance by the Executive of his obligations to the Company under this
Agreement, the Executive shall be entitled to the compensation and benefits
described in the attached Exhibit A (subject, in each case, to the provisions
of ARTICLE 5 hereof).

     3.2 Expenses. The Company will reimburse the Executive for reasonable
business-related expenses incurred by him in connection with the performance of
his duties hereunder during the Term, subject, however, to the Company’s
written policies relating to business-related expenses as in effect, from time
to time, during the Term, a copy of which has previously been provided to the
Executive.

ARTICLE 4

Exclusivity, Confidentiality and Noncompetition

     4.1 Exclusivity, Etc. The Executive agrees to perform his duties,
responsibilities and obligations hereunder efficiently and to the best of his
ability. The Executive agrees that he will devote his entire working time,
care and attention and best efforts to such duties, responsibilities and
obligations throughout the Term, subject to any obligations to third parties in
existence as of the date hereof, which obligations may not be in conflict with
Section 4.2(d) hereof. The Executive also agrees that he will not engage in
any other business activities pursued for gain, profit or other pecuniary
advantage that are competitive with the activities of the Company, except as
permitted in Section 4.2 below. The Executive agrees that all of his
activities as an employee of the Company shall be in conformity with all
policies, rules and regulations and directions of the Company not inconsistent
with this Agreement.

     4.2 Confidentiality and Noncompetition.

     (a)      The term “Confidential Information,” as employed in this Agreement,
means, except to the extent such information is otherwise publicly available
and such public availability was not caused in any manner by the Executive, (i)
any object, material, device, substance, data, report, record, forecast,
interpretation or information, whether written or oral, not in the public
domain and relating to or reflecting any product, design, process, procedure,
formula, research, idea, invention, discovery, improvement, equipment,
scientific or technical information, method of production, business plan,
financial information, listing of names, addresses or telephone numbers, trade
secret and/or know how, and all matters pertaining thereto, of the Company and
its affiliates, whether or not contained in any written document, which are or
have been directly or indirectly communicated to, acquired by, or learned by
the Executive as a result of his relationship (whether as an employee or
otherwise) with the Company or any of its affiliates and (ii) any analysis,
compilation, note, study, sample, drawing, sketch, computer program, computer
file or other document, whether prepared by or under the direction of the
Company or any of its affiliates, the Executive or others, and all copies,

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facsimiles, replicas, photographs, and reproductions thereof, which contain,
relate to, or reflect any of the aforementioned items.

     (b)      The Executive shall not, directly or indirectly, either disclose any
Confidential Information, except to the extent required in the performance of
his duties as an employee of the Company or use any Confidential Information
for the benefit of himself or any person, firm, corporation, or association
other than the Company or any of its affiliates, during the Term or thereafter.

     (c)      All samples, drawings, sketches, documents and written information of
any kind reflecting any of the Confidential Information or relating to the
Company’s or any of its affiliates’ business or products which come into the
possession of the Executive shall remain the sole property of the Company or
such affiliate and shall not be copied, photocopied, reprinted or otherwise
reproduced or disseminated by the Executive, except in the performance of his
duties as an employee of the Company. Upon the earlier of the Company’s
request therefor or the termination of the Executive’s employment by the
Company, the Executive shall return all such samples, drawings, sketches,
documents and written information, and all copies, facsimiles, replicas,
photocopies, and reproductions of them, to the Company.

     (d)      The Executive hereby covenants and agrees to refrain, during the Term
hereof and any extension (including month-to-month extensions) or renewal
thereof and for a period of one (1) year after the date of termination of the
Executive’s employment during the Term (i) if such termination during the Term
was for Cause (as hereinafter defined) or (ii) if the Executive terminates
employment during the Term on his own volition, (other than after a breach of
this agreement by the Company), from, directly or indirectly, (a) engaging on
his own behalf in the Investigative and Intelligence Business (as hereinafter
defined), or (b) owning any interest in or engaging in or performing any
service for any person, firm, corporation or other entity, either as a partner,
owner, employee, consultant, agent officer, director or shareholder that (A)
derives a meaningful portion of its revenues from the Investigative and
Intelligence Business or (B) is a meaningful competitor in the Company’s
business. Notwithstanding the foregoing, for purposes of this Section 4.2(d),
the term “Term” shall not include any month-to-month extensions of this
Agreement. The Executive will not at any time during the Term and for a period
of one (1) year after Executive’s employment is terminated if such termination
occurs during the Term induce or assist others to induce or attempt to induce,
in any manner, directly or indirectly, any employee, agent, representative,
customer or any other person or concern dealing with or in any way associated
with the Company or any of its affiliates to terminate or to modify in any
other fashion to the detriment of the Company or any of its affiliates such
association with the Company or any of its affiliates. The Executive
represents that his experience and capabilities are such that the provisions of
this paragraph will not prevent him from earning a livelihood. Notwithstanding
any provision of this Section 4.2(d), (i) it shall not be a violation of this
Section 4.2(d) for the Executive to own two percent (2%) or less of a public
company, provided that the Executive does not exert or have the power to exert
any management or other control over such public company, and (ii) the
Executive shall not be required to sell or transfer the Executive’s ownership
interest in any company involved in the Company’s business which the Executive
owns as of the date of this Agreement. The “Investigative and Intelligence
Business” is defined as the business of private investigations, executive
protection, corporate investigation, risk and crisis management, forensic
auditing and/or business intelligence.

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     (e)      The parties hereto agree that the Executive’s agreements contained in
paragraph (b) through (d) of this Article relate to matters of unique character
and peculiar value impossible of replacement, that breach of such agreements by
the Executive will cause the Company great and irreparable injury therefor,
that the remedy at law for any breach of the agreements contained in (b)
through (d) will be inadequate and that the Company, in addition to any other
relief available to it, shall be entitled to seek temporary restraining orders
and temporary and permanent injunctive relief or other equitable relief without
the necessity of proving actual damage or of providing any bond so as to
prevent a breach of any of the agreements contained in (b) through (d) of this
Article and to secure the enforcement thereof.

ARTICLE 5

Termination

     5.1 Termination by the Company. The Company shall have the right to
terminate the Executive’s employment at any time, with or without “Cause.” For
purposes of this Agreement, “Cause” shall mean (i) willfulness or gross
negligence by the Executive in the performance of his duties as described in
this Agreement, which conduct continues and is not cured within fifteen (15)
days after written notice of such failure, (ii) a willful breach by the
Executive of any of the other material terms and conditions of this Agreement,
which breach is not cured within fifteen (15) days after written notice of such
breach, (iii) conduct grossly insubordinate or conduct which would consist of
a breach of the duty of loyalty by the Executive as defined by New York law, or
(iv) pleading no contest or guilty to a felony charge or being convicted of a
felony.

     5.2 Death. In the event the Executive dies during the Term, this
Agreement shall automatically terminate, such termination to be effective on
the date of the Executive’s death.

     5.3 Disability. In the event that the Executive shall suffer a
disability which shall have prevented him from performing satisfactorily his
obligations hereunder for a period of at least ninety (90) consecutive days or
one hundred eighty (180) non-consecutive days within any three hundred
sixty-five (365) day period, the Company shall have the right to terminate the
Executive’s employment, such termination to be effective upon the giving of
notice thereof to the Executive in accordance with Section 6.3 hereof.

     5.4 Effect of Termination. (a) In the event of termination of the
Executive’s employment for any reason, the Company shall pay to the Executive
(or his beneficiary, heirs or estate in the event of his death) any base salary
or other compensation in accordance with the normal pay practices of the
Company upon a termination of employees for similar reasons. In addition, the
Company shall pay to the Executive all amounts due in accordance with Exhibit
A.

     (b)      In the event of termination of the Executive’s employment (i) by the
Company for Cause, (ii) by the Executive for any reason other than after a
breach of this Agreement by the Company, (iii) because of the Executive’s
death, or (iv) pursuant to Section 5.3, because of the Executive’s disability,
neither the Executive nor any beneficiary, heir or estate of the Executive
shall be entitled to any further compensation other than the amounts described
in Section 5.4(a) hereof.

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     (c)      In the event of termination of the Executive’s employment by the
Company other than for Cause, the Company shall pay the Executive, in addition
to the amounts described in Section 5.4(a) hereof, the greater of (i) an amount
equal to the value of the continued payment of the Executive’s then current
base salary for the remainder of the Term (including any renewal periods), or
(ii) an amount equal to Executive’s then current base salary for one (1) year.
Such amount shall be payable, at the discretion of the Company, either (A) in a
lump sum or (B) in equal monthly installments.

     (d)      In the event that the Company fails to offer Executive within three
(3) months before the end of the Term, to renew the terms of this Agreement for
at least one (1) year following the end of the Term with compensation and
benefits at least as favorable to Executive’s then current base salary, the
Company shall pay Executive an amount equal to Executive’s then current base
salary for one (1) year.

ARTICLE 6

Miscellaneous

     6.1 Benefit of Agreement; Assignment; Beneficiary. (a) This Agreement
shall inure to the benefit of and be binding upon the Company and their
successors and assigns (but only to the extent the Agreement relates to such
entity), including, without limitation, any corporation or person which may
acquire all or substantially all of the Company’s assets or business or with or
into which the Company may be consolidated or merged. This Agreement shall
also inure to the benefit of, and be enforceable by, the Executive and his
personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. If the Executive should die while
any amount would still be payable to the Executive hereunder if he had
continued to live, all such amounts shall be paid in accordance with the terms
of this Agreement to the Executive’s beneficiary, devisee, legatee or other
designee, or if there is no such designee, to the Executive’s estate.

     (b)      The Company shall require any successor (whether director or indirect,
by operation of law, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place.

     (c)      Upon a reorganization, merger or consolidation of The Kroll-O’Gara
Company with one or more corporations as a result of which The Kroll-O’Gara
Company is not to be the surviving corporation (whether or not The Kroll-O’Gara
Company shall be dissolved or liquidated) or upon the execution of an agreement
for the sale or transfer of all or substantially all of the assets of the The
Kroll-O’Gara Company (“Change-in-Control Event”), at the option of the
Executive, the Term shall be modified to the lesser of (i) eighteen (18) months
from the Change-in-Control Event or (ii) the remaining Term.

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     6.2 Notices. Any notice required or permitted hereunder shall be in
writing and shall be sufficiently given if personally delivered or if sent by
registered or certified mail, postage prepaid, with return receipt requested,
addressed: (a) in the case of the Company to the President of the Company, and
(b) in the case of the Executive, to the Executive’s last known address as
reflected in the Company’s records, or to such other address as the Executive
shall designate by written notice to the Company. Any notice given hereunder
shall be deemed to have been given at the time of receipt thereof by the person
to whom such notice is given if personally delivered or at the time of mailing
if sent by registered or certified mail.

     6.3
Entire Agreement; Amendment. This Agreement contains the entire
agreement of the parties hereto with respect to the terms and conditions of the
Executive’s employment during the Term and supersedes any and all prior
agreements and understandings, whether written or oral, between the parties
hereto with respect to compensation due for services rendered hereunder. This
Agreement may not be changed or modified except by an instrument in writing
signed by both of the parties hereto.

     6.4 Waiver. The waiver of either party of a breach of any provision of
this Agreement shall not operate or be construed as a continuing waiver or as a
consent to or waiver of any subsequent breach hereof.

     6.5 Headings. The Article and Section headings herein are for
convenience of reference only, do not constitute a part of this Agreement and
shall not be deemed to limit or affect any of the provisions hereof.

     6.6 Governing Law. This Agreement shall be governed by, and construed
and interpreted in accordance with, the internal laws of the State of New York
without reference to the principles of conflict of laws.

     6.7 Agreement to Take Actions. Each party hereto shall execute and
deliver such documents, certificates, agreements and other instruments and
shall take such other actions, as may be reasonably necessary or desirable in
order to perform his or its obligations under this Agreement or to effectuate
the purposes hereof.

     6.8 Venue and Jurisdiction. Any action or proceeding seeking to enforce
any provision of, or based on any right arising out of, this Agreement may be
brought against any of the parties hereto in the courts of the State of New
York, County of New York or in the United States District Court for the
Southern District of New York, and each of the parties hereto consents to the
jurisdiction of such courts (and the appropriate appellate courts) in any such
action or proceeding and waives any objections to venue laid therein.

     6.9 Survivorship. The respective rights and obligations of the parties
hereunder shall survive any termination of this Agreement to the extent
necessary to effectuate the intended preservation of such rights and
obligations.

     6.10 Validity. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of
any other provision or provisions of this

-6-

 

Agreement, which shall remain in full force and effect. If any provision of
this Agreement is held to be invalid, void or unenforceable, any court so
holding shall substitute a valid, enforceable provision that preserves, to the
maximum lawful extent, the terms and intent of this Agreement.

     6.11 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

     IN WITNESS WHEREOF, each of the parties hereto has duly executed this
Agreement effective as of the date first written above.

	 	 	 
	 	KROLL ASSOCIATES, INC.
	 
	 
	 	By:
	 	 	

	 	Name:
	 	 	

	 	Title:
	 	 	

	 
	 
	 	EXECUTIVE:
	 
	 
	 
	 	

	 	James R. Bucknam

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EXHIBIT A TO EMPLOYMENT AGREEMENT

          The Executive shall receive as compensation for his performance under the
attached Employment Agreement the following:

          (a)      Salary. The Company shall pay the Executive a base salary during the
Term, payable in accordance with the normal payment procedures of the Company,
subject to such withholdings and other normal employee deductions as may be
required by law, at the annual rate of not less than $350,000.

          (b)      Annual Bonus. In addition to base salary, the Executive shall be
eligible to earn bonus compensation in accordance with the Company’s bonus plan
for Senior Executives. The Company guarantees that the Executive will receive
a minimum annual bonus of $25,000 during each year of the contract.

          (c)      Benefits. The Executive shall participate during the Term in such
pension, life insurance, health, death, disability and major medical insurance
plans, and in such other employee benefit plans and programs, for the benefit
of the employees of the Company, as may be maintained, from time to time,
during the Term, in the Company’s discretion, in each case to the extent and in
the manner available to other officers of the Company and subject to the terms
and provisions of such plans or programs. Nothing herein shall limit the
Company’s ability to change, modify, cancel or amend any such pension, life
insurance, health, death, disability or major medical insurance plans.

          (d)      Vacation. The Executive shall be entitled to paid vacation in
accordance with Company policy during the Term.

          (e)      Stock Options. On May 15, 2001, the Board of Directors of The
Kroll-O’Gara Company granted the Executive 50,000 options to buy Kroll-O’Gara
common stock. Such options will vest in three equal annual installments,
commencing on May 15, 2002, in accordance with the terms of The Kroll-O’Gara
Company 2000 Amended Stock Option Plan.

          (f)      Stay Bonus. To the extent the Executive is employed by the Company on
December 31, 2004, the Executive shall receive the sum of $125,000, with an
initial payment of $40,000 to be advanced to Executive on February 1, 2002,
with the remainder payable to Executive no later than February 1st 2005.

          (g)      Signing Bonus. The Company agrees to pay the Executive a signing
bonus of $50,000 no later than thirty (30) days from signing.

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