Document:

Exhibit 10.1

 

Execution Version

 

 

DATED OCTOBER 7, 2018

 

 

RESTATED EMPLOYMENT AGREEMENT

 

 

(1)  ENSCO SERVICES LIMITED

 

 

(2)  CARL TROWELL

 

 

THIS DEED is dated October 7, 2018

 

BETWEEN:

 

(1)                                 ENSCO SERVICES LIMITED incorporated and registered in England and Wales with company number 04605864 whose registered office is at 7 Albemarle Street, London, England, W1S 4HQ (the “Company”); and

 

(2)                                 CARL TROWELL of Sandhill, Sandhill Lane, Crawley Down West Sussex RH10 4LE (the “Employee”).

 

AGREED TERMS

 

1.                                      INTERPRETATION

 

1.1                               The definitions and rules of interpretation in this clause 1 apply in this Agreement.

 

Appointment                                                                                                                                                           the employment of the Employee by the Company pursuant to this Agreement.

 

Board                                                                                                                                                                                                the board of directors of the Parent Company from time to time (including any committee of the Board duly appointed by it).

 

Capacity                                                                                                                                                                                 as agent, consultant, director, employee, owner, partner, shareholder or in any other capacity.

 

Change in Control                                                                                                                            the occurrence of any of the following events: (i) a change in the ownership of the Parent Company, which occurs on the date that any one person, or more than one person acting in concert (as defined in the City Code on Takeovers and Mergers), acquires ownership of Shares that, together with Shares held by such person or persons acting in concert, constitutes more than fifty percent (50%) of the total voting power of the Shares, or (ii) the majority of the members of the Board is replaced during any twelve (12) month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election, or (iii) a sale of all or substantially all of the assets of the 

 

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Parent Company; provided, however, a Change in Control of the Parent Company  shall not be deemed to have occurred by virtue of the consummation of any transaction or series of related transactions immediately following which the beneficial holders of the voting Shares immediately before such transaction or series of transactions continue to have a majority of the direct or indirect ownership in one or more entities which, singly or together, immediately following such transaction or series of transactions, either (A) own all or substantially all of the assets of the Parent Company as constituted immediately prior to such transaction or series of transactions, or (B) are the ultimate parent with direct or indirect ownership of all of the voting Shares after such transaction or series of transactions.  For further clarification, a “Change in Control” of the Parent Company shall not be deemed to have occurred by virtue of the consummation of any transaction or series of related transactions effected for the purpose of changing the place of incorporation or form of organization of the Parent Company or the ultimate parent company of the Parent Company and its subsidiaries.

 

Closing                                                                                                                                                                                         has the meaning given in the Transaction Agreement.

 

Commencement Date                                                                                                            means the Effective Time.

 

Company Policies                                                                                                                              the policies of the Company and the Parent Company that are applicable to employees of the Company (including, without limitation, the Ensco plc Code of Business Conduct and any employment handbook), as may be amended from time to time.

 

Confidential Information                                                                                    information (whether or not recorded in documentary form, or stored on any magnetic or optical disk or memory) relating to the business, products, affairs 

 

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and finances of any Group Company for the time being confidential to any Group Company and trade secrets including,  without limitation, technical data and know-how relating to the business of any Group Company or any of their business contacts, including in particular (by way of illustration only and without limitation):

 

(a)                                             information relating to the business of exploring, acquiring, developing, exploiting and disposing of oil and natural gas resources (regardless of when conceived, made, developed or acquired);

 

(b)                                             information relating to the business or prospective business, current or projected plans or internal affairs of the Company or any Group Company

 

(c)                                              information relating to the current or prospective marketing or sales of any products or services of any Group Company, including non-public lists of customers’ and suppliers’ names, addresses and contacts; sales targets and statistics; market share and pricing information; marketing surveys; research and reports; non-public advertising and promotional material; strategies; and financial and sales data;

 

(d)                                             information relating to any actual or prospective business strategies of any Group Company;

 

(e)                                              information relating to any actual acquisitions, investments or corporate opportunities or prospective acquisition, investment targets or corporate opportunity;

 

(f)                                               know-how, trade secrets, unpublished information relating to any Group Company’s intellectual property and to the creation, production or supply of 

 

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any products or services of any Group Company;

 

(g)                                              information to which any Group Company owes an obligation of confidence to a third party (including, without  limitation, customers, clients, suppliers, partners, joint venturers and professional advisors of any Group Company); and

 

(h)                                             other commercial, financial or technical information relating to the business or prospective business of any Group Company or to any past, current or prospective client, customer, supplier, licensee, officer or employee, agent of any Group Company or any member or person interested in the share capital or assets of any Group Company and any other person to whom any Group Company may provide or from whom they may receive information (whether marked confidential or not).

 

Corporate Governance Policy                                                          means the Parent Company’s Corporate Governance Policy, as amended prior to the Effective Time.

 

Effective Time                                                                                                                                               has the meaning given in the Transaction Agreement.

 

End Date                                                                                                                                                                                has the meaning given in the Transaction Agreement (and as that date may be extended in accordance with that agreement).

 

Garden Leave                                                                                                                                                   any period during which the Board has exercised its rights under clause 19.

 

Good Reason                                                                                                                                                         the occurrence of any of the following events (without the Employee’s express written consent) arising during the Appointment: (i) a material reduction in the Employee’s base salary or a material reduction in the aggregate overall compensation opportunity available to Employee, (ii) a material diminution in the Employee’s authority, duties or 

 

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responsibilities, (iii) a permanent relocation in the geographic location at which the Employee must perform services to a location outside the London Metropolitan Area, or (iv) any other action or inaction that constitutes a material breach by the  Company of its obligations under this Agreement.  In the case of the Employee’s allegation of Good Reason, (A) the Employee shall provide notice to the Board of the event alleged to constitute Good Reason within ninety (90) days of the occurrence of such event, and (B) the Company shall have the opportunity to remedy the alleged Good Reason event within thirty (30) days from receipt of notice of such allegation.  If the Company does not cure the circumstance giving rise to Good Reason to the Employee’s reasonable satisfaction, the Employee must terminate his employment with the Company within thirty (30) days following the end of the thirty (30) day cure period described in clause (B) above in order for his termination to be considered a termination for Good Reason.

 

Group Company                                                                                                                                     the Company, its Subsidiaries or Holding Companies from time to time and any Subsidiary of any Holding Company from time to time.

 

Incapacity                                                                                                                                                                        any sickness, injury or other medical disorder or condition which prevents the Employee from carrying out his duties.

 

Intellectual Property Rights                                                                       patents, rights to Inventions, copyright and related rights, trademarks, trade names and domain names, rights in get-up, rights in goodwill or to sue for passing off, unfair competition rights, rights in designs, rights in computer software, database rights, topography rights, rights in confidential information (including know-how and trade secrets) and any other intellectual property rights, in each case whether registered or unregistered and including all 

 

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applications (or rights to apply) for, and renewals or extensions of, such rights and all similar or equivalent rights or forms of protection which subsist or will subsist now or in the future in any part of the world.

 

Invention                                                                                                                                                                              any invention, idea, discovery, development, improvement or innovation, whether or not patentable or capable of registration, and whether or not recorded in any medium.

 

Long-Term Incentive Plans                                                                         means the Parent Company’s 2012 Long-Term Incentive Plan and/or the Parent Company’s 2018 Long-Term Incentive Plan.

 

Parent Company                                                                                                                                    means Ensco plc, a company incorporated and registered in England and Wales with company number 07023598 (or any other such name by which the entity is known from time to time).

 

Pre-Contractual Statement                                                                             any undertaking, promise, assurance, statement, representation, warranty or understanding (whether in writing or not) of any person (whether party to this Agreement or not) relating to the Employee’s employment under this Agreement which is not expressly set out in this Agreement.

 

Restricted Area                                                                                                                                            the Gulf of Mexico, the Santos, Campos and Espirito Santo basins off the coast of Brazil, the North Sea, the Arabian Gulf, and Kwanza and Lower Congo Basins off the coast of Angola, and any additional territory where the Group Company operates or is planning to commence operations as of the Termination Date.

 

Restricted Business                                                                                                                        (i) the business of offshore drilling rig contracting and associated activities carried out by any Group Company and with which the Employee was involved to a material extent or for which he was 

 

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responsible at any time in the 12 months before the Termination Date; and (ii) any other parts of the business of any Group Company with which the Employee was involved to a material extent or for which he was  responsible at any time in the 12 months before the Termination Date.

 

Restricted Customer                                                                                                                 any firm, company or person who, at any time during the 12 months before the Termination Date, was a customer or prospective customer of or was in the habit of dealing with any Group Company and with whom the Employee had material contact or about whom he became aware or informed in the course of employment.

 

Restricted Person                                                                                                                                 anyone employed or engaged (including as a consultant or independent contractor) by any Group Company with whom the Employee dealt at any time in the 12 months before the Termination Date in the course of employment and who (i) has regular and significant contact with any customers or suppliers of any Group Company, (ii) is engaged in senior capacity, (iii) is paid a base annual salary or fee of £75,000 (or equivalent in foreign currency) or more, or (iv) could materially damage the interests of any Group Company if they were involved in any Capacity in any business concern which competes with any Restricted Business.

 

RSU Award                                                                                                                                                                  means a Restricted Share Unit award granted under any of the Long-Term Incentive Plans.

 

Share                                                                                                                                                                                                   means shares in the capital of the Parent Company.

 

Subsidiary / Holding Company                                                     in relation to a company mean “subsidiary” and “holding company” as defined in section 1159 of the Companies Act 2006.

 

Term                                                                                                                                                                                                    has the meaning given in clause 2.2.

 

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Termination Date                                                                                                                               the date of termination of the Employee’s employment with the Company, however caused.

 

Transaction Agreement                                                                                              means the transaction agreement between Ensco plc and Rowan Companies plc dated  as of October 7, 2018 relating to the acquisition of Rowan Companies plc ordinary shares by Ensco plc on the terms and subject to the conditions set out in that agreement.

 

1.2                               The headings in this Agreement are inserted for convenience only and shall not affect its construction.

 

1.3                               A reference to a particular law is a reference to it as it is in force for the time being taking account of any amendment, extension, or re-enactment and includes any subordinate legislation for the time being in force made under it.

 

1.4                               Unless the context otherwise requires, a reference to one gender shall include a reference to the other gender.

 

1.5                               Unless the context otherwise requires, words in the singular include the plural and in the plural include the singular.

 

2.                                      TERM OF APPOINTMENT

 

2.1                               This Agreement and the Employee’s appointment as Chairman shall be wholly conditional upon Closing. In the event that Closing does not occur or proceed for whatever reason by the End Date, the parties agree that this Agreement shall cease to have effect and be automatically null and void, and the Employee’s Employment Agreement dated March 3 2014 (the “Prior Agreement”) as in force prior to the Effective Time will continue to apply.

 

2.2                               The Appointment shall commence on the Commencement Date and shall continue, subject to the remaining terms of this Agreement, until it terminates on the expiry of 18 months (the “Term”) without the need for notice unless earlier terminated by either party giving the other not less than thirty (30) days’ prior notice in writing.

 

2.3                               No employment with a previous employer counts towards the Employee’s period of continuous employment with the Company.

 

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2.4                               The Employee consents to the transfer of his employment under this Agreement to a Group Company at any time during the Appointment provided that his terms and conditions of employment shall remain the same, and provided also that his role and status within the Company and any Group Company shall be commensurate with his current role and status.

 

3.                                      EMPLOYEE WARRANTIES

 

3.1                               The Employee represents and warrants to the Company that, by entering into this Agreement or performing any of his obligations under it, he will not be in breach of any court order or any express or implied terms of any contract or other obligation binding on him (including, without limitation, any obligation or restriction on the Employee with respect to any prior employment) and undertakes to indemnify each Group Company against any claims, costs, damages, liabilities or expenses which any Group Company may incur as a result if he is in breach of any such obligations or restrictions.

 

3.2                               The Employee warrants that he is entitled to work in the United Kingdom without any additional approvals and will notify the Company immediately if he ceases to be so entitled during the Appointment.

 

3.3                               The Employee warrants that he is not subject to any restrictions which prevent him from holding office as a director.

 

3.4                               The Employee represents and warrants that his execution of this Agreement shall not give right to any severance benefits or otherwise under the Prior Agreement.

 

4.                                      DUTIES

 

4.1                               The Employee shall serve as the Executive Chairman of the Parent Company.

 

4.2                               During the Appointment the Employee shall:

 

(a)                       comply with the provisions of the Corporate Governance Policy;

 

(b)                       act as a member of the Board and, if so required by the Board,  act as a member of the board of directors of other Group Companies, in each case subject to the Employee’s nomination and election (and annual re-election) to the Board or other boards of directors, as applicable;

 

(c)                        carry out duties on behalf of any other Group Company including, if so required by the Board, acting as an officer or consultant of any such Group Company;

 

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(d)                       comply with the articles of association (as amended from time to time) of any Group Company of which he is a director;

 

(e)                        abide by any statutory, fiduciary or common-law duties to any Group Company of which he is a director;

 

(f)                         not do anything that would cause him to be disqualified from acting as a director;

 

(g)                        comply with all requirements, recommendations or regulations, as amended from time to time, of all regulatory authorities relevant to any Group Company and any code of practice issued by the Company (as amended from time to time) relating to dealing in the securities of any Group Company;

 

(h)                       comply with the requirements under both legislation and regulation as to the disclosure of inside information, insider dealing and market abuse;

 

(i)                           comply with the Company’s anti-corruption and bribery policy and related procedures and conduct the services to be provided by the Employee hereunder in strict compliance with the Bribery Act 2010, the U.S. Foreign Corrupt Practices Act of 1977 and any other law, regulation, order, decree or directive of any jurisdiction relevant to any Group Company or any of their affiliates having the force of law and relating to, without limitation, bribery, kickbacks, or similar business practices;

 

(j)                          comply with the Ensco plc Code of Business Conduct, as amended from time to time;

 

(k)                       unless prevented by Incapacity or as agreed in writing by the Board, devote the whole of his time, attention and abilities to the business of the Company and any Group Company of which he is an officer or consultant;

 

(l)                           faithfully and diligently exercise such powers and perform such duties as may from time to time be assigned to him by the Board together with such person or persons as the Board may appoint to act jointly with him;

 

(m)                   comply with all reasonable and lawful directions given to him by the Board;

 

(n)                       promptly make such reports to the Board in connection with the affairs of any Group Company on such matters and at such times as are reasonably required;

 

(o)                       report his own wrongdoing and any wrongdoing or proposed wrongdoing of any other employee or director of any Group Company to the Board immediately on becoming aware of it;

 

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(p)                       use his best endeavours to promote, protect, develop and extend the business of the Company and the other Group Companies;

 

(q)                       consent to the Company monitoring and recording any use that he makes of the Company’s electronic communications systems for the purpose of ensuring that the Company’s rules are being complied with and for legitimate business purposes; and

 

(r)                          comply with any electronic communication systems policy that the Company may issue from time to time.

 

4.3                               The Employee shall comply with all Company Policies. The Company Policies do not form part of this Agreement and the Company may amend them at any time. To the extent that there is any conflict between the terms of this Agreement and any Company Policy, this Agreement shall prevail.

 

4.4                               All documents, manuals, hardware and software provided for the Employee’s use by the Company, and any data or documents (including copies) produced, maintained or stored on the Company’s computer systems or other electronic equipment (including mobile phones), remain the property of the Company.

 

5.                                      PLACE OF WORK

 

5.1                               Unless otherwise agreed by the parties, the Employee’s normal place of work is the Parent Company’s headquarters at 6 Chesterfield Gardens, 3rd Floor, London, United Kingdom, W1J 5BQ or such other place within the London Metropolitan Area as the Parent Company may establish as its corporate headquarters from time to time.

 

5.2                               The Employee agrees to travel on any Group Company’s business (both within the United Kingdom or abroad) as may be required for the proper performance of his duties under the Appointment.  The Employee acknowledges and agrees that extensive and regular international travel will be required in the performance of his duties.  The Employees’ business travel shall be undertaken in accordance with the Company’s travel reimbursement policy in effect from time to time, which, as of the Commencement Date, provides for the Chairman to travel business class both within the United Kingdom and when travelling internationally, or first class (if available) when travelling internationally for over three hours.

 

6.                                      HOURS OF WORK

 

The hours of work of the Employee are not fixed but are such normal working hours of the Company and such additional hours as may be necessary to 

 

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enable him properly to discharge his duties and services.  For information, the normal working hours of the Company are 9 a.m. to 6 p.m. Monday to Friday but it is recognised that normal working hours do not apply to this position.  The Employee will not be entitled to any additional pay for any overtime worked.

 

7.                                      SALARY

 

7.1                               The Employee shall be paid an initial base salary of £450,000 (four hundred and fifty thousand Great British Pounds) per annum (inclusive of any fees due to the Employee by any Group Company as a director or officer of any Group Company).

 

7.2                               The Employee’s salary shall accrue from day to day and be payable monthly in arrears on or before the end of each month directly into the Employee’s bank or building society.

 

7.3                               The Employee’s salary shall be reviewed by the Board annually, the first such review to take place not less than 12 months following the Commencement Date. In the event that there is a material change to UK income taxes rules a salary review shall be triggered (although the Company shall be under no obligation to increase the Employee’s salary).  The Company is under no obligation to award an increase following a salary review. There will be no review of the salary after notice has been given by either party to terminate the Appointment.

 

7.4                               The Company may deduct from the salary, or any other sums owed to the Employee, any money owed to any Group Company by the Employee.

 

8.                                      EXPENSES

 

8.1                               The Company shall reimburse (or procure the reimbursement of) all reasonable expenses wholly, properly and necessarily incurred by the Employee in the course of the Appointment, subject to production of VAT receipts or other appropriate evidence of payment.

 

8.2                               The Employee shall abide by the Company’s policies on expenses as set out in Company Policies from time to time.

 

8.3                               Any credit card supplied to the Employee by the Company shall be used only for expenses properly incurred by him in the course of the Appointment in accordance with the Company’s policies in effect from time to time.

 

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9.                                      INCENTIVE PLAN

 

9.1                               The Employee shall be eligible to participate in the Ensco International Incorporated 2018 Cash Incentive Plan (the “ECIP”), subject to the terms of the ECIP as may be amended from time to time.  The Employee’s threshold, target and maximum level of bonus opportunity under the ECIP will be equal to 55%, 110% and 220%, respectively, of the Employee’s base salary actually earned by the Employee. For the year in which the Commencement Date occurs any bonus will be apportioned between base salary actually earned by the Employee as Chief Executive Officer and base salary actually earned by the Employee as Chairman. The Board may, in its sole discretion, increase or decrease the Employee’s bonus opportunity levels.  The actual amount paid to the Employee  under the ECIP each year, if any, will be calculated based on the level of achievement of the performance goals established by the Company under the ECIP for the year in question and the terms of the ECIP, and will be subject to time pro-rating where the Employee is not employed by the Company for the whole of the year.

 

9.2                               Save as expressly provided in this Agreement, the terms and conditions of the Long-Term Incentive Plans remain in full force and effect.

 

9.3                               The Employee’s 2016 performance unit awards under the Parent Company’s 2012 Long-Term Incentive Plan shall vest prior to Closing. As a consequence of the Employee’s loss of office as President and Chief Executive Officer of the Parent Company, the Employee agrees to waive with effect from the Commencement Date his 2017, 2018 and 2019 (if any) unvested cash performance unit awards and his 2019 (if any) unvested RSU Awards granted under the Long-Term Incentive Plans in exchange for payment of $5,000,000 (five million United States Dollars) (less income tax and National Insurance contributions) by way of compensation which shall be payable after Closing.

 

9.4                               The Employee’s 2016, 2017 and 2018 unvested RSU Awards will continue and will vest in full on expiry of the Term subject to and in accordance with the rules of the Long-Term Incentive Plans and subject to clause 20.4, 20.5 and 20.6.

 

9.5                               Any bonus payments shall not be pensionable.

 

10.                               BENEFITS

 

10.1                        The Employee agrees and acknowledges that he is not eligible to participate in, or receive benefits under, the Ensco Savings Plan, including the employer matching and profit sharing provisions thereunder, or the 2005 Supplemental 

 

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Executive Retirement Plan (the “US Retirement Plans”).  During the Appointment the Employee shall be eligible to receive cash payments (the “Cash Payments”) equal to the cash amounts that would have been contributed by the Company on the Employee’s behalf to the US Retirement Plans had the Employee participated in such US Retirement Plans (assuming, for purposes of the calculation of the value of the company matching benefit, that the Employee deferred the maximum amount possible under the plan and the United States Internal Revenue Code and received the corresponding company matching benefit).  Such Cash Payments shall be made to the Employee on the first regular payroll date following each date on which the equivalent contributions would have been made or accrued by the Company to the US Retirement Plans had the Employee participated in the US Retirement Plans as of such date during the Appointment.  The Cash Payments shall be subject to all applicable deductions and withholding for income tax and National Insurance Contributions.  The  Employee shall be solely responsible for the payment of any additional taxes or other withholding liabilities arising out of the Cash Payments.  In the event that there is a significant change to UK pension rules which would enable the Employee to make payments into the Ensco Limited Retirement Plan, this clause shall be subject to further review by the parties. The Company will comply with its obligations in respect of relevant UK pension legislation.

 

10.2                        The Employee shall be eligible to participate in the same benefit plans and programs in which other executive non-expatriate Company employees who are based in the United Kingdom are eligible to participate, subject to the terms, conditions and limitations of the applicable plans and programs in effect from time to time and any applicable HM Revenue & Customs limits and other limits or restrictions under applicable law.  The provision of any benefits shall not prevent the Company from terminating the Employee’s employment at any time.

 

10.3                        The Company in its sole and absolute discretion reserves the right to discontinue, vary or amend any benefits plans and programs (including the level of the Employee’s cover) at any time on reasonable notice to the Employee, provided that, subject to clauses 10.2 and 10.4, they are replaced with benefits providing a level of cover to the Employee (and, to the extent applicable, to his spouse, dependents and beneficiaries) equal to those provided to other executive non-expatriate Company employees who are based in the United Kingdom.

 

10.4                        Any insured benefit shall be subject to the Employee or, to the extent applicable, the Employee’s spouse, dependants and beneficiaries, satisfying the normal underwriting requirements of the relevant insurance provider and the premium being at a rate which the Board considers reasonable.  If an 

 

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insurance provider refuses for any reason to provide any insurance benefit to the Employee, the Company shall not be liable to provide to the Employee any replacement benefit of the same or similar kind or to pay any compensation in lieu of such benefit.  The Company’s sole obligation in respect of insured benefits is to pay the premium from time to time required by the provider and to pay to the Employee such sums (if any) as may be received by the Company from the provider in respect of any claim made by the Employee under the scheme and, for the avoidance of doubt, the Company shall be under no obligation to take any action to enforce the terms of any insurance or otherwise to procure the benefit of any insurance for the Employee.

 

10.5                        The Employee will continue to receive private medical insurance on the terms applicable to him prior to the Termination Date until the expiry of 24 months following the Termination Date or, if earlier, the date the Employee commences alternative employment which provides such benefits. The provision of benefits under this clause shall only apply if and to the extent that such benefits are provided to employees of the Company for that period, subject always to the  terms of the applicable scheme and of any related policy of insurance as in force from time to time. The Company gives no warranty as to the continued existence or extent of such benefits.

 

11.                               HOLIDAYS

 

11.1                        The Employee shall be entitled to paid holiday in accordance with the Company’s holiday policy in effect from time to time, but in any event the Employee shall be entitled to not less than 28 days’ paid holiday in each holiday year in addition to the usual public holidays in England. The Company’s holiday year runs between 1 January and 31 December. If the Appointment commences or terminates part way through a holiday year, the Employee’s entitlement during that holiday year shall be calculated on a pro-rata basis rounded up to the nearest whole day.

 

11.2                        Holiday may be taken at such time or times as the Employee may determine in his reasonable discretion taking into account the business needs of the Company, provided that any holiday during which the Employee will be materially incommunicado shall be subject to the prior approval of the Board.  The Employee may carry forward up to 5 days accrued but untaken holiday to the subsequent holiday year.  The Employee may not without the written consent of the Board carry forward more than 5 days holiday and any accrued but untaken holiday in excess of this at the end of each year shall be forfeited without compensation.

 

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11.3                        The Employee shall have no entitlement to any payment in lieu of accrued but untaken holiday except on termination of the Appointment. Subject to clause 11.4 the amount of such payment in lieu shall be 1/260th of the Employee’s salary for each untaken day of the entitlement under clause 11.1 for the holiday year in which termination takes place and any untaken days carried forward from the preceding holiday year.

 

11.4                        If the Company has terminated or would be entitled to terminate the Appointment under clause 18.1(a) to (l) or if the Employee has terminated the Appointment in breach of this Agreement any payment due under clause 11.3 shall be limited to the Employee’s statutory entitlement under the Working Time Regulations 1998 and any paid holidays (including paid public holidays) taken shall be deemed first to have been taken in satisfaction of that statutory entitlement.

 

11.5                        If on termination of the Appointment the Employee has taken in excess of his accrued holiday entitlement, the Company shall be entitled to recover from the Employee by way of deduction from any payments due to the Employee or otherwise one day’s pay calculated at 1/260th of the Employee’s salary for each excess day.

 

11.6                        If either party has served notice to terminate the Appointment, the Board may require the Employee to take any accrued but unused holiday entitlement during the notice period. Any accrued but unused holiday entitlement shall be deemed to be taken during any period of Garden Leave under clause 19.

 

11.7                        During any continuous period of absence due to Incapacity of one month or more the Employee shall not accrue holiday under this contract and the Employee’s entitlement under clause 11.1 for the holiday year in which such absence takes place shall be reduced pro rata save that it shall not fall below the Employee’s entitlement under the Working Time Regulations 1998.

 

12.                               INCAPACITY

 

12.1                        Subject to the Employee’s compliance with this Agreement and the Company’s sickness absence procedures (as amended from time to time), the Employee shall continue to receive his full salary and contractual benefits during any period of absence due to Incapacity for up to an aggregate of 12 weeks in any 52-week period. Such payment shall be inclusive of any statutory sick pay due in accordance with applicable legislation.

 

12.2                        With respect to any medical condition or suspected medical condition that the Board believes has, or will have, an impact on the Employee’s ability to 

 

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perform his duties hereunder, the Employee agrees to consent to medical examinations (at the Company’s expense) by a doctor nominated by the Company. The Employee agrees that any report produced in connection with any such examination may be disclosed to relevant personnel within the Company who shall treat it as extremely confidential and not discuss it with anyone outside the Company save that the Company may discuss the contents of the report with the relevant doctor and any relevant legal advisor.

 

12.3                        If the Incapacity is or appears to be occasioned by actionable negligence, nuisance or breach of any statutory duty on the part of a third party in respect of which damages are or may be recoverable, the Employee shall immediately notify the Board of that fact and of any claim, compromise, settlement or judgment made or awarded in connection with it and all relevant particulars that the Board may reasonably require. The Employee shall if required by the Board, refund to the Company that part of any damages or compensation recovered by him relating to the loss of earnings for the period of the Incapacity as the Board may reasonably determine less any costs borne by him in connection with the recovery of such damages or compensation, provided that the amount to be refunded shall not exceed the total amount paid to the Employee by the Company in respect of the period of Incapacity.

 

12.4                        The rights of the Company to terminate the Appointment under the terms of this Agreement apply even when such termination would or might cause the  Employee to forfeit any entitlement to sick pay, permanent health insurance or other benefits.

 

13.                               OUTSIDE INTERESTS

 

13.1                        Subject to clause 13.2, during the Appointment the Employee shall not, except as a representative of the Company or with the prior written approval of the Board, whether paid or unpaid, be directly or indirectly engaged, concerned or have any financial interest in any Capacity in any other business, trade, profession or occupation (or the setting up of any business, trade, profession or occupation), save that this clause shall not apply to any family business (being a business owned or managed by a member of his immediate family), provided that: (i) the Employee has no management responsibility in such business; (ii) that the business is not similar to or competitive with any business for the time being carried on by any Group Company; and (iii) that the Employee’s engagement, concern or interest in any family business shall not affect the performance of his duties and obligations under this Agreement.

 

13.2                        Notwithstanding clause 13.1, the Employee may hold an investment by way of shares or other securities of not more than one percent (1%) of the total issued 

 

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share capital of any company (whether or not it is listed or dealt in on a recognised stock exchange) where such company does not carry on a business similar to or competitive with any business for the time being carried on by any Group Company.  The Employee may continue to hold his existing non-executive directorship in Ophir Energy Plc (company number 05047425). Subject to the Ensco plc Code of Business Conduct, as amended from time to time, the Employee may also hold a non-executive directorship in a company which does not carry on a business similar to or competitive with any business being carried on by any Group Company, provided that the Board consents to any such position, such consent not to be unreasonably withheld, and that such non-executive directorship does not affect the performance of the Employee’s duties and obligations under this Agreement.

 

14.                               CONFIDENTIAL INFORMATION

 

14.1                        The Employee acknowledges that in the course of the Appointment he will have access to Confidential Information. The Employee has therefore agreed to accept the restrictions in this clause 14.

 

14.2                        The Employee shall not (except in the proper course of his duties), either during the Appointment or at any time after its termination (however arising), use or disclose to any person, company or other organisation whatsoever (and shall use his best endeavours to prevent the publication or disclosure of) any Confidential Information. This shall not apply to:

 

(a)                       any use or disclosure authorised by the Board or required by law or regulatory requirements;

 

(b)                       any information which is already in, or comes into, the public domain other than through the Employee’s unauthorised disclosure;

 

(c)                        any protected disclosure within the meaning of section 43A of the Employment Rights Act 1996. For the avoidance of doubt and as a non-exhaustive summary only, a disclosure is protected for these purposes if:

 

(i)                          the Employee has a reasonable belief that the disclosure is made in the public interest and the relevant information disclosed indicates there is, has been, or is likely to be, a criminal offence, a breach of a legal obligation, a miscarriage of justice, danger to the health and safety of an individual or damage to the environment — or that any such matter has been or is likely to be deliberately concealed; and

 

(ii)                       the disclosure is made to an appropriate body, including but not limited to a regulator or legal adviser; or

 

(d)                       any information which is part of the Employee’s general skill and knowledge prior to the Commencement Date.

 

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15.                               INTELLECTUAL PROPERTY

 

15.1                        The Employee shall give the Company full written details of all Inventions and of all works embodying Intellectual Property Rights made wholly or partially by him at any time during the course of the Appointment which relate to, or are reasonably capable of being used in, the business of any Group Company. The Employee acknowledges that all Intellectual Property Rights subsisting (or which may in the future subsist) in all such Inventions and works shall automatically, on creation, vest in the Company absolutely. To the extent that they do not vest automatically, the Employee holds them on trust for the Company. The Employee agrees promptly to execute all documents and do all acts as may, in the opinion of the Company, be necessary to give effect to this clause 15.1.

 

15.2                        The Employee hereby irrevocably waives all moral rights under the Copyright, Designs and Patents Act 1988 (and all similar rights in other jurisdictions) which he has or will have in any existing or future works referred to in clause 15.1.

 

15.3                        The Employee irrevocably appoints the Company to be his attorney in his name and on his behalf to execute documents, use the Employee’s name and do all things which are necessary or desirable for the Company to obtain for itself or its nominee the full benefit of this clause.  A certificate in writing, signed by any director or the secretary of the Company, that any instrument or act falls  within the authority conferred by this Agreement shall be conclusive evidence that such is the case so far as any third party is concerned.

 

16.                               CEASING TO BE A DIRECTOR

 

16.1                        Except with the prior approval of the Board, or as provided in the articles of association of any Group Company of which he is a director, the Employee shall not resign as a director of any Group Company.

 

16.2                        If during the Appointment the Employee ceases to be a director of any Group Company (otherwise than by reason of his death, resignation or disqualification pursuant to the articles of association of the relevant Group Company, as amended from time to time, or by statute or court order) the Appointment shall continue with the Employee as an employee only and the terms of this Agreement (other than those relating to the holding of the office of director) shall continue in full force and effect. The Employee shall have no claims in respect of such cessation of office.

 

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16.3                        The Employee shall, with respect to any period during which he is a member of the Board (and, to the extent coverage is available at commercially reasonable costs, for six years thereafter), be entitled to be covered by a policy of directors’ and officers’ liability insurance on terms no less favourable than those in place from time to time for other members of the Board.

 

17.                               PAYMENT IN LIEU OF NOTICE

 

17.1                        Notwithstanding clause 2, the Company may, in its sole and absolute discretion, terminate the Appointment at any time and with immediate effect by notifying the Employee that the Company is exercising its right under this clause 17.1 and that it will make within 28 days a payment in lieu of notice (the “Payment in Lieu”) to the Employee. This Payment in Lieu will be equal to the basic salary (as at the Termination Date) which the Employee would have been entitled to receive under this Agreement during the notice period referred to at clause 2 (or, if notice has already been given, during the remainder of the notice period), less income tax and National Insurance contributions. For the avoidance of doubt, the Payment in Lieu shall not include any element in relation to:

 

(a)                       any ECIP, bonus or commission payments that might otherwise have been due during the period for which the Payment in Lieu is made;

 

(b)                       any payment in respect of benefits which the Employee would have been entitled to receive during the period for which the Payment in Lieu is made; and

 

(c)                        any payment in respect of any holiday entitlement that would have accrued during the period for which the Payment in Lieu is made.

 

17.2                        The Employee shall have no right to receive a Payment in Lieu unless the Company has exercised its discretion in clause 17.1. Nothing in this clause 17 shall prevent the Company from terminating the Appointment in breach.

 

17.3                        Notwithstanding clause 17.1 the Employee shall not be entitled to any Payment in Lieu if the Company would otherwise have been entitled to terminate the Appointment without notice in accordance with clause 18.1(a) to (l). In that case the Company shall also be entitled to recover from the Employee any Payment in Lieu (or instalments thereof) already made.

 

18.                               TERMINATION WITHOUT NOTICE

 

18.1                        The Company may also terminate the Appointment with immediate effect without notice and with no liability to make any further payment to the 

 

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Employee (other than in respect of amounts accrued due at the Termination Date) if the Employee:

 

(a)                       is disqualified from acting as a director or resigns as a director from any Group Company without the prior written approval of the Board;

 

(b)                       is guilty of a material breach of the rules or regulations as amended from time to time of any regulatory authorities relevant to any Group Company or any code of practice issued by the Company (as amended from time to time);

 

(c)                        is guilty of any gross negligence or serious misconduct affecting the business of any Group Company or wilfully breached a fiduciary duty to any Group Company;

 

(d)                       commits any serious or repeated breach or non-observance of any of the material provisions of this Agreement or refuses or neglects to comply with any reasonable and lawful directions of the Board, in each case having been given a 30 day period within which to remedy the breach (where such breach is capable of remedy), and having failed to do so to the reasonable satisfaction of the Board;

 

(e)                        is declared bankrupt or makes any arrangement with or for the benefit of his creditors or has a county court administration order made against him under the County Court Act 1984;

 

(f)                         is convicted of any criminal offence (other than an offence under any road traffic legislation in the United Kingdom or elsewhere for which a fine or non-custodial penalty is imposed) or any offence under any regulation or legislation relating to insider dealing or market abuse;

 

(g)                        ceases to be eligible to work in the United Kingdom;

 

(h)                       is guilty of any fraud or dishonesty;

 

(i)                           acts in any manner which in the reasonable opinion of the Board brings or is likely to bring the Employee or any Group Company materially into disrepute or is materially adverse to the interests of any Group Company;

 

(j)                          is in breach of the Bribery Act 2010, the U.S. Foreign Corrupt Practices Act of 1977 or the Company’s anti-corruption and bribery policy and related procedures in effect from time to time;

 

(k)                       any material violation of the Ensco plc Code of Business Conduct, as amended from time to time;

 

(l)                           is guilty of a serious breach of any rules or policies issued by the Company from time to time, including its electronic communications systems polices, policies relating to a drug and alcohol free workplace, and policies relating to harassment, discrimination and retaliation;

 

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(m)                   becomes of unsound mind (which includes lacking capacity under the Mental Capacity Act 2005), or a patient under any statute relating to mental health; or

 

(n)                       is unable by reason of Incapacity to perform his duties under this Agreement for an aggregate period of 12 weeks in any 52-week period.

 

18.2                        The rights of the Company under clause 18.1 are without prejudice to any other rights that it might have at law to terminate the Appointment or to accept any breach of this Agreement by the Employee as having brought the agreement to an end. Any delay by the Company in exercising its rights to terminate shall not constitute a waiver thereof.

 

19.                               GARDEN LEAVE

 

19.1                        Following service of notice to terminate the Appointment by either party, or if the Employee purports to terminate the Appointment in breach of contract, the Board may by written notice place the Employee on Garden Leave for a maximum period of up to 6 months.

 

19.2                        During any period of Garden Leave:

 

(a)                       the Company shall be under no obligation to provide any work to the Employee and may revoke any powers the Employee holds on behalf of the Company or any Group Company;

 

(b)                       the Company may require the Employee to carry out alternative duties or to only perform such specific duties as are expressly assigned to the Employee, at such location (including the Employee’s home) as the Company may decide, provided always that any such alternate duties are commensurate with the Employee’s current role and status;

 

(c)                        the Employee shall be entitled to receive an amount equal to his basic salary together with all contractual benefits (including any payments in relation to his ECIP) in the usual way and subject to the terms of any benefit arrangement;

 

(d)                       the Employee shall remain an employee of the Company and bound by the terms of this Agreement (including any implied duties of good faith and fidelity);

 

(e)                        the Employee shall ensure that the Board knows where he will be and how he can be contacted during each working day (except during any periods taken as holiday in the usual way);

 

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(f)                         the Company may exclude the Employee from any premises of the Company or any Group Company; and

 

(g)                        the Company may require the Employee not to contact or deal with (or attempt to contact or deal with) any officer, employee, consultant, client, customer, supplier, agent, distributor, shareholder, adviser or other business contact of the Company or any Group Company, save that he may contact any such person in a purely personal capacity on matters unrelated to any Group Company or any business conducted by any Group Company.

 

20.                               SEVERANCE PAYMENT

 

20.1                        Subject to clauses 20.3 to 20.6 (inclusive), the Company shall, within 14 days following the expiry of the Term, pay to the Employee a lump sum severance payment equal to the aggregate of (i) £2,000,000 (two million Great British Pounds) plus (ii) an additional amount to be determined by the Company up to a maximum of £3,000,000 (three million Great British Pounds) based on achievement of synergy targets to be agreed with the Board (less income tax and National Insurance contributions)(the “Severance Payment”).

 

20.2                        The Severance Payment is payable in addition to the Employee’s entitlements under the Long-Term Incentive Plans.

 

20.3                        Notwithstanding clause 20.1, if within 6 months following the Termination Date the Board becomes aware of facts that would otherwise reasonably have entitled the Company to terminate the Appointment in accordance with clause 18.1(a) to (l), the Company shall , at the Board’s sole discretion, recover from the Employee the Severance Payment.

 

20.4                        If at any time during the Appointment the Employee’s employment is terminated by the Company for any reason other than one of the reasons specified in clause 18.1(a) to (l) then:

 

(a)                       the Employee shall be entitled to payment in respect of salary that would otherwise have been due and payable under clause 7 in respect of the period from the Termination Date to the end of the Term (such payment to be made within 14 days of the Termination Date);

 

(b)                       any unvested RSU Awards will vest in full on the Termination Date;

 

(c)                        the Employee shall be entitled to payment of ECIP award for the period(s) up to the end of the Term based on the achievement of the performance goals established by the Company under the ECIP for the year(s) in question and the terms of the ECIP. ECIP shall be paid to the Employee at the same time and on the same basis as for all other eligible employees; and

 

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(d)                       to the extent not previously paid pursuant to clause 20.1 or otherwise, the maximum Severance Payment of £5,000,000 (five million Great British Pounds) (less income tax and National Insurance contributions) will be paid to the Employee within 14 days of the Termination Date.

 

20.5                        If at any time during the Appointment the Employee resigns other than for Good Reason or if the Employee’s employment is terminated by the Company for one of the reasons specified in clause 18.1(a) to (l) then no such further sums shall be payable under this Agreement and all unvested RSU Awards will be forfeited.

 

20.6                        In the event of the Employee’s death at any time during the Appointment or if the Appointment ends as a consequence of permanent disability or incapacity (date of death or of termination of employment being the “Event Date”), the Company shall: (A) in the case of death, make payment in respect of the following sums to the Employee’s personal representatives within 14 days of the later of (i) the Event Date or (ii) the date on which the Company has been provided with the details of the Employee’s personal representatives following the Event Date (save in the case of any sum under clause 20.6(c) which shall be paid at the same time and on the same basis as for all other eligible employees); or (B) if the Appointment ends as a consequence of permanent disability or incapacity, make payment of the following sums to the Employee within 14 days of the Event Date (save in the case of any sum under clause 20.6(c) which shall be paid at the same time and on the same basis as for all other eligible employees):

 

(a)                       an amount in respect of salary that would otherwise have been due and payable to the Employee under clause 7 in respect of the period from the Event Date to the end of the Term;

 

(b)                       the maximum Severance Payment of £5,000,000 (five million Great British Pounds) (less income tax and National Insurance contributions); and

 

(c)                        payment of ECIP award for the period(s) up to the end of the Term based on the achievement of the performance goals established by the Company under the ECIP for the year(s) in question and the terms of the ECIP. For the avoidance of doubt, ECIP shall be paid at the same time and on the same basis as for all other eligible employees and not within 14 days of the Event Date.

 

Any unvested RSU Awards will vest in full on the Event Date.

 

21.                               OBLIGATIONS ON TERMINATION

 

21.1                        On termination of the Appointment (however arising) or, if earlier, at the start of a period of Garden Leave, the Employee shall:

 

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(a)                       resign immediately without compensation from any directorship, office or trusteeship that he holds in or on behalf of any Group Company;

 

(b)                       subject to clause 21.2, immediately deliver to the Company all documents, books, materials, records, correspondence, papers and information (on whatever media and wherever located) relating to the business or affairs of any Group Company or its business contacts, any keys, credit card and any other property of any Group Company, which is in his possession or under his control;

 

(c)                        irretrievably delete any information relating to the business of any Group Company stored on any magnetic or optical disk or memory and all matter derived from such sources which is in his possession or under his control outside the Company’s premises; and

 

(d)                       provide a signed statement that he has complied fully with his obligations under this clause 21.1 together with such reasonable evidence of compliance as the Company may request.

 

21.2                        Where the Employee has been placed on Garden Leave he shall not be required by clause 21.1 to return until the end of the Garden Leave period any property provided to him as a contractual benefit for use during the Appointment.

 

21.3                        The Employee hereby irrevocably appoints the Company to be his attorney to execute and do any such instrument or thing and generally to use his name for the purpose of giving the Company or its nominee the full benefit of clause 21.1(a).

 

21.4                        Save as otherwise set out in this Agreement or as set out under the rules of the Long-Term Incentive Plans, a termination of the Appointment however arising the Employee shall not be entitled to any compensation for the loss of any rights or benefits under any share option, bonus, ECIP, long-term incentive plan or other profit sharing scheme operated by any Group Company in which he may participate.

 

21.5                        Notwithstanding anything to the contrary contained herein, the Employee shall be required to execute and not revoke a general release of claims in a form reasonably prescribed by the Company to receive the Severance Payment and the other benefits described in clause 20.4.

 

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22.                               POST-TERMINATION RESTRICTIONS

 

22.1                        In order to protect the Confidential Information and business connections of the Company and each Group Company to which he has access as a result of the Appointment, the Employee covenants with the Company (for itself and as trustee and agent for each Group Company) that he shall not at any time during the 12 month period after the Termination Date:

 

(a)                       solicit or endeavour to entice away from the Company or any Group Company the business or custom of a Restricted Customer with a view to providing goods or services to that Restricted Customer in competition with any Restricted Business;

 

(b)                       offer to employ or engage or otherwise endeavour to entice away from the Company or any Group Company any Restricted Person; or

 

(c)                        employ or engage or otherwise facilitate the employment or engagement of any Restricted Person, whether or not such person would be in breach of contract as a result of such employment or engagement;

 

(d)                       in any Capacity carry on or be concerned or engaged or interested in any part of any trade, profession, individual, partnership, firm, corporation, business or other entity which competes with any part of Restricted Business in the Restricted Area;

 

(e)                        in any Capacity carry on, own, manage, operate, join, control, participate in, loan money to, sell or lease equipment to, sell or lease real property to any trade, profession, company, partnership, firm, corporation, business or other entity which competes with any part of the Restricted Business in the Restricted Area; or

 

(f)                         be involved with or engaged in the provision of goods or services to (or otherwise have any business dealings with) any Restricted Customer in the course of any business concern which is in competition with any Restricted Business.

 

22.2                        The Employee covenants that he shall not, at any time after Termination Date, represent himself as connected with the Company or any Group Company in any Capacity, other than as a former employee, or use any registered business names or trading names associated with the Company or any Group Company.

 

22.3                        Except to the extent required by law, the Employee covenants that he shall not, at any time after the Termination Date, make any public statements (or authorise any statements to be reported as being attributed to him) that are critical, disparaging or derogatory about, or which injure the reputation of, any Group Company or any of their owners, investors, employees, directors, officers or customers.

 

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22.4                        None of the restrictions in clause 22 shall prevent the Employee from being engaged or concerned in any other business concern, provided that the Employee’s duties or work shall relate solely to services or activities of a kind which are not competitive with the Restricted Business.

 

22.5                        The restrictions imposed on the Employee by this clause 22 apply to him acting:

 

(a)                       directly or indirectly; and

 

(b)                       on his own behalf or on behalf of, or in conjunction with, any firm, company or person.

 

22.6                        The periods for which the restrictions in clause 22 apply shall be reduced by any period that the Employee spends on Garden Leave immediately before the Termination Date.

 

22.7                        If the Employee receives an offer to be involved in a business concern in any Capacity during the Appointment, or before the expiry of the last of the covenants in this clause 22, the Employee shall give the person making the offer a copy of this clause 22 and shall tell the Company the identity of that person as soon as possible.

 

22.8                        The Company and the Employee entered into the restrictions in this clause 22 having been separately legally advised. The Employee agrees that the restrictions in this clause 22 are reasonable as regards their duration, extent, geographical area, scope of activity and application for the protection of the legitimate business interests of the Company or any Group Company (including, without limitation, in light of the nature and wide geographic scope of the Company’s business activities, the Employee’s level of control over and contact with the business, and the amount of remuneration, trade secrets and Confidential Information that the Employee will receive in connection with the performance of his duties under this Agreement and the Company’s or any Group Company’s goodwill with which the Employee will become further associated).  In particular, and without limiting the foregoing, the Employee expressly acknowledges and agrees that the Restricted Business is carried on by the Company throughout the Restricted Area and that the definition of Restricted Area in this Agreement is reasonable and necessary to protect the legitimate business interests of the Company and the Group Companies.

 

22.9                        Each of the restrictions in this clause 22 is intended to be separate and severable. If any of the restrictions shall be held to be void but would be valid if part of their wording were deleted, such restriction shall apply with such deletion as may be necessary to make it valid or effective.

 

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22.10                 If the Employee’s employment is transferred to any firm, company, person or entity other than a Group Company (the “New Employer”) pursuant to the  Transfer of Undertakings (Protection of Employment) Regulations 2006, the Employee will, if required, enter into an agreement with the New Employer containing post-termination restrictions corresponding to those restrictions in this clause 22, protecting the confidential information, trade secrets and business connections of the New Employer provided that the restrictions with the New Employer are commensurate with those already in place.

 

22.11                 The Employee agrees, during and after the termination of his employment, to provide such assistance as the Company or any Group Company may require in the conduct of any internal investigation, arbitration, inquiry and/or the defence or prosecution of any current or future claim that may be made against, or brought by, the Company or any Group Company, where the Employee has in his possession any information or knowledge which the Company or any Group Company reasonably considers is relevant to any such investigation or proceedings (including, without limitation, by giving statements, meeting with the Company or any Group Company’s legal or professional advisers, and attending and giving evidence at any legal proceedings).  The Employee’s reasonable out-of-pocket expenses properly incurred in providing assistance pursuant to this clause 21.11 will be reimbursed by the Company, subject to the production of appropriate receipts, and, unless the Employee is acting under subpoena or court order, the Employee will be reimbursed based on a to be agreed-upon hourly rate in the event he provides assistance pursuant to this clause 21.11 to any Group Company at the Company’s request following the termination of his employment.

 

22.12                 The Employee will, at the request and expense of the Company, enter into a separate agreement with any Group Company in which he agrees to be bound by restrictions corresponding to those restrictions in this clause 22 (or such of those restrictions as the Company deems appropriate) in relation to that Group Company, provided that those new restrictions would be commensurate with those already in place.

 

23.                               DISCIPLINARY AND GRIEVANCE PROCEDURES

 

23.1                        The Employee is subject to the Company’s disciplinary and grievance procedures, copies of which are available from the Company’s Human Resources Department. These procedures do not form part of the Employee’s contract of employment.

 

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23.2                        If the Employee wants to raise a grievance, he may apply in writing to the Board in accordance with the Company’s grievance procedure.

 

23.3                        If the Employee wishes to appeal against a disciplinary decision he may apply in writing to Board in accordance with the Company’s disciplinary procedure.

 

23.4                        The Board may suspend the Employee from any or all of his duties for a period of up to 30 days during any period in which the Company is investigating any serious disciplinary matter involving the Employee or while any disciplinary procedure against the Employee is outstanding.

 

23.5                        During any period of suspension:

 

(a)                       the Employee shall continue to receive his basic salary and all contractual benefits in the usual way and subject to the terms of any benefit arrangement;

 

(b)                       the Employee shall remain an employee of the Company and bound by the terms of this Agreement;

 

(c)                        the Employee shall ensure that the Board knows where he will be and how he can be contacted during each working day (except during any periods taken as holiday in the usual way);

 

(d)                       the Board may exclude the Employee from his place of work or any other premises of the Company or any Group Company; and

 

(e)                        the Board may require the Employee not to contact or deal with (or attempt to contact or deal with) any officer, employee, consultant, client, customer, supplier, agent, distributor, shareholder, adviser or other business contact of the Company or any Group Company, other than in a purely personal capacity on matters unrelated to any Group Company or any business conducted by any Group Company.

 

24.                               DATA PROTECTION

 

24.1                        The Employee acknowledges and agrees that in order to keep and maintain records relating to the Appointment, it will be necessary for the Company to record, keep and process personal data (which may include special category data as defined by the Data Protection Act 2018 and the General Data Protection Regulation (EU 2016/679)) relating to the Employee, in hard or soft copy, including without limitation data such as references, bank details and other personal details. This personal data will be held for administration purposes; for the provision of management information for business purposes or in connection with any other legitimate interests, such as marketing 

 

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activities, corporate planning or in relation to any actual or potential sale of the Company; and to permit the Company to comply with its legal obligations.

 

24.2                        The Employee acknowledges that to the extent that it is reasonably necessary in connection with the Appointment and/or the performance of the Company’s responsibilities as an employer and/or in connection with any other legitimate interest, provided the Company complies with its obligations under the Data Protection Act 2018 and the General Data Protection Regulation, the Company may:

 

(a)                       disclose the Employee’s personal and special category data to others, including without limitation other employees of the Company, Group Companies, the Company’s professional advisers, pension scheme providers, product or service providers, potential or future employers, potential purchasers of the Company or any Group Company or the business in which the Employee works, other third parties (such as payroll processors and/or any actual or prospective purchasers), Government bodies, including, without limitation, HM Revenue & Customs, the pensions regulator, industry bodies and other regulatory and non-regulatory authorities; and

 

(b)                       transfer such data outside the European Economic Area to Group Companies, service providers and other third parties which may be located in countries that do not have laws to protect the Employee’s data.  Where such transfer takes place the Company shall take appropriate steps to satisfy itself that the entity to which the Employee’s personal and sensitive data is transferred has in place the appropriate technical and organisational measures to protect such data against unauthorised or unlawful processing and against accidental loss or destruction of or damage to the data.

 

25.                               COLLECTIVE AGREEMENTS

 

There is no collective agreement which directly affects the Appointment.

 

26.                               RECONSTRUCTION AND AMALGAMATION

 

If the Appointment is terminated at any time by reason of any reconstruction or amalgamation of the Company or any Group Company, whether by winding up or otherwise, and the Employee is offered employment with any concern or undertaking involved in or resulting from the reconstruction or amalgamation on terms which (considered in their entirety) are no less favourable to any material extent than the terms of this Agreement, the Employee shall have no claim against the Company or any such undertaking arising out of or connected with the termination.

 

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27.                               COMPANY WARRANTY

 

27.1                        The Company represents and covenants to the Employee that:

 

(a)                       it has taken all necessary corporate and other action and obtained all necessary shareholder, board and other consents and approvals required for it to enter into and perform its obligations under this Agreement and the Long-Term Incentive Plans;

 

(b)                       the terms of this Agreement and the Long-Term Incentive Plans do not contravene the terms of any such consents and approvals; and

 

(c)                        the performance of the provisions of this Agreement and the Long-Term Incentive Plans will not result in a breach of or constitute a default under any agreement, statute, law, regulation, contractual or other restriction binding upon the Company.

 

28.                               NOTICES

 

28.1                        A notice given to a party under this Agreement shall be in writing in the English language and signed by or on behalf of the party giving it. It shall be delivered by hand or sent to the party at the address or fax number given in this Agreement or as otherwise notified in writing to the other party.

 

28.2                        Any such notice shall be deemed to have been received:

 

(a)                       if delivered by hand, at the time the notice is left at the address or given to the addressee;

 

(b)                       in the case of pre-paid first class UK post or other next working day delivery service, at 9.00 am on the second business day after posting or at the time recorded by the delivery service;

 

(c)                        in the case of pre-paid airmail, 9.00 am on the fifth Business Day after posting or at the time recorded by the delivery service; or

 

(d)                       in the case of fax, at the time of transmission.

 

28.3                        A notice shall have effect from the earlier of its actual or deemed receipt by the addressee. For the purpose of calculating deemed receipt:

 

(a)                       all references to time are to local time in the place of deemed receipt; and

 

(b)                       if deemed receipt would occur on a Saturday or Sunday or a public holiday when banks are not open for business, deemed receipt is at 9.00 am on the next business day.

 

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28.4                        A notice required to be given under this Agreement shall not be validly given if sent by e-mail.

 

28.5                        This clause does not apply to the service of any proceedings or other documents in any legal action.

 

29.                               ENTIRE AGREEMENT

 

29.1                        This Agreement constitutes the whole agreement between the parties (and in the case of the Company, as agent for any Group Companies) and supersedes all previous discussions, correspondence, negotiations, arrangements, understandings and agreements between them (including, but not limited to, the Prior Agreement). Notwithstanding the foregoing sentence and except as  explicitly noted otherwise in this Agreement, this clause 29.1 shall be without prejudice to terms of the ECIP or the Long-Term Incentive Plans or the Corporate Governance Policy or the Transaction Agreement.

 

29.2                        Each party acknowledges that in entering into this Agreement it has not relied on and shall have no remedy in respect of any Pre-Contractual Statement.

 

29.3                        Each party agrees that its only liability in respect of those representations and warranties that are set out in this Agreement (whether made innocently or negligently) shall be for breach of contract.

 

29.4                        Nothing in this Agreement shall limit or exclude any liability for fraud.

 

30.                               VARIATION

 

No variation or agreed termination of this Agreement shall be effective unless it is in writing and signed by the parties (or their authorised representatives).

 

31.                               COUNTERPARTS

 

This Agreement may be executed in any number of counterparts, each of which, when executed and delivered, shall be an original, and all the counterparts together shall constitute one and the same instrument.

 

32.                               THIRD PARTY RIGHTS

 

No person other than a party to this Agreement may enforce any of its terms.

 

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33.                               GOVERNING LAW AND JURISDICTION

 

33.1                        This Agreement and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the law of England and Wales.

 

33.2                        The parties irrevocably agree that the courts of England and Wales shall have non-exclusive jurisdiction to settle any dispute or claim that arises out of or in connection with this Agreement or its subject matter or formation (including non-contractual disputes or claims).

 

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This document has been executed as a deed and is delivered and takes effect on the date stated at the beginning of it.

 

 

	
Executed as a deed by Ensco   Services Limited acting by 
    	
 
    	
/s/ Steven J. Brady
    
	
Steven J. Brady, a director, and in the   presence of:
    	
 
    	
Director
    
	
 
    	
 
    	
 
    
	
/s/ Tomi Brady
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Tomi Brady
    	
 
    	
 
    
	
Name
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
100 Harmer Green Lane
    	
 
    	
 
    
	
Welwyn
    	
 
    	
 
    
	
Address
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Homemaker
    	
 
    	
 
    
	
Occupation
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signed as a deed by Carl G.   Trowell in the presence of:
    	
 
    	
/s/ Carl G. Trowell
    
	
 
    	
 
    	
Carl G. Trowell
    
	
 
    	
 
    	
 
    
	
/s/ Michael McGuinty
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Michael McGuinty
    	
 
    	
 
    
	
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6, Chesterfield Gardens
    	
 
    	
 
    
	
London, UK
    	
 
    	
 
    
	
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Attorney
    	
 
    	
 
    
	
Occupation
    	
 
    	
 
    

 

[Signature Page to Amended and Restated Employment Agreement]Exhibit 10.2

 

Execution Version

 

EMPLOYMENT AGREEMENT

 

This Employment Agreement (“Agreement”), dated as of October 7, 2018 (the “Execution Date”) is made by and among (i) Rowan Companies, Inc., a Delaware corporation (“RCI”),  ENSCO Global Resources Limited, a UK company (“Ensco UK”) and, solely for the purposes of guaranteeing the payments and obligations under this Agreement, Ensco plc, a public limited liability company organized under the Laws of England and Wales (together with any successor thereto, “Ensco” and along with its subsidiaries, the “Company”) and (ii) Dr. Thomas Burke (the “Executive”) (collectively referred to herein as the “Parties”).

 

RECITALS

 

A.                                   WHEREAS, Rowan Companies plc (“Rowan”), the ultimate parent company of RCI, has entered into that certain Transaction Agreement with Ensco dated October 7, 2018 (the “Transaction Agreement”), which contemplates the acquisition of Rowan’s class A ordinary shares by Ensco or its approved nominee by means of a scheme of arrangement of Rowan or a contractual takeover offer;

 

B.                                   WHEREAS, Section 1.5 of the Transaction Agreement provides that, at Effective Time, as defined in the Transaction Agreement, the Executive shall be President and Chief Executive Officer of Ensco;

 

C.                                   WHEREAS, the Parties desire to enter into an employment agreement on the terms and conditions set forth herein and to memorialize all of the rights, duties and obligations of the Parties with respect to the employment of Executive with the Company; and

 

D.                                   WHEREAS, Executive has previously entered into that certain Change in Control Agreement with Rowan, effective as of April 25, 2014 (the “CiC Agreement”).

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and agreements set forth below, and for other good and valuable consideration, the receipt and adequacy of which is acknowledged, the Parties hereto agree as follows:

 

1.                                      Employment.

 

(a)                                 Effectiveness.  This Agreement shall be effective as of the Execution Date.  Notwithstanding anything to the contrary contained herein, this Agreement shall immediately terminate and be rendered void ab initio, with no liability or obligation of the parties, upon the earlier of (i) expiration or termination of the Transaction Agreement before the Effective Time (as defined in the Transaction Agreement), or (ii) Executive ceasing to serve as President and Chief Executive Officer of Rowan at any time prior to the Effective Time.

 

(b)                                 Term.  Subject to Section 1(a), Executive’s term of employment under this Agreement (“Term”) shall be for the period beginning at the Effective Time (the “Commencement Date”) and ending on the second anniversary of the Effective Time, subject to earlier termination as provided in Section 3.  The Term shall automatically renew for additional, consecutive twelve (12) month periods unless no later than ninety (90) days prior to the end of the then-applicable Term either party gives written notice of non-renewal (“Notice of Non-Renewal”) to the other, in which case Executive’s employment shall terminate at the end of the then-applicable Term, subject to earlier termination as provided in Section 3.

 

 

(c)                                  General.  During the period from the Execution Date to the earlier of the Effective Time or the date that this Agreement terminates in accordance with Section 1(a), RCI shall continue to employ Executive.  At the Effective Time, Executive’s employment shall be automatically transferred to Ensco UK and Executive hereby consents to such transfer.  Following the Effective Time, Ensco UK shall employ Executive for the period and in the position set forth in this Section 1, and subject to the other terms and conditions herein provided.

 

(d)                                 Position and Duties.  During the Term, Executive shall serve as President and Chief Executive Officer of Ensco and as a member of the Board of Directors of Ensco (the “Board”), with such responsibilities, duties and authority as reflected in the Corporate Governance Policy in Annex IV to the Transaction Agreement (as the same may be amended in accordance with its terms), and such other duties, consistent with the position of President and Chief Executive Officer, as may from time to time be agreed to by Executive and the Board. Executive will not receive any additional compensation for his service on the Board. Executive shall devote substantially all of Executive’s working time and efforts to the business and affairs of the Company (which shall include service to its affiliates) and shall not engage in outside business activities without the consent of the Board, provided that Executive shall be permitted to (i) manage Executive’s personal, financial and legal affairs and (ii) participate in trade associations, in each case, subject to compliance with this Agreement and provided that such activities do not materially interfere with Executive’s duties and responsibilities hereunder. Executive agrees that Executive shall not accept a position as a member of the board of directors of any other company or organization without first obtaining written consent of the Board.  Executive further agrees to observe and comply in all material respects with the rules and policies of the Company as adopted by the Company from time to time and applicable to Ensco’s executive officers and directors generally, in each case as amended from time to time, as set forth in writing, and as delivered or made available to Executive, including but not limited to policies relating to bribery and insider trading (each, a “Policy”).

 

(e)                                  Principal Place of Business; Relocation. Executive acknowledges that Executive’s principal place of employment, immediately following the Commencement Date, shall be London, England for such period of time until the Board elects that Executive shall relocate to Houston, Texas, or such other location to which Executive and the Board mutually agree; provided that it is agreed that Executive shall not be required to work in the UK for longer than three (3) years unless Executive expressly consents to any longer period. Executive hereby expressly consents to (i) Executive’s relocation from Houston, Texas to London, England in connection with the commencement of Executive’s employment with the Company, and, (ii) if the Board, in its discretion, determines to relocate the Executive back to Houston, Texas, any such relocation, in each instance subject to relocation benefits as set forth herein.  Executive hereby expressly waives any “good reason,” “constructive termination” or similar concept that he may otherwise be entitled to claim under any agreement with Rowan, Ensco, or any of their respective affiliates, by reason of such required relocations.

 

(f)                                   Indemnification.  During and after the Term, Executive shall be entitled to the indemnification, expense advancement and related rights set forth in the Indemnification Agreements previously entered into between the Executive and Rowan or RCI, and, without duplication, to indemnification, expense advancement and related rights no less favorable than those provided to executive officers and directors of Ensco, provided that any such indemnification shall be subject to any applicable law restricting such indemnities, from time to time in force. In addition, the Company will procure and maintain director’s and officer’s liability insurance which includes Executive as a named or additional insured with coverage no less favorable than provided to other executive officers and directors of Ensco.

 

(g)                                  Sick Pay. While employed in the U.K., the Executive shall not be entitled to statutory sick pay under applicable U.K. legislation, but instead shall be subject to the sick pay policy applicable to U.S.-based employees of the Company.

 

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(h)                                 UK Working Time Regulations. The parties each agree that the nature of the Executive’s position is such that his working time cannot be measured and, accordingly, while he is based in the UK, that his employment falls within the scope of regulation 20 of the Working Time Regulations 1998.

 

2.                                      Compensation and Related Matters.  During the Term, Executive will be entitled to the following:

 

(a)                                 Base Salary.  During the Term, Executive shall receive a base salary pursuant to this Agreement at an annual rate equal to $950,000 per annum, (the “Base Salary”). Ensco UK shall pay the Base Salary in accordance with the customary payroll practices of Ensco UK and the Base Salary shall be pro-rated for partial years of employment hereunder.  Executive’s Base Salary amount shall be reviewed at least annually by the Compensation Committee of the Board (the “Compensation Committee”) during the Term and may be adjusted from time to time by the Compensation Committee or the Board, provided, however, that the Base Salary may not be reduced without Executive’s express consent. In the event there is a material change to UK income taxes rules a Base Salary review shall be triggered (although the Compensation Committee shall be under no obligation to increase the Executive’s Base Salary).

 

(b)                                 Annual Bonus.  For each fiscal year of Ensco that commences during the Term, Executive shall be eligible to participate in an annual short-term incentive bonus plan that is similar in all material respects to that applicable to other executive officers of Ensco.  Executive’s annual incentive compensation under such incentive program (“Annual Bonus”) shall be targeted at 110% of Executive’s Base Salary (the “Target Annual Bonus”), with the expectation that the bonus will scale upward and downward based on actual performance, as determined by the Board or the Compensation Committee and dependent on performance goals that are established by the Board or the Compensation Committee annually. The actual amount of any Annual Bonus that will be paid to the Executive each year, if any, will be calculated based on the level of achievement of the performance goals established by the Company under the incentive program for the year in question and the terms of the incentive program. Any Annual Bonus for 2019 shall be pro-rated to reflect the period from the Effective Time through December 31, 2019; provided that such amount shall not be reduced by any amount paid to Executive by Rowan for any period of 2019 prior to the Effective Time. The payment of any Annual Bonus pursuant to the incentive program shall be subject to Executive’s continued employment with the Company through the date of payment, except as otherwise provided in Section 4 below or the CiC Agreement.

 

(c)                                  Sign-On Bonus.  In consideration of Executive’s (i) waiver of single trigger vesting for certain Awards subject to time-based vesting only as of the Closing Date (as defined in the Transaction Agreement) pursuant to Section 2(d)(iii) below, (ii) waiver of certain Change in Control and Good Reason rights pursuant to Section 2(d)(iii) below, (iii) waiver of certain Change in Control severance payments under the CiC Agreement and (iv) relocation from the United States to the UK and the associated cost of living and tax burden associated with such move, Ensco will make a one-time lump sum cash payment of $3,750,000 to Executive, payable within thirty (30) days of the Effective Time (as defined in the Transaction Agreement) (the “Signing Bonus”).  In the event the Executive’s employment with the Company terminates as a result of Executive’s resignation without Good Reason (in accordance with Section 3(a)(vi) below) or a termination by Ensco UK for Cause (in accordance with Section 3(a)(iii) below), in each case during the three-year period immediately following the Execution Date, Executive will be required to immediately re-pay the Signing Bonus, on a pro-rata basis, net of any taxes paid thereon.

 

(d)                                 Long-Term Incentives.

 

(i)                                     Equity Incentive Awards.  During the Term, Executive shall be eligible to participate in and will receive awards under Ensco’s long-term incentive award plans and programs as in

 

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effect from time to time at a level and on terms commensurate with his position as President and Chief Executive Officer of the Company (the “LTIP Awards”).  Subject to the approval of the Board or Compensation Committee, as applicable, Executive will be granted LTIP Awards by Ensco with a target annual award level of not less than 500% of Executive’s Base Salary (the “Annual Equity Award”) on terms and conditions no less favorable than those applicable to executive officers of Ensco generally; provided, that each of the Annual Equity Awards to Executive for the two years after the Effective Time shall be no less than 500% of Executive’s Base Salary; provided, further, that such Annual Equity Award targets may be increased or decreased for grants in future years as determined by the Board or Compensation Committee, as applicable.

 

(ii)                                  Separate Award Agreements.  The LTIP Awards shall be granted subject to the terms and conditions of the applicable plans and individual award agreements to be entered into between the Company and Executive, provided that in the event of any conflict between the terms of such award agreements and this Agreement, this Agreement shall control unless the terms of the applicable award agreement(s) are more favorable to Executive, in which case the applicable award agreement(s) shall control.

 

(iii)                               Legacy Change in Control Agreement.

 

(1)                                 Effective as of the Closing Date (as defined in the Transaction Agreement), the Company shall expressly assume and guarantee the performance of all obligations (currently and in the future) of Rowan pursuant to the CiC Agreement; provided, that Executive agrees that the first sentence of Section 4 of the CiC Agreement shall not apply to any Awards (as defined in the CiC Agreement) held by the Executive on the Closing Date that are subject solely to time-based vesting. For the avoidance of doubt, performance units granted to the Executive under Rowan’s incentive plans will accelerate in accordance with Section 2.3(b) of the Transaction Agreement.

 

(2)                                 If the Executive’s employment is terminated by the Company without Cause, by the Executive for Good Reason or due to Executive’s death or Disability, in any case, during the three year period following the Closing Date (the “Protection Period”): (i) any Awards (as defined in this Agreement) shall become immediately fully vested and where applicable, exercisable, all restrictions and conditions thereon shall be deemed satisfied in full, and all limitations shall be deemed expired unless otherwise provided in the applicable award documents and (ii) any vested share options or share appreciation rights held by the Executive shall be exercisable until the earlier of (A) the second anniversary of such termination or (B) the original maximum term of the share option or share appreciation right, as applicable.

 

(3)                                 Section 4 of the CiC Agreement shall apply to any Change in Control that occurs after the Closing Date; provided that the  parties agree that the first sentence of Section 4 of the CiC Agreement shall not apply with respect to any Change in Control that occurs after the expiration of the Protection Period if, and only if, all equity-based awards granted on or after the Closing Date by Ensco to its senior executives (including the Executive) include Double Trigger Vesting Provisions, in which case such Double Trigger Vesting Provisions of Executive’s equity-based awards shall apply.  For this purpose, “Double Trigger Vesting Provisions” means provisions that provide for full vesting of the award upon a termination without “cause” or a termination for “good reason” within a specified “protection period” following a “change in control” of Ensco (with “cause,” “good reason,” “change in control” and “protection period” as defined in the applicable Ensco equity plan or award agreement).  If the conditions of the proviso in this Section 2(c)(iii)(3) are not satisfied, the first sentence of Section 4 of the CiC Agreement shall continue to apply to any Change in Control occurring after the Closing Date.

 

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(4)                                 For purposes of this Agreement, (i) the term “Company” in the definition of Change in Control shall be deemed to mean the Company and its successors and assigns instead of Rowan and (ii) the term “Effective Date” in the definition of “Change in Control” shall mean the Closing Date.

 

(e)                                  Benefits.

 

(i)                                     During the Term, the Executive shall be eligible to participate in employee benefit plans, programs and arrangements of the Company (including medical, dental and defined contribution retirement plans).

 

(ii)                                  During the Term, the Executive shall be eligible to participate in an expatriate assignment and tax equalization policy (the “Expatriate Assignment Policy”) that is not less favorable than Ensco’s current expatriation assignment and tax equalization policy otherwise applicable to its senior executive officers residing in London.  In accordance with Ensco’s policy, tax equalization benefits will be provided on foreign assignment related to income pertaining to housing allowance, relocation benefits and non-cash benefits (including but not limited to home leave reimbursement, dependent education tuition, relocation allowance, tax preparation fees, moving expenses, etc.).  Housing, relocation and non-cash benefits will not be taxable to the Executive and Ensco will be responsible for the associated home and host country tax obligations.  Executive shall be responsible for both home and host location personal income and social taxes relating to all other compensation and would be eligible to utilize any foreign tax credits associated with such tax payments to offset home country tax obligations.

 

(iii)                               For the avoidance of doubt, during the Term, Executive will be entitled to the following allowances consistent with the Expatriate Assignment Policy: (i) a cost of living allowance of $25,000 per year, payable in monthly installments, (ii) a housing allowance equal to $160,000 annually, payable in monthly installments, (iii) education reimbursement of up to $45,000 per child per year, (iv) reimbursement for Executive and each eligible dependent for one home leave roundtrip airline ticket and ground transportation (airport transfer) per year, and (v) reimbursement for tax preparation services. Executive will not receive any foreign service premium or an allowance or reimbursement for utilities.

 

(f)                                   Vacation.  During the Term, Executive shall be entitled to four (4) weeks of paid vacation. In addition, while based in the UK he shall be entitled to the usual UK public holidays and while based in the US he shall be entitled to the usual US public holidays.   Any vacation shall be taken at the reasonable and mutual convenience of the Company and Executive.

 

(g)                                  Business Expenses.  During the Term, the Company shall reimburse Executive for all reasonable travel and other business expenses incurred by Executive in the performance of Executive’s duties to the Company in accordance with the Company’s expense reimbursement policy, which shall not be less favorable than the expense reimbursement policy applicable to other executive officers of Ensco.

 

(h)                                 Relocation.  In the event the Executive’s principal place of employment is relocated (whether outside of the United States, from a location outside of the United States back to the United States, or otherwise), the Executive will, in accordance with the Expatriate Assignment Policy, receive a payment in the amount of $20,000, along with such other relocation benefits provided under the Company’s relocation policy.

 

(i)                                     Key Person Insurance.  At any time during the Term, the Company shall have the right to insure the life of Executive for the Company’s sole benefit.  The Company shall have the right to determine the amount of insurance and the type of policy.  Executive shall reasonably cooperate with the Company in obtaining such insurance by submitting to physical examinations, by supplying all information

 

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reasonably required by any insurance carrier, and by executing all necessary documents reasonably required by any insurance carrier, provided that any information provided to an insurance company or broker shall not be provided to the Company without the prior written authorization of Executive.  Executive shall incur no financial obligation by executing any required document, and shall have no interest in any such policy.

 

3.                                      Termination.

 

Executive’s employment hereunder may be terminated by Ensco UK upon approval of Ensco in accordance with the Governing Policy, or by Executive, as applicable, without any breach of this Agreement under the following circumstances:

 

(a)                                 Circumstances.

 

(i)                                     Death.  Executive’s employment hereunder shall terminate upon Executive’s death.

 

(ii)                                  Disability.  If Executive has incurred a Disability, as defined in Section 11(c) below, Ensco UK may terminate Executive’s employment

 

(iii)                               Termination for Cause.  Ensco UK may terminate Executive’s employment for Cause, as defined in Section 11(a) below.

 

(iv)                              Termination without Cause.  Ensco UK may terminate Executive’s employment without Cause. A termination of Executive’s employment by Ensco UK that is not approved in accordance with the Governing Policy shall be a termination by Ensco UK without Cause.

 

(v)                                 Resignation from the Company for Good Reason.  Executive may resign and terminate Executive’s employment with the Company for Good Reason, as defined in Section 11(d) below.

 

(vi)                              Resignation from the Company Without Good Reason.  Executive may resign Executive’s employment with the Company for any reason other than Good Reason or for no reason.

 

(b)                                 Notice of Termination.  Any termination of Executive’s employment by Ensco UK or by Executive under this Section 3 (other than termination pursuant to paragraph (a)(i)) or by reason of either party giving Notice of Non-Renewal pursuant to Section 1(b) shall be communicated by a written notice to the other party hereto (i) indicating the specific termination provision in this Agreement relied upon, (ii) setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated, if applicable, and (iii) specifying a Date of Termination which, if submitted by Executive in a resignation without Good Reason, shall be at least thirty (30) days following the date of such notice (a “Notice of Termination”); provided, however, that in the event that Executive delivers a Notice of Termination to Ensco UK, Ensco UK may, in its sole discretion, change the Date of Termination to any date that occurs following the date of Ensco UK’s receipt of such Notice of Termination and is prior to the date specified in such Notice of Termination.  A Notice of Termination submitted by Ensco UK may provide for a Date of Termination on the date Executive receives the Notice of Termination, or any date thereafter elected by Ensco UK in its sole discretion.  The failure by Ensco UK or Executive to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Cause or Good Reason shall not waive any right of such Party hereunder or preclude such Party from asserting such fact or circumstance in enforcing such Party’s rights hereunder.

 

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(c)                                  Company Obligations upon Termination.  Upon termination of Executive’s employment pursuant to any of the circumstances listed in Section 3, Executive (or Executive’s estate) shall be entitled to receive pursuant to this Agreement the sum of: (i) the portion of Executive’s Base Salary earned through the Date of Termination, but not yet paid to Executive; (ii) any vacation time that has been accrued but unused in accordance with the Company’s Policies, (iii) any expenses owed to Executive pursuant to Section 2(f); and (iv) any amount accrued and arising from Executive’s participation in, or benefits accrued under any employee benefit plans, programs or arrangements, which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs or arrangements (collectively, the “Company Arrangements”).  Except as otherwise expressly required by law, as specifically provided herein, or as provided in the CiC Agreement, all of Executive’s rights to salary, severance, benefits, bonuses and other compensatory amounts hereunder (if any) shall cease upon the termination of Executive’s employment hereunder.  In the event that Executive’s employment is terminated by Ensco UK for any reason, Executive’s sole and exclusive remedy shall be to receive the payments and benefits described in this Section 3(c) or Section 4, or pursuant to the CiC Agreement, as applicable.

 

(d)                                 Deemed Resignation.  Upon termination of Executive’s employment for any reason, Executive shall be deemed to have resigned from the Board and all offices and directorships, if any, then held with the Company or its affiliates. Executive agrees that Executive will execute any resignation letters or other instruments reasonably requested by the Company in connection with the foregoing and he hereby irrevocably appoints the Company to be his attorney to execute any documents and do any things and generally to use his name for the purpose of giving the Company or its nominee the full benefit of this clause.

 

4.                                      Severance Payments.

 

(a)                                 Termination for Cause, or Termination Upon Death, Disability or Resignation from the Company Without Good Reason.  If Executive’s employment shall terminate as a result of Executive’s death pursuant to Section 3(a)(i) or Disability pursuant to Section 3(a)(ii), pursuant to Section 3(a)(iii) for Cause, or pursuant to Section 3(a)(vi) for Executive’s resignation from the Company without Good Reason, then Executive shall not be entitled to any payments or benefits, except as provided in Section 3(c), provided, however, that in the event of Executive’s death, Disability or retirement, Executive’s long-term incentive awards may vest or remain eligible to vest to the extent set forth in an applicable award agreement covering such award.

 

(b)                                 Termination without Cause or Resignation from the Company for Good Reason.  If Executive’s employment terminates without Cause pursuant to Section 3(a)(iv) or pursuant to Section 3(a)(v) due to Executive’s resignation for Good Reason, then, subject to Executive signing on or before the 45th day following Executive’s Separation from Service (as defined below), and not revoking, a release of claims substantially in the form attached as Exhibit A to this Agreement (“Release”) (save that if determined by the Company, the Release will be amended to validly waive any claims that the Executive may have in the UK as well as the US and to otherwise reflect any changes in applicable law), and Executive’s continued compliance with Sections 6 and 7, Executive shall receive, in addition to payments and benefits set forth in Section 3(c), the following:

 

(i)                                     an amount in cash equal to 2.00 times the Base Salary, payable in a single lump sum on the First Payment Date (as defined below);

 

(ii)                                  an amount in cash equal to 2.00 times the Average Bonus Amount, payable in single lump sum amount on the First Payment Date.  For the purposes of this Agreement, the “Average Bonus Amount” means the greater of: (A) the average of the combined annual bonus awards received by Executive from the Company pursuant to its annual incentive plan in the three calendar years immediately

 

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before the Date of Termination (including, for the avoidance of doubt, the annual bonus awards received from Rowan and/or RCI prior to the Commencement Date) and (B) Executive’s Target Annual Bonus for the year during which the termination of employment occurs;

 

(iii)                               a pro-rated portion (based on the number of days Executive was employed by the Company during the fiscal year in which the Date of Termination occurs) of the Annual Bonus award that Executive would have earned had Executive remained employed through the end of the fiscal year in which the Date of Termination occurs, as determined by the Board based upon actual performance for such year (and, to the extent there is any discretionary component thereof, with the discretionary aspects being determined at not less than the target level) and paid in the year following the year of termination at the same time annual bonuses are generally paid to the Company’s senior executives;

 

(iv)                              continued coverage in the employer-provided medical, dental and vision plans available to Executive and Executive’s eligible dependents immediately prior to the Date of Termination, to the extent such coverage is elected by Executive pursuant to COBRA, for a period of twenty four (24) months following the Date of Termination; provided, that Executive will only be responsible for paying the applicable premiums for the cost of all such coverages at a rate not to exceed the cost to active employees of the Company, it being understood that during such twenty four (24) month period Executive shall pay the full cost (i.e., the full COBRA premium rate or such other rate reasonably determined by the Company) of the coverages as determined under the then current practices of the Company on a monthly basis and the Company will reimburse Executive the excess of such costs, if any, above the then active employee cost for such coverages; provided, that if the continued coverage contemplated by this Section 4(b)(iv) would be discriminatory and would result in the imposition of excise taxes or other liabilities on the Company for failure to comply with any requirements of the Patient Protection and Affordable Care Act of 2010, as amended, and the Health Care and Education Reconciliation Act of 2010, as amended (to the extent applicable), or other applicable law, the Company will provide Executive with a cash payment equal to the employer-portion of any COBRA premiums, inclusive of any taxes thereon, for the remainder of the twenty four (24) month period;

 

(v)                                 if before, upon the commencement of or during the Term, Executive was required to relocate his principal place of employment outside of the United States, reimbursement of the reasonable cost of return relocation-related expenses (not including make-whole payments for any loss incurred on the sale of Executive’s principal residence) as provided under the Company’s Expatriate Assignment Policy; and

 

(vi)                              any of Executive’s unvested equity, equity-based or long-term incentive awards granted under any equity or long-term incentive plans of Ensco or Rowan (including without limitation any stock options, restricted stock, restricted stock units, performance units, and/or performance shares) shall immediately become 100% vested in all of the rights and interests then held by Executive, provided, however, that unless a provision more favorable to the Executive is included in an applicable award agreement, all performance-based awards shall remain subject to attaining the applicable performance goals and conditions.

 

(c)                                  Application of CiC Agreement.  It is the express intent of the Parties that the payments and benefits under this Agreement shall not duplicate any payments or benefits under the CiC Agreement. In the event Executive incurs a termination of employment during the Term of this Agreement and such termination entitles Executive to severance and/or benefits under the terms of the CiC Agreement, the terms of the CiC Agreement shall govern, and Executive shall not be entitled to any additional severance hereunder.

 

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(d)                                 Survival.  Notwithstanding anything to the contrary in this Agreement, the provisions of Sections 5 through 10 and Section 12, this Section 4, and the Company’s obligations to pay the Company Arrangements will survive the termination of Executive’s employment pursuant to Section 3.

 

5.                                      Parachute Payments.

 

(a)                                 It is the objective of this Agreement to maximize Executive’s net after-tax benefit if payments or benefits provided under this Agreement are subject to excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended, and the regulations and guidance promulgated thereunder (the “Code”).  Notwithstanding any other provisions of this Agreement, in the event that any payment or benefit by the Company or any affiliate or otherwise to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (all such payments and benefits, including the payments under Sections 4(b) hereof, being hereinafter referred to as the “Total Payments”), would be subject (in whole or in part) to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Total Payments shall be reduced to the extent necessary so that no portion of the Total Payments shall be subject to the Excise Tax, but only if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income and employment taxes on such reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments), is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income and employment taxes on such Total Payments and the amount of Excise Tax to which Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments).

 

(b)                                 The Total Payments shall be reduced in the following order: (i) reduction of non-cash benefits, beginning with those that would be provided last in time, (ii) reduction of equity award vesting, beginning with vesting or settlements that would occur last in time, (iii) reduction of cash payments, beginning with payments that would be made last in time, and (iv) reduction of any other payments or benefits otherwise payable to Executive on a pro-rata basis or such other manner that complies with Section 409A.

 

(c)                                  All determinations regarding the application of this Section 5 shall be made by an accounting firm with experience in performing calculations regarding the applicability of Section 280G of the Code and the Excise Tax selected by the Company and acceptable to Executive (“Independent Advisors”), a copy of which report and all worksheets and background materials relating thereto shall be provided to Executive.  For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which Executive shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code shall be taken into account; (ii) no portion of the Total Payments shall be taken into account which, in the opinion of the Independent Advisors, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the Excise Tax, no portion of such Total Payments shall be taken into account which, in the opinion of Independent Advisors, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation; and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total Payments shall be determined by the Independent Advisors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code.  The costs of obtaining such determination and all related fees and expenses (including related fees and expenses incurred in any later audit) shall be borne solely by the Company.

 

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6.                                      Non-Solicitation; Unfair Competition; and Non-Disparagement.  Executive acknowledges that during the Term, the Company will provide Executive with access to Confidential Information (as defined below).  Ancillary to the rights provided to Executive as set forth in this Agreement, Executive’s continued employment with the Company during the Term (subject to earlier termination as provided herein) and the Company’s provision of Confidential Information, and Executive’s agreements regarding the use of same, in order to protect the value of any Confidential Information, the Company and Executive agree to the following provisions against unfair competition, which Executive acknowledges represent a fair balance of the Company’s rights to protect their business and Executive’s right to pursue employment:

 

(a)                                 Executive shall not, at any time during the Restriction Period (as defined below), directly or indirectly engage in, have any equity interest in, or manage, provide services to or operate any person, firm, corporation, partnership or business (whether as director, officer, employee, agent, representative, partner, security holder, consultant, independent contractor, or otherwise) that is primarily engaged in the business of providing contracted offshore drilling rigs in any country (or its territorial waters) in which the Company (i) has offices, establishes offices or has definitive plans to locate an office as of the Date of Termination, or (ii) has provided offshore oil and gas drilling services in the 24 months preceding the Date of Termination and in each case which competes with those parts of the business of the Company with which the Executive was involved to a material extent or for which he was responsible during the 12 months prior to the Date of Termination.  Nothing herein shall prohibit Executive from being a passive owner of less than 5% of the outstanding equity interest of any entity, so long as Executive has no active participation in the business of such entity.

 

(b)                                 Executive shall not, at any time during the Restriction Period, directly or indirectly, solicit, divert or take away from the Company, business opportunities with any Customer.

 

(c)                                  Executive shall not, at any time during the Restriction Period, directly or indirectly, divert or take away any acquisition or other business opportunity that the Company is pursuing or with respect to which the Company has expended material efforts to identify or pursue.

 

(d)                                 Executive shall not, at any time during the Restriction Period, directly or indirectly, contact or solicit, for the purpose of hiring, or hire any employee of the Company or any person employed by the Company at any time during the 12-month period immediately preceding the Date of Termination.

 

(e)                                  Executive shall not, at any time during the Restriction Period, directly or indirectly, induce or otherwise encourage any employee of the Company to leave the employment of the Company.

 

(f)                                   Executive shall not, at any time during the Restriction Period, directly or indirectly, induce any supplier, distributor, representative or agent of the Company to terminate or adversely modify its relationship with the Company and with whom or which the Executive, or any person who reported directly to him, had material dealings during the 12-month period immediately preceding the Date of Termination.

 

(g)                                  Executive shall not, at any time during and after the Term, disparage the Company in any way that could adversely affect the goodwill, reputation or business relationships of the Company with the public generally, or with its customers, suppliers or employees; provided, that the foregoing shall not apply to the extent that testimony is required in connection with any proceeding or otherwise as required by law or truthful statements to correct or clarify disparaging comments by the Company..

 

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(h)                                 In the event the terms of this Section 6 shall be determined by any court of competent jurisdiction: (i) while the Executive is based in the US, to be unenforceable by reason of its extending for too great a period of time or over too great a geographical area or by reason of its being too extensive in any other respect,  it will be interpreted to extend only over the maximum period of time for which it may be enforceable, over the maximum geographical area as to which it may be enforceable, or to the maximum extent in all other respects as to which it may be enforceable, all as determined by such court in such action, and (ii) while the Executive is based in the UK, to go beyond what is reasonable in all the circumstances for the protection of the legitimate interests of the Company but would be valid if any particular restriction(s) were deleted or some part or parts of its or their wording were deleted, restricted or limited then such restriction(s) shall apply with such deletions, restrictions or limitations as the case may be.

 

(i)                                     As used in this Section 6, (i) the term “Company” shall include the Company and its current and future affiliates (ii) the term “Restriction Period” shall mean the period beginning on the Effective Time, and ending on the date twelve (12) months following the Date of Termination, provided, however, that while based in the US only, in the event Executive receives the payments and benefits described in Section 4(b) or Section 4(c), the Restriction Period shall continue until the date that is 24 months following the Date of Termination and (iii) the word “Customer” shall include any person, firm, company or entity who or which at any time during the 12 months prior to the Date of Termination (A) was provided with goods or services by the Company; or (B) was in the habit of dealing with the Company, other than in a de minimis way; and in each case with whom or which the Executive, or any person who reported directly to him, had material dealings at any time during the 12 months prior to the Date of Termination.

 

7.                                      Nondisclosure of Proprietary Information.

 

(a)                                 Except in connection with the faithful performance of Executive’s duties hereunder or pursuant to Section 7(c) and (d), Executive shall, in perpetuity, maintain in confidence and shall not directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for Executive’s benefit or the benefit of any person, firm, corporation or other entity (other than the Company) any confidential or proprietary information or trade secrets of or relating to the Company (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, 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, 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, litigation or investigations, prospects and compensation paid to employees or other terms of employment) (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.  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 (i) any information legally acquired by or otherwise becoming known to Executive from or through any party other that the Company or its affiliates (which party Executive reasonably believes is not bound by any confidentiality obligation to the Company), or (ii) information that has been published in a form generally available to the public or is publicly available or has become public knowledge prior to the date Executive proposes to disclose or use such information, provided, that such publishing or public availability or knowledge of the Confidential Information shall not have resulted from Executive directly or indirectly breaching Executive’s obligations

 

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under this Section 7(a) or any other similar provision by which Executive is bound, or from any third-party breaching a provision similar to that found under this Section 7(a).  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 material features comprising such information have been published or become publicly available.

 

(b)                                 Upon termination of Executive’s employment for any reason, Executive will promptly deliver to the Company all correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals, financial documents, or any other documents or property concerning the Company’s customers, business plans, marketing strategies, products, property or processes.   In addition, upon termination of Executive’s employment for any reason, Executive shall return to the Company all property of the Company provided to Executive by the Company, or otherwise in the custody, possession or control of Executive (including, but not limited to, computers, computer equipment, office equipment, cell phone, keys, passcards, calling cards, credit cards, rolodexes, tapes, software, computer files, marketing and sales materials, and any other record, document or piece of equipment belonging to the Company.  Following termination of employment, Executive will not retain any copies of the Company’s property, including any copies existing in electronic form, which are in Executive’s possession or control.

 

(c)                                  Executive may respond to a lawful and valid subpoena or other legal process but shall give the Company the earliest possible notice thereof, shall, as much in advance of the return date as possible, make available to the Company and its counsel the documents and other information sought and shall assist such counsel at Company’s expense in resisting or otherwise responding to such process, in each case to the extent permitted by applicable laws or rules.

 

(d)                                 Nothing in this Agreement shall prohibit Executive from (i) disclosing information and documents when required by law, subpoena or court order (subject to the requirements of Section 7(c) above), (ii) disclosing information and documents to Executive’s attorney, financial or tax adviser for the purpose of securing legal, financial or tax advice, (iii) disclosing Executive’s post-employment restrictions in this Agreement in confidence to any potential new employer, (iv) retaining, at any time, Executive’s personal correspondence, Executive’s personal contacts and documents related to Executive’s own personal benefits, entitlements and obligations, or (v) while based in the UK, disclosing information which the Executive or another person may be ordered to disclose by a court of competent jurisdiction or which he discloses pursuant to and in accordance with the Public Interest Disclosure Act 1998, or as may be required by law.

 

(e)                                  Nothing in this Agreement shall prohibit Executive from reporting possible violations of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or any other whistleblower protection provisions of any law or regulation (including the right to receive an award for information provided to any such government agencies).

 

(f)                                   18 U.S.C. § 1833(b) provides: “An individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that—(A) is made—(i) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.” Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b). Accordingly, the parties hereto have the right to disclose in confidence trade secrets to federal, state and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law. The parties hereto also have

 

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the right to disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure.

 

8.                                      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 Executive may discover, invent or originate during the Term, either alone or with others and whether or not during working hours or by the use of the facilities of the Company (“Inventions”), shall be the exclusive property of the Company.  Executive 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 their rights therein.  Executive hereby appoints the Company as Executive’s attorney-in-fact to execute on Executive’s behalf any assignments or other documents reasonably deemed necessary by the Company to protect or perfect its rights to any Inventions.

 

9.                                      Injunctive Relief.  It is recognized and acknowledged by Executive that a breach of the covenants contained in Sections 6, 7 and 8 will cause irreparable damage to Company and their goodwill, the exact amount of which will be difficult or impossible to ascertain, and that the remedies at law for any such breach will be inadequate.  Accordingly, Executive agrees that in the event of a breach of any of the covenants contained in Sections 6, 7 and 8, in addition to any other remedy which may be available at law or in equity, the Company will be entitled to specific performance and injunctive relief without the requirement to post bond.

 

10.                               Assignment and Successors.  The Company may assign its rights and obligations under this Agreement to any of its affiliates or to any successor to all or substantially all of the business or the assets of the Company (by merger or otherwise), and may assign or encumber this Agreement and its rights hereunder as security for indebtedness of the Company and its affiliates.  This Agreement shall be binding upon and inure to the benefit of the Company, Executive and their respective successors, assigns, personnel and legal representatives, executors, administrators, heirs, distributees, devisees, and legatees, as applicable.  None of Executive’s rights or obligations may be assigned or transferred by Executive, other than Executive’s rights to payments hereunder, which may be transferred only by will or operation of law.  Notwithstanding the foregoing, Executive shall be entitled, to the extent permitted under applicable law and applicable Company Arrangements, to select and change a beneficiary or beneficiaries to receive compensation hereunder following Executive’s death by giving written notice thereof to the Company.

 

11.                               Certain Definitions.

 

(a)                                 Awards.  “Awards” shall mean all restricted shares, restricted share units, share appreciation rights, performance units, dividend equivalent rights, options, bonus shares or other performance awards, if any (but excluding, for the avoidance of doubt, the Executive’s short-term annual incentive bonus, if any), granted to the Executive under any of the Rowan or the Company’s incentive plans

 

(b)                                 Cause.  “Cause” for termination by the Company of Executive’s employment shall mean:

 

(i)                                     the willful and continued failure by Executive to substantially perform Executive’s duties hereunder (other than any such failure resulting from Executive’s incapacity due to physical or mental illness or any such actual or anticipated failure after Executive has given notice to the Company of an event or circumstance constituting Good Reason as described below unless the Company has cured such event or circumstance) after a written demand for substantial performance is delivered to Executive by the Board, which demand specifically identifies the manner in which the Board believes that

 

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Executive has not substantially performed Executive’s duties and, if such breach is capable of cure, Executive fails to cure same within thirty (30) days after receiving such demand;

 

(ii)                                  the willful engaging by Executive in unauthorized conduct that is demonstrably and materially injurious to the Company;

 

(iii)                               the material breach of this Agreement or a material policy of the Company that has been delivered to Executive before the Execution Date and that apply to executive-level employees (or that Executive has agreed in writing to include in the definition of Cause) that causes material damage to the Company, which, if such breach is capable of cure, remains uncured thirty (30) days following Executive’s receipt of notice of same; or

 

(iv)                              Executive has (i) while based in the US, been convicted of or pled nolo contendere to, a misdemeanor involving moral turpitude or a felony, or (ii) while based in the UK, committed any criminal offence (other than a motoring offence for which a non-custodial penalty may be imposed).

 

(c)                                  Date of Termination. “Date of Termination” shall mean (i) if Executive’s employment is terminated by Executive’s death, the date of Executive’s death; (ii) if Executive’s employment is terminated pursuant to Section 3(a)(ii) — (vi) either the date indicated in the Notice of Termination or the date specified by the Company pursuant to Section 3(b), whichever is earlier.

 

(d)                                 Disability. “Disability” shall mean, at any time the Company sponsors a long-term disability plan for employees, “disability” as defined in such long-term disability plan for the purpose of determining a participant’s eligibility for benefits; provided, however, if the long-term disability plan contains multiple definitions of disability, “Disability” shall refer to that definition of disability which, if Executive qualified for such disability benefits, would provide coverage for the longest period of time.  The determination of whether Executive has a Disability shall be made by the person or persons required to make disability determinations under the long-term disability plan.  At any time the Company does not sponsor a long-term disability plan for its employees, Disability shall mean Executive’s inability to perform, with or without reasonable accommodation, the essential functions of Executive’s position hereunder for a total of three months during any six-month period as a result of incapacity due to mental or physical illness as determined by a physician selected by the Company or its insurers and acceptable to Executive or Executive’s legal representative, with such agreement as to acceptability not to be unreasonably withheld or delayed.  Any refusal by Executive to submit to a medical examination for the purpose of determining Disability shall be deemed to constitute conclusive evidence of Executive’s Disability.

 

(e)                                  Good Reason. “Good Reason” shall mean the occurrence of any of the following without Executive’s express written consent:

 

(i)                                     a material breach by the Company of the terms of this Agreement, or any other equity, compensation, or other written agreement between the Company and Executive, including, but not limited to, the failure of the Company to make any material payment or provide any material benefit specified under this Agreement or another applicable agreement and the Company’s breach of the first sentence of Section 1(e) hereof;

 

(ii)                                  any material diminution in Executive’s authority, duties or responsibilities as President or Chief Executive Officer or the assignment to Executive of any duties materially inconsistent with Executive’s status as President and Chief Executive Officer;

 

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(iii)                               the failure of the Company to continue Executive in the positions of both President and Chief Executive Officer;

 

(iv)                              a material reduction in Executive’s Base Salary, Target Annual Bonus, or Annual Equity Award, as in effect as of the Effective Time or as the same may be increased from time to time, except for across-the-board reductions similarly affecting all senior executives of the Company;

 

(v)                                 the Company’s removal of Executive from the Board or failure to nominate Executive to the Board (other than in connection with a termination by the Company for Cause, or a result of death or Disability, and it being understood that a failure of the Company’s shareholders to re-elect Executive to the Board will not constitute Good Reason hereunder);

 

(vi)                              the failure of the Company to elect an independent Chairman of the Board with effect on or before the date that is nineteen (19) months following the Effective Date (as defined in the Transaction Agreement);

 

(vii)                           the relocation of the site of Executive’s principal place of employment to a location that is more than 50 miles outside of either Houston, Texas or London, England; or

 

(viii)                        the Company gives Executive Notice of Non-Renewal pursuant to Section 1(b) and the Parties do not, prior to the expiration of the Term, execute a new employment agreement governing the terms of Executive’s employment to be in effect thereafter;

 

provided, however, that Executive may not resign his employment for Good Reason unless: (x) Executive provides the Company with at least thirty (30) days (or, in the case of the Company’s breach of the first sentence of Section 1(e) hereof, sixty (60) days) prior written notice of his intent to resign for Good Reason (which notice must describe the particular acts or omissions which the Executive reasonably believes in good faith constitute “Good Reason” and be provided within ninety (90) days following the date on which Executive has knowledge of the occurrence of the acts or omissions purported to constitute Good Reason); and (y) the Company has not remedied the alleged violation(s) within thirty (30) days after receiving written notice of the basis for Good Reason.

 

12.                               Miscellaneous Provisions.

 

(a)                                 Governing Law; Jurisdiction.  This Agreement shall be governed, construed, interpreted and enforced in accordance with its express terms, and otherwise in accordance with the substantive laws of Texas without reference to the principles of conflicts of law of Texas. Any suit or proceeding arising under this Agreement shall be brought solely in a federal or state court sitting in the State of Texas, except for any suit or proceeding seeking an equitable remedy hereunder, which may be brought in any court of competent jurisdiction.  By Executive’s execution hereof, Executive hereby consents and irrevocably submits to the jurisdiction of the federal and state courts having general jurisdiction over the State of Texas, and agrees that any process in any suit or proceeding commenced in such courts under this Agreement may be served upon Executive personally, by certified mail, return receipt requested, or by courier service, with the same full force and effect as if personally served upon Executive in the county in which Executive is employed.  Each of the parties waives any claim that any such jurisdiction is not a convenient forum for any such suit or proceeding and any defense of lack of jurisdiction with respect thereto.

 

(b)                                 Validity.  The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

 

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(c)                                  Clawback. To the extent required by applicable law or any applicable securities exchange listing standards,  or as otherwise determined by the Board (or a committee thereof), amounts paid or payable under this Agreement or any other compensation arrangement of the Company or its affiliates shall be subject to the provisions of any applicable clawback policies or procedures adopted by the Company before the grant or award of such compensation, which clawback policies or procedures may provide for forfeiture and/or recoupment of amounts paid or payable under this Agreement or any other compensation arrangement of the Company or its affiliates.

 

(d)                                 Notices.  Any notice, request, claim, demand, document and other communication hereunder to any Party shall be effective upon receipt (or refusal of receipt) and shall be in writing and delivered personally or sent by facsimile or certified or registered mail, postage prepaid, as follows:

 

(i)                                     If to the Company, the General Counsel at its headquarters,

 

(ii)                                  If to Executive, at the last address that the Company has in its personnel records for Executive, or

 

(iii)                               At any other address as any Party shall have specified by notice in writing to the other Party.

 

(e)                                  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 by facsimile shall be deemed effective for all purposes.

 

(f)                                   Entire Agreement.  The terms of this Agreement are intended by the Parties to be the final expression of their agreement with respect to the subject matter hereof and supersede all prior understandings and agreements, whether written or oral, except the CiC Agreement, as amended, and as otherwise incorporated or referenced herein.  The Parties further intend that this Agreement shall constitute the complete and exclusive statement of their terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative, or other legal proceeding to vary the terms of this Agreement.

 

(g)                                  Amendments; Waivers.  This Agreement may not be modified, amended, or terminated except by an instrument in writing, signed by Executive and a duly authorized officer of Company.  By an instrument in writing similarly executed, Executive or a duly authorized officer of the Company may waive compliance by the other Party with any specifically identified provision of this Agreement that such other Party was or is obligated to comply with or perform; provided, however, that such waiver shall not operate as a waiver of, or estoppel with respect to, any other or subsequent failure.  No failure to exercise and no delay in exercising any right, remedy, or power hereunder preclude any other or further exercise of any other right, remedy, or power provided herein or by law or in equity.

 

(h)                                 No Inconsistent Actions.  The Parties hereto shall not voluntarily undertake or fail to undertake any action or course of action inconsistent with the provisions or essential intent of this Agreement.  Furthermore, it is the intent of the Parties hereto to act in a fair and reasonable manner with respect to the interpretation and application of the provisions of this Agreement.

 

(i)                                     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.  Any references to paragraphs, subparagraphs, sections or subsections are to those parts of this Agreement, unless the context clearly indicates to the contrary.  Also, unless the context clearly indicates to the contrary, (a) the plural

 

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includes the singular and the singular includes the plural; (b) “and” and “or” are each used both conjunctively and disjunctively; (c) “any,” “all,” “each,” or “every” means “any and all,” and “each and every”; (d) “includes” and “including” are each “without limitation”; (e) “herein,” “hereof,” “hereunder” and other similar compounds of the word “here” refer to the entire Agreement and not to any particular paragraph, subparagraph, section or subsection; and (f) all pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural as the identity of the entities or persons referred to may require.

 

(j)                                    Legal Fees.  If it shall be necessary or desirable for Executive to retain legal counsel or incur other costs and expenses in connection with enforcement of Executive’s rights under this Agreement, the Company shall pay (or Executive shall be entitled to recover from the Company, as the case may be) Executive’s reasonable attorneys’ fees and cost and expenses incurred in connection with enforcement of his rights (including the enforcement of any arbitration award in court), if the action relates to Executive’s employment with the Company and if a final decision in connection with at least one material issue of the litigation (or arbitration) is issued in Executive’s favor by an arbitrator or a court of competent jurisdiction.

 

(k)                                 Enforcement.  If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term of this Agreement, such provision shall be fully severable; this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a portion of this Agreement; and the remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement.  Furthermore, (i) while the Executive is based in the US, in lieu of such illegal, invalid or unenforceable provision there shall be added automatically as part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable, and (ii) while the Executive is based in the UK, if any provision would be valid if some part or parts of its or their wording were deleted, restricted or limited then such provision(s) shall apply with such deletions, restrictions or limitations as the case may be .

 

(l)                                     Withholding.  The Company shall be entitled to withhold from any amounts payable under this Agreement any federal, state, local or foreign withholding or other taxes or charges which the Company is required to withhold whether in the UK, the US or any other relevant jurisdiction.  The Company shall be entitled to rely on an opinion of counsel if any questions as to the amount or requirement of withholding shall arise.  In addition, Executive shall cooperate with the Company following any termination of Executive’s employment for any reason in satisfaction of the Company’s and Executive’s relative tax obligations hereunder and under the Company’s Expatriate Assignment Policy.

 

(m)                             Section 409A.

 

(i)                                     General.  The intent of the Parties is that the payments and benefits under this Agreement comply with or be exempt from Section 409A and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.

 

(ii)                                  Separation from Service.  Notwithstanding anything in this Agreement to the contrary, any compensation or benefits payable under this Agreement that is considered nonqualified deferred compensation under Section 409A and is designated under this Agreement as payable upon Executive’s termination of employment shall be payable only upon Executive’s “separation from service” with the Company within the meaning of Section 409A (a “Separation from Service”) and, except as provided below, any such compensation or benefits described in Section 4(b) shall not be paid, or, in the case of installments, shall not commence payment, until the fifty-third (53rd) day following Executive’s Separation from Service (the “First Payment Date”).  Any installment payments that would have been made

 

17

 

to Executive during the fifty-three (53) day period immediately following Executive’s Separation from Service but for the preceding sentence shall be paid to Executive on the First Payment Date and the remaining payments shall be made as provided in this Agreement.

 

(iii)                               Specified Employee.  Notwithstanding anything in this Agreement to the contrary, if Executive is deemed by the Company at the time of Executive’s Separation from Service to be a “specified employee” for purposes of Section 409A, to the extent delayed commencement of any portion of the benefits to which Executive is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A, such portion of Executive’s benefits shall not be provided to Executive prior to the earlier of (i) the expiration of the six-month period measured from the date of Executive’s Separation from Service with the Company or (ii) the date of Executive’s death.  Upon the first business day following the expiration of the applicable Section 409A period, all payments deferred pursuant to the preceding sentence shall be paid in a lump sum to Executive (or Executive’s estate or beneficiaries), and any remaining payments due to Executive under this Agreement shall be paid as otherwise provided herein.

 

(iv)                              Expense Reimbursements, Legal Fees.  To the extent that any reimbursements or payment of legal fees under this Agreement are subject to Section 409A, any such reimbursements or payment payable to Executive shall be paid to Executive no later than December 31 of the year following the year in which the expense or payment was incurred; provided, that Executive submits Executive’s reimbursement or payment request, as the case may be, promptly following the date the expense is incurred, the amount of expenses reimbursed in one year shall not affect the amount eligible for reimbursement in any subsequent year, other than medical expenses referred to in Section 105(b) of the Code, and Executive’s right to reimbursement or payment under this Agreement will not be subject to liquidation or exchange for another benefit.

 

(v)                                 Installments.  Executive’s right to receive any installment payments under this Agreement, including without limitation any continuation salary payments that are payable on Company payroll dates, shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all times be considered a separate and distinct payment as permitted under Section 409A.  Except as otherwise permitted under Section 409A, no payment hereunder shall be accelerated or deferred unless such acceleration or deferral would not result in additional tax or interest pursuant to Section 409A.

 

(n)                                 Data Protection. The Executive acknowledges that the Company will from time to time process data that relates to him for the purposes of the administration and management of its employees and its business, for compliance with applicable procedures, laws and regulations, and for other legitimate purposes. The Executive has a duty to comply with the Company’s data protection policy at all times and to keep all personal information that he has access to as part of his employment secure. The Executive must notify the person to whom he reports or such other person stipulated by the Company immediately on becoming aware of a data security breach. Failure to do so may lead to disciplinary action up to and including termination for Cause.

 

(o)                                 Ensco Guarantee. Ensco hereby guarantees payment and performance of all obligations of Ensco UK under this Agreement.

 

13.                               Executive Acknowledgement.  Executive acknowledges that Executive has read and understands this Agreement, is fully aware of its legal effect, has not acted in reliance upon any representations or promises made by the Company other than those contained in writing herein, and has entered into this Agreement freely based on Executive’s own judgment.  Executive also acknowledges and agrees that any compensation payable under this Agreement or otherwise shall be subject to the terms of

 

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any applicable compensation clawback policy adopted by the Company to comply with any provisions of applicable law or any securities exchange listing standards.

 

[Signature Page Follows]

 

19

 

This Agreement has been executed as a deed and is delivered and takes effect on the date stated at the beginning of it.

 

	
EXECUTED   as a deed by
    	
Signature
    
	
 
    	
 
    
	
ENSCO   Global Resources Limited
    	
/s/ Jonathan H. Baksht
    
	
 
    	
 
    
	
acting by an authorized   signatory, in the presence of:
    	
Director
    
	
 
    	
 
    
	
 
    	
Print name
    
	
 
    	
 
    
	
 
    	
Jonathan H. Baksht
    

 

 

	
Witness signature
    	
/s/ Michael McGuinty
    
	
 
    
	
Name (in BLOCK CAPITALS)
    	
MICHAEL MCGUINTY
    
			

 

 

	
SIGNED as a deed by Dr Thomas Burke
    	
Signature
    
	
 
    	
 
    
	
in the presence of:
    	
/s/ Thomas P. Burke
    

 

	
Witness signature
    	
/s/ Mark F. Mai
    
	
 
    
	
Name (in BLOCK CAPITALS)
    	
MARK F. MAI
    
			

 

[Signature Page to Employment Agreement]

 

 

	
EXECUTED, as a deed by
    	
Signature
    
	
 
    	
 
    
	
Rowan Companies, Inc.
    	
/s/ Mark F. Mai
    
	
 
    	
 
    
	
acting by a director, in the presence of:
    	
Director
    
	
 
    	
 
    
	
 
    	
Print name
    
	
 
    	
 
    
	
 
    	
Mark F. Mai
    

 

 

	
Witness signature
    	
/s/ Ryan Tarkington
    
	
 
    
	
Name (in BLOCK CAPITALS)
    	
RYAN TARKINGTON
    
			

 

[Signature Page to Employment Agreement]

 

 

Solely for the purposes of guaranteeing the obligations of Ensco and/or the Company under the Agreement:

 

	
EXECUTED, as a deed by
    	
Signature
    
	
 
    	
 
    
	
ENSCO plc
    	
/s/ Carl G. Trowell
    
	
 
    	
 
    
	
acting by a director, in the presence of:
    	
Director
    
	
 
    	
 
    
	
 
    	
Print name
    
	
 
    	
 
    
	
 
    	
Carl G. Trowell
    

 

 

	
Witness signature
    	
/s/ Michael McGuinty
    
	
 
    
	
Name (in BLOCK CAPITALS)
    	
MICHAEL MCGUINTY
    
			

 

[Signature Page to Employment Agreement]

 

 

EXHIBIT A

 

Separation Agreement and Release

 

This Separation Agreement and Release (“Agreement”) is made by and between Dr. Thomas Burke (“Executive”) and [              ] (the “Company”) (collectively, referred to as the “Parties” or individually referred to as a “Party”).  Capitalized terms used but not defined in this Agreement shall have the meanings set forth in the Employment Agreement (as defined below).

 

WHEREAS, the Parties have previously entered into that certain Employment Agreement, dated as of October 7, 2018 (the “Employment Agreement”); and

 

WHEREAS, in connection with Executive’s termination of employment with the Company or a subsidiary or affiliate of the Company effective [               , 20    ], the Parties wish to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that Executive may have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out of or in any way related to Executive’s employment with or separation from the Company or its subsidiaries or affiliates but, for the avoidance of doubt, nothing herein will be deemed to release any rights or remedies in connection with (i) Executive’s ownership of vested equity securities of the Company or any of its affiliates, including any rights to vesting in connection with Executive’s employment or the termination thereof, and (ii) Executive’s rights under any directors & officers liability insurance policies then in effect, or to indemnification (including advancement of expenses) by the Company or any of its affiliates pursuant to contract or applicable law (collectively, the “Retained Claims”).

 

NOW, THEREFORE, in consideration of the Severance Payments described in Section 4 of the Employment Agreement, which, pursuant to the Employment Agreement, are conditioned on Executive’s execution and non-revocation of this Agreement, and in consideration of the mutual promises made herein, the Company and Executive hereby agree as follows:

 

1.             Severance Payments; Salary and Benefits.  The Company agrees to provide Executive with the severance payments and benefits described in Section 4(b) of the Employment Agreement, payable at the times set forth in, and subject to the terms and conditions of, the Employment Agreement.  In addition, to the extent not already paid, and subject to the terms and conditions of the Employment Agreement, the Company shall pay or provide to Executive all other payments or benefits described in Section 3(c) of the Employment Agreement, subject to and in accordance with the terms thereof, including, but not limited to, tax equalization and relocation/repatriation and other expatriate assignment benefits due to Executive in connection with employment outside the United States.

 

2.             Release of Claims.  Executive agrees that, other than with respect to the Retained Claims, the foregoing consideration represents settlement in full of all outstanding obligations owed to Executive by the Company, any of their direct or indirect subsidiaries and affiliates, and any of their current and former officers, directors, equity holders, managers, employees, agents, investors, attorneys, shareholders, administrators, affiliates, benefit plans, plan administrators, insurers, trustees, divisions, and subsidiaries and predecessor and successor corporations and assigns (collectively, the “Releasees”).  Executive, on his own behalf and on behalf of any of Executive’s affiliated companies or entities and any of their respective heirs, family members, executors, agents, and assigns, other than with respect to the Retained Claims, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge, duty, obligation, or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Executive may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have

 

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occurred up until and including the Effective Time of this Agreement (as defined in Section 7 below), including, without limitation:

 

(a)           any and all claims relating to or arising from Executive’s employment or service relationship with the Company or any of its direct or indirect subsidiaries or affiliates and the termination of that relationship;

 

(b)           any and all claims relating to, or arising from, Executive’s right to purchase, or actual purchase of any shares of stock or other equity interests of the Company or any of its affiliates, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law;

 

(c)           any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;

 

(d)           any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; and the Sarbanes-Oxley Act of 2002;

 

(e)           any and all claims for violation of the federal or any state constitution;

 

(f)            any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

 

(g)           any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by Executive as a result of this Agreement; and

 

(h)           any and all claims for attorneys’ fees and costs.

 

Executive agrees that the release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released.  This release does not release claims that cannot be released as a matter of law, including, but not limited to, Executive’s right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the Company (with the understanding that Executive’s release of claims herein bars Executive from recovering such monetary relief from the Company or any Releasee), claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law, claims to continued participation in certain of the Company’s group benefit plans pursuant to the terms and conditions of COBRA, claims to any benefit entitlements vested as the date of separation of Executive’s employment, pursuant to written terms of any employee benefit plan of the Company or its affiliates and Executive’s right under applicable law and any Retained Claims.  This release further does not release claims for breach of Section 3(c) or Section 4(b) of the Employment Agreement.

 

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3.             Acknowledgment of Waiver of Claims under ADEA.  Executive understands and acknowledges that Executive is waiving and releasing any rights Executive may have under the Age Discrimination in Employment Act of 1967 (“ADEA”), and that this waiver and release is knowing and voluntary.  Executive understands and agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective Time of this Agreement.  Executive understands and acknowledges that the consideration given for this waiver and release is in addition to anything of value to which Executive was already entitled.  Executive further understands and acknowledges that Executive has been advised by this writing that: (a) Executive should consult with an attorney prior to executing this Agreement; (b) Executive has 21 days within which to consider this Agreement; (c) Executive has 7 days following Executive’s execution of this Agreement to revoke this Agreement pursuant to written notice to the General Counsel of the Company; (d) this Agreement shall not be effective until after the revocation period has expired; and (e) nothing in this Agreement prevents or precludes Executive from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law.  In the event Executive signs this Agreement and returns it to the Company in less than the 21 day period identified above, Executive hereby acknowledges that Executive has freely and voluntarily chosen to waive the time period allotted for considering this Agreement.

 

4.             Severability.  In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue in full force and effect without said provision or portion of provision.

 

5.             No Oral Modification.  This Agreement may only be amended in a writing signed by Executive and a duly authorized officer of the Company.

 

6.             Governing Law; Jurisdiction.  This Agreement shall be governed, construed, interpreted and enforced in accordance with its express terms, and otherwise in accordance with the substantive laws of Texas without reference to the principles of conflicts of law of Texas. Any suit or proceeding arising under this Agreement shall be brought solely in a federal or state court sitting in the State of Texas, except for any suit or proceeding seeking an equitable remedy hereunder, which may be brought in any court of competent jurisdiction.  By Executive’s execution hereof, Executive hereby consents and irrevocably submits to the jurisdiction of the federal and state courts having general jurisdiction over the State of Texas, and agrees that any process in any suit or proceeding commenced in such courts under this Agreement may be served upon Executive personally, by certified mail, return receipt requested, or by courier service, with the same full force and effect as if personally served upon Executive in the county in which Executive is employed.  Each of the parties waives any claim that any such jurisdiction is not a convenient forum for any such suit or proceeding and any defense of lack of jurisdiction with respect thereto

 

7.             Survival.  The Parties expressly acknowledge and agree that the provisions of Sections 5 through 10 and Section 12 of the Employment Agreement will survive the termination of Executive’s employment.

 

8.             Effective Time.  Each Party has seven days after that Party signs this Agreement to revoke it and this Agreement will become effective on the eighth day after Executive signed this Agreement, so long as it has been signed by the Parties and has not been revoked by either Party before that date (the “Effective Time”).

 

9.             Voluntary Execution of Agreement.  Executive understands and agrees that Executive executed this Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of Executive’s claims against the Company

 

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and any of the other Releasees.  Executive acknowledges that: (a) Executive has read this Agreement; (b) Executive has not relied upon any representations or statements made by the Company that are not specifically set forth in this Agreement; (c) Executive has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of his own choice or has elected not to retain legal counsel; (d) Executive understands the terms and consequences of this Agreement and of the releases it contains; and (e) Executive is fully aware of the legal and binding effect of this Agreement.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective dates set forth below.

 

	
 
    	
 
    	
EXECUTIVE 
    
	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Dr. Thomas Burke
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
COMPANY
    
	
Dated:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name: 
    
	
 
    	
 
    	
 
    	
Title:
    

 

A-5

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