Document:

exv10w2

 

EXHIBIT 10.2

USF Corporation

8550 W. Bryn Mawr Ave., Suite 700

Chicago, IL 60631

February 7, 2005

Mr. Thomas E. Bergmann

USF Corporation

8550 Bryn Mawr Avenue

Chicago, Illinois 60631

Dear Tom:

This letter confirms the agreement which we have reached regarding your service as Interim Chief
Executive Officer of USF Corporation (the “Company”). This letter is an amendment of your
Employment Agreement with the Company dated February 2, 2004 (“Employment Agreement”).

	13.  	Duties. Effective November 2, 2004, you have been appointed by the Board of
Directors (the “Board”) as the Interim Chief Executive Officer of the Company. Your
service as Interim Chief Executive Officer will continue until the first to occur of (i) your
appointment as permanent Chief Executive Officer, (ii) the appointment of another individual
as Chief Executive Officer, (iii) your employment terminates in accordance with your
Employment Agreement, or (iv) the Company and you otherwise agree. Unless the Company and you
otherwise agree, if the Board appoints another individual as Chief Executive Officer, you will
then resume your duties exclusively as Executive Vice President and Chief Financial Officer
pursuant to your Employment Agreement. As Interim Chief Executive Officer, you will have
general responsibility for the business operations of the Company, subject to the authority
and direction of the Executive Chairman, with all powers and duties consistent with such
position. During such time, you will report directly to the Executive Chairman and the Board
and will devote your full-time attention to such duties and responsibilities.
	 
	14.  	Promotion. Effective August 19, 2004, you were promoted from Senior Vice President
to Executive Vice President of the Company. Effective that date, the annual rate of your base
salary is $450,000 and your target calendar year bonus percentage is 100%.
	 
	15.  	Cash Compensation. In consideration for your serving as Interim Chief Executive
Officer, effective November 2, 2004, you will earn additional base salary at a rate of $8,333
per calendar month, payable in a lump sum for all sums accrued to date and hereafter in
accordance with the Company’s regular practices. You also will

 

 

	   	earn a quarterly supplemental incentive payment in the amount of $25,000, payable on each
of January 31, April 30, July 31 and October 31 if you are serving as Interim Chief
Executive Officer on such date.
	 
	16.  	Long-Term Incentive Plan Participation. While serving as Interim Chief Executive
Officer, you will be eligible for long-term incentive grants with the grant level to be based
in part on your service as Interim Chief Executive Officer and in part on your service as
Chief Financial Officer (prorated for the period of service during the performance year at
each position), in the discretion of the Board.
	 
	17.  	Basis for Severance. While you are serving as Interim Chief Executive Officer, for
the purpose of determining any amount that may be payable to you in connection with a
termination of your employment pursuant to Section 7(b) of your Employment Agreement or
Section 3.1(b)(ii) of the Severance Protection Agreement between the Company and you, dated
February 2, 2004:

	 	(a)  	Your annual “base salary” will be $550,000;
	 
	 	(b)  	To the extent applicable, any component of severance based on bonus
compensation will include the foregoing $25,000 quarterly incentive payments actually
paid, in addition to other components of bonus compensation, and your “target bonus”
will be 100% of your “base salary” stated in this paragraph 5.

	18.  	Indemnification. To the fullest extent permitted by law, the Company will, during
and after the term of your service as Interim Chief Executive Officer of the Company, insure
you under any policy of directors and officers liability insurance that insures members of the
Board and will indemnify you (including the advancement of expenses) for any judgments, fines,
amounts paid in settlement and reasonable expenses, including attorneys’ fees, incurred by you
in connection with the defense of any lawsuit or other claim to which you are made or
threatened to be made a party by reason of being or having been an officer, director or
employee of the Company.

	19.  	Withholding Taxes. The Company will provide for the withholding of any taxes
required to be withheld by federal, state or local law with respect to any payment made by or
on behalf of the Company to you or for your benefit in connection with your service as Interim
Chief Executive Officer hereunder.

 

 

If the foregoing is consistent with your understanding, please countersign the enclosed copy of
this letter and return it to me.

Sincerely,

	 	 	 	 
	USF CORPORATION

 	 
	By:  	/s/ Neil A. Springer
 	 
	 	 	Neil A. Springer, Director 	 
	Date:  	February 7, 2005	 
	 

Accepted and agreed to

this 7th day of February, 2005

/s/ Thomas E. Bergmann

Thomas E. BergmannEngagement Agreement Kenneth Crowley

 

Exhibit 10.54

ENGAGEMENT AGREEMENT

THIS AGREEMENT is made the 19th day of January 2004

	 	 	 
	BETWEEN:

	 	CONSOLIDATED WATER CO. LTD.,

a Cayman Islands company having its registered office at

Trafalgar Place, West Bay Road

P.O. Box 1114 GT, Grand Cayman, B.W.I.

(“the Company”)
	 
	 	 
	AND:

	 	KENNETH CROWLEY

of P. O. Box 1114 GT, Grand Cayman, B.W.I.

(“the Vice-President”)

IT IS AGREED:-

Engagement

	1.  	The Vice-President is engaged as Vice-President of Overseas Operations for two (2) years
commencing on the 1st day of January, 2004 subject to the termination provisions
set out in Clauses 17 and 18 and the renewal provisions set out in Clause 19.

Remuneration

	2.  	The Vice-President’s remuneration will be US$95,000.00 per annum payable semi-monthly in
arrears.

	3.  	In addition, during the term of this Agreement, the Company will pay the full cost of
providing medical insurance, as generally provided for the Company’s employees from
time to time, for the Vice-President and his wife and dependants.

	4.  	Subject to approval of the members of the Company at the Company’s next annual general
meeting, the Vice President will be allowed to participate in the Company’s Employee Share
Incentive Plan.

	5.  	In addition, during the term of this Agreement, the Company will make contributions to a
pension scheme, of the Vice-President’s choice but approved pursuant to the National Pensions
Law of the Cayman Islands, in the same manner and on the same basis as it makes contributions
from time to time, in respect of its other employees pursuant to the National Pensions Law on
a maximum salary base of CI$60,000.00 per annum.

 

 

	6.  	The Vice-President’s remuneration will be reviewed as of January 1st each year by
the Company’s Board of Directors (“the Board”) who may grant an increase but must not reduce
the Vice-President’s salary below the level set out in Clause 2.

	7.  	Further, for each completed financial year beginning with the financial year 2004, the
Vice-President will be paid not later than 28th February following the end of each
financial year, a performance bonus calculated as 2.5% of the Company’s Incremental Net Profit
for that year. For the purposes of this Clause “the Company’s Incremental Net Profit” means
the amount, if any, by which the Company’s net profits (calculated before charging this bonus
and before charging dividends or crediting any amount accruing from the re-valuation of the
Company’s assets) for the relevant financial year exceeds the highest annual net profit earned
by the Company in any prior financial year. In no event, however, may this bonus exceed 40%
of the Vice-President’s annual salary paid pursuant to Clause 2.

     The Performance Bonus, if any, will be paid:

	 	(a)  	in cash; or
	 
	 	(b)  	subject to approval of the members of the Company at the Company’s next annual
general meeting, in ordinary shares of the Company valued at the market price at the
close of trading on December 31st of the relevant financial year (or if that
day is not a trading day, at the close of trading on the preceding trading day); or
	 
	 	(c)  	as a combination of both, at the Vice-President’s election.
	 
	 	   	If the approval required under (b) above is not obtained, the Performance Bonus will be paid
entirely in cash.

Responsibilities

	8.  	The Vice-President’s work will be performed mainly in West Bay, Grand Cayman.
	 
	   	The Company reserves the right to transfer the Vice-President to any other place of business
which it may establish in the Cayman Islands.

	9.  	The Vice-President must devote the whole of his time to the Company’s business and must use
his best endeavours to promote the Company’s interest and welfare.
	 
	   	The Vice-President must provide strategic and operational direction to the water production
and supply operations in the Bahamas, Barbados, Belize and the British Virgin Islands of the
Company’s wholly-owned subsidiaries and managed affiliates in those countries (collectively
“the Overseas Group”), assist in establishing strategic objectives, operating policies and
procedures to ensure attainment of corporate objectives, evaluate performance of the members
of the Overseas Group to determine if operational and financial objectives are being met,
establish and co-ordinate responsibilities and procedures among subordinate departments,
ensure that accurate and timely information is available for management and/or Board use and
any further duties reasonably required of and assigned to him by the Chief Executive Officer which he must
discharge in accordance with directions of the Chief Executive Officer.

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	   	The Vice-President’s powers and responsibilities include the following:-

	 	(a)  	Directing and managing the day-to-day activities of the Overseas
Group’s respective water production and supply operations, including plant
operation and maintenance, collection of billing data, expenditure of funds and
conservation of fixed assets;
	 
	 	(b)  	Assisting the Vice President of Finance to prepare the Overseas Group’s
operating and capital expenditure budgets and prepare and maintain the register of
fixed assets for the Overseas Group’s operations;
	 
	 	(c)  	Preparing and implementing a fixed asset maintenance and retirement
schedule;
	 
	 	(d)  	Liaising with the respective Government regulators on all matters
related to the water production and supply licences or contracts of each member of
the Overseas Group;
	 
	 	(e)  	Overseeing the supervision of subordinate personnel, including work
allocation, training, and problem resolution, evaluating performance and making
recommendations for Overseas Group personnel actions and motivating its employees
to achieve peak productivity and performance;
	 
	 	(f)  	Preparing and presenting the monthly operations reports of each member
of the Overseas Group to management and the Board;
	 
	 	(g)  	Conducting regular visits to the members of the Overseas Group to
monitor the performance of staff, plant and equipment, and to implement policies
and procedures improvements as necessary;
	 
	 	(h)  	Carrying out any special projects which may be assigned to the Vice
President from time to time.

	   	The Vice-President must perform his duties under this Agreement during normal business hours
from Monday to Friday inclusive (except on bank holidays) but he accepts that his duties,
which include travelling on the Company’s business both within the Cayman Islands and
abroad, may, from time to time, require work to be undertaken on Saturdays, Sundays and bank
and public holidays. However, at the discretion of the Chief Executive Officer, the Vice
President may be granted extra time off in exchange for additional time worked.
	 
	   	The Vice-President must not directly or indirectly engage in any activities or work which
are deemed by the Board to be detrimental to the best interests of the Company.

	10.  	In case of inability to work due to illness or injury, the Vice-President must notify the
Company immediately and produce a medical certificate for any absence longer than ten working
days.

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	11.  	The Vice-President is entitled to up to ten (10) days sick leave per year without a medical
certificate.

Holidays

	12.  	The Vice-President is entitled, during every calendar year to the following holidays during
which his remuneration will continue to be payable:-

	 	(a)  	all public holidays in the Cayman Islands, and
	 
	 	(b)  	four (4) weeks vacation to be taken at a time to be approved by the Chief
Executive Officer.

Reimbursement of Expenses/Fees Earned

	13.  	(a) All expenses for which the Vice-President claims reimbursement must be in accordance with
any policies established by the Board from time to time and must be within the operating
budgets approved by the Board. The Company must reimburse the Vice-President for the costs
incurred by the Vice-President in his performance of his duties on production of the necessary
vouchers or, if he is unable to produce vouchers, on the Vice-President’s proving, to the
Chief Executive Officer’s satisfaction, the amount he has spent for those purposes.

	 	(b)  	Any fees and payments received by the Vice-President for or in relation to acting
as director or officer of a subsidiary or affiliate of the Company will be the property
of the Company and the Vice-President must account to the Company for it.

Non-Competition

	14.  	The Vice-President agrees, as a separate and independent agreement, that he will not during
any period for which he is entitled to remuneration under this Agreement, whether for his own
account or for the account of any other person, firm or body corporate, either alone or
jointly with or as director, manager, agent or employee of or as consultant to any person,
firm or body corporate, directly or indirectly, carry on or be engaged or concerned or
interested in any person firm or body corporate who conducts business identical to or similar
to that conducted by the Company in any jurisdiction in which the Company carries on business
(whether directly or indirectly).

Company Information, Documents, Confidentiality, and Non-Solicitation

	15  	(a) All information, documents, books, records, notes, files, memoranda, reports, customer
lists and other documents, and all copies of them, relating to the Company’s business or
opportunities which the Vice-President keeps, prepares or conceives or which become known to
him or which are delivered or disclosed to him or which, by any means come into his
possession, and all the Company’s property and equipment are and will remain the Company’s
sole and exclusive property both during the term of this Agreement and after the termination
or expiration hereof;

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	 	(b)  	If this Agreement is terminated for any reason, or if the Company at any time
requests, the Vice-President must promptly deliver to the Company the originals and all
copies of all relevant documents that are in his possession, custody or control together
with any other property belonging to the Company. Should the Vice-President require
access to copies of those documents for any reasonable purpose, the Company must provide
them on his request;
	 
	 	(c)  	The Vice-President must not, at any time during the term of this Agreement or
within one year after its termination or expiration, either for his own account or for
the account of any other person, firm or company, solicit, interfere with or endeavour
to entice away from the Company any person, firm or company who, at any time during the
currency of this Agreement was an employee, customer or supplier of or was in the habit
of dealing with the Company.

	16.  	Except where such information is a matter of public record or when required to do so by law,
the Vice-President must not, either before or after this Agreement ends, disclose to any
person any information relating to the Company or its customers of which he becomes possessed
while acting as Vice-President.

Termination

	17.  	This Agreement will terminate and, except to the extent previously accrued, all rights and
obligations of both parties under it will cease if any of the following events occurs:-

	 	(a)  	The Vice-President dies.
	 
	 	(b)  	The Vice-President is adjudicated bankrupt or makes any arrangement or
composition with his creditors.
	 
	 	(c)  	The Vice-President gives six (6) months written notice of termination to the
Company.

	18.  	(a) The Company may, by written notice, terminate this Agreement with immediate effect if the
Vice-President conducts himself in a manner that would justify immediate dismissal of an
employee in accordance with the Labour Law and, except to the extent previously accrued, all
rights and obligations of both parties under this Agreement will cease.

	 	(b)  	If through physical or mental illness, the Vice-President is unable to
discharge his duties for sixty (60) successive days, as to which a certificate by any
doctor appointed by the Company will be conclusive, then

	 	(i)  	the Vice-President will be relieved of his duties, his salary
reduced to US$1,000.00 per annum and his bonus entitlement suspended, but
	 
	 	(ii)  	the Company will continue to pay the full cost of providing medical
insurance for the Vice-President and his wife and dependants together with
pension

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	 	   	contributions (such contributions to be equal to the pension contribution made on
behalf of the Vice-President for the previous financial year of the Company),

	 	   	until the Vice-President is able once again to resume his duties in full.
	 
	 	   	If this incapacity continues for a period of two years (including the 60-day period
referred to above) the Vice-President’s employment will be deemed to have been
terminated by mutual consent at the expiration of that period.

Renewal

	19.  	On or before June 30, 2005, the Chief Executive Officer may, in his sole discretion offer to
renew this Agreement for a further term not exceeding two years.

Notices

	20.  	Any notice to be served under this Agreement must be in writing and will be deemed to be duly
served if it is handed personally to the Secretary of the Company or to the Vice-President as
the case may be, or if it is sent by registered post to the addressee at the relevant address
at the head of this Agreement. A notice sent by post will be deemed to be served on the third
day following the date on which it was posted.

Previous Agreements Superseded

	21.  	This Agreement supersedes all prior contracts and understandings between the parties except
that benefits earned or accrued under prior contracts are not extinguished or affected.

Waiver

	22.  	No change or attempted waiver of any of the provisions of this Agreement will be binding
unless in writing and signed by the party against whom it is sought to be enforced.

Severability of Provisions

	23.  	Whenever possible, each provision of this Agreement must be interpreted in such manner as to
be effective and valid. If any provision of this Agreement or the application of it is
prohibited or is held to be invalid, that prohibition or invalidity will not affect any other
provision, or the application of any other provision which can be given effect without the
invalid provision or prohibited application and, to this end, the provisions of this Agreement
are declared to be severable.

Headings

	24.  	The headings in this Agreement are included for convenience only and have no legal effect.

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Applicable Law and Jurisdiction

	25.  	This Agreement must be construed and the legal relations between the parties determined in
accordance with the laws of the Cayman Islands to the jurisdiction of the courts of which the
parties agree to submit.

	 	 	 
	EXECUTED for and on
behalf of

CONSOLIDATED WATER CO LTD.

by:

In the presence of:	 	
CONSOLIDATED WATER CO. LTD.
	 	 	 
	/s/ Stephen W. Jacoby

Witness	 	
/s/ Frederick W. McTaggart

Director
	 	 	 
	EXECUTED by KENNETH
CROWLEY
in the presence of:	 	 
	 	 	 
	/s/ Stephen W. Jacoby

Witness	 	
/s/ Kenneth Crowley

KENNETH CROWLEY

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