Document:

Exhibit 10.1

 

HILL INTERNATIONAL, INC.

 

2016 EXECUTIVE RETENTION PLAN

 

Plan Effective Date November 3, 2016

 

 

ARTICLE I

 

BACKGROUND, PURPOSE AND TERM OF PLAN

 

Section 1.01 — Background and Purpose.  Hill International, Inc. (the “Company”) hereby establishes the Hill International, Inc. 2016 Executive Retention Plan (the “Plan”) for the purpose of providing severance benefits to certain Employees (as defined below) whose employment with the Company is permanently terminated due to an Involuntary Termination (as defined below).  This Plan is intended to be an unfunded plan maintained primarily for the purpose of providing deferred compensation for a select group of management or highly-compensated employees within the meaning of Title I of the Employee Retirement Income Security Act of 1974, as amended.  This Plan shall supersede prospectively, any policy, plan or program, if any, heretofore maintained or in effect under which the Company, or any of its subsidiaries, has ever made payments of severance to Participants (as defined below) and the adoption of this Plan shall act to terminate any other policy, plan or program with respect to such Participants.  This document sets forth the terms of the Plan.

 

The Plan, as set forth herein, is intended to alleviate financial hardships that may be experienced by Participants whose employment is terminated due to an Involuntary Termination.  The Plan is intended to be included in the definitions of “employee pension benefit plan” and “pension plan” set forth under Section 3(2) of ERISA as a “severance pay arrangement” within the meaning of Section 3(2)(b)(i) of ERISA.

 

This Plan does not constitute an employment contract.  Severance benefits are not to be viewed as automatic and are not compensation for past services, but instead are intended only as prospective payments that will be offered by the Company in exchange for a written release signed by the Employee.  An Employee will be granted the benefits offered under this Plan only if he or she executes and, if applicable, does not thereafter revoke, the release in a form acceptable to the Company.  This release is discussed further in Section 3.02 herein and an Employee may wish to consult an attorney before executing the release.

 

Section 1.02 — Term of the Plan.  The Plan, subject to Section 7.01, will continue until all Severance Benefits are provided to Participants.

 

ARTICLE II

 

DEFINITIONS

 

Section 2.01.  “Base Salary” shall mean the Participant’s established annual salary as of the Employment Termination Date.  Base Salary shall not include bonuses, incentives, awards, or any other allowances or contingent amounts.

 

Section 2.02.  “Cause” shall mean a termination of employment initiated by the Company on account of any of the following actions by the Employee: (a) conviction of any felony or any other crime involving moral turpitude, (b) fraud against the Company or any of its Subsidiaries or affiliates or theft of or maliciously intentional damage to the property of the Company or any of their Subsidiaries or affiliates, (c) willful breach of the Employee’s fiduciary duties to the Company, or (d) breach by the Employee of any provision of this Plan; provided,

 

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however, that with respect to clause (d) above, in order for the Employee to be terminated “with Cause”, the unacceptable conduct must continue after the Company has given the Employee written notice thereof and a reasonable opportunity to correct such conduct.

 

Section 2.03.  “Change in Control” shall mean the occurrence of any of the following events:

 

(i)            Any one person, or more than one person acting as a group, acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company, excluding the acquisition of additional stock by a person or more than one person acting as a group who is considered to own more than fifty percent (50%) of the total fair market value or total voting power of the stock of the Company;

 

(ii)           A majority of Board members are replaced during a two-year period by directors whose election is not endorsed by a majority of the Board members prior to the election; or

 

(iii)          The consummation of a merger, reorganization, consolidation or similar transaction of the Company, with any other corporation, other than a merger, reorganization, consolidation or similar transaction which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company, or such surviving entity or its parent outstanding immediately after such merger, reorganization, consolidation or similar transaction; or

 

(iv)          A dissolution or liquidation of the Company.

 

The definition of Change in Control under this Plan will be construed consistent with the definition of “Change in Control” as defined in Section 409A of Code and the applicable Treasury Regulations, as amended from time to time.

 

Section 2.04.  “Code” shall mean the Internal Revenue Code of 1986, as amended.

 

Section 2.05.  “Company” shall mean Hill International, Inc. and its Subsidiaries.

 

Section 2.06.  “Employee” shall mean any salaried individual in the employ of the Company who is characterized by the Company as a part-time or full-time employee and who receives or is entitled to receive a Form W-2 from the Company as to the wages paid to such individual and who is considered to be within a select group of management or highly compensated employees of the Company.

 

Section 2.07.  “Employment Termination Date” shall mean the date on which the active employment of the Employee by the Company is severed by reason of an Involuntary Termination.

 

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Section 2.08.  “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

 

Section 2.09.  “Good Reason” shall mean an Employee’s voluntary termination of employment that occurs under the following conditions:

 

(a)           The termination of employment must occur during a period of time not to exceed one (1) year following the initial existence of one or more of the conditions set forth in paragraphs (1) through (6) of this Section 2.09(a) arising without the prior written consent of the Employee (the existence of any of which conditions shall constitute “Good Reason”):

 

(1)           Any material diminution in Base Salary;

 

(2)           Any material diminution in the Employee’s authority, duties or responsibilities;

 

(3)           Any material diminution in the budget over which the Employee retains authority;

 

(4)           Any change in the geographic location at which the Employee must perform the services under this Agreement greater than 50 miles from the principal place of then current employment without the Employee’s mutual agreement, which change is material to the Employee;

 

(5)           Any other action or inaction that constitutes a material breach by the Company of this Plan; or

 

(6)           Failure of successor company (upon a Change in Control) to assume the Plan or Agreement; and

 

(b)           The Employee shall provide notice to the Company of the existence of the “Good Reason” condition within ninety (90) days after the Employee becomes aware of the initial existence of such “Good Reason” condition, upon notice of which the Company shall have a period of sixty (60) days during which it may remedy such condition.

 

Section 2.10. “Involuntary Termination” shall mean a permanent termination of an Employee’s employment which is initiated (a) by the Company for reasons other than for Cause or (b) by the Employee for Good Reason.  Under no circumstances will a termination for Cause, voluntary resignation (other than for Good Reason) or retirement be considered an Involuntary Termination.

 

Section 2.11.  “Named Fiduciary” shall mean the Plan Administrator and the Named Appeals Fiduciary within the meaning of Section 9.03 of this Plan.  Each Named Fiduciary shall have only those particular powers, duties, responsibilities and obligations as are specifically given him/her/it under this Plan.  Any Named Fiduciary, if so appointed, may perform in more than one fiduciary capacity and may also perform in a non-fiduciary capacity.

 

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Section 2.12.  “Participant” shall mean any Employee entitled to receive Severance Benefits in accordance with Article III of this Plan.

 

Section 2.13.  “Plan” shall mean the Hill International, Inc. 2016 Executive Retention Plan, as set forth herein, and as the same may from time to time be amended.

 

Section 2.14.  “Plan Administrator” shall mean the Company; and the Company’s Senior Vice President and Chief Administrative Officer (or another Company designee) shall have authority to act on behalf of the Company with respect to its duties as an administrator of the Plan, as set forth herein and as provided for under applicable law.

 

Section 2.15.  “Plan Year” shall mean January 1 through December 31.  The initial Plan Year for the Plan shall be a short plan year, from November 3, 2016 through December 31, 2016.

 

Section 2.16. “Release” shall mean a General Release, which will contain a waiver of claims by the Employee against the Company and will be prepared at the discretion of the Company and provided to the Participant for execution as required by Section 3.02.

 

Section 2.17.  “Retention Plan Participation Agreement” shall mean the Retention Plan Participation Agreement setting forth the terms applicable to the Severance Benefits payable to a Participant that is provided to such Participant in accordance with Section 3.01.

 

Section 2.18.  “Severance Benefit” shall mean the amounts that a Participant is eligible to receive pursuant to Article IV of the Plan.

 

Section 2.19.  “Subsidiary” shall mean any entity, whether or not incorporated, in which the Company directly or indirectly owns more than fifty percent (50%) of the outstanding equity or other ownership interests.

 

ARTICLE III

 

PARTICIPATION AND ELIGIBILITY FOR SEVERANCE BENEFITS

 

Section 3.01 - Participation.   An Employee shall become a Participant under this Plan only if the Company designates in writing through the issuance of a Retention Plan Participation Agreement that the Employee (a) is eligible to become a Participant and (b) is entitled to Severance Benefits in the event that the Employee’s employment is terminated by reason of an Involuntary Termination, and the Employee satisfies all of the conditions of Section 3.02.

 

Section 3.02 - Conditions.

 

(a)           As further conditions to the entitlement to Severance Benefits, an Employee must:  (i) remain actively employed through the Employment Termination Date; (ii) execute and not revoke a valid Release; and (iii) comply fully with all agreements between the Employee and the Company including, but not limited to, any confidentiality agreements and post-employment restrictive covenants.

 

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(b)           Any amounts owed by the Participant to the Company shall be deducted from the Participant’s Severance Benefit in such manner as the Company shall decide.  As an additional condition to receiving a Severance Benefit under this Plan, the Company may require the Participant to execute a written agreement that authorizes the deduction of amounts owed to the Company prior to the payment of any Severance Benefit.

 

ARTICLE IV

 

DETERMINATION OF SEVERANCE BENEFIT

 

Section 4.01 - Amount of Severance Benefit upon an Involuntary Termination.  A Participant who meets all of the conditions specified in Section 3.02 will be entitled to receive a Severance Benefit under the Plan.  The Severance Benefit to which a Participant is entitled under the Plan will be in the amount set forth in the Participant’s Retention Plan Participation Agreement.

 

Section 4.02 - Reduction of Severance Benefit.  As determined by the Company, the Severance Benefit payable hereunder to any Participant may be reduced by any and all payments required to be made by the Company in the nature of severance or separation pay under any employment contract or other arrangement or under federal, state and local law including, but not limited to, the Worker Adjustment and Retraining Notification Act, 29 United States Code Section 2101, et seq. or similar state or local laws.

 

ARTICLE V

 

METHOD AND DURATION OF SEVERANCE BENEFIT PAYMENTS

 

Section 5.01 - Method of Payment.  The Severance Benefit to which a Participant is entitled, as determined pursuant to Section 4.01, shall be paid in accordance with the terms set forth in the Participant’s Retention Plan Participation Agreement.  Severance Benefits payable under Article IV are subject to withholding for applicable federal, state and local taxes, all of which shall be deducted from each payment, as applicable.  In the event of the Participant’s death prior to the completion of all payments, any remaining payments shall be paid to the Participant’s beneficiary under the Company’s group term life insurance plan.

 

Section 5.02 - Other Arrangements.  The Severance Benefits under this Plan are not additive or cumulative to severance benefits that a Participant might also be entitled to receive under the terms of a written employment agreement, a severance agreement or any other arrangement or legal requirement.  Should a Participant in this Plan be entitled to receive severance benefits under the terms of a written employment agreement, a severance agreement or other arrangement or legal requirement, the Participant will receive severance benefits under the plan or arrangement that provides the higher level of benefits, and such payment shall be deemed to be the Severance Benefit for such Participant under this Plan.  Any overpayments made under the Plan shall be promptly repaid by the Participant after written request.

 

Section 5.03 - Termination of Eligibility for Severance Benefits.  A Participant shall cease to participate in the Plan, and all Severance Benefits shall cease upon the occurrence of the earliest of: (a) subject to Section 7.01, termination of the Plan; and (b) reemployment of the Participant by the Company or a Subsidiary.

 

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ARTICLE VI

 

THE PLAN ADMINISTRATOR

 

Section 6.01 - Authority and Duties.  It shall be the duty of the Plan Administrator, on the basis of information supplied to it by the Company, to properly administer the Plan.  The Plan Administrator shall have the full power, authority and discretion to construe, interpret and administer the Plan, to make factual determinations, to correct deficiencies therein, and to supply omissions.

 

Section 6.02 - Records.  Reporting and Disclosure.  The Plan Administrator shall keep a copy of all records relating to the payment of Severance Benefits to Participants and former Participants and all other records necessary for the proper operation of the Plan.  Upon request to the Plan Administrator, all Plan records shall be made available to the Company and to each Participant for examination during regular business hours at Company headquarters at One Commerce Square, 2005 Market Street, 17th Floor, Philadelphia, Pennsylvania 19103, or at a Participant’s regular work site, except that a Participant shall examine only such records as pertain exclusively to the examining Participant and to the Plan.  Upon written request to the Plan Administrator, copies of relevant Plan records may be provided to a Participant; however, a reasonable charge may be made for the production of such documents.  The Plan Administrator shall prepare and shall file all reports, forms, documents and other items required by ERISA, the  Code, and every other relevant statute, each as amended, and all regulations thereunder (except that the Company, as payor of the Severance Benefits, shall prepare and distribute to the proper recipients all forms relating to withholding of income or wage taxes, Social Security taxes, and other amounts that may be similarly reportable).

 

ARTICLE VII

 

AMENDMENT, SUSPENSION AND TERMINATION

 

Section 7.01 - Amendment, Suspension and Termination.  The Company shall have the exclusive right, at any time and from time to time, to amend, suspend or terminate the Plan, in whole or in part, for any reason or without reason; provided that no such amendment, suspension or termination of the Plan shall adversely affect the Severance Benefits payable to a Participant without a formal written instrument executed by both the Company and each affected Participant.  Any such modification, amendment or termination shall be effective at such date as the Plan Administrator may determine.  Amendment or termination of the Plan is a corporate and not a fiduciary function.

 

ARTICLE VIII

 

DUTIES OF THE COMPANY

 

Section 8.01 - Records.  The Company shall supply to the Plan Administrator all records and information necessary to the performance of the Plan Administrator’s duties.

 

Section 8.02 - Payment.  The Company shall make payments of Severance Benefits, in such amount as determined by the Company under Article IV, from its general assets to Participants in accordance with the terms of the Plan.

 

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Section 8.03 - Discretion.  Any decisions, actions or interpretations to be made under the Plan by the Company shall be made in its sole discretion, not in any fiduciary capacity, and need not be uniformly applied to similarly situated individuals, and such decisions, actions or interpretations shall be final, binding and conclusive upon all parties.

 

ARTICLE IX

 

CLAIMS PROCEDURES

 

Section 9.01 - Claim.  In the event that any Severance Benefits under the Plan, an Employee’s eligibility for Severance Benefits under the Plan, or the amount of Severance Benefits awarded under the Plan, is denied in whole or in part, the affected terminated Employee shall be notified of such denial in writing by the Plan Administrator within 60 days of such Employee’s Employment Termination Date.

 

The notice advising of the denial shall specify the reason or reasons for denial, make specific reference to pertinent Plan provisions, describe any additional material or information necessary for the claimant to perfect the claim (explaining why such material or information is needed), and advise the Employee of the procedure for the appeal of such denial, including a statement of the claimant’s right to bring a civil action under Section 502(a) of ERISA, following an adverse benefit determination on appeal.

 

Section 9.02 - Appeals of Denied Claims.  All appeals shall be made by the following procedure:

 

(a)                                 The terminated Employee whose claim has been denied shall file with the Plan Administrator a notice of appeal of the denial.  Such notice shall be filed within 60 calendar days of notification by the Plan Administrator of the denial of a claim, shall be made in writing, and shall set forth all of the facts upon which the appeal is based.  Appeals not timely filed shall be barred.

 

(b)                                 The Plan Administrator shall, within 30 calendar days of receipt of the terminated Employee’s notice of appeal, schedule a meeting to review the terminated Employee’s appeal.

 

(c)                                  The Named Appeals Fiduciary shall consider the merits of the claimant’s written presentations, the merits of any facts or evidence in support of the denial of benefits, and such other facts and circumstances as the Named Appeals Fiduciary shall deem relevant.

 

(d)                                 The Named Appeals Fiduciary shall render a determination upon the appealed claim, no later than 60 days after receipt of the notice of appeal.  The review period may be extended by the named Appeals Fiduciary for up to an additional 60 days by written notice to the claimant before the initial review period elapses.  The final determination upon appeal shall be accompanied by a written statement as to the reasons therefore and the Plan

 

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provisions on which the denial is based.  The decision will also state that the claimant or the claimant’s authorized representative may review pertinent Plan documents and request copies of them, free of charge. The determination so rendered shall be binding upon all parties, except that the claimant will have a right to bring a civil action under Section 502(a) of ERISA, following the appeal, provided such civil action is filed within 180 days of the final determination.

 

Section 9.03 - Appointment of the Named Appeals Fiduciary.  The Named Appeals Fiduciary shall be the Company; and the Company’s Senior Vice President and Chief Administrative Officer is hereby authorized to act on behalf of the Company with respect to its duties as the Named Appeals Fiduciary under the terms of the Plan and applicable law.  The Named Appeals Fiduciary shall be a “Named Fiduciary” within the meaning of ERISA, and unless granted other fiduciary responsibilities, shall have no authority, responsibility, or liability with respect to any matter other than the proper discharge of the functions of the Named Appeals Fiduciary as set forth herein.

 

ARTICLE X

 

MISCELLANEOUS

 

Section 10.01 - Nonalienation of Benefits.  None of the payments, benefits or rights of any Participant shall be subject to any claim of any creditor of any Participant, and to the fullest extent permitted by law, all such payments, benefits and rights shall be free from attachment, garnishment, trustee’s process, or any other legal or equitable process available to any creditor of such Participant.  No Participant shall have the right to alienate, anticipate, commute, plead, encumber or assign any of the benefits or payments that he or she may expect to receive, contingently or otherwise, under this Plan, except for the designation of a beneficiary as set forth in Section 5.01.

 

Section 10.02 - No Contract of Employment.  Neither the establishment of the Plan, nor any modification thereof, nor the creation of any fund, trust or account, nor the payment of any Severance Benefit shall be construed as giving any Participant or Employee, or any person whosoever, a contract of employment and/or the right to be retained in the service of the Company, and all Participants and other Employees shall remain subject to discharge to the same extent as if the Plan had never been adopted.

 

Section 10.03 - Severability of Provisions.  If any provision of this Plan shall be held invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect any other provisions hereof, and this Plan shall be construed and enforced as if such provisions had not been included.

 

Section 10.04 - Heirs, Assigns, and Personal Representatives.  This Plan shall be binding upon the heirs, executors, administrators, successors and assigns of the parties, including each Participant, present and future.  Any benefit payable to or for the benefit of a minor or an incompetent person shall be deemed paid when paid to such person’s guardian or to the party providing or reasonably appearing to provide for the care of such person, and such payment shall fully discharge the Company and all other parties with respect thereto.

 

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Section 10.05 - Headings and Captions.  The headings and captions herein are provided for reference and convenience only, shall not be considered part of the Plan, and shall not be employed in the construction of the Plan.

 

Section 10.06 - Number.  Except where otherwise clearly indicated by context, the singular shall include the plural, and vice-versa.

 

Section 10.07 - Unfunded Plan.  The Plan shall not be funded.  No Participant shall have any right to, or interest in, any assets of the Company that may be applied by the Company to the payment of Severance Benefits.

 

Section 10.08 - Lost Payees.  A Severance Benefit shall be deemed forfeited if the Company is unable to locate a Participant to whom a Severance Benefit is due.  Such Severance Benefit shall be reinstated if application is made by the Participant for the forfeited Severance Benefit while this Plan is in operation.

 

Section 10.09 - Controlling Law.  This Plan shall be construed and enforced according to the laws of the Commonwealth of Pennsylvania to the extent not superseded by Federal law.

 

Section 10.10 — Code Section 409A.  The payments and benefits payable pursuant to this Plan are intended to comply with, or be exempt from, Section 409A of the Code (“Section 409A”).  To the extent the requirements of Section 409A are applicable hereto, and the provisions of this Plan shall be construed and administered in a manner consistent with that intention. Notwithstanding anything herein to the contrary, (i) if at the time of Participant’s termination of employment with the Company, Participant is a “specified employee” as defined in Section 409A, and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A, then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Participant) to the extent necessary to comply with the requirements of Section 409A until the first business day that is more than six (6) months following Participant’s termination of employment with the Company (or the earliest date as is permitted under Section 409A) and (ii) if any other payments of money or other benefits due to Participant hereunder could cause the application of an accelerated or additional tax under Section 409A, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner, determined by the Company’s Board of Directors, that does not cause such an accelerated or additional tax.  In the event that payments under this Agreement are deferred pursuant to this paragraph in order to prevent any accelerated tax or additional tax under Section 409A, then such payments shall be paid at the time specified hereunder without any interest thereon.  The Company shall consult with Participant in good faith regarding the implementation of this Section 10.10; provided that neither the Company nor any of its employees or representatives shall have any liability to Participant with respect to the imposition of any early or additional tax under Section 409A.  For purposes of Section 409A, each payment made under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A.

 

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Without limiting the foregoing, the terms “terminates” or “termination of employment” or similar terms used in this Plan shall be interpreted to mean to occur when a “separation of service” occurs as defined under Section 409A. Notwithstanding anything to the contrary in this Plan, no particular tax result for a Participant with respect to any income recognized by such Participant in connection with this Plan is guaranteed.

 

11Exhibit 10.2

 

HILL INTERNATIONAL, INC.

2016 EXECUTIVE RETENTION PLAN

 

RETENTION PLAN PARTICIPATION AGREEMENT

 

THIS RETENTION PLAN PARTICIPATION AGREEMENT (the “Agreement”) made as of this      day of            ,       , by and between Hill International, Inc. (the “Company”) and         (the “Participant”), sets forth the terms of the Participant’s Severance Benefit as provided under the Hill International, Inc. 2016 Executive Retention (the “Plan”).  For the purpose of this Agreement, all capitalized terms in this Agreement shall have the definition ascribed to them in the Plan.

 

1.                                      Severance Benefit. Upon an Involuntary Termination, (a) the Participant is entitled to receive, and the Company shall make, one lump sum cash payment sixty (60) days after such Involuntary Termination (other than in the event of an Involuntary Termination by the Employee for Good Reason, in which case such cash payment shall be made six (6) months following Participant’s termination of employment with the Company in accordance with the terms of Section 12 below), in an amount equal to one (1) times the Participant’s Base Salary, subject to the terms and conditions as set forth in this Agreement and the Plan.

 

Upon an Involuntary Termination within one (1) year following any Change in Control, (a) the Participant is entitled to receive, and the Company shall make, one lump sum cash payment sixty (60) days after such Involuntary Termination (other than in the event of an Involuntary Termination by the Employee for Good Reason, in which case such cash payment shall be made six (6) months following Participant’s termination of employment with the Company in accordance with the terms of Section 12 below), in an amount equal to two (2) times the Participant’s Base Salary, subject to the terms and conditions as set forth in this Agreement and the Plan and (b) any and all unvested stock options, stock grants or other stock based compensation granted to the Participant shall then immediately vest.  As indicated herein, the Participant must sign and not revoke a Release Agreement as a condition of receiving the Severance Benefit.  The Participant shall not sign a Release Agreement any sooner than the Employment Termination Date.  For the purposes of the timing of payment of the Severance Benefit under this Agreement, the Company shall make payment of the Severance Benefit subject to the seven (7) day Revocation Period described in the Release Agreement.

 

2.                                      Release Agreement. The payments and benefits set forth in Section 1 shall be conditioned upon the Participant’s execution, delivery and non-revocation of a valid and enforceable general release of claims satisfactory to the Company (the “Release Agreement”) in favor of the Company Released Parties (as defined therein).  The form of the Release Agreement shall be substantially in the form attached hereto as Exhibit A but which may be modified by the Company taking into account applicable local law.

 

3.                                      Successors; Binding Agreement. The Plan and this Agreement shall be binding upon and shall inure to the benefit of the Company and its successors and assigns, and the

 

 

Company  shall have the right to assign its obligations under the Plan and this Agreement, in whole or in part, to any successor employer or its affiliates, in which case, the Company shall have no further liability with respect to the assigned obligations (but shall remain entitled to its rights or benefits) pursuant to the Plan and this Agreement.  The Participant further hereby consents and agrees that Employer may assign this Agreement and any of the rights or obligations hereunder to any third party in connection with the sale, merger, consolidation, reorganization, liquidation or transfer, in whole or in part, of the Company’s control and/or ownership of its assets or business.

 

4.                                      Non-Exclusivity of Rights.  Nothing in this Agreement shall prevent or limit the Participant’s continuing or future participation in any benefit, bonus, incentive or other plan or program provided by the Company and for which the Participant may qualify, nor shall anything herein limit or reduce such rights as the Participant may have under any other agreements with the Company.  Amounts which are vested benefits or which the Participant is otherwise entitled to receive under any plan or program of the Company shall be payable in accordance with such plan or program, except as explicitly modified by the Plan.

 

5.                                      No Guaranteed Employment.  The Participant and the Company acknowledge that, except as may otherwise be provided under any other written agreement between the Participant and the Company, the employment of the Participant by the Company is “at will” and may be terminated by either the Participant or the Company at any time.  The terms of this Agreement and the Plan are not intended to and should not be construed as providing a guarantee of employment for a specific term or length of time.

 

6.                                      Confidential Company Information.  While employed by the Company, the Company has and will continue to provide the Participant with access to, and may confide in him, information, business methods and systems, techniques and methods of operation developed at great expense by the Company and which are assets of the Company.  The Participant recognizes and acknowledges that: (a) all Confidential Information (as defined below) is the property of the Company and is unique, extremely valuable and developed and acquired by great expenditures of time, effort and cost; (b) the misuse, misappropriation or unauthorized disclosure by the Participant of the Confidential Information would constitute a breach of trust and would cause serious irreparable injury to the Company; and (c) it is essential to the protection of the Company’s goodwill and to the maintenance of the Company’s competitive position that the Confidential Information be kept secret and that the Participant not disclose the Confidential Information to others or use same to his own advantage or to the advantage of others.  Accordingly, the Participant shall not, while employed by the Company or thereafter, directly or indirectly, in any manner, utilize or disclose to any person, firm, corporation, association or other entity, or use on his own behalf, any confidential and proprietary information of the Company, including, but not limited to, information relating to strategic plans, sales, costs, client lists, client preferences, client identities, investment strategies, computer programs, profits or the business affairs and financial condition of the Company, or any of its clients, or any of the Company’s business methods, systems, marketing materials, clients or techniques (collectively “Confidential Information”), except for (i) such

 

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disclosures where  required by law, but only after written notice to the Company detailing the circumstances and legal requirement for the disclosure; or (ii) as authorized during the performance of the Participant’s duties for such use or purpose as are reasonably believed by the Participant to be in the best interests of the Company.  Notwithstanding the foregoing, this Agreement does not limit or proscribe in any way Participant’s ability to communicate truthfully with any government agencies pursuant to applicable whistleblower laws or regulations.  At any time, upon request, the Participant shall deliver to the Company all of its property including, but not limited to, its Confidential Information (whether electronically stored or otherwise) which are in his possession or under his control.  Property to be returned includes, but is not limited to, notebook pages, documents, records, prototypes, client files, drawings, electronically stored data, computer media or any other materials or property in the Participant’s possession.

 

To the maximum extent enforceable under applicable law, the Participant understands and agrees that: (y) the existence and terms of the Plan and this Agreement are confidential and are not to be discussed with or disclosed to any third party or other employee of the Company (other than the Chief Executive Officer, Chief Administrative Officer, or General Counsel of the Company), and (z) in the event that the Participant fails to comply with this confidentiality obligation, then the Participant will not be viewed as an individual eligible for the Severance Benefit under the terms of the Plan and this Agreement.

 

7.                                      Non-Interference.  The Participant agrees that for a period of twelve (12) months following the end of employment with the Company, for whatever reason, he will not, directly or indirectly, for himself or on behalf of any third party, at any time or in any manner:

 

a.                                      request or cause any of the Company’s clients or potential clients to cancel, modify or terminate any existing or continuing or, to the Participant’s knowledge, prospective business relationship with the Company;

 

b.                                      directly or indirectly, personally or as an employee, partner, stockholder, officer, director, member, contractor, consultant or agent of or for any other person, solicit, recruit, hire, authorize, encourage, request, induce, approve or otherwise cause or attempt to influence any employee or contractor of the Company to terminate, in whole or in part, such employment or contractor relationship.  In addition, the Participant shall not, directly or indirectly, interfere in any way with the Company’s contractual or professional relationships with any employee or contractor of the Company;

 

c.                                       engage in or participate in any effort or act to induce, or in any way cause, any client or, to Participant’s knowledge, prospective client of the Company, to deal with the Participant or any other person or entity except in a capacity as representative of the Company, or otherwise take any action which might reasonably be expected to be disadvantageous to the Company;

 

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d.                                      persuade, induce, solicit, influence or attempt to influence any client or, to the Participant’s knowledge, prospective client of the Company to cease or refrain from doing business, or to decline to do business, or to change or alter any existing or prospective business relationship, with the Company;

 

e.                                       accept business from, or perform or provide any services for, any client, or to the Participant’s knowledge, prospective client of the Company;

 

f.                                        contract with or communicate with, in either case in connection with services, any client or, to the Participant’s knowledge, prospective client of the Company; or

 

g.                                       provide any third party with any information concerning any client, or to the Participant’s knowledge, prospective client of the Company, including but not limited to, the disclosure of any client name or data, in whatever form, to such third party.

 

8.                                      Non-Compete.  For a period of twelve (12) months following the end of employment with the Company, for whatever reason, the Participant shall not, within the United States or in any foreign country in which the Participant has rendered services for the Company during the term of employment, directly or indirectly, engage or participate in, or become employed by, or affiliated with, or render advisory or any other services to, any person or business entity or organization, of whatever form, that provides services and/or products that are competitive with those provided by the Company.  The Participant specifically acknowledges that the nature of the Company’s activities is such that competitive activities could be conducted effectively within the territory described above, and that the geographical and temporal limitations, in view of the nature of the Company’s business, is reasonable and necessary to protect its legitimate business interests.

 

9.                                      Injunctive Relief.  The Participant acknowledges that his compliance with the covenants in Sections 6, 7 and 8 hereof is necessary to protect the good will, Confidential Information and other proprietary interests of the Company, that such covenants are supported by adequate and sufficient consideration, and that, in the event of any violation or threatened violation by the Participant of any such provision, the Company will sustain serious, irreparable and substantial harm to its business, the extent of which will be difficult to determine and impossible to remedy by an action at law for money damages.  Accordingly, the Participant agrees that, in the event of such violation or threatened violation by him, the Company shall be entitled to an injunction before trial from any court of competent jurisdiction as a matter of course and upon the posting of not more than a nominal bond, in addition to all such other legal and equitable remedies as may be available to the Company.  The Participant further acknowledges that he has carefully considered the nature and extent of the restrictions contained herein and the rights and remedies conferred upon the Company under this Agreement, and hereby acknowledges and agrees that the same are reasonable, are designed to protect the legitimate business interests of the Company, and do not confer benefits upon the Company disproportionate to the detriment upon him.  In the event that the Participant violates any of the covenants in this Agreement and the Company commences legal action for injunctive or other relief,

 

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the Company shall have the benefit of the full period of the covenants, computed from the date the Participant ceased violation of the covenants, either by order of the court or otherwise.  The Participant  acknowledges that any claim or cause of action he may have against the Company shall not constitute a defense to the enforcement by the Company of his covenants in this Agreement (e.g., these covenants are independent of any other provision in this Agreement and of any other promise made to the Participant).  The Participant also acknowledges that his experience and capabilities are such that he can obtain suitable employment otherwise than in violation of the covenants in this Agreement and that the enforcement of these covenants will not prevent the earning of a livelihood nor cause undue hardship.  Without limiting the foregoing, in the event of a breach by the Participant of any provision of Section 6, 7 or 8 of this Agreement, the Company’s obligations under this Agreement shall immediately terminate, the Participant shall not be entitled to any additional monetary payments or benefits of any kind whatsoever and the Participant shall reimburse the Company for all of its reasonable attorneys’ fees and costs associated with any legal or equitable proceedings or litigation seeking to enforce the terms of this Agreement.

 

10.                               Consent. By executing this Agreement, the Participant hereby approves and consents to the terms of the Agreement.

 

11.                               Miscellaneous.  No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by the Participant and the Company or, in the event of assignment, the successor employer.  No waiver by either party hereto at any time of any breach by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time.  No agreement or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this Agreement.

 

12.                               Section 409A Considerations.  All of the payments and benefits payable pursuant to this Agreement are intended to comply with, or be exempt from, Section 409A to the extent the requirements of Section 409A are applicable hereto, and the provisions of this Agreement shall be construed and administered in a manner consistent with that intention. Notwithstanding anything herein to the contrary, (i) if at the time of the Participant’s termination of employment with the Company, the Participant is a “specified employee” as defined in Section 409A, and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A, then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to the Participant) to the extent necessary to comply with the requirements of Section 409A until the first business day that is more than six (6) months following the Participant’s termination of employment with the Company (or the earliest date as is permitted under Section 409A) and (ii) if any other payments of money or other benefits due to the Participant hereunder could cause the application of an accelerated or

 

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additional tax under Section 409A, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner,  determined by the Company’s Board of Directors, that does not cause such an accelerated or additional tax.  In the event that payments under this Agreement are deferred pursuant to this paragraph in order to prevent any accelerated tax or additional tax under Section 409A, then such payments shall be paid at the time specified hereunder without any interest thereon.  For purposes of Section 409A of the Code, each payment made under this Agreement shall be designated as a “separate payment” within the meaning of Section 409A.  Without limiting the foregoing, the terms “terminates” or “termination of employment” or similar terms used in the Plan shall be interpreted to mean to occur when a “separation of service” occurs as defined under Section 409A.

 

13.                               Governing Law.  This Agreement shall be governed by and construed and enforced in accordance with the laws of the Commonwealth of Pennsylvania to the extent not superseded by Federal law.

 

14.                               Severability.  The provisions of this Agreement shall be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of the other provisions hereof.

 

15.                               Entire Agreement.  This Agreement (together with the Plan) constitutes the entire agreement between the parties hereto and supersedes all prior agreements, if any, understandings and arrangements, oral or written, between the parties hereto with respect to the subject matter hereof except that any non-solicitation, confidentiality and/or return of property agreements between the parties are not superseded but expressly preserved by this Agreement.

 

16.                               Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original but all such counterparts shall together constitute one and the same instrument.

 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer and the Participant has executed this Agreement as of the day and year first above written.

 

	
 
    	
HILL   INTERNATIONAL, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
David   L. Richter
    
	
 
    	
 
    	
Title:
    	
Chief   Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
PARTICIPANT
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
«Name»
    

 

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Exhibit A

 

Release Agreement

 

This Release Agreement (this “Release Agreement”) dated as of [         ], 201[   ] (the “Effective Date”) is entered into by [                 ] (the “Employee”) for the benefit of Hill International, Inc., a Delaware corporation (the “Company”), and its affiliates.

 

In consideration of the payments described in Section 1 of the Retention Plan Participation Agreement dated as of            [   ], 2016 by and between the Company  and the Employee (the “Retention Plan Participation Agreement”) and other good and valuable consideration, which are given to the Employee specifically in exchange for this release as a result of negotiations between the Company and the Employee, the Employee, on behalf of himself/herself, his/her heirs, successors and assigns, hereby releases and discharges the Company, its subsidiaries and affiliates, its and their employee benefit plans, its and their current or former directors, officers, Employees, agents, insurers, attorneys, consultants, and auditors, and any and each of their successors and assigns and predecessors (“Company Released Parties”), from any and all claims, charges, causes of action and damages (including attorneys’ fees and costs incurred) (“Claims”), known and unknown, including, but not limited to, those Claims related in any way to the Employee’s employment with the Company or any of its affiliates, or the termination of Employee’s employment relationship or positions as an officer or employee of the Company, arising on or prior to the Effective Date.  The waivers in this Release Agreement shall not waive the Employee’s rights respecting the Company’s obligations under the Retention Plan Participation Agreement and claims for benefits under any health, disability, retirement, life insurance or other, similar employee benefit plan (within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)) of the Company.

 

For the purposes of implementing a full and complete release and discharge of the Company Released Parties, the Employee expressly acknowledges that this Release Agreement is intended to include in its affect, without limitation, all Claims which Employee does not know or suspect to exist in his/her favor at the time Employee signs this Release Agreement, and that this Release Agreement is intended to fully and finally resolve any such Claim or Claims.

 

This release specifically includes, but is not limited to, rights and claims under the local, state or federal laws prohibiting discrimination in employment, including the Americans with Disabilities Act, the Age Discrimination in Employment Act, the Family and Medical Leave Act, the Pennsylvania Human Relations Act, ERISA (except as otherwise stated herein), the Employee protection provisions of the Federal Deposit Insurance Act (12 U.S.C. § 1831j), Title VII of the Civil Rights Act of 1964, the Sarbanes Oxley Act of 2002, as well as any other local, state, federal or foreign laws or common law theories relating to discrimination in employment, the termination of employment, or personal injury, including without limitation all claims for wrongful discharge, breach of contract, breach of an implied covenant of good faith and fair dealing, intentional infliction of emotional distress, tortious interference with contract or

 

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prospective economic advantage, defamation, loss of consortium, infliction of emotional distress; or any claim for any  compensation, including, but not limited to additional compensation, back pay, front pay, or benefits (other than as provided for in the Retention Plan Participation Agreement), severance, reinstatement, or any other form of economic loss; and all claims for personal injury, including, but not limited to: mental anguish, emotional distress, pain and suffering, humiliation, and damage to name or reputation; and all claims for liquidated damages and punitive damages and all claims for counsel fees and costs.

 

The Employee represents that he/she has not filed any Claim that was released in this Release Agreement against the Company Released Parties with any court or government agency, and that he will not, to the extent allowed by applicable law, do so at any time in the future; provided, however, that the covenants contained herein will not prevent the Employee from filing a claim to enforce the terms of the Retention Plan Participation Agreement or any other Claim not released hereunder.  If any government agency brings any claim or conducts any investigation against the Company, nothing in this Release Agreement shall prevent the Employee from cooperating in such proceedings.

 

Employee represents that he/she has read carefully and fully understands the terms of this Release Agreement, and that Employee has been advised to consult with an attorney and has had the opportunity to consult with an attorney prior to signing this Release Agreement.  Employee acknowledges that he/she is executing this Agreement voluntarily and knowingly and that he/she has not relied on any representations, promises or agreements of any kind made to Employee in connection with Employee’s decision to accept the terms of this Agreement, other than those set forth in the Retention Plan Participation Agreement and this Release Agreement.  Employee acknowledges that Employee has been given at least forty-five (45) days to consider whether Employee wants to sign this Release Agreement and that the Age Discrimination in Employment Act gives Employee the right to revoke this Release Agreement within seven (7) days after it is signed, and Employee understands that he/she will not receive any payments not otherwise due him/her under this Agreement until such seven (7) day revocation period (the “Revocation Period”) has passed and then, only if Employee has not revoked this Agreement.  Employee may revoke the Agreement during the Revocation Period by providing written notice of the revocation to the Company’s Senior Vice President and Chief Administrative Officer at the Company’s corporate office at One Commerce Square, 2005 Market Street, 17th Floor, Philadelphia, Pennsylvania 19103.  Upon such revocation, this Release Agreement and Section 1 of the Retention Plan Participation Agreement shall be null and void and of no further force and effect.  To the extent Employee has executed this Agreement within less than forty-five (45) days after its delivery to Employee, Employee hereby acknowledges that his/her decision to execute this Release Agreement prior to the expiration of such forty-five (45) day period was entirely voluntary.

 

The Employee understands and acknowledges the significance of this Release Agreement and acknowledges that this Release Agreement is voluntary and has not been given as a result of any coercion.  The Employee also acknowledges that he/she has been given full opportunity to review and negotiate the Retention Plan Participation Agreement and this Release Agreement, that he/she has been specifically advised to consult with legal counsel prior to signing it, that

 

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he/she has in fact carefully reviewed it with his/her attorney before signing it, and that he/she executes this Release Agreement only after full reflection and analysis.

 

Other than as to rights, claims and causes of action arising under the Age Discrimination in Employment Act, the release of claims set forth in this Release Agreement shall be immediately effective upon execution by the Employee.

 

The Employee acknowledges and agrees that he/she has not, with respect to any transaction or state of facts existing prior to the date hereof, filed any complaints, charges or lawsuits against any Company Released Party with any governmental agency, court or tribunal.

 

The Employee acknowledges that the payments he/she is receiving under Section 1 of the Retention Plan Participation Agreement in connection with the release of claims set forth in this Release Agreement are in addition to anything of value to which the Employee is entitled from the Company.

 

Each provision hereof is severable from this Release Agreement, and if one or more provisions hereof are declared invalid, the remaining provisions shall nevertheless remain in full force and effect.  If any provision of this Release Agreement is so broad, in scope, or duration or otherwise, as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable.

 

This Release Agreement constitutes the complete agreement in respect of the subject matter hereof and shall supersede all prior agreements between the Company and the Employee in respect of the subject matter hereof except to the extent set forth herein.

 

The failure to enforce at any time any of the provisions of this Release Agreement or to require at any time performance by the Employee of any of the provisions hereof shall in no way be construed to be a waiver of such provisions or to affect the validity of this Release Agreement, or any part hereof, or the right of the Company thereafter to enforce each and every such provision in accordance with the terms of this Release Agreement.

 

This Release Agreement shall be binding upon any and all successors and assigns of the Employee and the Company.

 

Except for issues or matters as to which federal law is applicable, this Release Agreement shall be governed by and construed and enforced in accordance with the laws of the Commonwealth of Pennsylvania without giving effect to the conflicts of law principles thereof.

 

IN WITNESS WHEREOF, the Employee has executed this Agreement as of the date set forth above.

 

	
 
    	
 
    
	
 
    	
Employee
    

 

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