Document:

Exhibit

Exhibit 10.14

 

SEVERANCE PAY AGREEMENT
FOR KEY EMPLOYEE

This Severance Pay Agreement (“Agreement”) is entered into as of February 21, 2017 between Asbury Automotive Group, Inc. (“Asbury”) and William F. Stax (“Employee”), in order to provide for an agreed-upon compensation in the event that Employee’s employment is terminated following a Change in Control as defined in this Agreement.

		
	1.
	Severance Pay Arrangement.

If a “Termination” of Employee’s employment occurs at any time in the two years following a “Change of Control” (as these terms are defined in Section 2 below), Asbury will pay Employee 12 months of Employee’s base salary as of the date of Termination as “Severance Pay.” Severance Pay shall be subject to any required withholding of federal, state, local and foreign taxes pursuant to any applicable law or regulation. The Severance Pay will be subject to required withholding and will be made by Asbury to Employee monthly over the course of 12 months on the regular payroll dates beginning on the first regular payroll date after the effective date of the release referenced herein that Employee executes.

If Employee participates in a bonus compensation plan at the date of Termination, Severance Pay will also include a portion of the target bonus for the year of Termination in an amount equal to the target bonus multiplied by the percentage of such year that has expired through the date of Termination.

In addition, if Employee, upon the end of his employment with Asbury, timely and properly elects COBRA for any medical, dental and vision benefit plans in which Employee was participating immediately prior to the end of Employee’s employment with Asbury, Asbury shall reimburse Employee the entire monthly premium for those COBRA-covered medical and dental benefit plans for a period of 12 months after the last day of Employee’s employment with Asbury. Notwithstanding the above, if Employee obtains other employment (prior to the end of the 12 month COBRA reimbursement period) under which Employee is eligible to be covered by benefits equal to the benefits in his COBRA-elected plans, Asbury’s obligation to reimburse Employee ceases upon Employee’s eligibility for such equal benefits.

Notwithstanding anything herein to the contrary, if Employee is determined to be a “specified employee” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended the (“Code”) and if one or more of the payments or benefits to be received by Employee pursuant to this Agreement would be considered deferred compensation subject to Section 409A of the Code, then no such payment shall be made or benefit provided until six (6) months following Employee’s date of Termination.
		
	2.
	Definitions of Change of Control and Termination Triggering Severance Pay.

Severance Pay will be paid to Employee by Asbury if a “Termination” occurs at any time in the two years following a “Change of Control” of Asbury.

A “Termination” triggering the Severance Pay set forth above in Section 1 is defined as a termination of Employee’s employment with Asbury (1) by Asbury without “cause,” or (2) by Employee because of (x) a material change in the geographic location at which the Employee must perform Employee’s services (which shall in no event include a relocation of Employee’s current principal place of business to a location less than 50 miles away), (y) a material diminution in Employee’s base compensation, or (z) a material diminution in Employee’s authority, duties, or responsibilities. For avoidance of doubt, a “Termination” shall not include a termination of Employee’s employment by Asbury for “cause” or due to Employee’s death, disability, retirement or voluntary resignation. 

     For the purposes of this Agreement, the definition of “cause” is: (a) Employee’s gross negligence or serious misconduct (including, without limitation, any criminal, fraudulent or dishonest conduct) that is or may be injurious to Asbury; or (b) Employee 

being convicted of, or entering a plea of nolo contendere to, any crime that constitutes a felony or involves moral turpitude; or (c) Employee’s breach of Sections 3, 4 or 5 below; or (d) Employee’s willful and continued failure to perform Employee’s duties on behalf of Asbury; or (e) Employee’s material breach of a written policy of Asbury. For purposes of this Agreement, the definition of “disability” is a physical or mental disability or infirmity that prevents the performance by Employee of his duties lasting (or likely to last, based on competent medical evidence presented to Asbury) for a continuous period of six months or longer. 

“Change of Control” means:

(1)the acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of voting securities of Asbury where such acquisition causes such person to own thirty-five percent (35%) or more of the combined voting power of the then outstanding voting securities of Asbury entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); or

(2)individuals who, as of the date hereof, constitute the Board of Directors (the “Incumbent Board”) cease for any reason to constitute at least two-thirds (2/3) of the Board of Directors; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by Asbury’s shareholders, was approved by a vote of at least two-thirds of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors; or
(3)approval by the shareholders of Asbury of a complete liquidation or dissolution of Asbury.

Notwithstanding the foregoing, no Change of Control shall be deemed to have occurred for purposes of this Agreement by reason of any actions or events in which Employee participates in any capacity other than in his capacity as an employee of Asbury.

		
	3.
	Confidential Information and Nondisclosure Provision.

As a condition to the receipt of the Severance Pay and benefits described in Section 1 above, Employee agrees not to disclose during and after employment with Asbury to any person (other than to an employee or director of Asbury, or to Asbury’s attorneys, accountants and other advisors or except as may be required by law) and not use to compete with Asbury any confidential or proprietary information, knowledge or data that is not in the public domain that was obtained by Employee while employed by Asbury regarding Asbury or any products, improvements, customers, methods of distribution, sales, prices, profits, costs, contracts, suppliers, business prospects, business methods, techniques, research, trade secrets or know-how of Asbury (collectively, “Confidential Information”). In the event that Employee’s employment terminates for any reason, Employee will deliver to Asbury on or before the date of termination all documents and data of any nature (whether in tangible or electronic form) pertaining to Employee’s work with Asbury and will not take any documents or data or any reproduction, or any documents containing or pertaining to any Confidential Information. Employee agrees that in the event of a breach by Employee of this provision, Asbury shall be entitled to inform all potential or new employers of such breach and to cease payments and benefits that would otherwise be made pursuant to Section 1 above, as well as to obtain injunctive relief and damages, including reasonable attorneys fees, and which may include recovery of amounts paid to Employee under this Agreement.

		
	4.
	Non-Solicitation/Non-Hire of Employees.

Employee agrees that during his employment at Asbury and for a 12-month period after the date of termination of his employment with Asbury for any reason, he will not, directly or indirectly, solicit, recruit or hire any employee of Asbury (or any person who was an employee of Asbury during the 12-month period preceding Employee’s date of termination) or encourage any such employee to terminate employment with Asbury.

		
	5.
	Covenant Not to Compete.

Employee agrees that during his employment at Asbury and for a 12-month period after the date his employment is terminated, he will not (except on behalf of or with the prior written consent of Asbury, which consent may be withheld in Asbury’s sole discretion):

(a)provide services of a leadership, management, executive, operational, or advisory capacity and/or participate in the ownership of or provide financial backing to an automotive dealership that is located within a fifty-mile radius of any address set forth on Exhibit A (the “Area”);

(b)provide senior/corporate level leadership, executive, operational, or advisory services to any corporate competitor of Asbury who owns or operates one or more automotive dealerships within the Area; and

(c)provide services of a leadership, management, executive, operational, or advisory capacity for anyone or any business whose focus is buying, conglomerating, or otherwise acquiring one or more automotive dealerships that are located within the Area. 

For purposes of this Section 5, Employee acknowledges and agrees that Asbury conducts business in the Area and that the Area is a reasonable geographic limitation. 

Notwithstanding anything to the contrary contained in this Agreement, Asbury hereby agrees that the foregoing covenant shall not be deemed breached as a result of the passive ownership by Employee of: (i) less than an aggregate of 5% of any class of stock of a business that competes with Asbury; or (ii) less than an aggregate of 10% in value of any instrument of indebtedness of a business that competes with Asbury. Asbury further agrees that nothing in this Section 5 prohibits Employee from accepting employment from, and performing services for, businesses engaged in the finance industry, and businesses engaged in the manufacturing and/or sale of automobile parts or the provision of automotive service, provided such businesses do not also engage in the retail of automobiles within the Area. By way of example, nothing in this Section 5 would prohibit Employee from working with such businesses as American General Finance, NAPA Auto Parts, or Goodyear.  

Upon Employee’s termination of employment with Asbury, Employee agrees to re-confirm his commitment to the post-employment restrictive covenants in this Agreement. Employee further agrees that as part of that re-confirmation, the term “Area” and Exhibit A hereto may be amended by Asbury, but only to the extent necessary to list the addresses of Asbury’s headquarters and any automotive dealerships that Asbury owns and/or operates as of the date of termination.

		
	6.
	Construction/Enforcement of Post-Employment Covenants.

Employee agrees that the provisions of Sections 3, 4, and 5 are reasonable and properly required for the adequate protection of the business and the goodwill of Asbury. However, if a judicial determination is made that any of the provisions of Sections 3, 4, or 5 constitutes an unreasonable or otherwise unenforceable restriction against Employee, such provision(s) shall be modified or severed so as to permit enforcement of the provision(s) to the extent reasonable. 

		
	7.
	Violation of Post-Employment Covenants.

Employee agrees that, in the event of a material breach by Employee of any Section of this Agreement, including Sections 3, 4, or 5, Asbury shall be entitled to: (i) inform all potential or new employers of such breach; (ii) cease payments and benefits that would otherwise be made pursuant to Section 1 above (and in lieu of such payments and benefits pay Employee five hundred dollars ($500.00)); (iii) obtain injunctive relief and damages, including reasonable attorney’s fees; and (iv) recover the amounts paid to Employee under this Agreement (other than the above-referenced $500.00) during any period of material breach by Employee. To the extent that Employee is determined through agreement or resolution of any pending claim to not have violated any covenant at issue, he shall receive any and all severance that has not been paid under the Agreement and/or which was recovered from Employee under this Section 7. 

GENERAL PROVISIONS

		
	A.
	Employment is At Will

Employee and Asbury acknowledge and agree that Employee is an “at will” employee, which means that either Employee or Asbury may terminate the employment relationship at any time, for any reason, with or without cause or notice, and that nothing in this Agreement shall be construed as an express or implied contract of employment.

		
	B.
	Execution of Release

Employee agrees that, as a condition to the receipt of the Severance Pay and other compensation and insurance benefits described in Section 1 above, Employee shall execute a release of all claims against Asbury (and its corporate parents, subsidiaries, franchisors, franchisees, management companies, divisions, and affiliates) and the past, present and future officers, directors, 

agents, officials, employees, insurers and attorneys of Asbury (and its corporate parents, subsidiaries, franchisors, franchisees, management companies, divisions, and affiliates) arising out of Employee’s employment or the end of his employment with Asbury, such release to not be revoked by Employee and to completely waive and release any claim of discrimination, harassment or wrongful discharge under local, state or federal law.

		
	C.
	Alternative Dispute Resolution

Any disputes arising under or in connection with this Agreement shall be resolved by binding arbitration before an arbitrator (who shall be an attorney with at least ten years’ experience in employment law) in the city where Employee was employed with Asbury and in accordance with the rules and procedures of the most recent employment rules of the American Arbitration Association. Each party may choose to retain legal counsel and shall pay its own attorneys’ fees, regardless of the outcome of the arbitration. Employee may be required to pay a filing fee limited to the equivalent cost of filing in the court of jurisdiction. Asbury will pay the fees and costs of conducting the arbitration. Judgment upon the award rendered by the arbitrator may be entered in any court of jurisdiction. 

		
	D.
	Non-Disparagement

Employee agrees not to make any disclosures, issue any statements or otherwise cause to be disclosed any information which is designed, intended or might reasonably be anticipated to disparage Asbury, its officers or directors, its business, services, products, technologies and/or personnel. Nothing in this section is intended, nor shall be construed, to: (i) prohibit Employee from any communications to, or participation in any investigation or proceeding conducted by, any governmental agency with jurisdiction concerning the terms, conditions and privileges of employment or jurisdiction over Asbury’s business; (ii) interfere with, restrain, or prevent Employee’s communications regarding the terms and conditions of employment; or (iii) prevent Employee from otherwise engaging in any legally protected activity.

		
	E.
	Other Provisions

(a)This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of Employee and Asbury, including any successor to or assign of Asbury.

(b)Upon the end of Employee’s employment with Asbury for any reason, the provisions of this Agreement shall survive to the extent necessary to give effect to the provisions herein, including Sections 3, 4 and 5.

(c)The headings and captions are provided for reference and convenience only and shall not be considered part of this Agreement. 

(d)Employee also covenants to reasonably cooperate with Asbury if Employee is needed as a witness in any litigation or legal matters involving Asbury. 

(e)Any notice or other communication required or permitted to be delivered under this Agreement shall be (i) in writing, (ii) delivered personally, by nationally recognized overnight courier service or by certified or registered mail, first-class postage prepaid and return receipt requested, (iii) deemed to have been received on the date of delivery or on the third business day after mailing, and (iv) addressed as follows (or to such other address as the party entitled to notice shall later designate in accordance with these terms):

If to Asbury:        Asbury Automotive Group, Inc.
c/o The Office of the General Counsel
2905 Premiere Parkway, Suite 300
Duluth, GA 30097                      

If to Employee:       To the most recent address of Employee set forth in the                             personnel records of Asbury.

(f)This Agreement supersedes any and all prior agreements between Asbury and Employee relating to payments upon Termination of employment or Severance Pay and may only be modified in a writing signed by Asbury and Employee. 

(g)This Agreement shall be governed by and construed in accordance with the laws of the State of Georgia.

(h)All payments hereunder shall be subject to any required withholding of federal, state, local and foreign taxes pursuant to any applicable law or regulation.

(i)If any provision of this Agreement shall be held invalid or unenforceable, such holding shall not affect any other provisions, and this Agreement shall be construed and enforced as if such provisions had not been included. No provision of this Agreement shall be waived unless the waiver is agreed to in writing and signed by Employee and the Chief Human Resources Officer of Asbury. No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.

(j)The parties hereto acknowledge and agree that, to the extent applicable, this Agreement shall be interpreted in accordance with, and incorporate the terms and conditions required by, Section 409A of the Code and the Department of Treasury regulations and other interpretive guidance issued thereunder. Notwithstanding any provision of this Agreement to the contrary, in the event that Asbury determines that any amounts payable hereunder will be immediately taxable to Employee under Section 409A of the Code and related Department of Treasury guidance, Asbury and Employee shall cooperate in good faith to (x) adopt such amendments to this Agreement and appropriate policies and procedures, including amendments and policies with retroactive effect, that they mutually determine to be necessary or appropriate to preserve the intended tax treatment of the benefits provided by this Agreement, to preserve the economic benefits of this Agreement and to avoid less favorable accounting or tax consequences for Asbury and/or (y) take such other actions as mutually determined to be necessary or appropriate to exempt the amounts payable hereunder from Section 409A of the Code or to comply with the requirements of Section 409A of the Code and thereby avoid the application of penalty taxes thereunder.

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

AGREED TO AS OF FEBRUARY 21, 2017

	
			
	EXECUTIVE:
	 
	ASBURY AUTOMOTIVE GROUP, INC.

	/s/  William F. Stax
	 
	/s/  Craig T. Monaghan

	Name:  William F. Stax
	 
	Name:  Craig T. Monaghan

	Title:  Controller and Chief Accounting Officer
	 
	Title:  CEO and President

Exhibit A
As used in the Severance Pay Agreement, “Area” means a 50-mile radius from any of the following addresses:
	
			
	
Corporate Headquarters
2905 Premiere Parkway NW
Duluth, GA 30097
	 
	
11130 Alpharetta Hwy
Roswell, GA 30076

	
11505 Alpharetta Highway
Roswell, GA  30076
	 
	
7969 Mall Pkwy                                                                    Lithonia, GA 30038

	
10995 Westside Pkwy.
Alpharetta, GA  30009
	 
	
1550 Mansell Rd
Alpharetta, GA  30009

	
1355 Cobb Parkway South
Marietta, GA  30060-6542
	 
	
1310 Buford Hwy.
Cumming, GA 30041

	
1606 Church Street
Decatur, GA  30033
	 
	
5400 South U.S. Highway 1
Ft. Pierce, FL 34982-7370

	
7555 Roswell Rd. 
 Atlanta, GA 30350
	 
	
4429 US 1 South
Ft. Pierce, FL 33954

	
4197 Jonesboro Road
Union City, GA  30291
	 
	
7245 Blanding Blvd.
Jacksonville, FL 32244

	
7909 Mall Pkwy                                                                    Lithonia, GA 30038
	 
	
10880 Philips Hwy
Jacksonville, FL 32256

	
2550 The Nalley Way
Atlanta, GA 30360
	 
	
2655 N. Volusia Ave
Orange City, FL 32763-2214

	
2020 Cobb Parkway
Marietta, GA  30080
	 
	
2677 N. Volusia Ave
Orange City, FL 32763-2214

	
7849 Mall Pkwy                                                                    Lithonia, GA 30038
	 
	
2308 S. Woodland Blvd.                                                                     Deland, FL 32720

	
2750 S. Cobb Parkway
Smyrna, GA  30080
	 
	
9650 Atlantic Blvd.
Jacksonville, FL 32225

	
980 Mansell Road
Roswell, GA 30076
	 
	
11003 Atlantic Blvd.
Jacksonville, FL  32225

	
2551 The Nalley Way
Atlanta, GA 30360
	 
	
4450 US 1 South
Ft. Pierce, FL  34982

	 
	 
	 

	
			
	 
	 
	 

	
11051  S. Orange Blossom Trail,
Orlando, FL  32837
	 
	
256 Swain Street             
Fayetteville, NC 28303

	
2925 US 1 South
St Augustine, FL  32086
	 
	
3908 W. Wendover Avenue
Greensboro, NC  27407

	
10600 Atlantic Blvd.
Jacksonville, FL  32225
	 
	
3902 W. Wendover Avenue
Greensboro, NC  27407

	
10859 Philips Highway
Jacksonville, FL  32256
	 
	
3710 W. Wendover Avenue
Greensboro, NC  27407

	
11340 Philips Hwy
Jacksonville, FL  32256
	 
	
3633 W. Wendover Avenue
Greensboro, NC  27407

	
31200 US Highway 19 North
Palm Harbor, FL 34684
	 
	
3900 W. Wendover Avenue
Greensboro,  NC  27407

	
4500 US 1 South 
Ft. Pierce, FL 34982
	 
	
3604 W, Wendover Avenue
Greensboro, NC 27407

	
6060 1-55 North Frontage Road
Jackson, MS 39211
	 
	
8704W. Broad Street       
Richmond, VA  23294

	
201 Octavia St.
Brandon, MS 39042
	 
	
8712 W. Broad Street 
Richmond, VA  23294

	
108 Gray-Daniels Blvd.
Brandon, MS 39042
	 
	
8710 W. Broad Street 
Richmond, VA  23294

	
6080 I-55 North Frontage Road
Jackson, MS  39211
	 
	
12100 Midlothian Turnpike
Midlothian, VA 23113

	
104 Gray-Daniels Blvd         
Brandon, MS 39042
	 
	
2712 Laurens Road
Greenville, SC  29607

	
1295 Richmond Avenue 
Charlottesville, VA  22911
	 
	
2660 Laurens Road
Greenville, SC  29607

	
1001 Southpoint Auto Park Blvd.
Durham, NC  27713
	 
	
2668 Laurens Road          
Greenville, SC 29607

	
436 N. McPherson Church Road
Fayetteville, NC  28303
	 
	
2700 Laurens Road                                                           Greenville, SC 29607

	 
	 
	 

	 
	 
	 

	
			
	 
	 
	 

	
2686 Laurens Road
Greenville, SC  29607
	 
	
4400 N. Dale Mabry Hwy
Tampa, FL  33614

	
11654 Olive Blvd.
Creve Coeur, MO  63141
	 
	
4400 W. Hillsborough Avenue
Tampa. FL  33614

	
755 N. New Ballas
Creve Coeur, MO  63141
	 
	
4051 West Plano Parkway
Plano, TX  75093

	
777 Decker Lane.
Creve Coeur, MO  63141
	 
	
13553 US Hwy 183 North
Austin, TX  78750

	
11910 Olive Blvd.
Creve Coeur, MO  63141
	 
	
300 West Loop 820 South
Fort Worth, TX 76108

	
11830 Olive Blvd. 
Creve Coeur, MO  63141
	 
	
1601 N. Dallas Parkway 
(7200 State Highway 121)
Frisco, TX  75034

	
951 Technology Dr.              
O'Fallon, Mo 63368
	 
	
3700 West Airport Freeway
Irving, TX  75062

	
11830 Olive Blvd. 
Creve Coeur, MO  63141
	 
	
11911 Gulf Freeway
 Houston, TX  77034

	
9207 Adamo Drive
Tampa, FL 33619
	 
	
3333 W. Plano Pkwy
Plano , TX 75075

	
3810 W. Hillsborough Avenue
Tampa. FL  33614
	 
	
1207 E. Brandon Blvd,
Brandon, FL 33511

	
9205 Adamo Dr.
Tampa, FL 33619
	 
	
2320 Colonial Blvd.
Ft. Myers, FL 33966

	
3800 W. Hillsborough Ave.
Tampa, FL  33614
	 
	
3102 US Highway 19
Holiday, FL 34691

	
9210 Adamo Drive
Tampa, FL  33619
	 
	
6601 W. Hillsborough Ave.
Tampa, FL 33634

	
4600 N. Dale Mabry Hwy.
Tampa, FL 33614ex10-33.htm

EXHIBIT 10.33

 

 

AMENDMENT TO

 

CIVEO CORPORATION 2014 EQUITY PARTICIPATION PLAN

 

 

 

WHEREAS, CIVEO CORPORATION (the “Company”) has heretofore adopted and restated the CIVEO CORPORATION 2014 EQUITY PARTICIPATION PLAN (effective May 20, 2014 and as thereafter amended and restated as of May 12, 2016) (the “Plan”) for the benefit of certain employees, directors and consultants of the Company and its subsidiaries; and

 

 

WHEREAS, the Company desires to amend the Plan in certain respects;

 

 

NOW, THEREFORE, the Plan is amended as follows, effective as of January 1, 2017:

 

 

	 	
1.
	
Section 9.5 of the Plan shall be replaced in its entirety with the following:

 

 

“9.5     Tax Withholding. The Company and any of its Affiliates shall be entitled to require payment in cash or deduction from other compensation payable to each Optionee, Grantee or Restricted Shareholder of any sums required by applicable tax law to be withheld with respect to the issuance, vesting or exercise of any Option, SAR, Restricted Share, Deferred Share, Performance Award, Dividend Equivalent or Share Payment. Subject to the timing requirements of Section 5.3, the Committee may, in its discretion and in satisfaction of the foregoing requirement, allow such Optionee, Grantee or Restricted Stockholder to elect to have the Company withhold Common Shares otherwise issuable under such or afterward (or allow the return of Common Shares) having a Fair Market Value not to exceed the maximum individual statutory tax rate in the applicable jurisdiction. The preceding sentence shall control over and supersede any conflicting provisions respecting (i) tax withholding to meet minimum objectives in award agreements for Options and Performance Awards and (ii) tax withholding in general as to all other awards agreements granted under the Plan, regardless of when granted.”

 

	 	
2.
	
As amended hereby, the Plan is specifically ratified and reaffirmed.

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