Document:

exv10w48

 

Exhibit 10.48

FIRST AMENDMENT TO THE INCENTIVE COMPENSATION, CONFIDENTIALITY,

NON-DISCLOSURE AND NON-COMPETE AGREEMENT

DATED EFFECTIVE AS OF DECEMBER 31, 2006, BETWEEN

GROUP 1 AUTOMOTIVE, INC. AND RANDY L. CALLISON

     THIS FIRST AMENDMENT (the “First Amendment”) to the Incentive Compensation, Confidentiality,
Non-Disclosure and Non-Compete Agreement dated effective as of December 31, 2006, between Group 1
Automotive, Inc., and Randy L. Callison (the “Agreement”), is entered into, effective as of
November 8, 2007, by and between Group 1 Automotive, Inc., a Delaware corporation (the “Employer”),
and Randy L. Callison (the “Employee”).

RECITALS

     WHEREAS, the Employer and the Employee desire to amend the Agreement to comply with section
409A of the Internal Revenue Code of 1986, as amended (the “Code”);

     WHEREAS, the Employer and the Employee desire all severance amounts payable pursuant to the
Agreement to comply with the requirements of section 409A of the Code; and

     WHEREAS, any capitalized term used herein, and not otherwise defined herein, shall have the
meaning set forth in the Agreement.

     NOW, THEREFORE, in consideration of the foregoing and of the respective covenants and
agreements set forth below, the parties hereto agree as follows:

Section 4.8 shall be amended and restated in its entirety to read as follows:

Severance Pay and Vesting of Stock Upon Involuntary Termination. Upon “Involuntary
Termination” of the employment relationship pursuant to Sections 4.6(i) or 4.6(ii), or upon
“Termination without Cause” pursuant to Section 4.5, the Employer shall pay Employee
$400,000.00, less standard deductions and withholdings (“Severance Pay”), in a single lump
sum payment on the first day of the seventh month following the Employee’s “separation from
service” (within the meaning of Treasury Regulation § 1.409A-1(h)) with the Employer
(“Separation from Service”) provided that Employee first executes, and does not revoke, and
delivers to the Employer a valid release substantially in the form attached hereto as
Exhibit A within ninety (90) days following the Employee’s Separation from Service.
Moreover, upon “Involuntary Termination” of the employment relationship pursuant to Sections
4.6(i) or 4.6(ii), or upon “Termination Without Cause” pursuant to Section 4.5, all
Restricted Stock and stock options granted to Employee under the Incentive Compensation
Agreement shall become 100% vested, the exercise of which shall continue to be permitted as
if Employee’s employment had continued for the full Term of this Agreement. Employee will be
entitled to a pro-rated bonus (based on the termination date), calculated in accordance with
the Employer’s Incentive Compensation Plan and paid by March 15th of the year following the
release of earnings for the year in which such termination occurred. Employee shall not be
under any duty or obligation to seek or accept other employment following an Involuntary

 

 

Termination and the amounts due Employee hereunder shall not be reduced or suspended if
Employee accepts subsequent employment. As noted in the Incentive Compensation Agreement,
the rights and liabilities of Employer and Employee regarding entitlement to vesting of all
Restricted Stock and stock options shall be conditioned and dependent on the Employee’s
consent and agreement to the promises set forth therein and to the enforceability of such
covenants stated therein.

If it shall be determined that any payment or distribution by the Employer to or for the
benefit of the Employee, whether paid or payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise, would be subject to the excise tax imposed by
Section 4999 of the Internal Revenue Code of 1986, as amended, or any interest or penalties
are incurred by the Employee with respect to such excise tax (such excise tax, together with
any such interest and penalties, are hereinafter collectively referred to as the “Excise
Tax”), then the Employer shall pay to the Employee an amount equal to the Excise Tax within
the first sixty (60) days of the calendar year in which the Employee will file his Federal
income tax return for the payment or distribution giving rise to such Excise Tax; provided,
however, that the Employer shall not be required to pay taxes that result from such Excise
Tax payment. Employee’s rights and remedies under this Section 4.8 shall be Employee’s sole
and exclusive rights and remedies against Employer or its subsidiaries or affiliates
concerning Employee’s employment and termination from Employer, and Employer’s and its
subsidiaries’ and affiliates’ sole and exclusive liability to Employee under this Agreement,
in contract, tort, or otherwise, for any Involuntary Termination of the employment
relationship or concerning Employee’s employment and termination from Employer.

[Signature page to follow]

 

 

     IN WITNESS WHEREOF, the parties have executed this First Amendment as of the date set forth
below, to be effective as of the first date written above.

	 	 	 	 	 
	 	THE EMPLOYER:

GROUP 1 AUTOMOTIVE, INC.

 	 
	 	By:  	/s/ Darryl M. Burman
 	 
	 	 	Name:  	Darryl M. Burman 	 
	 	 	Title:  	Vice President & General Counsel
 	 
	 	 	Date: 	November 8, 2007 	 
	 
	 	EMPLOYEE:

 	 
	 	By:  	/s/ Randy L. Callison
 	 
	 	 	Name:  	Randy L. Callison, Individually 	 
	 	 	 	 
	 	 	Date: 	November 8, 2007exv10wxgy

 

Exhibit 10(g)

HOUSTON INDUSTRIES INCORPORATED

1995 SECTION 415 BENEFIT RESTORATION PLAN

(Established Effective August 1, 1995)

 

 

HOUSTON INDUSTRIES INCORPORATED

1995 SECTION 415 BENEFIT RESTORATION PLAN

(Established Effective August 1, 1995)

INDEX

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 
	 	 	 	 
	ARTICLE I	 	ESTABLISHMENT AND PURPOSE
	 	 	1	 
	Section:	 	 
	 	 	 	 
	     1.1	 	Establishment
	 	 	1	 
	     1.2	 	Purpose
	 	 	1	 
	     1.3	 	Application of Plan
	 	 	1	 
	     1.4	 	ERISA Status
	 	 	1	 
	 	 	 
	 	 	 	 
	ARTICLE II	 	DEFINITIONS AND CONSTRUCTION
	 	 	1	 
	Section:	 	 
	 	 	 	 
	     2.1	 	Definitions
	 	 	1	 
	 	 	Board of Directors
	 	 	1	 
	 	 	Committee
	 	 	1	 
	 	 	Company
	 	 	2	 
	 	 	Member
	 	 	2	 
	 	 	Person
	 	 	2	 
	 	 	Program
	 	 	2	 
	     2.2	 	Gender and Number
	 	 	2	 
	     2.3	 	Severability
	 	 	2	 
	     2.4	 	Applicable Law
	 	 	2	 
	     2.5	 	Plan Not an Employment Contract
	 	 	2	 
	     2.6	 	Funding
	 	 	2	 
	     2.7	 	Tax Withholding
	 	 	3	 
	     2.8	 	Effect on Other Plans
	 	 	3	 
	 	 	 
	 	 	 	 
	ARTICLE III	 	RESTORATION OF BENEFITS REDUCED BY CODE
SECTION 415
	 	 	3	 
	Section:	 	 
	 	 	 	 
	     3.1	 	Purpose
	 	 	3	 
	     3.2	 	Eligibility
	 	 	3	 
	     3.3	 	Calculation of Restoration Benefit
	 	 	3	 
	     3.4	 	Form of Payment and Commencement Date
	 	 	4	 
	     3.5	 	Vesting
	 	 	4	 

(i)

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 	 	 
	 	 	 	 
	ARTICLE IV	 	ADMINISTRATION
	 	 	4	 
	Section:	 	 
	 	 	 	 
	     4.1	 	Administration
	 	 	4	 
	     4.2	 	Expenses
	 	 	4	 
	     4.3	 	Indemnification and Exculpation
	 	 	4	 
	     4.4	 	Non-Alienation of Benefits
	 	 	4	 
	 	 	 
	 	 	 	 
	ARTICLE V	 	MERGER, AMENDMENT AND TERMINATION
	 	 	5	 
	Section:	 	 
	 	 	 	 
	     5.1	 	Merger, Consolidation or Acquisition
	 	 	5	 
	     5.2	 	Amendment and Termination
	 	 	5	 

(ii)

 

HOUSTON INDUSTRIES INCORPORATED

1995 SECTION 415 BENEFIT RESTORATION PLAN

(Established Effective August 1, 1995)

ARTICLE I

ESTABLISHMENT AND PURPOSE

     1.1 Establishment: Houston Industries Incorporated, a Texas corporation (the
“Company”), hereby establishes, effective August 1, 1995, an unfunded excess benefit plan within
the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), for the
benefit of certain eligible employees of the Company, Houston Lighting & Power Company and Houston
Industries Energy, Inc. to be known as the Houston Industries Incorporated 1995 Section 415 Benefit
Restoration Plan (the “Plan”).

     1.2 Purpose: The purpose of this Plan is generally to provide the amount of the
benefit which would otherwise be paid from the Houston Industries Incorporated Retirement Plan (the
“Retirement Plan”) following implementation of the 1995 Voluntary Early Retirement Program adopted
by the Board of Directors of the Company on May 3, 1995 (the “Program”), but which cannot be paid
under the Retirement Plan due to the limitations on benefits and contributions imposed by Section
415 of the Internal Revenue Code of 1986, as amended (the “Code”).

     1.3 Application of Plan: The terms of this Plan are applicable only to those Persons
who are Members hereunder.

     1.4 ERISA Status: The Plan is intended to qualify for the exemptions provided under
Title I of ERISA for plans that are excess benefit plans as defined in Section 3(36) of ERISA.

ARTICLE II

DEFINITIONS AND CONSTRUCTION

     2.1 Definitions: Except as otherwise indicated, the terms used in this Plan shall
have the same meaning as they have under the Retirement Plan. For purposes of this Plan, the
following definitions shall apply:

(a) “Board of Directors” shall mean the Board of Directors of the Company.

(b) “Committee” shall mean the Benefits Committee appointed by the Board of
Directors of the Company.

(c) “Company” shall mean Houston Industries Incorporated.

 

 

(d) “Member” shall mean a Person whose Houston Industries Incorporated Retirement
Plan benefits, taking into consideration the benefit resulting from the Program’s
implementation, are affected by the limitations imposed by Code Section 415.

(e) “Person” shall mean any person who fulfills the requirements for the
Voluntary Early Pension for 1995 Program participants under Section 9.7(a) of the
Houston Industries Incorporated Retirement Plan.

(f) “Program” shall mean the 1995 Voluntary Early Retirement Program adopted by
the Board of Directors on May 3, 1995.

     2.2 Gender and Number: Except when otherwise indicated by the context, any masculine
terminology used in the Plan shall also include the feminine gender, and the definition of any term
in the singular shall also include the plural.

     2.3 Severability: In the event any provision of the Plan shall be held invalid or
illegal for any reason, any illegality or invalidity shall not affect the remaining parts of the
Plan, but the Plan shall be construed and enforced as if the illegal or invalid provision had never
been inserted, and the Company shall have the privilege and opportunity to correct and remedy
questions of illegality or invalidity by amendment as provided in the Plan.

     2.4 Applicable Law: This Plan shall be governed and construed in accordance with
ERISA and the laws of the State of Texas.

     2.5 Plan Not an Employment Contract: The Plan is not an employment contract. The
receipt of benefits under the Plan does not give to any person the right to be continued in
employment by the Company or any of its subsidiaries, and all persons remain subject to change of
salary, transfer, change of job, discipline, layoff, discharge (with or without cause), or any
other change of employment status.

     2.6 Funding: The benefits described in this Plan are contractual obligations of the
Company to pay compensation for services, and shall constitute a liability to the Members and/or
their beneficiaries in accordance with the terms hereof. All amounts paid under this Plan shall be
paid in cash from the general assets of the Company. Benefits may be reflected on the accounting
records of the Company but shall not be construed to create, or require the creation of, a trust,
custodial or escrow account. No special or separate fund need be established and no segregation of
assets need be made to assure the payment of such benefits. No Member shall have any right, title
or interest whatever in or to any investment reserves, accounts, funds or assets that the Company
may purchase, establish or accumulate to aid in providing the benefits described in this Plan. Nothing
contained in this Plan, and no action taken pursuant to its provisions, shall create or be
construed to create a trust or a fiduciary relationship of any kind between the Company and its
subsidiaries and a Member or any other person. Neither a Member nor the beneficiary of a Member
shall acquire any interest hereunder greater than that of an unsecured creditor.

     2.7 Tax Withholding: The Company may withhold from a payment any federal, state or
local taxes required by law to be withheld with respect to such payment.

-2-

 

     2.8 Effect on Other Plans: Amounts accrued or paid under this Plan shall not be
considered compensation for the purposes of the Company’s qualified or welfare plans. Benefits
payable hereunder shall not be duplicative of benefits paid under any other similar plan maintained
by the Company to provide Retirement Plan restoration benefits to employees of the Company or its
subsidiaries. In the event duplicate coverage arises, the Committee shall decide, in its sole
discretion, which non-qualified plan shall provide the restoration benefit, and its decision shall
be binding and conclusive.

ARTICLE III

RESTORATION OF BENEFITS REDUCED BY CODE SECTION 415

     3.1 Purpose: Code Section 415 limits the amounts of benefits available under
qualified retirement benefit plans. The purpose of this Plan is to restore to Members any benefits
under the Retirement Plan that have been reduced as a result of the limitations imposed by Code
Section 415.

     3.2 Eligibility: A Member shall be eligible to receive benefits under this Plan as of
August 1, 1995 (or such later employment termination date as is elected by the Member at the
request of his Employer based on a specific business need).

     3.3 Calculation of Restoration Benefit: When a Member’s retirement benefit commences
or a death benefit payable with respect to a Member commences under the Retirement Plan, the
Company will calculate a benefit equal to the excess of the amount of the retirement benefit or
death benefit (as the case may be) which would have been payable under the Retirement Plan, taking
into consideration implementation of the Program, but for the limitations imposed by Code Section
415, over the amount of the retirement benefit or death benefit actually payable under the
Retirement Plan. The Company shall generally pay a restoration benefit to the Member or to such
other persons, at such times and in such manner as the Retirement Plan benefit is payable pursuant
to the terms of the Retirement Plan. The Company shall convert the payment of a restoration
benefit, the present value of which does not exceed $10,000, into an actuarially equivalent
lump-sum payment; provided, however, in the sole discretion of the Committee, a Member may petition
for payment at the same time and manner as the Retirement Plan benefit is payable if the present
value of such lump-sum is in excess of $3,500. Conversion to a lump-sum shall
be made in the manner determined by the Committee with the advice of the actuary for the Retirement
Plan, employing those actuarial assumptions as are currently employed in converting Retirement Plan
benefits from one form to another, and interest at the Pension Benefit Guaranty Corporation’s rate
in effect at the beginning of the Plan Year of the distribution.

     3.4 Form of Payment and Commencement Date:

(a) Form of Payment: Except as otherwise provided above, benefits
payable under this Plan shall be paid in the same manner as benefits payable under
the Retirement Plan.

-3-

 

(b) Commencement Date: Benefits payable under this Plan shall commence
on or about the same date that benefits commence under the Retirement Plan.

     3.5 Vesting: A Member shall become vested in the benefit payable under this Plan at
the same time that he becomes vested under the Retirement Plan. Notwithstanding the foregoing, a
Member (and his beneficiary) shall have no right to a benefit under this Plan if the Committee
determines that the Member engaged in a willful, deliberate or grossly negligent act or omission
injurious to the finances or reputation of the Company or any of its subsidiaries.

ARTICLE IV

ADMINISTRATION

     4.1 Administration: The Plan shall be administered, construed and interpreted by the
Committee. The determinations of the Committee as to any disputed questions arising under the
Plan, including the Persons who are eligible to be Members in the Plan and the amounts of their
benefits under the Plan, and the construction and interpretation by the Committee of any provision
of the Plan, shall be final, conclusive and binding upon all persons including Members, their
beneficiaries, the Company, its subsidiaries, stockholders and employees.

     4.2 Expenses: The expenses of administering the Plan shall be borne by the Company.

     4.3 Indemnification and Exculpation: The members of the Committee and its agents
shall be indemnified and held harmless by the Company against and from any and all loss, cost,
liability or expenses that may be imposed upon or reasonably incurred by them in connection with or
resulting from any claim, action, suit or proceeding to which they may be a party or in which they
may be involved by reason of any action taken or failure to act under this Plan and against and
from any and all amounts paid by them in settlement (with the Company’s written approval) or paid
by them in satisfaction of a judgment in any
such action, suit or proceeding. The foregoing provisions shall not be applicable to any person if
the loss, cost, liability or expense is due to such person’s gross negligence or willful
misconduct.

     4.4 Non-Alienation of Benefits: Any benefit payable under this Plan shall not be
subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance
or charge, and any attempt at such shall be void, and any such benefit shall not in any way be
subject to the debts, contract, liabilities, engagements or torts of the person who shall be
entitled to such benefit, nor shall it be subject to attachment or legal process for or against
such person.

-4-

 

ARTICLE V

MERGER, AMENDMENT AND TERMINATION

     5.1 Merger, Consolidation or Acquisition: In the event of a merger, consolidation or
acquisition where the Company is not the surviving corporation, unless the successor or acquiring
corporation shall elect to continue and carry on the Plan, this Plan shall terminate, and no
additional benefits shall accrue for the Members. Unpaid benefits shall continue to be paid as
scheduled unless the successor or acquiring corporation elects to accelerate payment.

     5.2 Amendment and Termination: The Benefits Committee of the Board of Directors of
the Company may amend, modify, or terminate the Plan in whole or in part at any time. In the event
of a termination of the Plan pursuant to this Section, unpaid benefits accrued at the date of Plan
termination shall continue to be an obligation of the Company and shall be paid as scheduled. No
amendment or termination shall divest a Member of any benefit which had previously accrued to him
or which had previously become payable to him under this Plan unless the Member agrees in writing
to such divestment.

          IN WITNESS WHEREOF, the Company has caused this instrument to be executed by its duly
authorized officers in a number of copies, each of which shall be deemed an original but all of
which shall constitute one and the same instrument, this 18th day of May, 1995, but effective as of
the date stated herein.

	 	 	 	 	 
	 	HOUSTON INDUSTRIES INCORPORATED

 	 
	 	By 	 /s/ D. D. Sykora
 	 
	 	 	D. D. Sykora 	 
	 	 	President and Chief Operating Officer 	 
	 

	 	 	 	 	 
	ATTEST:

 	 	 
	/s/ Richard Dauphin
 	 	 
	Assistant Corporate Secretary 	 	 
	 	 	 
	 

-5-

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