Document:

EX-10.2  2015.3.31

Exhibit 10.2
EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the “Agreement”), is entered into this 16th day of July, 2014, by and between Sheridan Healthcare, Inc., a Delaware corporation (“Company”), and Robert Coward (“Executive”).

WHEREAS, Executive is currently employed by the Company pursuant to that certain employment agreement dated as of June 15, 2007, and as amended on December 30, 2008, April 11, 2011, and March 19, 2013 (the “Prior Agreement”); 

WHEREAS, AmSurg Corp. (“AMSURG”) and Sheridan Healthcare, Inc. have entered into an agreement pursuant to which Sheridan Healthcare, Inc. will become a wholly owned subsidiary of AMSURG (the “Transaction”); and

WHEREAS, the Company wishes to continue to employ Executive after the closing of the Transaction, and the parties wish to establish the terms and conditions of such employment pursuant to this Agreement and thereby supersede and replace the Prior Agreement in its entirety. 

NOW, THEREFORE, in consideration of the promises and mutual covenants herein and for other good and valuable consideration, the parties agree as follows:

W I T N E S S E T H:

1.    EMPLOYMENT.  The Company employs Executive and Executive hereby accepts employment under the terms and conditions hereinafter set forth.

2.    DUTIES.  Executive will be engaged as Executive Vice President - Operations of the Company.  His powers and duties in that capacity shall be those normally associated with the position of Executive Vice President - Operations.  During the term of this Agreement, Executive shall also serve without additional compensation in such other offices of the Company and its parents, subsidiaries, and affiliates to which he may be elected or appointed.

3.    TERM.  Subject to provisions of termination as hereinafter provided, the initial term of Executive’s employment under this Agreement shall commence upon the closing of the Transaction and terminate on December 31, 2015.  On each December 31 during the term of this Agreement, commencing on December 31, 2015, unless the Company notifies Executive, pursuant to the following paragraph, that his employment under this Agreement will not be extended, his employment under this Agreement shall automatically be extended for a one (1) year period on the same terms and conditions as are set forth herein.

If the Company elects not to extend Executive’s employment under this Agreement, it shall do so by notifying Executive in writing not less than sixty (60) days prior to the applicable December 31 of this Agreement.  If the Company does not elect to extend Executive’s employment under this Agreement other than for Cause (as hereinafter defined),  Executive shall be considered to have been terminated without Cause upon the expiration of his employment, and Executive will receive the payments and benefits set forth in Section 8 hereof.

4.    COMPENSATION.  

		
	a.
	For all duties rendered by Executive, the Company shall pay Executive a minimum salary of $632,000.00 per year, payable in equal semi-monthly installments.  In addition thereto, each year, beginning January 1, 2015, Executive’s compensation will be reviewed by the Board of Directors of AMSURG, or the Compensation Committee thereof, or its/their designee, and after taking into consideration performance and any other factors deemed relevant, the Committee may increase Executive’s salary.    Executive will be eligible to receive an annual bonus on the terms and conditions approved by the Compensation Committee of AMSURG’s Board of Directors.  Executive shall also be eligible to receive equity incentive awards as approved from time to time by the Compensation Committee of AMSURG’s Board of Directors.

		
	b.
	All compensation payable hereunder shall be subject to withholding for federal income taxes, FICA and all other applicable federal, state and local withholding requirements.

		
	c.
	The Company shall pay the reasonable expenses incurred by Executive in the performance of his duties under this Agreement (or shall reimburse Executive on account of such expenses paid directly by Executive) in accordance with the Company’s policies and procedures.  Any such reimbursement of expenses shall be made by the Company promptly upon or as soon as reasonably practicable following receipt of supporting documentation reasonably satisfactory to the Company (but in any event not later than the close of Executive’s 

taxable year following the taxable year in which the expense is incurred by Executive); provided, however, that upon Executive’s termination of employment with the Company, in no event shall any additional reimbursement be made prior to the Section 409A Payment Date (as such term is defined in Section 22) to the extent such payment delay is required under Section 409A(a)(2)(B)(i) of the Internal Revenue Code of 1986, as amended (the “Code”).  In no event shall any reimbursement be made to Executive for such expenses after the later of (i) the first anniversary of the date of Executive’s death or (ii) December 31 of the calendar year following the year of the Executive’s termination of employment with the Company (other than by reason of Executive’s death).  

		
	d.
	Executive shall be eligible to receive such equity incentive awards under AMSURG’s equity incentive plans as may be approved from time to time by the Compensation Committee of the Board of Directors of AMSURG.  Any such awards shall be subject to such vesting and other terms and conditions as shall be approved by the Compensation Committee of the Board of Directors of AMSURG.  Any such awards that are subject solely to time-based vesting restrictions (including any such awards outstanding as of the date of this Agreement) shall automatically vest upon the termination of employment of Executive as a result of (i) the death of Executive, (ii) the Disability of Executive (as defined in Section 6), (iii) the termination of employment by Executive for Good Reason (as defined in Section 21), and (iv) the termination of employment by the Company without Cause (as defined in Section 7) following the second anniversary of the date of this Agreement; provided, that the vesting of such awards shall not accelerate upon the termination of Executive as a result of the termination of employment by the Company without Cause (as defined in Section 7) if such termination without Cause by the Company is a Performance Termination (as defined in Section 21).

5.    EXTENT OF SERVICE.  Executive shall devote substantially his entire time, attention and energies to the business of the Company and shall not during the term of this Agreement take an active role in any other business activity without the prior written consent of the Company; but this shall not prevent Executive from making real estate or other investments of a passive nature or devoting time to charitable and non-profit activities and service as a director on the board(s) of directors of companies (whether public or private) other than the Company, in each case, in accordance with the Company’s or AMSURG’s Corporate Governance Guidelines and in a  manner that does not interfere with the performance of his duties to the Company.

6.    DISABILITY.  In the event Executive shall become disabled as defined in Treasury Regulation 1.409(A)-3(i)(4) (“Disability”), the Company shall provide the following payments and benefits:
		
	a.
	The Accrued Rights (as defined in Section 7(a) below);

		
	b.
	If Executive’s employment is terminated following the end of a fiscal year and prior to the payment date for the bonus described in Section 4(a), if any, that Executive would have been entitled to receive with respect to such completed fiscal year, based upon AMSURG’s or the Company’s actual results, as applicable, the Company shall pay to Executive, at the time such bonus is paid to other executives of the Company according to the terms of the applicable bonus program, the amount of such bonus described in Section 4(a), if any, that Executive would have been entitled to receive with respect to such completed fiscal year had Executive’s employment not terminated prior to the payment date for such bonus; and a pro rata portion of the bonus described in Section 4(a), if any, that Executive would have been entitled to receive for the fiscal year in which the Disability Payment Date (as defined below) occurs, based upon AMSURG’s or the Company’s actual results, as applicable, for the year of termination and the percentage of the fiscal year that shall have elapsed through the Disability Payment Date, payable to Executive pursuant to Section 4(a) had Executive’s employment not terminated, which pro-rata bonus shall be paid at the time such bonus is paid to other executives of the Company according to the terms of the applicable bonus program; and

		
	c.
	Through insurance or on its own account coverage for Executive that will provide payment of Executive’s full salary and benefits for twelve (12) months, with (i) the payment of Executive’s salary to commence within thirty (30) days (with the date of such initial payment(s) determined by the Company in its sole discretion) of the Disability Payment Date (as defined below) and (ii) such payments being paid on the same terms and with the same frequency as Executive’s salary was paid prior to such incapacity or illness.  For the period beyond twelve (12) months, the Company shall provide such coverage to Executive as is then available to Executive in accordance with Company policy.  To the extent that payments are received from Worker’s Compensation or other Company paid disability plans, the Company’s obligations will be reduced by amounts so received.

The date on which it is determined that Executive is Disabled is referred to herein as the “Disability Payment Date.”

7.    TERMINATION FOR CAUSE.  
		
	a.
	The Company may terminate Executive’s employment for Cause, without any further liability hereunder to Executive, except that Executive shall be entitled to (i) payment of all accrued but unpaid salary through the date of termination, (ii) reimbursement for all incurred but unreimbursed expenses for which Executive is entitled to reimbursement in accordance with Section 4(g), and (iii) benefits to which the Executive is entitled as of the date of termination of employment under the terms of applicable benefit plans and programs (the “Accrued Rights”).

		
	b.
	For the purposes of this Agreement, the Company shall have “Cause”  to terminate Executive’s employment based upon the following grounds (i) a felony conviction of Executive or the failure of Executive to contest prosecution for a felony, (ii) conviction of a crime involving moral turpitude, or (iii) willful and continued misconduct or gross negligence by Executive in the performance of his duties as an Executive after written notice from the Company that reasonably identifies the manner in which the Company believes that he has committed gross negligence or willful misconduct and the failure by Executive to cure such failure within forty-five (45) days after delivery of such notice.  For purposes of this Section 7, “willful” shall be determined by the Board of Directors of AMSURG.  In making such determination, the Board of Directors of AMSURG shall not act unreasonably or arbitrarily and no act or omission by Executive shall be deemed willful if taken by Executive in a good faith belief that such act or omission to act was in the best interests of the Company or if done at the express direction of the Board.

		
	c.
	Prior to making a determination to terminate the Executive’s employment for Cause, Executive shall have the opportunity, together with his counsel, to be heard before AMSURG’s Board of Directors.

8.    TERMINATION WITHOUT CAUSE OR FOR GOOD REASON.  Executive’s employment under this Agreement may be terminated by the Company at any time without Cause or by the Executive for Good Reason (as defined in Section 21).  Except as provided in Section 9 below, in the event Executive’s employment under this Agreement is terminated by the Company without Cause or by the Executive for Good Reason, the Company shall pay Executive the following payments and benefits:
		
	a.
	The Accrued Rights;

		
	b.
	a lump sum payment equal to two (2) times the sum of (i) the annual base salary payable to Executive as of the date of the Executive’s Separation from Service and (ii) the target bonus established by the Compensation Committee of the AMSURG Board of Directors for the Executive pursuant to the annual cash bonus plan for the year in which the Separation of Service occurs;

		
	c.
	Executive shall also continue to be covered under health and life insurance plans of the Company for twenty-four (24) months, or the Company shall provide the economic equivalent thereof if such continuation is not permissible under the terms of the Company’s insurance plans;

		
	d.
	If Executive’s employment is terminated following the end of a fiscal year and prior to the payment date for the bonus described in Section 4(a), if any, that Executive would have been entitled to receive with respect to such completed fiscal year, based upon AMSURG’s or the Company’s actual results, as applicable, the Company shall pay to Executive, at the time such bonus is paid to other executives of the Company according to the terms of the applicable bonus program, the amount of such bonus described in Section 4(a), if any, that Executive would have been entitled to receive with respect to such completed fiscal year had Executive’s employment not terminated prior to the payment date for such bonus; and a pro rata portion of the bonus described in Section 4(a), if any, that Executive would have been entitled to receive for the fiscal year in which the termination of employment occurs, based upon AMSURG’s or the Company’s actual results, as applicable, for the year of termination and the percentage of the fiscal year that shall have elapsed through the date of termination of employment, payable to Executive pursuant to Section 4(a) had Executive’s employment not terminated, which pro-rata bonus shall be paid at the time such bonus is paid to other executives of the Company according to the terms of the applicable bonus program;

Benefits due under Section 8(a)-(c) shall be payable (or commence) within sixty (60) days of the Executive’s Separation from Service, with the date of such payment determined by the Company in its sole discretion in accordance with Section 11 below.   Receipt by Executive of the payment and other benefits under this Section 8 shall be subject to Executive’s execution and delivery, 

pursuant to the terms of Section 11 below, to the Company of a General Release in form and substance reasonably acceptable to the Company and Executive.

9.    TERMINATION FOLLOWING A CHANGE IN CONTROL.  In the event Executive’s employment under this Agreement is terminated by the Company without Cause within twelve (12) months following the occurrence of a Change in Control (as defined in Section 21 herein) or by Executive for Good Reason within twelve (12) months following the occurrence of a Change in Control (as defined in Section 21 herein), the Company shall pay Executive the following payments and benefits:
		
	a.
	a lump sum payment equal to two (2) times the sum of (i) the annual base salary payable to Executive as of the date of the Executive’s Separation from Service and (ii) the target bonus established by the Compensation Committee of the AMSURG Board of Directors for the Executive pursuant to the annual cash bonus plan for the year in which the Separation of Service occurs;

		
	b.
	Executive shall also continue to be covered under health and life insurance plans of the Company for two years (2) years, or the Company shall provide the economic equivalent thereof if such continuation is not permissible under the terms of the Company’s insurance plans; and

		
	c.
	If Executive’s employment is terminated following the end of a fiscal year and prior to the payment date for the bonus described in Section 4(a), if any, that Executive would have been entitled to receive with respect to such completed fiscal year, based upon AMSURG’s or the Company’s actual results, as applicable, the Company shall pay to Executive, at the time such bonus is paid to other executives of the Company according to the terms of the applicable bonus program, the amount of such bonus described in Section 4(a), if any, that Executive would have been entitled to receive with respect to such completed fiscal year had Executive’s employment not terminated prior to the payment date for such bonus; and a pro rata portion of the bonus described in Section 4(a), if any, that Executive would have been entitled to receive for the fiscal year in which the termination of employment occurs, based upon AMSURG’s or the Company’s actual results, as applicable, for the year of termination and the percentage of the fiscal year that shall have elapsed through the date of termination of employment, payable to Executive pursuant to Section 4(a) had Executive’s employment not terminated, which pro-rata bonus shall be paid at the time such bonus is paid to other executives of the Company according to the terms of the applicable bonus program.

Benefits due under this Section 9 shall be payable (or commence) within sixty (60) days of the Executive’s Separation from Service, with the date of such payment determined by the Company in its sole discretion in accordance with Section 11 below.  Receipt by Executive of any payment or other benefits under this Section 9 shall be subject to Executive’s execution and delivery, pursuant to the terms of Section 11 below, to the Company of a General Release in form and substance reasonably acceptable to the Company and Executive.
10.    TERMINATION BY EXECUTIVE WITHOUT GOOD REASON.  Executive may terminate his employment under this Agreement at any time other than for Good Reason (as defined in Section 21 herein) upon the provision of sixty (60) days prior written notice to the Company.  In such event, the Company shall pay Executive the Accrued Rights, and Executive shall not be entitled to any other benefits under this Agreement following the date of termination of this employment with the Company.  In the event Executive gives notice of his intent to terminate his employment other than for Good Reason, the Company may elect to waive the period of notice or any portion thereof and accept Executive’s resignation prior to the end of the notice period.
11.    COORDINATION WITH RELEASE.  Notwithstanding any provision herein to the contrary, the provisions of this Section 11 shall apply to the payment of benefits under Sections 8 and 9 (the “Severance Payments”).  The Severance Payments shall be made only if Executive shall have executed, on or prior to the Release Expiration Date (as defined below), a General Release in form and substance reasonably acceptable to the Company and Executive (the “Release”) and any waiting periods contained in the Release shall have expired.  In any instance where the execution of a Release is required, the Company shall deliver the Release to the Executive within eight (8) days following the date of the Executive’s Separation from Service.  If Executive fails to execute and deliver the Release on or prior to the Release Expiration Date or timely revokes Executive’s acceptance of the Release thereafter, Executive shall not be entitled to any Severance Payments.  The Severance Payments shall be made immediately upon the expiration of any waiting periods contained in the Release, or if no waiting periods are applicable, within two (2) business days following Executive’s execution and delivery of the Release to the Company; provided, however, notwithstanding anything herein to the contrary, in any case where the date the Separation from Service and the Release Expiration Date fall in two separate taxable years, any Severance Payments that are treated as deferred compensation for purposes of Section 409A of the Code shall be made in the later taxable year.  For purposes of this Section 11, the “Release Expiration Date” shall mean the later of (i) the date of the Executive’s  Separation from Service, and (ii) the date that is twenty-one (21) days following 

the date on which the Company timely delivers a Release to the Executive for the Executive’s execution, or in the event that the Executive’s Separation from Service is “in connection with an exit incentive or other employment termination program” (as such phrase is defined in the Age Discrimination in Employment Act of 1967), the date that is forty-five (45) days following such delivery date.
    

12.    RESTRICTIVE COVENANTS.  

		
	a.
	Confidential Information.  Executive agrees not to disclose, either during the time he is employed by the Company or following the termination of his employment at the Company, any confidential information concerning the Company or AMSURG, including, but not limited to, customer lists, business plans, contract terms, financial costs, sales data, or business opportunities whether for existing, new or developing businesses.

		
	b.
	Non-Compete.  For a period of two (2) years following the date of the termination of Executive’s employment with the Company other than in the event of a termination by the Executive for Good Reason, Executive agrees that he will not, either as an individual for his own account, as a partner or joint venturer, or as an employee, agent, Executive, director, consultant, owner or otherwise, without the written consent of the Company, own, finance, operate, manage, design, build, solicit prospects for or otherwise enter into or engage in any phase of:

		
	(i)
	the ambulatory surgery business,

		
	(ii)
	any business the products, services, or activities of which include the provision of medical services, including without limitation, the provision of anesthesia services, pain management services, emergency medicine services, gynecological and obstetrical services, primary medical care services, neonatology services, pediatric services, perinatology services and radiology services,

		
	(iii)
	any business the products, services, or activities of which include the provision of administrative services for medical services, including without limitation, quality assurance services, utilization management services, billing services, recruitment services and medical management information services, or 

		
	(iv)
	any other line of business in which the Company is engaged on the date of termination of Executive’s employment with the Company (for purposes of clarification of this Section 12(b)(iv), the Company shall not be deemed to be engaged in a line of business if the Company provides the goods or services that constitute such line of business solely to business units, segments or subsidiaries of the Company or facilities owned or operated by the Company),

in the case of each of (i), (ii), (iii), and (iv) above in any state within the United States or in any foreign country or territory in which the Company or any of its subsidiaries, parents, or affiliates conducts business as of the date of termination of Executive’s employment with the Company.  The Company and Executive acknowledge and agree that the provisions of this Section 12(b) shall not restrict Executive from accepting employment or otherwise being involved with a business (such as a company that owns or operates hospitals or health systems) other than United Surgical Partners International, Inc., Surgical Care Affiliates, Inc., Envision Healthcare Holdings, Inc., MEDNAX, Inc., TeamHealth Holdings, Inc., and their respective parents, subsidiaries, and affiliates that has a unit, division, segment or subsidiary that competes with the Company as described above in this Section 12(b) so long as Executive does not directly participate in the management of the unit, division, segment or subsidiary that competes with the business of the Company as described in subsections (i), (ii), (iii), and (iv) above. For purposes of Sections 12(b)(i), 12(b)(ii), 12(b)(iii), and 12(b)(iv) above, references to the Company shall include all subsidiaries and affiliates of the Company, including but not limited to AMSURG.
		
	c.
	Non-Solicitation.  Upon termination or expiration of his employment, whether voluntary or involuntary, Executive agrees not to directly or indirectly solicit business of the type described in Sections 12(b)(i), 12(b)(ii), 12(b)(iii), and 12(b)(iv) above from any entity, organization or person which has contracted with the Company, which has been doing business with the Company, or from which the Executive knew or had reason to know that the Company was soliciting or going to solicit business at the time of Executive’s termination, for a two-year-year period from the date of Executive’s termination of his employment with the Company.  For purposes of this Section 12(c), references to the Company shall include all subsidiaries and affiliates of the Company, including but not limited to AMSURG.

		
	d.
	Enforcement.  Executive and the Company acknowledge and agree that any of the covenants contained in this Section 12 may be specifically enforced through injunctive relief, but such right to injunctive relief shall not preclude Company from other remedies which may be available to it.  In case any of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, including without limitation geographic scope, duration or functional coverage, any such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, but this Agreement shall be construed 

as if such invalid, illegal, or unenforceable provision had been limited or modified (consistent with its general intent) to the extent necessary to make it valid, legal and enforceable, or if it shall not be possible to so limit or modify such invalid, illegal or unenforceable provision or part of a provision, this Agreement shall be construed as if such invalid, illegal or unenforceable provision or part of a provision had never been contained in this Agreement. 

		
	e.
	Termination.  Notwithstanding any provision to the contrary otherwise contained in this Agreement, the agreements and covenants contained in this Section 12 shall not terminate upon Executive’s termination of his employment with the Company or upon the termination of this Agreement under any other provision of this Agreement.

13.    VACATION.  During each year of this Agreement, Executive shall be entitled to not less than twenty five (25) paid vacation days per year, which shall accrue monthly.

14.    BENEFITS.  In addition to the benefits specifically provided for herein, Executive shall be entitled to participate in all benefit plans maintained by the Company for employees generally according to the terms of such plans.

15.    NOTICES.  Any notice required or permitted to be given under this Agreement shall be sufficient if in writing, and if sent by registered or certified mail to his residence in the case of Executive, or to its principal office in the case of the Company.

16.    WAIVER OF BREACH.  The waiver by either party of any provision of this Agreement shall not operate or be construed as a waiver of any subsequent breach by the other party.

17.    ATTORNEYS’ FEES.  In the event that either party initiates legal proceedings to enforce any provision of this Agreement or resolve any dispute hereunder, and Executive is the prevailing party, then the Company shall be responsible for payment of the Executive’s reasonable attorneys’ fees incurred in connection therewith.

18.    ASSIGNMENT.  The rights and obligations of the Company under this Agreement shall inure to the benefit of and shall be binding upon the successors and assigns of the Company.  The Executive acknowledges that AMSURG is an intended third party beneficiary of this Agreement.  The Executive acknowledges that the services to be rendered by him are unique and personal, and the Executive may not assign any of his rights or delegate any of his duties or obligations under this Agreement.

19.    ENTIRE AGREEMENT.  Executive agrees and acknowledges that this Agreement provides for employment protections and compensation, including but not limited to the equity incentive awards referenced in Section 4(a) and Section 4(d) and the severance awards referenced in Sections 8-9, which are greater than those provided in the Prior Agreement and which constitute valuable consideration for the obligations described herein.  This Agreement contains the entire agreement of the parties with respect to the matters addressed herein, and supersedes and replaces the Prior Agreement in its entirety.  It may not be changed orally but only by an agreement in writing signed by the party against whom enforcement of any waiver, change, modification, extension or discharge is sought.  This Agreement shall be governed by the laws of the State of Tennessee.

20.    HEADINGS.  The sections, subjects and headings in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

21.    DEFINITIONS.  For purposes of this Agreement the following definitions shall apply:

		
	a.
	“Change in Control” shall mean the occurrence of any of the following:

		
	(i)
	the acquisition of at least a majority of the outstanding shares of Common Stock (or securities convertible into Common Stock) of AMSURG by any person, entity or group (as used in Section 13(d)(3) and Rule 13d-5(b)(1) under the Exchange Act);

		
	(ii)
	the merger or consolidation of AMSURG with or into another corporation or other entity, or any share exchange or similar transaction involving AMSURG and another corporation or other entity, if as a result of such merger, consolidation, share exchange or other transaction, the persons who owned at least a majority of the Common Stock of AMSURG prior to the consummation of such transaction do not own at least a majority of the Common Stock of the surviving entity after the consummation of such transaction;

		
	(iii)
	the sale of all, or substantially all, of the assets of AMSURG; or

		
	(iv)
	any change in the composition of the Board of Directors of AMSURG, such that persons who at the beginning of any period of up to two years constituted at least a majority of the Board of Directors of AMSURG, or persons whose nomination was approved by such majority, cease to constitute at least a majority of the Board of Directors of AMSURG at the end of such period.

		
	b.
	Unless otherwise stated, “Company” shall mean Sheridan Healthcare, Inc., any successor entity or their successors or assigns.

		
	c.
	“Good Reason” shall exist if:

		
	(i)
	there is a material diminution in the nature or the scope of Executive’s authority and responsibilities;

		
	(ii)
	there is a material diminution in Executive’s rate of base salary or overall compensation (for reasons other than AMSURG or Company performance or stock price);

		
	(iii)
	the Company changes the principal location in which Executive is required to perform services outside a twenty (20) mile radius of such location without Executive’s consent; or

		
	(iv)
	the Company engages in any other action or inaction that constitutes a material breach of this Agreement by the Company. 

A termination under the circumstances listed above shall be for “Good Reason” only if (A) Executive notifies the Company of the existence of the condition that otherwise constitutes Good Reason within ninety (90) days of the initial existence of the condition, (B) the Company fails to remedy the condition within forty-five (45) days following its receipt of Executive’s notice of Good Reason and (C) the Executive Separates from Service from the Company due to the condition within twelve (12) months of the initial existence of such condition.

		
	d.
	“Separation from Service” shall mean the date on which the Company and Executive reasonably anticipate that no further services will be performed after such date, or that the level of bona fide services Executive will perform after such date will permanently decrease to no more than 20% of the average level of bona fide services performed over the immediately preceding 36-month period.  Whether a Separation from Service occurs shall be interpreted consistent with Section 1.409A-1(h) of the U.S. Treasury Regulations.

		
	e.
	“Performance Termination” shall mean the termination of Executive’s employment by the Company without Cause (as defined in Section 7) following the failure of AMSURG or the Company to achieve at least 85% of the budgeted level of earnings from continuing operations before income taxes (Corporate Pre-Tax Profits) or other similar budget measure approved by the Board of Directors of AMSURG (as such measure may be adjusted by the Board during any fiscal year) and designated by the Board of Directors as the budget measure for purposes of this definition of “Performance Termination,” during any two fiscal years during a consecutive three fiscal year period.  The determination whether AMSURG or the Company has failed to achieve any such budget measure for a fiscal year shall be based upon AMSURG’s audited financial statements for such fiscal year.  In making a determination whether AMSURG or the Company has failed to achieve any such budget measure for a fiscal year, the Board shall consider the impact of changes in general economic conditions, legal or regulatory changes generally affecting the industry in which AMSURG and/or the Company operates, and adverse weather incidents or other acts of God that are not within the control of AMSURG and the Company. In the event the Board of Directors determines that AMSURG or the Company has failed to achieve such budget measure in any fiscal year, the Board will give the Executive written notice of such fact within five (5) business days following the filing of the Annual Report on Form 10-K for AMSURG for such fiscal year.  In the event the Board of Directors determines to terminate Executive’s employment without Cause pursuant to a Performance Termination, the Board must give Executive notice of such termination before the later of (i) 180 days after the end of the second fiscal year end of AMSURG or the Company, as applicable, in which AMSURG or the Company failed to meet such budget measures and (ii) the date of the annual meeting of AMSURG’s shareholders following the end of the second fiscal year of AMSURG or the Company, as applicable, in which AMSURG or the Company failed to meet such budget measures.

22.    DELAY OF PAYMENTS.  It is intended that (1) each installment of the payments provided under this Agreement is a separate “payment” for purposes of Section 409A of the Code, and (2) that the payments satisfy, to the greatest extent possible, the exemptions from the application of Section 409A of the Code, including those  provided under Treasury Regulations 1.409A-1(b)(4), 1.409A-1(b)(9)(iii), and 1.409A-1(b)(9)(v).  Notwithstanding anything to the contrary in this Agreement, if the Company determines (i) that on the date Executive’s employment with the Company terminates or at such other time that the Company determines to be relevant, Executive is a “specified employee” (as such term is defined under Treasury Regulation 1.409A-1(i)(1)) of the Company and (ii) that any payments to be provided to Executive pursuant to this Agreement are or may become subject to the additional tax under Section 409A(a)(1)(B) of the Code or any other taxes or penalties imposed under Section 409A of the Code (“Section 409A Taxes”) if provided at the time otherwise required under this Agreement then such payments shall be delayed until the date that is six months after the date of Executive’s Separation from Service with the Company, or, if earlier, the date of the Executive’s death.  Any payments delayed pursuant to this Section 22 shall be made in a lump sum on the first day of the seventh month following Executive’s Separation from Service, or, if earlier, the date of the Executive’s death (the “Section 409A Payment Date”).  In addition, to the extent that any reimbursement, fringe benefit or other, similar plan or arrangement in which the Executive participates during the term of the Executive’s employment under this Agreement or thereafter provides for a “deferral of compensation” within the meaning of Section 409A of the Code, (i) the amount eligible for reimbursement or payment under such plan or arrangement in one calendar year may not affect the amount eligible for reimbursement or payment in any other calendar year (except that a plan providing medical or health benefits may impose a generally applicable limit on the amount that may be reimbursed or paid), (ii) subject to any shorter time periods provided herein or the applicable plans or arrangements, any reimbursement or payment of an expense under such plan or arrangement must be made on or before the last day of the calendar year following the calendar year in which the expense was incurred, and (iii) such right to reimbursement or payment shall not be subject to liquidation or exchange for another benefit.

23.    HEALTH BENEFITS.  The costs of the Company’s portion of any post termination health or life insurance premiums due under this Agreement shall be included in the Executive’s gross income to the extent the provision of such benefits is deemed to be discriminatory under Section 105(h) of the Code.

24.    DEEMED RESIGNATION.    In the event Executive’s employment under this Agreement is terminated for any reason, unless otherwise determined by the Board of Directors of AMSURG, Executive shall be deemed, without any further action on the part of Executive, to have automatically resigned as a director of the Company and as an officer and director, if applicable, of all subsidiaries and affiliates of the Company.
25.    Section 280G Limitation.
		
	a.
	Notwithstanding any other provision to the contrary, if any payments or benefits Executive would receive from the Company pursuant to this Agreement or otherwise (collectively, the “Payments”) would, either separately or in the aggregate, (i) constitute “parachute payments” within the meaning of Section 280G of the Code, and (ii) but for this sentence, be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Payments will be equal to the Reduced Amount (defined below). The “Reduced Amount” will be either (1) the entire amount of the Payments, or (2) an amount equal to the largest portion of the Payments that would result in no portion of any of the Payments (after reduction) being subject to the Excise Tax, whichever amount after taking into account all applicable federal, state and local employment taxes, income taxes, and the Excise Tax (all computed at the highest applicable marginal rate, net of the maximum reduction in federal income taxes which could be obtained from a deduction of such state and local taxes), results in the Executive’s receipt, on an after-tax basis, of the greatest amount of the Payments.  If a reduction in the Payments is to be made so that the amount of the Payments equals the Reduced Amount, the Payments will be paid only to the extent permitted under the Reduced Amount alternative; provided, that in the event the Reduced Amount is paid, the cash payments set forth in Section 9 shall be reduced as required by the operation of this Section 25.

		
	b.
	The Company shall engage the accounting firm engaged by the Company for general audit purposes at least 20 business days prior to the effective date of the Change in Control to perform any calculation necessary to determine the amount, if any, payable to Executive pursuant to Section 9, as limited by this Section 25.  If the accounting firm so engaged by the Company is also serving as accountant or auditor for the individual, entity or group that will control the Company following the Change in Control, the Company may appoint a nationally recognized accounting firm other than the accounting firm engaged by the Company for general audit purposes to make the determinations required hereunder.  The Company shall bear all expenses with respect to the determinations by such accounting firm required to be made hereunder.

		
	c.
	The accounting firm engaged to make the determinations hereunder shall provide its calculations, together with detailed supporting documentation, to the Company and Executive within 20 days after the date on which such accounting firm has been engaged to make such determinations or within such other time period as agreed to 

by the Company and Executive.  Any good faith determinations of the accounting firm made hereunder shall be final, binding and conclusive upon the Company and Executive.

		
	d.
	Notwithstanding the foregoing, in determining the reduction, if any, that shall occur as a result of this Section 25, the amounts payable or benefits to be provided to Executive shall be reduced such that the economic loss to Executive as a result of the Excise Tax elimination is minimized.  In applying this principle, the reduction shall be made in a manner consistent with the requirements of Section 409A of the Code and where two economically equivalent amounts are subject to reduction but payable at different times, such amounts shall be reduced on a pro rata basis but not below zero.

		
	e.
	In the event that following the payment of any Payments pursuant to Section 9, as reduced, if applicable, as required by the operation of Section 25(a)-(d), the Internal Revenue Service (the “IRS”) determines that Executive is liable for the Excise Tax as a result of the receipt of such Payments or Reduced Amount, as applicable, then Executive shall be obligated to pay back to the Company, within 30 days after final IRS determination, an amount of the Payments or Reduced Amount, as applicable, equal to the “Repayment Amount.”  The Repayment Amount shall be the smallest such amount, if any, as shall be required to be paid to the Company so that the Executive’s net proceeds with respect to the Payments or Reduced Amount, as applicable, (after taking into account the payment of the Excise Tax imposed on such Payments or Reduced Amount, as applicable) shall be maximized.  Notwithstanding the foregoing, the Repayment Amount shall be zero if a Repayment Amount of more than zero would not eliminate the Excise Tax imposed on the Payments or Reduced Amount.  If the Excise Tax is not eliminated pursuant to this paragraph, Executive shall pay the Excise Tax.

    
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written.

/s/ Robert Coward    
Robert Coward
Sheridan Healthcare, Inc.

                                
 /s/ Christopher A. Holden            
Name: Christopher A. Holden
Title: Chief Executive Officer
AmSurg Corp.Exhibit 10.1

 

EXECUTION DRAFT

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

This Amended and Restated Employment Agreement (this “Agreement”), dated as of May 6, 2015, is made and entered into by and between DYNEGY OPERATING COMPANY, a Delaware corporation (the “Company”), and ROBERT FLEXON (the “Executive”).

 

W I T N E S S E T H:

 

WHEREAS, the Company and the Executive previously entered into an Employment Agreement dated June 22, 2011 (such agreement, as amended, the “Prior Employment Agreement”); and

 

WHEREAS, the Company and the Executive desire to amend and restate the Prior Employment Agreement in its entirety other than the non-competition, non-solicitation, and non-disclosure obligations which are continuing in nature and re-stated below;

 

WHEREAS, the Company desires to employ the Executive, and the Executive desires to be employed by the Company, pursuant to the terms and conditions set forth in this Agreement;

 

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein and for good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, each intending to be legally bound hereby, agree as follows:

 

1.                                      Employment.  On the terms and subject to the conditions set forth herein, the Company hereby agrees to employ the Executive, and the Executive hereby agrees to be employed by the Company, for the Employment Term (as defined below).  During the Employment Term, the Executive shall serve as Chief Executive Officer of Dynegy Inc. (“Dynegy”) and shall report to the Board of Directors of Dynegy (the “Board”), performing such duties and responsibilities as are customarily attendant to such position with respect to the business of the Company and such other duties and responsibilities as may from time to time be assigned to the Executive by the Board.  During the Employment Term, to the extent approved by the stockholders of Dynegy, the Executive shall also serve as a director of Dynegy and, to the extent requested by the Board, the Executive shall also serve as a director or officer of any of the direct or indirect subsidiaries of the Company, in each case without additional compensation.

 

2.                                      Performance.  The Executive shall serve Dynegy and its subsidiaries and affiliates faithfully and to the best of his ability and shall devote his full business time, energy, experience and talents to the business of Dynegy and its subsidiaries and affiliates, as applicable, and will not engage in any other employment activities for any direct or indirect remuneration or otherwise, without the written approval of the Board; provided, however, that it shall not be a violation of this Agreement for the Executive to manage his personal investments or to engage in or serve such civic, community, charitable, educational, or religious organizations as he may select, so long as such service does not create a conflict of interest with, or interfere with the performance of, the Executive’s duties hereunder or conflict with the Executive’s covenants under Section 6 of this Agreement, in each case as determined in the sole judgment of the Board.

 

 

3.                                      Employment Term.  Subject to earlier termination pursuant to Section 7, the term of employment of the Executive hereunder shall begin on May 6, 2015 (the “Commencement Date”), and shall continue through April 30, 2018 (the “Initial Term”); provided, however, that beginning on the first day immediately following the expiration date of the Initial Term, and on each subsequent anniversary of such day, such term shall be extended by an additional one (1)-year period (each such period, an “Additional Term”, if, at least ninety (90) days before the end of the Initial Term or the applicable Additional Term, the Company and the Executive mutually agree in writing to extend the term of this Agreement.  If the term of this Agreement is not extended, the term of employment hereunder shall terminate as of the end of the Initial Term or any Additional Term, as applicable, (collectively, the “Employment Term”).

 

4.                                      Principal Location. The Executive’s principal place of employment shall be the Company’s offices located in Houston, Texas, or within fifty (50) miles thereof, or such other location or locations as the Board may from time to time designate, subject to required travel.

 

5.                                      Compensation and Benefits.

 

(a)                                 Base Salary.  As compensation for his services hereunder and in consideration of the Executive’s other agreements hereunder, during the Employment Term, the Company shall pay the Executive an initial base salary, payable in equal installments in accordance with Company payroll procedures, at an annual rate of One Million One Hundred Thousand Dollars ($1,100,000) (the “Base Salary”), subject to annual review by the Board for increase but not decrease; provided, however, such Base Salary may be reduced in connection with a broad-based reduction for senior executives of the Company.

 

(b)                                 Incentive Compensation Plan.  The Executive shall be eligible to participate in the Dynegy Inc. Incentive Compensation Plan (the “Incentive Compensation Plan”) with an initial target Award of 110% of Base Salary, subject to annual review by the Board for increase but not decrease.

 

(c)                                  Long Term Incentive Plan.

 

(i)                                     Participation in LTIP.  During the Employment Term, the Executive shall be eligible to receive annual equity award grants pursuant to ‘Dynegy’s 2012 Long Term Incentive Plan, as amended or modified from time to time (the “LTIP”), or any future equity compensation plan adopted by Dynegy, as determined by the Board or a committee thereof, in consultation with the Executive.  The terms and conditions applicable to the Executive’s future equity awards (A) shall be the same as the terms and conditions which apply to equity awards made to the Company’s other senior executives, and (B) shall include provisions which provide that vesting and payment due to death or disability will be consistent with the terms of prior award agreements.

 

(ii)                                  Annual Equity Grant.  For each year, as compensation for his ongoing service with the Company, the Executive shall be granted, under the LTIP, an equity award.  The value of the equity award for the 2015 fiscal year shall be $4,690,000, which shall consist of approximately (i) forty percent (40%) Performance Share Units (based on target opportunity), (ii) thirty-five percent (35%) Restricted Stock Units, and (iii) twenty five percent

 

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(25%) non-qualified stock options (“Options”).  Except as provided in this Agreement, the terms and conditions applicable to the Executive’s equity awards shall be the same as the terms and conditions which apply to equity awards made to the Company’s other senior executives.  The target amount, and forms of equity provided, for any future award shall be determined by the Compensation Committee from time to time in its sole discretion.

 

(iii)                               Special Equity Grant.  In consideration of the Executive’s entering into this Agreement and as compensation for his ongoing service, the Executive shall be granted five days after the date this Agreement is executed, under the LTIP, a restricted stock award with a grant date value of $5,000,000, determined based on Dynegy’s stock price on the date of grant, which shall become vested on April 30, 2018.

 

(d)                                 Benefits.  During the Employment Term, the Executive shall, subject to and in accordance with the terms and conditions of the applicable plan documents and all applicable laws, be eligible to participate in all of the employee benefit, fringe and perquisite plans, practices, policies and arrangements the Company makes available from time to time to its similarly situated senior executive officers generally.

 

(e)                                  Vacation.  The Executive shall be entitled to paid vacation in accordance with the Company’s policies and practices with respect to its senior executives, provided, however, that the amount of vacation for the Executive shall be not less than five (5) weeks per calendar year.

 

(f)                                   Business Expenses.  The Executive shall be reimbursed by the Company for all reasonable and necessary business expenses actually incurred by him in performing his duties hereunder.  All payments under this paragraph (f) of this Section 5 will be made in accordance with policies established by the Company from time to time and subject to receipt by the Company of appropriate documentation.

 

(g)                                  Financial Planning and Tax Advice.  During the Employment Term, the Company shall reimburse the Executive annually for the reasonable costs actually incurred by the Executive for individual tax and financial planning advice in an amount not to exceed $10,000 per year.

 

(h)                                 Indemnification; Directors’ and Officers’ Liability Insurance.  The Executive shall be entitled to defense and indemnification pursuant to Dynegy’s Certificate of Incorporation.  During the Employment Term and thereafter, the Company shall cover the Executive under its directors’ and officers’ liability insurance policy to the extent it covers its other officers and directors.

 

6.                                      Covenants of the Executive.  In return for the consideration in this Agreement, as well as that under his Prior Employment Agreement, Executive re-states and acknowledges his intent to comply with his ongoing restrictive covenant obligations under the Prior Employment Agreement.  Executive agrees that these obligations carry over from his Prior Employment Agreement and are extended by the terms of this Agreement to apply during and after the Employment Term of this Agreement, as stated below.  The Executive acknowledges and the Company promises that in the course of his employment with the Company, the Executive will

 

3

 

become familiar with the Company’s and its subsidiaries’ and affiliates’ trade secrets and with other confidential and proprietary information concerning the Company and its subsidiaries and affiliates, and that his services are of special, unique and extraordinary value to the Company and its subsidiaries and affiliates.  Therefore, the Company and the Executive mutually agree that it is in the interest of both parties for the Executive to enter into the restrictive covenants set forth in this Section 6 to, among other things, protect the legitimate business interests of the Company and those of its subsidiaries and affiliates, including the protection of the Company’s and its subsidiaries’ and affiliates’ trade secrets and other confidential and proprietary information, and that such restrictions and covenants contained in this Section 6 are reasonable in geographic and temporal scope and in all other respects given the nature and scope of the Executive’s duties, his access to the Company’s trade secrets and other confidential and proprietary information, and the nature and scope of the Company’s and its subsidiaries’ and affiliates’ businesses and that such restrictions and covenants do not and will not unduly impair the Executive’s ability to earn a living after termination of his employment with the Company.  The Executive further acknowledges and agrees that (i) the Company would not have entered into this Agreement but for the restrictive covenants of the Executive set forth in this Section 6, and (ii) such restrictive covenants have been made by the Executive in order to induce the Company to enter into this Agreement.  Therefore, and in further consideration of, (A) the Company’s agreement to provide the Executive with access to the Company’s confidential and proprietary information, (B) the mutual covenants and promises contained in this Agreement and/or (C) the compensation and benefits to be paid or provided hereunder, and to protect the Company’s and its subsidiaries and affiliates’ business interest, confidential and proprietary information and goodwill:

 

(a)                                 Noncompetition.  Executive re-states and acknowledges and extends his ongoing noncompetition obligations as follows: During the term of the Executive’s employment with the Company and for the two (2)-year period following termination of such employment under any circumstances (the “Restricted Period”), the Executive shall not, within any jurisdiction or marketing area in which the Company or any of its subsidiaries or affiliates is engaged in business or marketing activities, directly or indirectly, own, manage, operate, control, or provide executive or management level consulting, employment or management services to, any business competitive with the business conducted by the Company or any of its affiliates.  The scope of businesses and the jurisdictions and marketing areas within which the Executive has agreed not to compete pursuant to this Section 6(a) shall, for any challenged activity of the Executive, be determined as of the date of any such activity. Notwithstanding the foregoing, the Executive’s ownership solely as an investor of two percent (2%) or less of the outstanding securities of any class of any publicly-traded securities of any company shall not, by itself, be considered to be competition with the Company or any of its subsidiaries or affiliates.

 

(b)                                 Non-solicitation.  Executive re-states and acknowledges and extends his ongoing non-solicitation obligations as follows: During the term of the Executive’s employment with the Company and for the Restricted Period following termination of such employment under any circumstances, the Executive shall not, directly or indirectly, (i) employ, cause to be employed or hired, recruit, solicit for employment or otherwise contract for the services of, or establish a business relationship with (or assist any other person in engaging in any such activities), any person who is, or within twelve (12) months before any date of determination was (and, following the termination of the Executive’s employment with the Company, within twelve (12) months before or after such termination, was) an employee, agent or consultant of the

 

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Company or any of its subsidiaries or affiliates (collectively, the “Company Entities”); or (ii) otherwise induce or attempt to induce (or assist any other person in engaging in any such activities) any employee, agent or contractor of any Company Entity to terminate such person’s employment or other relationship with the Company Entities, or in any way interfere with the relationship between any Company Entity and any such employee, agent or contractor; (iv) solicit or attempt to solicit (otherwise than on behalf of any Company Entity) any person that is, or within twelve (12) months before any date of determination was (and, following the termination of the Executive’s employment with the Company, within twelve (12) months before or after such termination, was) a client, customer, supplier, licensee or business relation of any Company Entity with whom Executive had a material relationship or about whom Executive had access to material trade secret or confidential information, or who any Company Entity solicited to be a client, lender, investor, customer, supplier or licensee during either such twelve (12)-month period and with whom Executive had a material relationship or about whom Executive had access to material trade secret or confidential information, or induce or attempt to induce any such person to cease, reduce or not commence doing business with any Company Entity (or assist any other person in engaging in any such activities); or (v) interfere in any way with the relationship between any Company Entity and any person that is or was a client, lender, investor, customer, supplier, licensee or other business relation of such Company Entity (or assist any other person in engaging in any such activities) if Executive had a material relationship or had access to material trade secret or confidential information about such person or entity.

 

(c)                                  Confidential Information.

 

(i)                                     The Executive re-states and acknowledges and extends his ongoing non-disclosure obligations in the Prior Employment Agreement, including that all customer lists and information, vendor or supplier lists and information, inventions, trade secrets, know-how or other non-public, confidential or proprietary knowledge, information or data with respect to the products, services, operations, finances, business or affairs of the Company or its subsidiaries and affiliates or with respect to confidential, proprietary or secret processes, methods, inventions, services, techniques, customers (including, without limitation, the identity of the customers of the Company or its subsidiaries and affiliates and the specific nature of the services provided by the Company or its subsidiaries and affiliates), employees (including, without limitation, the matters subject to this Agreement) or plans of or with respect to the Company or its subsidiaries and affiliates or the terms of this Agreement (all of the foregoing collectively hereinafter referred to as, “Confidential Information”) are property of the Company or its applicable subsidiaries or affiliates.  The Executive further acknowledges that the Company and its subsidiaries and affiliates intend, and make reasonable good faith efforts, to protect the Confidential Information from public disclosure.  Therefore, the Executive agrees that, except as required by law or regulation or as legally compelled by court order (provided that in such case, the Executive shall promptly notify the Company of such order, shall cooperate with the Company in attempting to obtain a protective order or to otherwise restrict such disclosure, and shall only disclose Confidential Information to the minimum extent necessary to comply with any such law, regulation or order), during the Employment Term and at all times thereafter, the Executive shall not, directly or indirectly, divulge, transmit, publish, copy, distribute, furnish or otherwise disclose or make accessible any Confidential Information, or use any Confidential Information for the benefit of anyone other than the Company and its subsidiaries and affiliates, unless and to the extent that the Confidential Information becomes generally known to and available for use by

 

5

 

the general public other than as a result of the Executive’s acts or omissions or such disclosure is necessary in the course of the Executive’s proper performance of his duties under this Agreement.  The foregoing notwithstanding, neither this Agreement nor any other Company agreement or policy shall prohibit Executive from making a good faith report or related disclosures to any governmental agency or entity regarding potential violations of applicable federal, state or local law or to take other actions protected as whistleblower activity under applicable law.  Executive is not required to notify the Company of these reports or disclosures.

 

(ii)                                  The Company Entities do not wish to incorporate any unlicensed or unauthorized material into their products or services.  Therefore, the Executive agrees that he will not disclose to the Company, use in the Company’s business, or cause the Company to use, any information or material which is a trade secret, or confidential or proprietary information, of any third party, including, but not limited to, any former employer, competitor or client, unless the Company has a right to receive and use such information or material.  The Executive will not incorporate into his work any material or information which is subject to the copyrights of any third party unless the Company has a written agreement with such third party or otherwise has the right to receive and use such material or information.

 

(d)                                 Company Intellectual Property.  The Executive agrees to promptly disclose to the Company any and all work product, inventions, artistic works, works of authorship, designs, methods, processes, technology, patterns, techniques, data, Confidential Information, patents, trade secrets, trademarks, domain names, copyrights, and the like, and all other intellectual property relating to the business of the Company and any of its affiliates which are created, authored, composed, invented, discovered, performed, perfected, or learned by the Executive (either solely or jointly with others) during the Employment Term (collectively, together with such intellectual property as may be owned or acquired by the Company, the “Company Intellectual Property”).  The Company Intellectual Property shall be the sole and absolute property of the Company and its affiliates.  All work performed by the Executive in authoring, composing, inventing, creating, developing or modifying Company Intellectual Property and/or other work product to which copyright protection may attach during the course of the Executive’s employment with the Company shall be considered “works made for hire” to the extent permitted under applicable copyright law and will be considered the sole property of the Company.  To the extent such works, work product or Company Intellectual Property are not considered “works made for hire,” all right, title, and interest to such works, work product and Company Intellectual Property, including, but not limited to, all copyrights, patents, trademarks, rights of publicity, and trade secrets, is hereby assigned to the Company and the Executive agrees, at the Company’s expense, to execute any documents requested by the Company or any of its affiliates at any time in relation to such assignment.  The Executive acknowledges and agrees that the Company is and will be the sole and absolute owner of all trademarks, service marks, domain names, patents, copyrights, trade dress, trade secrets, business names, rights of publicity, inventions, proprietary know-how and information of any type, whether or not in writing, and all other intellectual property used by the Company or held for use in the business of the Company, including all Company Intellectual Property.  The Executive further acknowledges and agrees that any and all derivative works, developments, or improvements based on intellectual property, materials and assets subject to this Section 6 created during the Employment Term (including, without limitation, Company Intellectual Property) shall be exclusively owned by the Company.  The Executive will cooperate with the Company and any of

 

6

 

its affiliates, at no additional cost to such parties (whether during or after the Employment Term), in the confirmation, registration, protection and enforcement of the rights and property of the Company and its affiliates in such intellectual property, materials and assets, including, without limitation, the Company Intellectual Property.

 

(e)                                  Company Property.  All Confidential Information, Company Intellectual Property, files, records, correspondence, memoranda, notes or other documents (including, without limitation, those in computer-readable form) or property relating or belonging to the Company and its subsidiaries and affiliates, whether prepared by the Executive or otherwise coming into his possession or control in the course of the performance of his services under this Agreement, shall be the exclusive property of the Company and shall be delivered to the Company, and not retained by the Executive (including, without limitation, any copies thereof), promptly upon request by the Company and, in any event, promptly upon termination of the Employment Term.  The Executive acknowledges and agrees that he has no expectation of privacy with respect to the Company’s telecommunications, networking or information processing systems (including, without limitation, stored computer files, email messages and voice messages), and that the Executive’s activity and any files or messages on or using any of those systems may be monitored at any time without notice.

 

(f)                                   Enforcement.  The Executive acknowledges that a breach of his covenants and agreements contained in this Section 6 would cause irreparable damage to the Company and its subsidiaries and affiliates, the exact amount of which would be difficult to ascertain, and that the remedies at law for any such breach or threatened breach would be inadequate.  Accordingly, the Executive agrees that if he breaches or threatens to breach any of the covenants or agreements contained in this Section 6, in addition to any other remedy which may be available at law or in equity, the Company and its subsidiaries and affiliates shall be entitled to:  (i) cease or withhold payment to the Executive of any severance payments described in Section 7, for which he otherwise qualifies under such Section 7, in excess of such payments in the amount of $2,500 payable in consideration for the Executive’s release of claims described in Section 7(e), (ii) institute and prosecute proceedings in any court of competent jurisdiction for specific performance and injunctive and other equitable relief to prevent the breach or any threatened breach thereof without bond or other security or a showing of irreparable harm or lack of an adequate remedy at law, and (iii) an equitable accounting by any court of competent jurisdiction of all profits or benefits arising out of such violation.  Additionally, upon a breach by the Executive of this Section 6, the Performance Share Units, Restricted Stock Units and Options (and any other stock-based awards held by the Executive) shall be automatically canceled and forfeited without any further action.

 

(g)                                  Scope of Covenants.  The Company and the Executive further acknowledge that the time, scope, geographic area and other provisions of this Section 6 have been specifically negotiated by sophisticated commercial parties and agree that they consider the restrictions and covenants contained in this Section 6 to be reasonable and necessary for the protection of the interests of the Company and its subsidiaries and affiliates, but if any such restriction or covenant shall be held by any court of competent jurisdiction to be void but would be valid if deleted in part or reduced in application, such restriction or covenant shall apply in such jurisdiction with such deletion or modification as may be necessary to make it valid and enforceable.  The restrictions and covenants contained in each paragraph of this Section 6 shall

 

7

 

be construed as separate and individual restrictions and covenants and shall each be capable of being reduced in application or severed without prejudice to the other restrictions and covenants or to the remaining provisions of this Agreement.

 

(h)                                 Enforceability.  If any court holds any of the restrictions or covenants contained in this Section 6 to be unenforceable by reason of their breadth or scope or otherwise, it is the intention of the parties hereto that such determination not bar or in any way affect the right of the Company and its subsidiaries and affiliates to the relief provided in this Section 6 in the courts of any other jurisdiction within the geographic scope of such restrictions and covenants.

 

(i)                                     Disclosure of Restrictive Covenants.  The Executive agrees to disclose in advance the existence and terms of the restrictions and covenants contained in this Section 6 to any employer or other service recipient by whom the Executive may be employed or retained during the Restricted Period.

 

(j)                                    Extension of Restricted Period.  If the Executive breaches this Section 6 in any respect, the restrictions contained in this Section will be extended for a period equal to the period that the Executive was in breach.

 

7.                                      Termination.

 

(a)                                 Termination of Employment.  The employment of the Executive hereunder and the Employment Term may be terminated at any time (i) by the Company with Cause on written notice to the Executive, (ii) by the Company without Cause (as defined in the Dynegy Inc. Executive Severance Pay Plan (the “Severance Plan”)) on ninety (90) days written notice to the Executive (provided that during such notice period the Company shall not be required to provide work for the Executive and may require that the Executive not report to the Company’s offices), (iii) by the Company due to the Executive’s Disability (as defined in the Severance Plan) on written notice to the Executive, (iv) by the Executive with Good Reason (as defined in the Severance Plan), (v) by the Executive without Good Reason on sixty (60) days written notice to the Company (which notice period may be waived by the Company in its discretion, in which case, such termination shall be effective immediately upon the Company’s receipt of notice thereof from the Executive), (vi) without action by the Company, the Executive or any other person or entity, immediately upon the Executive’s death, (vii) in connection with a Change in Control (within the meaning as set forth in the Dynegy Inc. Executive Change in Control Severance Pay Plan (the “Change in Control Plan”)), or (viii) due to the expiration of the Employment Term pursuant to Section 3.  If the Executive’s employment is terminated for any reason under this Section 7, the Company shall be obligated to pay or provide to the Executive (or his estate, as applicable) in a lump sum within thirty (30) days following such termination, or at such other time prescribed by any applicable plan:  (A) any Base Salary payable to the Executive pursuant to this Agreement, accrued up to and including the date on which the Executive’s employment terminates, (B) any employee benefits to which the Executive is entitled upon termination of his employment with the Company in accordance with the terms and conditions of the applicable plans of the Company, (C) reimbursement for any unreimbursed business expenses incurred by the Executive prior to his date of termination pursuant to Section

 

8

 

5(e), and (D) payment for accrued but unused vacation time as of the date of his termination, in accordance with Company policy.

 

(b)                                 Severance Plan and Change in Control Plan.  The Executive shall be entitled to participate in the Severance Plan and the Change in Control Plan; provided. however. that to the extent the Executive is eligible to receive severance payable under Section IV.A of the Severance Plan, the amount payable to the Executive thereunder shall be increased by an amount equal to two (2) times the current target Award (as described in Section 5(c)), as in effect immediately prior to the date of the Executive’s termination of employment. In addition, the Executive shall receive the following additional compensation from the Company:

 

(i)                                     each grant of Restricted Stock Units and stock options shall become fully vested on the Executive’s termination date provided that for Restricted Stock Unit awards issued after the Commencement Date shares of stock shall not be delivered to the Executive with respect to such Restricted Stock Units until the original scheduled vesting date for such awards; and

 

(ii)                                  each grant of Performance Share Units shall become fully vested on the Executive’s termination date and shall pay based on the Company’s performance at the same time as payments are made to similarly situated employees.

 

The Company shall cause the terms of any equity award issued on or after the date hereof to contain provisions which are consistent with the terms of this Section 7(b).  In addition, Executive shall be entitled to the “Best Net” provisions contained within the Second Amendment to the Change in Control Plan.  The calculation of such “Best Net” payment amount shall reflect all applicable Federal, state and local taxes which apply on the date such calculation is made.

 

(c)                                  Accumulated Bonus Payments.  In the event that the Executive’s employment is terminated after the end of a calendar year and prior to the date the bonus amount is paid pursuant to the terms of the Incentive Compensation Plan with respect to that calendar year, the Company shall pay to Executive such bonus at the same time as bonus payments are made to similarly situated executives of the Company, provided, however, that such payment shall be paid during the calendar year which immediately follows the calendar year during which such bonus was earned.

 

(d)                                 Termination of Agreement.  In the event that this Agreement is terminated pursuant to Section 3, and the Executive’s employment with the Company thereby ceases, the Executive shall receive the following compensation from the Company:

 

(i)                                     each grant of stock options shall become fully vested on the Executive’s termination date and the Company shall, in a timely manner, take all steps necessary to cause each such stock option to remain exercisable until its designated expiration date;

 

(ii)                                  each grant of Restricted Stock Units shall become fully vested on the Executive’s termination date, provided that shares of stock shall not be delivered to the Executive with respect to such awards until the original scheduled vesting date for such awards; and

 

9

 

(iii)                               the service condition for each grant of Performance Share Units shall be treated as satisfied on the Executive’s termination date and such awards shall pay based on the Company’s performance at the same time as payments are made to similarly situated employees.

 

(e)                                  No Additional Rights.  The Executive acknowledges and agrees that, except as specifically described in this Section 7 or Section 5(d)(i), all of the Executive’s rights to any compensation, benefits, bonuses or severance from the Company and its subsidiaries and affiliates after termination of the Employment Term shall cease upon such termination.

 

(f)                                   Resignation as Officer or Director.  Upon a termination of employment, unless requested otherwise by the Company, the Executive shall resign each position (if any) that the Executive then holds as a director or officer of Dynegy or of any affiliates of the Company.  The Executive’s execution of this Agreement shall be deemed the grant by the Executive to the officers of the Company of a limited power of attorney to sign in the Executive’s name and on the Executive’s behalf any such documentation as may be required to be executed solely for the limited purposes of effectuating such resignations.

 

(g)                                  Release.  As a condition to the payment of any benefit related to the termination of employment, including severance, vesting of options or other benefits, including any amounts otherwise payable under the Severance Plan, the Executive (or Employee’s executor, legal guardian, or other legal representative in the case of the Executive’s death or disability) shall execute and not revoke a waiver and release of all claims against Dynegy and its affiliates in a form reasonably acceptable to the Company within 21 days following the Executive’s termination date.

 

8.                                      Notices.  All notices, requests, demands, claims, consents and other communications which are required, permitted or otherwise delivered hereunder shall in every case be in writing and shall be deemed properly served if:  (i) delivered personally, (ii) sent by registered or certified mail, in all such cases with first class postage prepaid, return receipt requested, or (iii) delivered by a recognized overnight courier service, to the parties at the addresses as set forth below:

 

	
If to the Company:
    	
Dynegy Operating Company
    
	
 
    	
601 Travis Street, Suite 1400
    
	
 
    	
Houston, Texas 77002
    
	
 
    	
Attention: General Counsel
    
	
 
    	
 
    
	
If to the Executive:
    	
At the Executive’s residence address as maintained by the Company in   the regular course of its business for payroll purposes.
    

 

or to such other address as shall be furnished in writing by either party to the other party; provided that such notice or change in address shall be effective only when actually received by the other party.  Date of service of any such notices or other communications shall be: (i) the date such notice is personally delivered, (ii) three days after the date of mailing if sent by 

 

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certified or registered mail, or (iii) one business day after date of delivery to the overnight courier if sent by overnight courier.

 

9.                                      Jurisdiction; Venue.  Except as otherwise provided in Section 6(h) in connection with equitable remedies, each of the parties hereto hereby irrevocably submits to the exclusive jurisdiction of any federal or state court located in the State of Texas, County of Harris over any suit, action, dispute or proceeding arising out of or relating to this Agreement and each of the parties agrees that any action relating in any way to this Agreement must be commenced only in the courts of the State of Texas, federal or state.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted or not prohibited by law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in such a court and any claim that any such suit, action or proceeding brought in such a court has been brought in an inconvenient forum.  Each of the parties hereto hereby irrevocably consents to the service of process in any suit, action or proceeding by sending the same by certified mail, return receipt requested, or by recognized overnight courier service, to the address of such party set forth in Section 8.

 

10.                               Waiver of Jury Trial.  THE PARTIES TO THIS AGREEMENT EACH HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (I) ARISING UNDER THIS AGREEMENT OR (II) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE.  THE PARTIES TO THIS AGREEMENT EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

11.                               Section 409A.

 

(a)                                 The intent of the parties is that payments and benefits under this Agreement comply with or be exempt from Section 409A of the Code and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”), and the Company shall have complete discretion to interpret and construe this Agreement and any associated documents in any manner that establishes an exemption from (or compliance with) the requirements of Code Section 409A.  Any terms of this Agreement that are undefined or ambiguous shall be interpreted by the Company in its discretion in a manner that complies with Code Section 409A to the extent necessary to comply with Code Section 409A.  If for any reason, such as imprecision in drafting, any provision of this Agreement (or of any award of compensation, including, without limitation, equity compensation or benefits) does not accurately reflect its intended establishment of an exemption from (or compliance with) Code Section 409A, as demonstrated by consistent interpretations or other evidence of intent, such provision shall be considered ambiguous as to its exemption from (or compliance with) Code Section 409A and shall be interpreted by 

 

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the Company in a manner consistent with such intent, as determined in the discretion of the Company.  If, notwithstanding the foregoing provisions of this Section 11(a), any provision of this Agreement would cause the Executive to incur any additional tax or interest under Code Section 409A, the Company shall, after consulting with the Executive, reform such provision in a manner intended to avoid the incurrence by the Executive of any such additional tax or interest; provided that the Company agrees to maintain, to the maximum extent practicable, the original intent and economic benefit to the Executive of the applicable provision without violating the provisions of Code Section 409A.

 

(b)                                 Any reimbursements and in-kind benefits provided under this Agreement that constitute deferred compensation within the meaning of Code Section 409A shall be made or provided in accordance with the requirements of Code Section 409A, including, without limitation, that (i) in no event shall any fees, expenses or other amounts eligible to be reimbursed by the Company under this Agreement be paid later than the last day of the calendar year next following the calendar year in which the applicable fees, expenses or other amounts were incurred; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits that the Company is obligated to pay or provide, in any given calendar year shall not affect the expenses that the Company is obligated to reimburse, or the in-kind benefits that the Company is obligated to pay or provide, in any other calendar year, provided that the foregoing clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Code Section 105(b) solely because such expenses are subject to a limit related to the period the arrangement is in effect; (iii) the Executive’s right to have the Company pay or provide such reimbursements and in-kind benefits may not be liquidated or exchanged for any other benefit; and (iv) in no event shall the Company’s obligations to make such reimbursements or to provide such in-kind benefits apply later than the Executive’s remaining lifetime (or if longer, through the sixth (6th) anniversary of the Commencement Date).

 

(c)                                  In the event that the Executive is required to execute a release to receive any payments from the Company that constitute nonqualified deferred compensation under Code Section 409A, payment of such amounts shall not be made or commence until the sixtieth (60th) day following such termination of employment.  Any payments that are suspended during the sixty (60) day period shall be paid on the date the first regular payroll is made immediately following the end of such period.

 

(d)                                 For purposes of this Agreement, any reference to “termination” of the Executive’s employment shall be interpreted consistent with the meaning of the term “separation from service” in Code Section 409A(a)(2)(A)(i) and no amounts which are classified as “nonqualified deferred compensation” for purposes of Code Section 409A shall be paid to the Executive prior to the date he incurs a separation from service under Code Section 409A(a)(2)(A)(i).

 

(e)                                  The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Code Section 409A but do not satisfy an exemption from, or the conditions of, Code Section 409A.

 

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12.                               General.

 

(a)                                 Governing Law.  This Agreement and the legal relations thus created between the parties hereto shall be governed by, and construed in accordance with, the internal laws of the State of Texas, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Texas or any other jurisdiction) that would cause the application of the law of any jurisdiction other than the State of Texas.  The parties hereto acknowledge and agree that this Agreement was executed and delivered in the State of Texas.

 

(b)                                 Construction and Severability.  Whenever possible, each provision of this Agreement shall be construed and interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by, or invalid, illegal or unenforceable in any respect under, any applicable law or rule in any jurisdiction, such prohibition, invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other jurisdiction, and the parties undertake to implement all efforts which are necessary, desirable and sufficient to amend, supplement or substitute all and any such prohibited, invalid, illegal or unenforceable provisions with enforceable and valid provisions in such jurisdiction which would produce as nearly as may be possible the result previously intended by the parties without renegotiation of any material terms and conditions stipulated herein.

 

(c)                                  Cooperation. During the Employment Term and thereafter, the Executive shall cooperate with the Company and be reasonably available to the Company with respect to continuing and/or future matters related to the Executive’s employment period with the Company and/or its subsidiaries or affiliates, whether such matters are business-related, legal, regulatory or otherwise (including, without limitation, the Executive appearing at the Company’s request to give testimony without requiring service of a subpoena or other legal process, volunteering to the Company all pertinent information and turning over to the Company all relevant documents which are or may come into the Executive’s possession).  Following the Employment Term, the Company shall reimburse the Executive for all reasonable out of pocket expenses incurred by the Executive in rendering such services that are approved by the Company.  In addition, if more than an incidental cooperation is required at any time after the termination of the Executive’s employment, the Executive shall be paid (other than for the time of actual testimony) a per day fee based on his base salary described in Section 5(a) at the time of such termination divided by 225.

 

(d)                                 Successors and Assigns.  This Agreement shall bind and inure to the benefit of and be enforceable by the Company and its successors and assigns and the Executive and the Executive’s heirs, executors, administrators, and successors; provided that the services provided by the Executive under this Agreement are of a personal nature, and rights and obligations of the Executive under this Agreement shall not be assignable or delegable, except for any death payments otherwise due the Executive, which shall be payable to the estate of the Executive; provided  further the Company may assign this Agreement to, and all rights hereunder shall inure to the benefit of, any subsidiary or affiliate of the Company or any person, firm or corporation resulting from the reorganization of the Company or succeeding to the business or assets of the Company by purchase, merger, consolidation or otherwise; and provided  further

 

13

 

that in the event of the Executive’s death, any unpaid amount due to the Executive under this Agreement shall be paid to his estate.

 

(e)                                  Executive’s Representations.  The Executive hereby represents and warrants to the Company that:  (i) the execution, delivery and performance of this Agreement by the Executive do not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order, judgment or decree to which the Executive is a party or by which the Executive is bound; (ii) the Executive is not a party to or bound by any employment agreement, noncompetition or nonsolicitation agreement or confidentiality agreement with any other person or entity besides the Company and (iii) upon the execution and delivery of this Agreement by the Company, this Agreement shall be the valid and binding obligation of the Executive, enforceable in accordance with its terms.  THE EXECUTIVE HEREBY ACKNOWLEDGES AND REPRESENTS THAT THE EXECUTIVE HAS CONSULTED WITH INDEPENDENT LEGAL COUNSEL REGARDING THE EXECUTIVE’S RIGHTS AND OBLIGATIONS UNDER THIS AGREEMENT, TO THE EXTENT DETERMINED NECESSARY OR APPROPRIATE BY THE EXECUTIVE, AND THAT THE EXECUTIVE FULLY UNDERSTANDS THE TERMS AND CONDITIONS CONTAINED HEREIN.

 

(f)                                   Compliance with Rules and Policies.  The Executive shall perform all services in accordance with the policies, procedures and rules established by the Company and the Board.  In addition, the Executive shall comply with all laws, rules and regulations that are generally applicable to the Company or its subsidiaries or affiliates and their respective employees, directors and officers.

 

(g)                                  Forfeiture/Repayment Obligations.  Notwithstanding any other provision of this Agreement to the contrary, Executive agrees that any payments or benefits owed to him under this Agreement shall be used to repay any amounts owing to the Company by Executive and shall be subject to any forfeiture, repayment or recoupment policy of the Company, as in effect from time to time, or any forfeiture, repayment or recoupment otherwise required by applicable law.

 

(h)                                 Withholding Taxes.  All amounts payable hereunder shall be subject to the withholding of all applicable taxes and deductions required by any applicable law.

 

(i)                                     Entire Agreement.  This Agreement, together with the Change in Control Plan, Incentive Compensation Plan, LTIP, and Severance Plan, constitutes the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and terminates and supersedes any and all prior agreements, understandings and representations, whether written or oral, by or between the parties hereto or their affiliates which may have related to the subject matter hereof in any way.  In the event of a conflict or ambiguity between this Agreement and the Change in Control Plan, Incentive Compensation Plan, LTIP, or Severance Plan, the terms and conditions of the Agreement shall govern.  The foregoing notwithstanding, all prior obligations upon the Executive in the Prior Employment Agreement or otherwise, regarding non-competition, non-solicitation and non-disclosure, remain in full force and effect and are not replaced or modified by this Agreement.

 

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(j)                                    Duration.  Notwithstanding the Employment Term hereunder, this Agreement shall continue for so long as any obligations remain under this Agreement.

 

(k)                                 Survival.  The covenants set forth in Sections 6 and 12(c) of this Agreement shall survive and shall continue to be binding upon the Executive notwithstanding the termination of this Agreement for any reason whatsoever.

 

(l)                                     Amendment and Waiver.  The provisions of this Agreement may be amended or waived only with the prior written consent of the Company and the Executive, and no course of conduct or course of dealing or failure or delay by any party hereto in enforcing or exercising any of the provisions of this Agreement (including, without limitation, the Company’s right to terminate the Employment Term for Cause) shall affect the validity, binding effect or enforceability of this Agreement or be deemed to be an implied waiver of any similar or dissimilar requirement, provision or condition of this Agreement at the same or any prior or subsequent time.  Pursuit by either party of any available remedy, either in law or equity, or any action of any kind, does not constitute waiver of any other remedy or action.  Such remedies and actions are cumulative and not exclusive.

 

(m)                             Counterparts.  This Agreement may be executed in two or more counterparts, all of which taken together shall constitute one instrument.

 

(n)                                 Section References.  Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.  The words Section and paragraph herein shall refer to provisions of this Agreement unless expressly indicated otherwise.

 

(o)                                 No Strict Construction.  The parties hereto have participated jointly in the negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring either party hereto by virtue of the authorship of any of the provisions of this Agreement.

 

(p)                                 Time of the Essence; Computation of Time.  Time is of the essence for each and every provision of this Agreement.  Whenever the last day for the exercise of any privilege or the discharge or any duty hereunder shall fall upon a Saturday, Sunday, or any date on which banks in Houston, Texas are authorized to be closed, the party having such privilege or duty may exercise such privilege or discharge such duty on the next succeeding day which is a regular business day.

 

(q)                                 No Third Party Beneficiaries; Assignment.  Nothing in this Agreement, express or implied, is intended or shall be construed to give any person other than the parties to this Agreement and their respective heirs, executors, administrators, successors or permitted assigns any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein.  All terms of this Agreement, and all non-competition, non-solicitation and non-disclosure obligations found in the Prior Employment are fully assignable by the Company and may not be assigned by Executive.

 

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have hereunto executed this Agreement as of the day and year first written above.

 

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DYNEGY OPERATING COMPANY
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
May 6, 2015
    	
 
    	
By:
    	
/s/ Julius Cox
    
	
 
    	
 
    	
 
    	
 
    	
Name: Julius Cox
    
	
 
    	
 
    	
 
    	
 
    	
Title: EVP & Chief Administrative Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
ROBERT FLEXON
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
May 6 2015
    	
 
    	
/s/ Robert C. Flexon
    

 

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