Document:

Exhibit

Exhibit 10.1
EMPLOYMENT AGREEMENT
THE UNDERSIGNED:
		
	1.
	The limited liability company Darling International Netherlands BV, established under the laws of the Netherlands, having its statutory place of business in Amsterdam and holding office at Prins Bernhardplein 200, (1097 JB) Amsterdam (herein, “Darling BV”), and

		
	2.
	Mr. J. Vervoort, residing in Nuenen at Lobroec 6, 5673 BA (hereafter: “Employee”).

WHEREAS:
		
	(A)
	Employee has been employed by the Darling Ingredients International Holding BV and/or its legal predecessors since 1 March 2006;

		
	(B)
	Following the appointment as Managing Director, parties wish to continue the employment of Employee with Darling BV as the employer and to record the terms and conditions applicable to the continued employment of Employee agreed between them in writing in this agreement (the “Employment Agreement”); and

HEREBY RESOLVE:
		
	1.
	Function

1.1.    Offices

		
	(a)
	Employee shall continue to be employed by Darling BV as Managing Director Rousselot.

		
	(b)
	Employee shall also serve as a member of the Executive Committee of Darling Inc. which is a committee appointed by the Board of Directors of Darling Inc. and reporting to the Chief Executive Officer of Darling Inc. who shall chair the Executive Committee. 

		
	1.2.
	Employee is obligated to do and refrain from everything that an officer and director ought to do and refrain from, and shall devote his full working time, energy and skills to the success of Darling In.c and any other companies affiliated to Darling BV (together “Darling Group”). Employee will be subject to and shall observe all policies of Darling Inc applicable to its employees, executives, officers and directors.

		
	1.3.
	In his capacity as Managing Director Rousselot  Employee will report to the CEO of Darling Ingredients International.

 
		
	1.4.
	Employee shall not perform any paid or unpaid side activities for or in relation to third parties or otherwise without the prior written approval of the CEO of Darling Ingredients International.

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	2.
	Term

		
	2.1.
	This Employment Agreement has started with effect from 1 March 2006 for an indefinite period of time. This Employment Agreement will in any event terminate automatically (without any compensation being due) on the last day of the month during which Employee reaches the retirement date under the Employee's pension scheme (as applicable from time to time), but in any event no later than the date on which Employee will be eligible for state old-age pension benefits (AOW).

		
	2.2.
	This Employment Agreement is based on a 40- hour workweek. Employee is expected to work additional hours as part of this Employment Agreement as is required for the adequate fulfillment and execution of his position without being entitled to any additional remuneration.

		
	2.3.
	This Employment Agreement may be terminated in writing as per the last day of any calendar month, observing a notice period of three months for Employee and a notice period of six months for Darling BV. Darling BV will be entitled to release Employee from active duty during the notice period, whereby Employee will remain available for a proper handover of responsibilities to a successor.

		
	2.4.
	If this Employment Agreement terminates by the death of Employee, salary payments will be continued to the surviving relatives from the day of death up to and including the last day of the third month after the month of death of Employee. In addition, any accrued (and vested) entitlements under the Incentive Programs referenced in Section 4 hereto until the day of death will be paid to the surviving relatives in the customary manner and time and subject to the terms of the agreements governing such programs.

		
	3.
	Salary

 
		
	3.1.
	The remuneration of Employee is recorded in a remuneration package determined by the Compensation Committee of the Darling Inc  Board of Directors (the “Compensation Committee”), after consultation with the Chief Executive Officer of Darling Inc.  The remuneration may be adjusted by the Compensation Committee annually, to reflect cost of living. The annual fixed income, including holiday allowance, amounts to EUR 228.000 gross (the “Annual Fixed Salary”) for the year 2016. Ultimately in December of each year, the parties will consult with each other with regard to the possible increase of the annual salary with effect from 1 January of the subsequent year.

		
	3.2
	The Annual Fixed Salary, excluding holiday allowance, will be paid in 12 equal monthly installments after deduction of the mandatory statutory and agreed deductions.

 
		
	3.3
	The holiday allowance will be paid in the month of May of the relevant year. For the calculation of the holiday allowance, a year is deemed to start on 1 January and to end on 31 December (the “Holiday Year”). In the event this Employment Agreement starts or terminates during the Holiday Year, the holiday allowance will be calculated on a pro rata basis. 

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	4.
	Incentive Programs

4.1.    Darling Inc. Incentive Plan
 
		
	(a)
	Employee shall be entitled to participate in the Employee bonus program maintained by Darling Inc. as in effect from time to time (the “Bonus Program”). Specifics of the Bonus Program will be determined annually by the Compensation Committee of Darling Inc.’s’ Board of Directors. 

		
	(b)
	It is agreed and acknowledged that the bonus opportunity of Employee  under the Bonus Program shall be no less favorable than the opportunity under Employee's 2015 short term incentive arrangements (i.e. 30% of the Annual Fixed Salary).  The specifics of the Bonus Program for 2016 will be communicated to Employee in a separate letter.

 
		
	(c)
	Participation levels and performance measures for the Bonus Program are determined annually by the Compensation Committee and are subject to change at the discretion of the Compensation Committee or Darling Inc.’s Board of Directors.  Bonuses are not earned until the date they are paid, and participants must be employed on the date of payment to receive a bonus, subject to the discretion of the Compensation Committee or Darling Inc.’s Board of Directors to waive this requirement based on the circumstances of a participant’s departure (e.g., retirement).  Payment of any bonus in a year does not entitle Employee to payment of a bonus in any preceding or subsequent year.

 
		
	(d)
	All equity based awards made to Employee under the Bonus Program shall be evidenced by an award agreement executed by Darling Inc. and Employee and will be subject to all applicable legal requirements and restrictions imposed on the Bonus Program pursuant to United States and other applicable law.

  
		
	5.
	Claw Back

 
		
	5.1.
	Parties agree as regards Employee's benefits under this Employment Agreement, that Darling BV has the right to unilaterally adjust and/or claw-back any awards  made to the Employee (whether bonus or grants under the Incentive Programs referenced in Section 4 hereto) if, and to the extent, (i) an independent auditor (to be appointed by the joint parties and paid for by Darling BV) has confirmed, on request of Darling BV, that such award or grant has been made on the basis of  incorrect or incomplete information, and (ii) Darling BV has sufficient weighty grounds to effect such adjustment and/or claw-back taking into account the Dutch principle of reasonableness and fairness.

		
	5.2.
	If the conditions included under Section 5.1 (i) and (ii) are met, the Employee agrees to fully cooperate with the execution of any adjustment and/or claw-back under Section 5.1 hereof.  

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	6.
	Expenses

6.1    Employee will receive a fixed monthly expense allowance of EUR 2.000 per annum.
  
		
	7.
	Car and Telephone

		
	7.1.
	For the purposes of performing his job, Darling BV will provide Employee with a car which may be used for private purposes within reasonableness.  Maximum catalogue value including VAT and private motor vehicle and motorcycle tax ( BPM) will be determined according to the Darling BV car policy.

		
	7.2.
	All costs related to this car, including the costs of use for private purposes as mentioned under Section 7.1. shall be borne by Darling BV, except for the following costs which shall be borne by Employee:

		
	(a)
	the costs of fines in relation to traffic violations;

		
	(b)
	the costs associated with additions for tax purposes (fiscale bijtelling);

		
	(c)
	other costs which are not related to the performance of the function (such as toll, vignette, etc.).

		
	7.3.
	Employee is obliged to return the car provided to him to Darling BV, at the first request of Darling BV if there is a legal ground for such return. In the event of suspension, the car may be reclaimed by Darling BV immediately. Employee will in any event need to return the car made available to him to Darling BV as per the day this Employment Agreement terminates. Darling BV is no longer held to reimburse any travel expenses of Employee after the car has been returned.

 
		
	7.4.
	Darling BV will provide Employee with electronic communication tools. Employee may use these electronic communication tools for private purposes, both internally and externally, provided that the use thereof will not interfere with the daily work and is in compliance with further guidelines of Darling BV. The use of electronic communication tools should, however, primarily and essentially relate to the tasks/activities arising from the function.

 
		
	7.5.
	Darling BV may ask Employee to clarify any striking use of the electronic communication tools, and charge on possible costs for private purposes. Any tax consequences arising from the private use will be for the account of Employee.

		
	8.
	Insurances

		
	8.1.
	If and to the extent Darling BV has taken out a collective health insurance for its employees pursuant to the Dutch Health Insurance Act (Zorgverzekeringswet), Employee can participate to such group scheme. Employee remains, however, responsible for the payment of his nominal premium and any premiums for supplemental packages. 

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	8.2.
	Employee can make use of the ANW-Hiaatverzekering (related to shortfall under the Surviving Dependents Act) and the insurance for directors' liability as taken out by Darling BV, in accordance with relevant terms.

 
		
	9.
	Pension

 
		
	9.1.
	Darling BV has arranged for a pension scheme (pensioenvoorziening) for Employee. To this end, Employee has been included in the pension arrangement. The rules of the pension scheme, as amended from time to time, will apply to this participation. In accordance with the provisions of the pension scheme, Employee will have to pay a contribution (eigen bijdrage), which contribution will be made through a payroll deduction. The pension scheme rules have been provided to Employee. The pensionable salary is maximized to a maximum amount of EUR 400,435 for 2015. This amount will be reviewed annually as part of the Employees total remuneration package and a yearly indexation will be applied to such amount using the general increase percentage that applies for employees of Darling BV.

  
		
	10.
	Holidays

		
	10.1.
	Employee will be entitled to 25 holidays per calendar year, to be taken whilst taking account of the interests of Darling Group.

		
	10.2 
	Given the severity of his position and the recovery function of the holidays, the holidays are expected to be taken within the year that the holidays are granted.  Given his position, Employee is free to determine when he will use his holidays, provided that he takes into account the interests of the Darling Group.

 
		
	11.
	Incapacity for work

		
	11.1.
	Notwithstanding the provisions of article 7:629 paragraph 3 up to and including 5 Dutch Civil Code, Employee will receive in case of incapacity for work during the first year of illness, however ultimately until the end of this Employment Agreement (in case that is earlier), to be calculated from the first day of the incapacity, 100% of the Annual Fixed Salary after deduction of any benefits or payments received by Employee pursuant to relevant state-provided social security or insurance arrangements taken out by Darling BV.

		
	11.2
	From the 53rd week up to and including the 104th week of the respective period of illness, however ultimately until the end of this Employment Agreement (in case that is earlier), Darling BV will pay 70% of the Annual Fixed Salary, also after deduction of any benefits or payments received by Employee pursuant to relevant state-provided social security or insurance arrangements taken out by Darling BV.  

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	12.
	Confidentiality, documents

		
	12.1.
	Employee shall, both during the continuance of his employment and after the termination thereof, keep confidential all information regarding Darling Group, and its clients and relations, whereby confidentiality is imposed on him or of which he knows, or is ought to know, the secret or confidential nature, and he shall not use this information for other purpose than required in connection with the performance of the obligations arising from this Employment Agreement.

 
		
	12.2.
	Employee is prohibited to keep in any manner whatsoever documents, correspondence or copies thereof, that are in his possession in connection with the performance of his activities for the Darling Group, any longer than necessary for the purpose of performance of his activities. In any event Employee is obliged to hand over with immediate effect, even without any request thereto, such documents, correspondence or copies thereof at first request and/or at the termination of the employment, or when he has not performed his duties, for whatever reason, for a period longer than four weeks.

 
		
	13.
	 Non-compete/non solicit

		
	13.1.
	During the employment of Employee and during the Restrictive Period (as defined here below), Employee shall not without prior written approval of Darling Inc. be permitted to do any of the following in any jurisdiction where Darling Group is active directly or indirectly in any capacity whatsoever, or has any business interests, at the time of termination of this Employment Agreement:

		
	(a)
	to work for or be involved with, in any manner, directly or indirectly, paid or unpaid, any person, organization, company or enterprise pursuing activities similar to the Darling Group, including the (former) VION Ingredients Group, and/or to have or take any interest in such organization, company or enterprise. This includes, without limitation, companies involved in slaughter by-products or other products or business (directly or indirectly) derived or following from the slaughtering business such as, without limitation, Saria, Gelita, Tessenderloo , Nitta, Ten Kate, Van Hessen.

		
	(b)
	to maintain in any manner whatsoever, directly or indirectly, business contacts with any person, organization, company or enterprise with whom during the last two years preceding the termination of this Employment Agreement Employee has had any business, to the extent Darling Group has a legitimate business interest in Employee refraining from maintaining such business contact;

		
	(c)
	to induce, directly or indirectly, present employees of Darling Group, including but not limited Darling BV, Darling Inc., Darling USA and Darling Canada, or persons who in the period of two years preceding the termination of this Employment Agreement have been or were employed by such company, to terminate their employment or to hire such employees.

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13.2.    In view of Section 13.1, the restrictive period will be as follows (the “Restrictive Period”):

		
	(a)
	in the event Employee terminates this Employment Agreement through notice or otherwise, the Restrictive Period will be 18 months from the date of termination of this Employment Agreement;

		
	(b)
	in the event Darling BV terminates this Employment Agreement through notice, the Restrictive Period will be 18 months from the date notice has been served by Darling BV on Employee (and therefore 12 months from the date of termination of this Employment Agreement); provided, however, that in the event that Darling BV does not waive the non-compete clause Employee will be entitled to an additional severance which adequately reflects the imposed restrictions;

		
	(c)
	in the event Darling BV terminates this Employment Agreement with immediate effect for cause (dringende reden), the Restrictive Period will be 18 months from the date of termination of this Employment Agreement;

		
	(d)
	in the event this Employment Agreement is rescinded by a Court at the request of Darling BV for reasons other than cause (dringende reden), the restrictive period will be 12 months from the date of termination of this Employment Agreement.

		
	(e)
	in the event this Employment Agreement is rescinded by a Court at the request of Employee or at the request of Darling BV for cause (dringende reden), the restrictive period will be 18 months from the date of termination of this Employment Agreement.

		
	14.
	Penalty clause

		
	14.1.
	Employee will forfeit to Darling BV for a breach of Sections 12 and 13 hereof immediately, without prior notice or any judicial intervention being required, a penalty of EUR 10,000 per breach plus EUR 500 for each day that such breach continues, without prejudice to Darling BV’s right to claim the actual damages it has suffered through such breach. Section 7:650 subsections 3, 4 and 5 Dutch Civil Code and/or sections 6:92, 6:93 Dutch Civil Code (each time to the extent applicable) are explicitly excluded.

 
		
	14.2
	It is acknowledged and agreed that reasonable compensation for the restrictions set out in Sections 12 and 13 hereof is included in Employee's remuneration package.

		
	15.
	 Rights of intellectual or industrial property

 
		
	15.1.
	If Employee during, or within a period of two years after termination of this Employment Agreement has invented a certain product/working method (voortbrengsel/werkmethode) which is to be considered as a consequence of, or pursuant to, his activities at Darling Group and which may lead in The Netherlands or elsewhere to the inception of rights, including all rights of industrial or intellectual property and explicitly including: databases, know-how, trademarks, designs, drawings, product specifications, formulas, computer programs, etc., Darling Inc. is entitled to this product/working method and the related rights. 

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	15.2.
	Employee does not have the right to mention his name or have his name mentioned in connection with the rights meant in this Section 15.1 of this Employment Agreement, with the exception of the provisions of Section 14 paragraph 1 of the Dutch Patent Act 1995 (Rijksoctrooiwet 1995). Employee hereby waives in relation to the rights as meant in this Section 15.1 his moral rights (persoonlijkheidsrechten) within the meaning of article 25 Dutch Copyright Act 1912 (Auteurswet 1912) and his possible entitlements to a monetary compensation in addition to his salary, all to the extent permitted by law.

		
	15.3.
	Employee shall promptly and without delay inform Darling Inc. of the inception of any right as meant in this Section and will, to the extent required, make every effort to have Darling Inc. obtain such right.

 
		
	15.4.
	Employee will do his utmost to ensure the maximum protection of a right as meant in Section 15.1 of this Employment Agreement, to the extent that it serves the interests of Darling Group and to the extent that it is in accordance with relevant policies.

		
	15.5
	Employee acknowledges and agrees that his salary includes compensation for the fact that the rights pursuant to Section 15.1 of this Employment Agreement accrue to Darling Inc., as well as to his cooperation to ensure that these rights will accrue to Darling Inc.

 
		
	16.
	Gifts

		
	16.1.
	Employee is prohibited to, in relation to the performance of his duties during the term of his employment, without the prior written consent of Darling Inc., accept or stipulate from third parties, directly or in any manner indirectly, any commission, favor or compensation in whatever form or manner.

		
	16.2.
	The provisions of Section 16.1 do not apply to the customary business gift of small value, which do not exceed the retail value of EUR 100.

		
	17.
	Final provisions

		
	17.1.
	It is agreed between the parties that Darling BV and Darling Inc. will review the taxation of Employee's earnings under this Employment Agreement.

17.2    The considerations (overwegingen) of this Employment Agreement form part of this Employment Agreement.
 
		
	17.3.
	This Employment Agreement constitutes the entire employment agreement between the parties and supersedes all (employment) agreements previously made and given by and between the Employee and Darling Ingredients International Holding BV and its affiliated companies and will be effected per January 1, 2016.

		
	17.4.
	In this Employment Agreement, all references to Darling Inc or the affiliated undertakings or companies, means a reference to all companies belonging directly or indirectly to the Darling Group. 

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	17.5.
	The invalidity (nietigheid) of one or more provisions of this Employment Agreement shall not result in the invalidity of the remaining provisions of this Employment Agreement. The parties undertake to immediately hold consultations with each other in case any provision is void.

 
17.6.    This Employment Agreement shall be governed by the laws of The Netherlands.
  
		
	17.7.
	Any dispute arising under or in connection with this agreement, including disputes in relation to the existence or validity of this Employment Agreement shall be settled by the competent court in The Netherlands. 

Agreed and executed and signed in twofold in Son on February 9, 2016.

/s/ Dirk Kloosterboer                    /s/ John O. Muse        
Darling International Netherlands BV            Darling International Netherlands BV    
By:  Dirk Kloosterboer                    By:  John O. Muse
    

/s/ Jos Vervoort                
Employee J. Vervoort

Page 9tti-ex101_6.htm

Exhibit 10.1

TRANSITION AGREEMENT 

THIS TRANSITION AGREEMENT (this “Agreement”) is entered into this 8th day of May, 2019, but effective as of May 3, 2019 (the “Effective Date”), by and between TETRA TECHNOLOGIES, INC., a Delaware corporation (the “Company”) and STUART M. BRIGHTMAN (the “Employee”).

W I T N E S S E T H :

WHEREAS, the Employee has been employed by the Company in various capacities, most recently as its Chief Executive Officer;

WHEREAS, the Employee has as of the Effective Date resigned from the position of Chief Executive Officer and the parties have mutually agreed to continue the Employee’s employment by the Company as herein provided; and

WHEREAS, the Employee and the Company desire to enter into this Agreement to set forth the terms and conditions of the Employee’s continued employment by the Company.

NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, and intending to be legally bound hereby, the Company and the Employee hereby agree as follows:

1.Employment.

1.1The Company hereby agrees to continue to employ the Employee, and the Employee hereby agrees to accept continued employment with the Company, in a non-executive capacity upon the terms and for the period set forth in this Agreement.

1.2Unless sooner terminated in accordance with the terms of this Agreement, the Employee’s term of employment hereunder shall mean the period commencing on the Effective Date and ending five (5) years thereafter, on May 3, 2024 (the “Transition Period”).  The Employee acknowledges and agrees, subject to the terms and provisions of this Agreement, that the Employee’s employment with the Company during the Transition Period shall continue to be on an at-will basis and this Agreement shall not establish any term of employment for a fixed term.  

2.Duties.  During the Transition Period, the Employee shall serve in such positions as the Company’s Chief Executive Officer and/or Board of Directors (the “Board”) may determine from time to time. The Employee shall provide such services as are consistent with his position.  

3.Compensation and Related Matters.  

3.1Base Salary.  During the Transition Period, the Employee shall receive an annualized base salary equal to $250,000, less applicable withholdings (the “Base Salary”), which shall be paid in accordance with the Company’s standard payroll practice. 

3.2Bonus Opportunities.  During the Transition Period, the Employee shall no longer be entitled to receive any annual or long-term bonus awards or opportunities. The Company has previously awarded to the Employee the annual cash incentive compensation opportunity (the “Annual Cash Incentive Award”) and the long-term cash incentive compensation opportunities (the “LT Cash Incentive Awards”) set forth on Schedule A that remain outstanding as of the Effective Date.  

(a)Annual Cash Incentive Award.  Subject to the terms of this Agreement, the Employee is eligible to receive a prorated award payment for the Annual Cash Incentive Award, paid at the same time that payments under similar annual cash incentive awards are made by the Company, but not later than two and one-half (21⁄2) months after the end of the calendar year in which the Annual Cash Incentive Award was earned by the Employee, assuming the Employee is still 

 

 

employed by the Company at that time.  Proration will be based on the number of full months prior to the Effective Date (four (4)) divided by the number of months in the performance period (twelve (12)).  The Annual Cash Incentive Award will be paid only to the extent the applicable performance period objectives are met, as determined in accordance with the Cash Incentive Compensation Plan (the “CICP”) (i.e., a payout is not guaranteed), provided that any applicable individual performance goals shall be deemed to have been 100% satisfied.  

(b)LT Cash Incentive Awards.  Subject to the terms of this Agreement, the Employee is eligible to receive the full amount of the award payment for each of the performance periods covered by the respective LT Cash Incentive Awards listed on Schedule A, paid at the same time that payments under similar long-term cash incentive awards are made by the Company, but not later than two and one-half (21⁄2) months after the end of the respective performance period in which the LT Cash Incentive Award was earned by the Employee, assuming the Employee is still employed by the Company at that time.  Each LT Cash Incentive Award will be paid only to the extent the applicable performance period objectives are met, as determined in accordance with the CICP (i.e., a payout is not guaranteed), provided that any individual performance goals shall be deemed to have been 100% satisfied. 

3.3Equity-Based Awards.  During the Transition Period, the Employee shall no longer be entitled to receive any new equity awards.  The Company has previously granted to the Employee the equity awards (the “Outstanding Equity Awards”) as set forth on Schedule B that remain outstanding as of the Effective Date.  Unvested stock options included within the Outstanding Equity Awards will continue to vest during the Transition Period pursuant to the vesting schedule set forth in the applicable award agreement.  Unvested restricted stock, restricted stock units and stock appreciation rights included within the Outstanding Equity Awards will continue to vest, and the restrictions on such restricted stock awards and restricted stock units will continue to lapse, during the Transition Period pursuant to the vesting schedule set forth in the applicable award agreement.  

3.4Employee Benefits.  During the Transition Period and subject to the provisions of any applicable plan (including any insurance plan or program), the Employee and/or the Employee’s eligible dependents, as the case may be, shall be eligible to participate in and shall receive all coverage under welfare benefit plans practices, policies and programs provided by the Company (including, without limitation, medical, prescription, dental, disability, employee life, group life, and accidental death insurance plans and programs and the Company’s 401(k) plan, including Company-matching contributions, and deferred compensation plan), to the extent generally available to the executive officers of the Company.  Pursuant to Section 1, Employee shall be considered a full-time employee of the Company during the Transition Period.  

4.Termination of Employment.

4.1Death. The Employee’s employment shall terminate automatically upon the Employee’s death during the Transition Period. 

4.2Disability.  If the Company determines that a Disability (as defined below) of the Employee has occurred during the Transition Period, the Company may give to the Employee a Notice of Termination (as defined below) giving notice of the Company’s intention to terminate the Employee’s employment. In such event, the Employee’s employment with the Company shall terminate effective thirty (30) days after receipt of such Notice of Termination by the Employee (the “Disability Effective Date”). For purposes of this Agreement, “Disability” shall mean and be deemed to have occurred if (i) the Employee is receiving income replacement benefits under the Company’s long-term disability plan, or (ii) in the absence of the Employee’s receipt of such benefits, the Employee has been unable to perform the essential functions of his position, despite any reasonable accommodation required by law, by reason of illness or injury for a total of ninety (90) consecutive days or an aggregate of one hundred eighty (180) days within any given period of three hundred sixty (360) consecutive days.

2

 

 

4.3Termination by Employee.  

(a)The Employee may terminate his employment during the Transition Period for (i) Good Reason (as defined below), or (ii) any reason upon ten (10) days’ advance written notice to the Company (a “Voluntary Resignation”).  The Employee’s employment will be deemed to be automatically terminated upon (w) the Employee’s commencement of employment with any third party, or (x) unless otherwise agreed in writing by the Chairman of the Board of the Company, the Employee’s commencement of consulting services to any third party under circumstances in which it is reasonably anticipated that the Employee will receive compensation (whether in any combination of cash, equity, property or other consideration) in excess of $300,000 in any consecutive twelve (12) month period (both (x) and (x) being referred to herein as a “Reemployment Termination”).  The Employee shall provide prior written notice to the Company of any proposed employment or consulting arrangement, including the name of the counterparty and, in the event of a proposed consulting arrangement, the anticipated amount of compensation payable to the Employee.  For clarification, a Reemployment Termination shall not occur as a result of the Employee serving on the board or committee of any third party.  

(b)For purposes of this Agreement, “Good Reason” shall mean, without the Employee’s consent, any one of the following:  (i) any failure by the Company to comply with any of the provisions of Section 3 hereof that is not remedied by the Company within ten (10) days after the Company’s receipt of written notice thereof by the Employee, and (ii) any failure by the Company to comply with Section 11.3 hereof.  

4.4Termination by the Company.  The Company may terminate the Employee’s employment during the Transition Period for Cause.  For purposes of this Agreement, “Cause” shall mean:

(a)the Employee’s conviction of, or entry of a plea of guilty or nolo contendere of, a felony or any crime involving dishonesty or moral turpitude; 

(b)the failure of the Employee to comply in any material respect with any previously announced and disclosed written policy or procedure of the Company including, without limitation, the Company’s Code of Business Conduct, which, if curable, is not cured within ten (10) days after the Employee’s receipt of written notice thereof; or 

(c)the Employee’s breach or violation of the covenants and obligations contained in any one of Sections 6, 7 and 8 or the Employee’s engagement in any Competitive Activities (as defined in Section 9.2).  

4.5Notice of Termination. Any termination of the Employee’s employment hereunder by the Company or the Employee (other than a termination pursuant to Section 4.1 or Reemployment Termination) shall be communicated by a Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) in the case of a termination for Disability, Cause or Good Reason, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Employee’s employment under the provision so indicated, and (iii) specifies the Effective Termination Date (as herein defined); provided, however, that a Notice of Termination in connection with a termination for Good Reason shall be given by the Employee within a reasonable period of time, not to exceed forty-five (45) days, following the occurrence of the event giving rise to such right of termination.

4.6Effective Termination Date.  For purposes of this Agreement, the “Effective Termination Date” shall mean the effective date of the termination of the Employee’s employment hereunder, which date shall be: 

(a)if the Employee’s employment is terminated as a result of the Employee’s death, the date of the Employee’s death; 

3

 

 

(b)if the Employee’s employment is terminated as a result of the Employee’s Disability, the Disability Effective Date; 

(c)if the Employee’s employment is terminated by the Company for Cause, or by the Employee for Good Reason, the date on which the Notice of Termination is given, or any later date specified therein, as the case may be;

(d)if the Employee’s employment is terminated as a result of the expiration of the Transition Period pursuant to Section 1.2, the date on which the Transition Period ends; 

(e)if the Employee’s employment is terminated by the Employee for a Voluntary Resignation, the date that is ten (10) days after the date on which the Notice of Termination is given; and

(f)if the Employee’s employment is terminated as a result of a Reemployment Termination, the date the Employee commences employment with any third party or commences services as a consultant.

4.7Resignation from Director Positions.  In the event the Employee’s employment hereunder is terminated hereunder for any reason other than a termination by the Company without Cause, the Employee agrees, as applicable, to immediately resign from the Board of the Company and any and all committees or subcommittees of the Board on which the Employee serves. In furtherance of this Section 4.7, the Employee has delivered to the Company an executed irrevocable resignation in the form attached hereto as Exhibit A concurrently with the execution of this Agreement.  

5.Obligations of the Company upon Termination of Employment.

5.1Good Reason; Death; Disability; Other Than For Cause. 

(a)Subject to the provisions of Section 5.1(b), Section 5.4 and Section 9 below, if, during the Transition Period, the Employee’s employment hereunder is terminated (1) by reason of the Employee’s termination of the Employee’s employment hereunder for Good Reason, (2) by reason of the Employee’s death, or (3) by reason of the Company’s termination of the Employee’s employment hereunder as a result of the Employee’s Disability or other than for Cause:

(i)the Employee shall be entitled to receive all accrued and unpaid Base Salary through the Effective Termination Date;

(ii)the Company shall continue to pay to the Employee, his estate or heirs when due in accordance with the Company’s normal payroll practices the Employee’s Base Salary through May 3, 2024;

(iii)the Company shall pay to the Employee, his estate or heirs an amount equal to the prorated Annual Cash Incentive Award and any LT Cash Incentive Awards that would have been payable to the Employee pursuant to and in accordance with the provisions of Section 3.2 above as if the Employee’s employment hereunder had not been terminated;

(iv)to the extent not already vested, the Outstanding Equity Awards shall become fully vested and no longer subject to forfeiture; 

(v)the Employee’s vested stock options, including those that became vested pursuant to Section 5.1(a)(iv), will continue to be exercisable until the first to occur of (A) the original expiration date of the applicable stock option, and (B) any accelerated 

4

 

 

expiration date applicable to that stock option, other than solely as a result of the Employee’s termination of employment (such as accelerated expiration in connection with a change in control of the Company); and

(vi)the Employee and his eligible dependents shall continue to be eligible to participate in any welfare benefit plans contemplated by Section 3.4 above pursuant to the terms and conditions thereof or pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), and if the Employee or the Employee’s eligible dependents elect continuation coverage pursuant to COBRA, the Company will waive, pay or reimburse the Employee for any premium or contribution required of the Employee to continue COBRA coverage (at coverage levels in effect immediately prior to the Employee’s termination of employment but without regard to any tax consequences to the Employee) until the earlier of (A) the expiration of the availability of COBRA coverage, and (B) the date upon which the Employee or the Employee’s eligible dependents become eligible for coverage under another employer’s plan(s). 

The payments and benefits described in Section 5.1(a)(ii) – (vi) are collectively referred to as the “Full Severance Benefits.”

(b)Notwithstanding any provision herein to the contrary, the payment or provision of any of the Full Severance Benefits pursuant to this Section 5.1 shall be conditioned upon (i) the Employee’s execution and delivery to the Company, within thirty (30) days after the Date of Termination, of a release agreement substantially in the form attached hereto as Exhibit B (the “Release”) and (ii) the expiration of any period during which the ADEA Release (as defined in the Release) is subject to revocation without the Employee having revoked such ADEA Release.  If the Employee satisfies the foregoing conditions, then except as otherwise provided in Section 9, the Full Severance Benefits shall commence, and the acceleration of the vesting of the Outstanding Equity Awards shall occur, within 50 days following the Effective Termination Date as it relates to any termination of employment covered by this Section 5.1.  If the Employee does not satisfy the conditions set forth herein regarding the execution and delivery of the Release and non-revocation of the ADEA Release, the Employee shall not be entitled to any of the Full Severance Benefits.  If the ADEA Release consideration and revocation period spans two calendar years, the payment or provision of the Full Severance Benefits in accordance with the terms herein will commence in the later year.

5.2Voluntary Resignation; Reemployment Termination. 

(a)Subject to the provisions of Section 5.2(b),  Section 5.4 and Section 9 below, if, during the Transition Period, the Employee’s employment hereunder is terminated (1) by reason of a Voluntary Resignation, or (2) by reason of a Reemployment Termination which does not involve the Employee engaging in Competitive Activities:

(i)the Employee shall be entitled to receive all accrued and unpaid Base Salary through the Effective Termination Date;

(ii)the Company shall pay to the Employee an amount equal to the prorated Annual Cash Incentive Award and any LT Cash Incentive Awards that would have been payable to the Employee pursuant to and in accordance with the provisions of Section 3.2 above as if the Employee’s employment hereunder had not been terminated;

(iii)to the extent not already vested, the Outstanding Equity Awards shall continue to vest, and the risks of forfeiture shall lapse, pursuant to the vesting schedule set forth in the applicable award agreement; and

5

 

 

(iv)the Employee’s vested stock options, including those that became vested pursuant to Section 5.2(a)(iii), will continue to be exercisable until the first to occur of (A) the original expiration date of the applicable stock option, and (B) any accelerated expiration date applicable to that stock option, other than solely as a result of the Employee’s termination of employment (such as accelerated expiration in connection with a change in control of the Company). 

The payments and benefits described in Section 5.2(a)(ii) – (iv) are collectively referred to as the “Limited Severance Benefits.” The Full Severance Benefits and the Limited Severance Benefits are collectively referred to as the “Severance Benefits.” 

(b)Notwithstanding any provision herein to the contrary, the payment or provision of any of the Limited Severance Benefits pursuant to this Section 5.2 shall be conditioned upon (i) the Employee’s execution and delivery to the Company, within thirty (30) days after the Date of Termination, of the Release and (ii) the expiration of any period during which the ADEA Release is subject to revocation without the Employee having revoked such ADEA Release.  If the Employee satisfies the foregoing conditions, then except as otherwise provided in Section 9, the Limited Severance Benefits shall commence within 50 days following the Effective Termination Date as it relates to any termination of employment covered by this Section 5.2.  If the Employee does not satisfy the conditions set forth herein regarding the execution and delivery of the Release and non-revocation of the ADEA Release, the Employee shall not be entitled to any of the Limited Severance Benefits.  If the ADEA Release consideration and revocation period spans two calendar years, the payment or provision of the Limited Severance Benefits in accordance with the terms herein will commence in the later year.

5.3Cause.  If the Employee’s employment hereunder is terminated by the Company for Cause, (i) the Employee shall be entitled to receive all accrued and unpaid Base Salary through the Effective Termination Date, (ii) except as provided in clause (i), the Employee shall not be entitled to receive following the Effective Termination Date any of the compensation or benefits provided in Section 3 including any continued payment of the Base Salary, the payment of the Annual Cash Incentive Award and any LT Cash Incentive Awards that are unpaid at such time and the continued vesting of the Outstanding Equity Awards, and (iii) the exercise period of the Employee’s vested options shall not be extended and shall remain exercisable only for the applicable period following the Effective Termination Date as set forth in the respective plan and option agreement.

5.4Payment Delay for Specified Employee.  Any provision of this Agreement to the contrary notwithstanding, if the Employee is a Specified Employee (as herein defined) on the Effective Date of Termination, then any payment or benefit to be paid, transferred or provided to the Employee pursuant to the provisions of this Agreement that would be subject to the tax imposed by Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations thereunder (the “Code”), if paid, transferred or provided at the time otherwise specified in this Agreement shall be delayed and thereafter paid, transferred or provided on the first business day that is six (6) months after the Employee’s Effective Termination Date (or if earlier, within thirty (30) days after the date of the Employee’s death following the Employee’s Termination) to the extent necessary for such payment or benefit to avoid being subject to the tax imposed by Section 409A of the Code.  For purposes of this Agreement, “Specified Employee” shall mean a specified employee within the meaning of Section 409A(a)(2) of the Code and the regulations and other guidance promulgated thereunder.

5.5Separate Payments. For purposes of Section 409A of the Code, the Employee’s right to receive any payment, benefit or amounts that might otherwise constitute installment payments shall be treated for purposes of Section 409A of the Code as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period with reference to a number of days (for example, “payment shall be made within thirty (30) days following the Effective Termination Date”), the actual date of payment within the specified period shall be within the sole discretion of the Company.  In no 

6

 

 

event may the Employee, directly or indirectly, designate the calendar year of any payment to be made under this Agreement, to the extent such payment is subject to Section 409A of the Code. 

6.Confidential Information and Nondisclosure.  

6.1The Employee acknowledges that during the course of his employment with the Company and in his service as a director to the Company and its CSI Compressco GP Inc. subsidiary, the Employee has been involved, and he will continue to be involved, in the development of the Confidential Information (as herein defined) of the Company and its affiliated companies, and he has had access, and will continue to have access, to Confidential Information relating to the business and affairs of the Company and its affiliated companies.  “Confidential Information” means and includes all confidential and/or proprietary information, trade secrets and “know-how” and compilations of information of any kind, type or nature (tangible and intangible, written or oral, and including information contained, stored or transmitted through any electronic medium), whether owned by the Company or its affiliated companies, disclosed to the Company or its affiliated companies in confidence by third parties or licensed from any third parties, which, at any time during the Employee’s employment by the Company or service as a director of the Company or its affiliated companies, is developed, designed or discovered or otherwise acquired or learned by the Employee and which relates to the Company or its affiliated companies, partners, business, services, products, processes, properties or assets, customers, clients, suppliers, vendors or markets or such third parties.  Confidential Information includes, by way of example and without limitation, the following:  all patents, trade secrets, inventions, processes and formulae including any proprietary information regarding existing and proposed products and services; information regarding existing and potential customers, employees, contractors, and the industry; strategies, books, records, and documents; the names of and other information concerning customers, investors and business affiliates such as contact name, service or product provided, pricing for that customer, type and amount of products and services used, credit and financial data, and/or other information relating to the relationship with that customer; plans and strategies for expansions, acquisitions or divestitures; budgets, financial and sales data, and pricing and costing data; sources of supply; contracts benefiting or obligating the Company or its affiliated companies; bids or proposals submitted to or by any third parties; organizational structure; personnel information, including salaries and responsibilities of personnel; payment amounts or rates paid to consultants or other service providers; and other confidential or proprietary information.  

6.2The Employee acknowledges and agrees that such Confidential Information constitutes a valuable, special and unique asset used by the Company and its affiliated companies in their businesses to obtain a competitive advantage over their competitors and was and is developed or acquired by the Company and its affiliated companies at considerable time and expense and is intended to be used solely for the benefit of the Company and its affiliated companies.  The Employee further acknowledges and agrees that the Company and its affiliated companies have put in place certain policies and practices to safeguard such Confidential Information, and that as a condition of his employment with the Company, the Employee executed an Employment Agreement dated April 20, 2005 (the “Employment Agreement”) with the Company pursuant to which the Employee agreed, both during and after his employment, not to disclose or use for his benefit or the benefit of others any Confidential Information and to comply with the Company’s policies regarding Confidential Information.  While the Employee agrees that he continues to be subject to the terms and provisions of such Employment Agreement, including the confidentiality provisions contained therein, as well as the Company’s policies and limitations on disclosure of Confidential Information, the Employee further agrees that both during and after the Employee’s employment with the Company, the Employee will (i) hold all Confidential Information, in strict confidence and will not, directly or indirectly, disclose, make available, discuss, transmit, publish or use such Confidential Information other than for the Company’s benefit and/or the benefit of its affiliated companies and (ii) not, directly or indirectly, disclose, use, cause, facilitate or allow any third party to use such Confidential Information in any way, except as may be (A) authorized by the Company’s Chief Executive Officer in writing, or (B) required by law or applicable legal process.  In the event the Employee becomes legally compelled to disclose any Confidential Information, the Employee will provide the Company with prompt written notice so that the Company may seek a protective order or other appropriate remedy with respect to such disclosure.

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6.3Notwithstanding any other provision of this Agreement, Employee may disclose Confidential Information when required to do so by a court of competent jurisdiction, by any governmental agency having authority over Employee or the business of the Company or by any administrative body or legislative body (including a committee thereof) with jurisdiction to order Employee to divulge, disclose or make accessible such information.  Employee and the Company agree that nothing in this Agreement is intended to interfere with Employee’s right to (i) report possible violations of federal, state or local law or regulation to any governmental agency or entity charged with the enforcement of any laws; (ii) make other disclosures that are protected under the whistleblower provisions of federal, state or local law or regulation; (iii) file a claim or charge with any federal, state or local government agency or entity; or (iv) testify, assist, or participate in an investigation, hearing, or proceeding conducted by any federal, state or local government or law enforcement agency, entity or court.  In making or initiating any such reports or disclosures, Employee need not seek the Company’s prior authorization and is not required to notify the Company of any such reports or disclosures.

7.Nondisparagement and Nonsolicitation.

7.1During and after the Employee’s employment with the Company, the Employee agrees not to make or publish, to any person or entity or in any public forum any defamatory or disparaging remarks, comments or statements concerning the Company or its affiliated companies.  

7.2The Employee further agrees that for the period following the Effective Termination Date during which Severance Benefits are being provided hereunder, the Employee will not, directly or indirectly on the Employee’s own behalf or on behalf of any other person or entity, solicit, recruit, hire or seek to hire any person who is employed by the Company or its affiliated companies.  Nothing in this Section 7.2 shall prohibit the Employee from (i) soliciting or hiring any individual whose employment with the Company or any affiliated company has been terminated for a period of at least six (6) months or (ii) engaging in general solicitations to the public or general advertising not targeted to employees of the Company or any affiliated company and hiring persons responding thereto, provided such individuals are not otherwise solicited by the Employee prior to such general solicitation.   

8.Continuing Obligations.  Nothing contained in this Agreement shall be deemed to affect or relieve the Employee from any continuing obligations contained in the Employment Agreement or other policies of the Company to which the Employee is subject during and, as applicable, following his employment with the Company and the Employee agrees to comply with such ongoing obligations in accordance with their terms.

9.Termination of Agreement and Severance Benefits.  

9.1In addition to any rights or remedies set forth in Section 12.6 hereof for any breach by the  Employee of any of the covenants or agreements set forth in Sections 6, 7 and 8, (i) the Employee’s employment hereunder and the Company’s payment and provision of the compensation and benefits provided in Section 3, and (ii) the Company’s payment and provision of the Severance Benefits are each conditioned upon the Employee’s compliance with the terms and provisions of Sections 6, 7 and 8, and the Employee not engaging in any Competitive Activity (as defined in Section 9.2).  If at any time during the term of the Employee’s employment the Employee shall breach any of the provisions of Sections 6, 7 or 8, or engage in any Competitive Activities, the Company may terminate the Employee’s employment for Cause.  If at any time after the Effective Termination Date during which the Severance Benefits are being provided the Employee shall breach any of the provisions of Sections 6, 7, or 8, or engage in any Competitive Activities, the Company shall no longer be required to pay or provide the Severance Benefits and any vested stock options shall be exercisable only for the applicable period following the Effective Termination Date in accordance with the respective stock option agreement and plan.

9.2The Employee shall be deemed to have engaged in “Competitive Activities” if the Employee, during the term of his employment and for the period following the Effective Termination Date during which Severance Benefits are being provided hereunder, directly or indirectly, becomes the owner of, becomes employed by, or otherwise provides services as a director, consultant or independent contractor to, any 

8

 

 

Competing Business in any state in which the Company or any of its affiliated companies is then conducting business.  The foregoing shall not prohibit the Employee owning less than 1% of the total outstanding equity securities of any publicly-traded entity.  For purposes of this Agreement, “Competing Business” means any business that competes in any manner with (i) the business conducted by the Company and its affiliated companies (including, without limitation, CSI Compressco LP) as of the Effective Date, and (ii) any new business activity (including any business acquisition) entered into during the term of the Employee’s employment hereunder to the extent the Employee was serving on the Board at the time any such new business activity (or acquisition) was approved by the Company or any affiliated company.  Notwithstanding the foregoing, a Competing Business shall not include any line of business or business segment that is divested by the Company or any of its affiliated companies so long as the definitive agreements for any such disposition do not otherwise restrict the Employee from engaging in the divested business.  

10.Release of Claims.  In consideration of the benefits set forth herein, the Employee, on his own behalf and on behalf of any of the Employee’s heirs, family members, executors, agents, and assigns, hereby and forever releases the Company, its subsidiaries and affiliates, and any of their respective current and former officers, directors, managers, partners, employees, agents, attorneys, benefit plans, plan administrators, successors and assigns (the “Releasees”), from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, liquidated or unliquidated, that the Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the Effective Date of this Agreement, including, without limitation:

(a)any and all claims relating to or arising from the Employee’s employment or service as a director with the Company or any of its direct or indirect subsidiaries or affiliates and the termination of that relationship;

(b)any and all claims relating to, or arising from, the Employee’s right to purchase, or actual purchase of any shares of stock or other equity interests of Company or any of its direct or indirect subsidiaries or affiliates, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law;

(c)any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;

(d)any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; and the Sarbanes-Oxley Act of 2002;

(e)any and all claims for violation of the federal or any state constitution;

(f)any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

9

 

 

(g)any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by the Employee as a result of this Agreement; and

(h)any and all claims for attorneys’ fees and costs.

The Employee agrees that the release set forth in this Section 10 shall be and remain in effect in all respects as a complete general release as to the matters released.  This release does not release (i) claims that cannot be released as a matter of law, including, but not limited to, the Employee’s right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the Company (with the understanding that the Employee’s release of claims herein bars the Employee from recovering such monetary relief from the Company or any Releasee), (ii) claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law, (iii) claims to continued participation in certain of the Company’s group benefit plans pursuant to the terms and conditions of COBRA, (iv) claims to any benefit entitlements vested as the date of separation of the Employee’s employment, pursuant to written terms of any employee benefit plan of the Company or its direct or indirect subsidiaries or affiliates, (v) claims relating to the Employee’s ownership of vested equity securities of the Company or CSI Compressco LP and (vi) the Employee’s rights to indemnification by the Company or its direct or indirect subsidiaries or affiliates (collectively, the “Retained Claims”). This release further does not release claims for any breach by the Company of its obligations pursuant to this Agreement.

11.Successors.

11.1This Agreement is personal to the Employee and shall not be assignable by the Employee. This Agreement shall inure to the benefit of and be enforceable by the Employee’s legal representatives.

11.2This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.

11.3The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law, or otherwise.

12.Miscellaneous.

12.1Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICT OF LAWS.  WITH RESPECT TO ANY SUIT, ACTION, OR OTHER PROCEEDING ARISING FROM OR RELATING TO THIS AGREEMENT, THE COMPANY AND EMPLOYEE HEREBY IRREVOCABLY AGREE TO THE EXCLUSIVE PERSONAL JURISDICTION AND VENUE OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEXAS AND ANY TEXAS STATE COURT WITHIN MONTGOMERY COUNTY, TEXAS.  

12.2Amendment.  This Agreement may not be amended or modified other than by a written agreement executed by the parties hereto or their respective successors and legal representatives.

12.3Waiver.  Any term or condition of this Agreement may be waived at any time by the party hereto which is entitled to have the benefit thereof, but such waiver shall only be effective if evidenced by 

10

 

 

a writing signed by such party, and a waiver on one occasion shall not be deemed to be a waiver of the same or any other type of breach on a future occasion. No failure or delay by a party hereto in exercising any right or power hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right or power.

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12.4Notices.  All notices required hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed to the Employee, at the address maintained in the Company’s records, and to the Company as follows:

	
 
	
If to the Company:
	
TETRA Technologies, Inc.
24955 Interstate 45 North
The Woodlands, TX  77380
Attention:  Chief Executive Officer

	
 
	
With a copy to:
	
TETRA Technologies, Inc.
24955 Interstate 45 North
The Woodlands, TX  77380
Attention:  General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance herewith. Notices and communications shall be effective when actually received by the addressee.

12.5Severability.  Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.  

12.6Injunctive Relief.  In recognition of the fact that a breach by the Employee of any of the provisions of Sections 6 or 7 or the continuing obligations as provided in Section 8 will cause irreparable damage to the Company and/or its affiliated companies, for which monetary damages alone will not constitute an adequate remedy, the Company shall be entitled as a matter of right (without being required to prove damages or furnish any bond or other security) to obtain a restraining order, an injunction, an order of specific performance, or other equitable or extraordinary relief from any court of competent jurisdiction restraining any further violation of such provisions by the Employee or requiring the Employee to perform the Employee’s obligations hereunder.  Such right to equitable or extraordinary relief shall not be exclusive but shall be in addition to all other rights and remedies to which the Company or any of its affiliated companies may be entitled at law or in equity, including without limitation the right to recover monetary damages for the breach of any of the provisions of this Agreement.

12.7Taxes.  The Company may withhold from any amounts payable under this Agreement such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.  Notwithstanding any other provision of this Agreement, each party hereto agrees to be responsible for and to pay the taxes imposed on it by applicable law without any contribution from the other.

12.8No Guarantee of Tax Consequences.  Notwithstanding anything in this Agreement to the contrary, the Company makes no representation, commitment or guarantee that any federal, state, local or other tax treatment will (or will not) apply or be available with respect to the payments and benefits provided under this Agreement (including whether or not the same are exempt from, or compliant with, Section 409A of the Code) and does not assume any responsibility or liability for all or any portion of any taxes, penalties, interest or other costs or expenses that may be incurred by the Employee (or any person claiming through or on behalf of the Employee) with respect thereto.

12.9Section 409A.  The intent of the parties is that the payments and benefits under this Agreement comply with or be exempt from Section 409A of the Code and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.  If any provision of this Agreement does not satisfy the requirements of Section 409A of the Code, then such provision shall nevertheless be applied in a manner consistent with those requirements to the extent any payments hereunder are subject to Section 409A of the Code.  

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12.10Entire Agreement; Change of Control Agreement.  

(a)This Agreement constitutes the entire agreement between the parties hereto concerning the subject matter hereof and, except for the existing covenants of the Employee, including those in the Employment Agreement, which are intended to be carried forward pursuant to Section 8 of this Agreement, this Agreement shall supersede any other prior agreement or understanding, both written and oral, between the parties with respect to such subject matter.

(b)Upon the execution of this Agreement by the parties hereto, the Change of Control Agreement dated May 30, 2013, by and between the Company and the Employee shall be terminated and no longer in effect.  

12.11Captions.  The captions herein are inserted for convenience of reference only, do not constitute a part of this Agreement, and shall not affect in any manner the meaning or interpretation of this Agreement.

12.12Multiple Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Facsimile or e-mail transmission of any signed original of this Agreement will be deemed the same as delivery of an original.  

12.13Voluntary Agreement.  The Employee hereby represents and warrants that, prior to signing below, he has had the opportunity to consult with independent legal counsel of his choice, has read this document in its entirety and fully or satisfactorily understands its content and effect, is completely satisfied with the terms reflected in this Agreement, and, accordingly, knowingly makes this Agreement and agrees to be bound as described in this Agreement.  

[SIGNATURE PAGE TO FOLLOW]

13

 

 

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

			
	
 
	
THE COMPANY:

 

TETRA TECHNOLOGIES, INC.

 
	
 

	
By:
	
/s/ Brady M. Murphy
	
 

	
 
	
Name:  Brady M. Murphy
	
 

	
 
	
Title:  President and Chief Executive Officer
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
EMPLOYEE:

 
	
 

	
 
	
/s/ Stuart M. Brightman
	
 

	
 
	
Stuart M. Brightman
	
 

 

 

 

14

 

 

SCHEDULE A

Outstanding Awards Under the 
Cash Incentive Compensation Plan

	
Annual Cash Incentive Award
	
Values at Target

 

	
 
	
Adjusted EBITDA
	
Individual Performance Objectives
	
HSEQ
	
Total

	
1/1/2019-12/31/2019 Performance Period
	
$588,000.00
	
$210,000.00
	
$42,000.00
	
$840,000

 

 

	
LTI Cash Incentive Awards
	
Values at Target

 

	
 
	
RTSR
	
CFO/Share
	
Total

	
1/1/2019-12/31/2021 Performance Period
	
$77,778.00
	
$77,778.00
	
$155,556.00

	
 
	
RTSR
	
3-Year CFO
	
Total

	
1/1/2018-12/31/2020 Performance Period
	
$560,000.00
	
$560,000.00
	
$1,120,000.00

	
 
	
RTSR
	
3-Year FCF
	
Total

	
1/1/2017-12/31/2019 Performance Period
	
$500,000.00
	
$500,000.00
	
$1,000,000.00

 

Schedule A

 

SCHEDULE B

Outstanding Equity Awards

 

	
Award Type
	
Unvested
	
Vested and Unexercised

 

	
Cash-Settled Stock Appreciation Rights
	
 
	
 

	
Granted 8/9/2017
	
37,210
	
96,736

	
Granted 2/22/2018
	
187,008
	
119,003

	
Total:
	
224,218
	
215,739

	
 
	
 
	
 

	
Restricted Stock Awards
	
 
	
 

	
Granted 5/2/2016
	
 
	
14,589

	
Granted 2/22/2017
	
55,434
	
 

	
Granted 2/22/2018
	
195,976
	
 

	
Total:
	
265,999
	
 

	
 
	
 
	
 

	
Restricted Stock Units
	
 
	
 

	
Granted 2/22/2018
	
67,050
	
 

	
 
	
 
	
 

	
Stock Options
	
 
	
 

	
Granted 5/20/2010
	
 
	
52,150

	
Granted 5/20/2011
	
 
	
54,873

	
Granted 5/20/2012
	
 
	
78,480

	
Granted 5/20/2013
	
 
	
91,055

	
Granted 5/20/2014
	
 
	
87,210

	
Granted 5/4/2015
	
 
	
184,235

	
Granted 5/2/2016
	
5,494
	
192,291

	
Granted 2/22/2017
	
72,390
	
161,312

	
Total:
	
77,884
	
901,606

	
 
	
 
	
 

	
Total:
	
635,151
	
1,117,345

 

Schedule B

 

EXHIBIT A
TO
TRANSITION AGREEMENT

 

Form Of Irrevocable Resignation

 

May ___, 2019

 

The Board of Directors of TETRA Technologies, Inc.

249455 Interstate 45 North

The Woodlands, Texas 77380

 

Ladies and Gentlemen:

 

Reference is made to that certain Transition Agreement, dated effective as of May 3, 2019 (the “Agreement”), by and between myself and TETRA Technologies, Inc.  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Agreement.

 

In accordance with Section 4.7 of the Agreement, I hereby tender my irrevocable resignation as a director of the Board of Directors of the Company and all applicable committees and subcommittees thereof; provided that this resignation shall be effective upon and only in the event my employment with the Company is terminated for any reason other than a termination by the Company without Cause.  This resignation may not be withdrawn by me at any time.  

 

Very truly yours, 

 

 

 

Stuart M. Brightman

 

Exhibit A

 

EXHIBIT B
TO
TRANSITION AGREEMENT

Form Of Release Agreement

This Release Agreement (“Release Agreement”) is made by and between Stuart M. Brightman (the “Employee”) and TETRA Technologies, Inc. (the “Company”) (collectively, referred to as the “Parties” or individually referred to as a “Party”).  Capitalized terms used but not defined in this Release Agreement shall have the meanings set forth in the Transition Agreement (as defined below).

WHEREAS, the Parties have previously entered into that certain Transition Agreement, dated effective as of May 3, 2019 (the “Transition Agreement”); and

WHEREAS, the Transition Agreement contemplates that the Employee will execute and deliver to the Company this Release Agreement upon termination of the Employee’s employment with the Company, and the Employee and the Company desire to execute this Release Agreement to resolve all issues relating to the employment of the Employee by the Company.

NOW, THEREFORE, in consideration of the [Full Severance Benefits/ Limited Severance Benefits] described in the Transition Agreement, which, pursuant to the Transition Agreement, are conditioned on the Employee’s execution and non-revocation of this Release Agreement, and in consideration of the mutual promises made herein, the Company and the Employee hereby agree as follows:

1.Severance Benefits; Salary and Benefits.  

(a)The Employee and the Company acknowledge and agree that the Effective Termination Date is __________, ______.

(b)The Company agrees to provide the Employee with the [Full Severance Benefits/ Limited Severance Benefits] payable at the times set forth in, and subject to the terms and conditions of, the Transition Agreement.  

2.Release of Claims.  In consideration of the benefits set forth herein and in the Transition Agreement, the Employee, on his own behalf and on behalf of any of the Employee’s heirs, family members, executors, agents, and assigns, hereby and forever releases the Company, its subsidiaries and affiliates, and any of their respective current and former officers, directors, managers, partners, employees, agents, attorneys, benefit plans, plan administrators, successors and assigns (the “Releasees”), from, and agrees not to sue concerning, or in any manner to institute, prosecute, or pursue, any claim, complaint, charge or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, liquidated or unliquidated, that the Employee may possess against any of the Releasees arising from any omissions, acts, facts, or damages that have occurred up until and including the Effective Date of this Release Agreement (as defined in Section 5 below), including, without limitation:

(a)any and all claims relating to or arising from the Employee’s employment or service relationship with the Company or any of its direct or indirect subsidiaries or affiliates and the termination of that relationship;

(b)any and all claims relating to, or arising from, the Employee’s right to purchase, or actual purchase of any shares of stock or other equity interests of Company or any of its direct or indirect subsidiaries or affiliates, including, without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate law, and securities fraud under any state or federal law;

Exhibit B – Page 1

 

(c)any and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;

(d)any and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of 1990; the Equal Pay Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; and the Sarbanes-Oxley Act of 2002;

(e)any and all claims for violation of the federal or any state constitution;

(f)any and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

(g)any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by the Employee as a result of this Release Agreement; and

(h)any and all claims for attorneys’ fees and costs.

The Employee agrees that the release set forth in this Section 2 shall be and remain in effect in all respects as a complete general release as to the matters released.  This release does not release (i) claims that cannot be released as a matter of law, including, but not limited to, the Employee’s right to file a charge with or participate in a charge by the Equal Employment Opportunity Commission, or any other local, state, or federal administrative body or government agency that is authorized to enforce or administer laws related to employment, against the Company (with the understanding that the Employee’s release of claims herein bars the Employee from recovering such monetary relief from the Company or any Releasee), (ii) claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable state law, (iii) claims to continued participation in certain of the Company’s group benefit plans pursuant to the terms and conditions of COBRA, (iv) claims to any benefit entitlements vested as the date of separation of the Employee’s employment, pursuant to written terms of any employee benefit plan of the Company or its direct or indirect subsidiaries or affiliates, (v) claims relating to the Employee’s ownership of vested equity securities of the Company or CSI Compressco LP and (vi) the Employee’s rights to indemnification by the Company or its direct or indirect subsidiaries or affiliates (collectively, the “Retained Claims”). This release further does not release claims for any breach by the Company of its obligations pursuant to the Transition Agreement.

3.Acknowledgment of Waiver of Claims under ADEA.  The Employee understands and acknowledges that is waiving and releasing any rights the Employee may have under the Age Discrimination in Employment Act of 1967, as amended, and the Older Workers’ Benefit Protection Act, as amended (collectively, “ADEA”), and that this waiver and release (the “ADEA Release”) is knowing and voluntary.  The Employee understands and agrees that this ADEA Release does not apply to any rights or claims that may arise under the ADEA after the Effective Date of this Release Agreement.  understands and acknowledges that the consideration given for this ADEA Release is in addition to anything of value to which the Employee was already entitled.  The Employee further understands and acknowledges that the Employee has been advised by this writing that: (a) the Employee should consult with an attorney prior to executing this Release Agreement, including this ADEA Release; (b) the Employee has twenty-one (21) days within which to consider the ADEA Release contained in this Release Agreement; (c) the Employee has seven (7) days following the Employee’s execution of this Release Agreement to revoke this ADEA 

Exhibit B – Page 2

 

Release pursuant to written notice to the Chief Executive Officer of the Company; (d) this ADEA Release shall not be effective until after the revocation period has expired; and (e) nothing in this Release Agreement prevents or precludes the Employee from challenging or seeking a determination in good faith of the validity of this ADEA Release, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by federal law.  In the event the Employee signs this Release Agreement and returns it to the Company in less than the twenty-one (21) day period identified above, the Employee hereby acknowledges that the Employee has freely and voluntarily chosen to waive the time period allotted for considering this Release Agreement.

4.Reaffirmation of Continuing Obligations.  Nothing in this Release Agreement shall be deemed to affect or relieve the Employee from any continuing obligation contained in any other agreement with the Company, including, but not limited to, the Transition Agreement and the Employment Agreement.  The Employee acknowledges that this reaffirmation is material to this Release Agreement, and the Employee further acknowledges and agrees that his continuing obligations under each such agreement are reasonable and enforceable and that he will not challenge or violate these covenants. 

5.Effective Date.  This Release Agreement will become effective on the eighth (8th) day after the Employee has signed this Release Agreement, so long as it has been signed by the Parties and has not been revoked by the Employee before that date (the “Effective Date”).

6.Severability.  In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Release Agreement shall continue in full force and effect without said provision or portion of provision.

7.No Oral Modification.  This Release Agreement may only be amended in a writing signed by the Employee and a duly authorized officer of the Company.

8.Governing Law.  This Release Agreement shall be subject to the provisions of Section 12.1 of the Transition Agreement.

9.Voluntary Execution of Release Agreement.  The Employee understands and agrees that the Employee executed this Release Agreement voluntarily, without any duress or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of the Employee’s claims against the Company and any of the other Releasees.  The Employee acknowledges that: (a) the Employee has read this Release Agreement; (b) the Employee has not relied upon any representations or statements made by the Company that are not specifically set forth in this Release Agreement; (c) the Employee has been represented in the preparation, negotiation, and execution of this Release Agreement by legal counsel of his own choice or has elected not to retain legal counsel; (d) the Employee understands the terms and consequences of this Release Agreement and of the releases it contains; and (e) the Employee is fully aware of the legal and binding effect of Release this Release Agreement.

 

[Signature Page Follows]

 

Exhibit B – Page 3

 

IN WITNESS WHEREOF, the Parties have executed this Release Agreement on the respective dates set forth below.

 

 

					
	
Dated:
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Stuart M. Brightman

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
COMPANY

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
TETRA TECHNOLOGIES, INC.

	
 
	
 
	
 
	
 
	
 

	
Dated:
	
 
	
 
	
By:
	
 

	
 
	
 
	
 
	
Name:
	
 

	
 
	
 
	
 
	
Title:
	
 

 

Exhibit B – Page 4

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