Employment Agreement - American Seafoods Corp., American Seafoods Holdings LLC, American Seafoods Group LLC and Bernt Bodal
FORM OF AMENDED AND RESTATED EMPLOYMENT AGREEMENT
AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this "Agreement") made and
entered into as of the [ ] day of _____________ 2003, among American Seafoods
Corporation, a Delaware corporation ("ASC"), American Seafoods Holdings, LLC, a
Delaware limited liability company, American Seafoods Group LLC, a Delaware
limited liability company (the "Company" and, collectively with ASC, "Employer")
and Bernt Bodal who resides at 18302 Ridgefield Rd., N.W., Shoreline, WA 98177
("Executive").
W I T N E S S E T H:
- - - - - - - - - -
WHEREAS, American Seafoods, L.P., a Delaware limited partnership
("ASLP"), the Company and Executive previously entered into an Employment
Agreement (the "Prior Employment Agreement"), dated as of January 28, 2000 (the
"Effective Date");
WHEREAS, ASC is proposing to register and offer for sale Income
Deposit Securities (the "IDS Offering");
WHEREAS, in connection with the IDS Offering, American Seafoods
Holdings, LLC, a Delaware limited liability company and the direct owner of the
Company, will become American Seafoods Holdings, L.P., a Delaware limited
partnership ("Holdings");
WHEREAS, following the consummation of the IDS Offering, ASC will own
a majority of the outstanding equity interests in Holdings, and will be the sole
general partner of Holdings; and
WHEREAS, in connection with the IDS Offering and changes in the
ownership structure of Holdings, the Company and Executive wish to amend and
restate the Prior Employment Agreement in its entirety to take effect as of the
date the Form S-1 registration statement filed with the U.S. Securities and
Exchange Commission, in connection with the IDS Offering, is first declared
effective (the "Amendment Date");
NOW THEREFORE, in consideration of the premises and the mutual
covenants hereinafter set forth, and intending to be legally bound hereby, the
parties hereto agree that the Prior Employment Agreement is hereby amended and
restated as follows, effective as of the Amendment Date:
1. Employment Term. Employer agrees to employ Executive, and
Executive agrees to be so employed for a term commencing on the date hereof and
ending on January 28, 2005 (the "Initial Term"); provided, however, that,
notwithstanding anything to the contrary set forth in this Agreement, this
Agreement may
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be earlier terminated pursuant to the terms hereof. The term of this Agreement
will automatically extend past the Initial Term for succeeding periods of one
year each unless either party terminates this Agreement as of the end of the
Initial Term, or as of the end of any subsequent one-year period (in either
case, the "Termination Date"), by delivering notice to the other party
specifying the applicable Termination Date not earlier than 180 days and not
later than 120 days prior to the date so specified. "Employment Term" as used
herein shall mean the term of this Agreement including any automatic extensions
pursuant to the preceding sentence.
2. Position and Duties. Executive shall (in accordance with
Paragraph 11 hereof) diligently and conscientiously devote his full business
time, attention, energy, skill and best efforts to the business of Employer and
the discharge of his duties hereunder. Executive's duties under this Agreement
shall be to serve as Chief Executive Officer of ASC and the Company, with the
responsibilities, rights, authority and duties customarily pertaining to such
office and as may be established from time to time by or under the direction of
the board of directors of ASC (the "Board") or its designees, and Executive
shall report to the Board. During the Employment Term, ASC and the Company shall
use their best efforts, including, without limitation, by nominating Executive
on the management slate, to have Executive elected and continued as a member of
the Board; provided however, that the foregoing obligation shall only apply in
the event Executive does not own any Class A, Class B, or Class C shares of
preferred stock of ASC. Executive shall also act as an officer and/or director
and/or manager of such subsidiaries of ASC or Holdings as may be designated by
the Board, commensurate with Executive's office hereunder, all without further
compensation, other than as provided in this Agreement.
3. Compensation.
(a) Base Salary. Employer shall pay to Executive base salary
compensation at an annual rate of $350,000. The Board shall review Executive's
base salary annually in light of the performance of Executive and the Company,
and may, in its sole discretion, increase or decrease (but not decrease below
$350,000) such base salary by an amount it determines to be appropriate.
Executive's annual base salary payable hereunder, as it may be increased or
decreased from time to time, is referred to herein as "Base Salary." Base Salary
shall be paid in equal installments in accordance with Employer's payroll
practices in effect from time to time for executive officers, but in no event
less frequently than monthly.
(b) Bonus. In addition to Base Salary, Executive may receive an
annual bonus of an amount to be determined by the Board in its sole discretion,
taking into consideration individual and corporate performance. Further,
Executive shall be entitled to receive with respect to each fiscal year during
the Employment Term a nondiscretionary annual bonus if the EBITDA (as defined on
Schedule I hereto) of
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Holdings and its subsidiaries in such fiscal year exceeds certain targets. The
amount and calculation of such bonus are described with particularity on
Schedule I hereto. In no event will (i) the nondiscretionary bonus be payable if
at the time of payment or at any time during the year of measurement ASC,
Holdings or the Company was in default under any credit agreement relating to
indebtedness for borrowed money or (ii) the annual bonus (including
discretionary and nondiscretionary portions thereof) in any year exceed 150% of
Executive's Base Salary. The annual bonus with respect to any year, if any,
shall be paid within 30 days after the receipt by the Board of audited financial
statements for Holdings and its subsidiaries for the pertinent year.
4. Benefits. Executive shall be eligible to participate in all
employee benefit programs of Employer offered from time to time during the term
of Executive's employment hereunder by Employer to employees or executives of
Executive's rank, to the extent that Executive qualifies under the eligibility
provisions of the applicable plan or plans, in each case consistent with
Employer's then-current practice as approved by the Board from time to time. The
foregoing shall not be construed to require Employer to establish such plans or
to prevent the modification or termination of such plans once established, and
no such action or failure thereof shall affect this Agreement. Executive
recognizes that Employer and its affiliates have the right, in their sole
discretion, to amend, modify or terminate their benefit plans without creating
any rights in Executive. During the Employment Term, Employer shall pay the cost
required in connection with Executive's participation in MD Square Health Plan.
5. Vacation. Executive shall be entitled to up to four weeks of paid
vacation per calendar year. A maximum of one week of vacation time may be
carried over from one calendar year and into the following calendar year;
provided, however, that the vacation time be exercised prior to the end of the
subsequent calendar year.
6. Business Expenses. To the extent that Executive's reasonable and
necessary expenditures for travel, entertainment and similar items made in
furtherance of Executive's duties under this Agreement comply with Employer's
expense reimbursement policy, are wholly or partially deductible by Employer for
federal income tax purposes pursuant to the Internal Revenue Code of 1986, as
amended and are documented and substantiated by Executive as required by the
Internal Revenue Service and the policies of Employer, Employer shall reimburse
the Executive for such expenditures; provided documentation therefor is
submitted not later than 45 days after such expense is incurred.
7. Termination by Employer.
(a) Employer shall have the right to terminate the Employment
Term under the following circumstances (and also as contemplated by Paragraph
8(b)):
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(i) upon the death of Executive;
(ii) in the event of a disability which prevents or seriously
inhibits Executive from performing his duties for 60 consecutive days as
determined in good faith by the Board, upon 30 days written notice from
Employer to Executive; or
(iii) for Cause (as defined below).
"Cause" as used in this Agreement shall mean (i) Executive's commission of a
felony or any other crime involving moral turpitude, fraud, misrepresentation,
embezzlement or theft, (ii) Executive's engaging in any activity that is harmful
(including, without limitation, alcoholic or other self-induced affliction), in
a material respect, to Employer or any of its subsidiaries, monetarily or
otherwise, as determined by a majority of the Board; (iii) Executive's material
malfeasance (including without limitation, any intentional act of fraud or
theft), misconduct, or gross negligence in connection with the performance of
his duties hereunder; (iv) Executive's significant violation of any statutory or
common law duty of loyalty to Employer or any of its subsidiaries; (v)
Executive's material breach of this Agreement or of a material Employer policy
(including without limitation, disclosure or misuse of any confidential or
competitively sensitive information or trade secrets of Employer or a
subsidiary); or (vi) Executive's refusal or failure to carry out directives or
instructions of the Board that are consistent with the scope and nature of
Executive's duties and responsibilities set forth herein, in the case of clause
(v) or (vi) above, only if such breach or failure continues for more than 10
days following written notice from Employer describing such breach or failure.
(b) If this Agreement is terminated pursuant to Paragraph 7(a),
or for any other reason (except by Executive pursuant to Paragraph 8 or by
Employer other than pursuant to Paragraph 7(a)), Executive's rights and
Employer's obligations hereunder shall forthwith terminate except that Employer
shall pay Executive his Base Salary earned but not yet paid through the
effective date of termination. In addition, if Executive is terminated pursuant
to Paragraph 7(a)(i) or 7(a)(ii), Employer shall also pay Executive within 30
days following receipt of audited financial statements for the year during which
such termination occurred, a prorated annual bonus in respect of the partial
year during which such termination occurred, the amount to be equal to the full
amount of the nondiscretionary bonus, if any, that would be due under Paragraph
3(b) multiplied by a fraction, the numerator of which is the number of days in
such fiscal year prior to such termination and the denominator of which is 365.
8. Termination by Executive.
(a) Executive shall have the right to terminate the Employment
Term for Good Reason (as defined below), upon 60 days' written notice to the
Board
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given within 60 days following the occurrence of an event constituting Good
Reason; provided that Employer shall have 10 days after the date such notice has
been given to the Board in which to cure the conduct specified in such notice.
For purposes of this Agreement "Good Reason" shall mean:
(i) Employer's failure to pay or provide when due Executive's
Base Salary, which failure is not cured within 10 days after the receipt by
the Board from Executive of a written notice referring to this provision
and describing such failure; or
(ii) the failure to continue Executive in his position as
provided in Paragraph 2 or removal of him from such position; or
(iii) a material diminution of Executive's responsibilities,
duties or status, which diminution is not rescinded within 30 days after
the date of receipt by the Board from Executive of a written notice
referring to this provision and describing such diminution.
(b) If this Agreement is terminated pursuant to Paragraph 8(a),
or if Employer shall terminate Executive's employment under this Agreement other
than pursuant to Paragraph 7(a), Executive shall be entitled to the following,
which he acknowledges to be fair and reasonable, as his sole and exclusive
remedy, in lieu of all other remedies at law or in equity, for any such
termination:
(i) Base Salary earned but not yet paid through the date of
termination;
(ii) a prorated annual bonus in respect of the partial year
during which such termination occurred, the amount to be equal to the full
amount of the nondiscretionary bonus, if any, that would be due under
Paragraph 3(b) multiplied by a fraction, the numerator of which is the
number of days in such fiscal year prior to such termination and the
denominator of which is 365; and
(iii) an amount equal to Executive's actual Base Salary (not
including any bonus paid or payable) for the 12-month period immediately
prior to such termination (or the period during which Executive was
employed by Employer if less than 12 months), payable in 24 equal
installments during the 24-month period immediately following such
termination (the "Severance Pay Period").
In the event of any such termination, Executive shall use commercially
reasonable efforts to secure alternative employment. During the last six months
of the Severance Pay Period, any compensation, income or benefits earned by or
paid to (in cash or otherwise) the Executive as an employee of or consultant to
a company other than Employer shall
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reduce the amount of severance payments payable during such six-month period
pursuant to Paragraph 8(b)(iii).
(c) If Executive terminates his employment at any time during
the term of this Agreement other than pursuant to Paragraph 8(a), without
limiting or prejudicing any other legal or equitable rights or remedies which
Employer may have upon such breach by Executive, Executive will receive his Base
Salary earned but not yet paid through the date of termination.
9. Services Unique. Executive recognizes that Executive's services
hereunder are of a special, unique, unusual, extraordinary and intellectual
character giving them a peculiar value, the loss of which cannot be reasonably
or adequately compensated for in damages, and in the event of a breach of this
Agreement by Executive (particularly, but without limitation, with respect to
the provisions hereof relating to the exclusivity of Executive's services and
the provisions of Paragraph 11), Employer shall, in addition to all other
remedies available to it, be entitled to equitable relief by way of an
injunction and any other legal or equitable remedies. Anything to the contrary
herein not withstanding, Employer may seek such equitable relief in a federal or
state court in New York, and the Executive hereby submits to jurisdiction in
those courts.
10. Protection of Employer's Interests. To the fullest extent
permitted by law, all rights worldwide with respect to any intellectual or other
property of any nature conceived, developed, produced, created, suggested or
acquired by Executive during the period commencing on the date hereof and ending
six months following the termination of Executive's employment hereunder shall
be deemed to be a work made for hire and shall be the sole and exclusive
property of Employer. Executive agrees to execute, acknowledge and deliver to
Employer at Employer's request, such further documents as the Employer finds
appropriate to evidence the Employer's rights in such property. Executive
further acknowledges that in performing his duties hereunder, he will have
access to proprietary and confidential information and to trade secrets of
Employer and its subsidiaries. Any confidential and/or proprietary information
of Employer or its subsidiaries shall not be used by Executive or disclosed or
made available by Executive to any person except (i) as required in the course
of Executive's employment or (ii) when required to do so by a court of law, by
any governmental agency having supervisory authority over the business of
Employer or by any administrative or legislative body (including a committee
thereof) with apparent jurisdiction to order him to divulge, disclose or make
accessible such information, it being understood that Executive will promptly
notify Employer of such requirement so that Employer may seek to obtain a
protective order. Upon expiration or earlier termination of the term of
Executive's employment, Executive shall return to Employer all such information
that exists in written or other physical form (and all copies thereof) under
Executive's control.
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11. Non-Competition.
(a) Exclusivity of Employment. Executive agrees that his
employment hereunder is on an exclusive basis, and that during the Employment
Term, he will not engage in any other business activity. Notwithstanding the
foregoing, nothing in this Agreement shall preclude Executive from (i) serving
on the boards of directors of other corporations (subject to the approval of the
Board which shall not be unreasonably withheld), (ii) engaging in charitable and
public service activities, (iii) engaging in speaking and writing activities, or
(iv) from managing his personal investments, provided that such activities are
disclosed in writing to the Board in a notice that references this provision and
do not interfere with Executive's availability or ability to perform his duties
and responsibilities hereunder.
(b) Noncompete. Executive agrees that during the Employment
Term, and the Severance Pay Period (if applicable), and the 12-month period
thereafter (except if Executive's employment is terminated for Cause or
Executive terminates his employment without Good Reason, in which case such
12-month period shall be extended to a 24-month period), he shall not, directly
or indirectly, engage in, or participate as an investor in, an officer,
employee, director or agent of, or consultant for, any entity engaging in any
line of business competitive with that of Employer or any of its subsidiaries or
affiliates, or any line of business which Employer or any of its subsidiaries or
affiliates is contemplating; provided however that, nothing herein shall prevent
him from investing as less than a 5% shareholder in the securities of any
company listed on a national securities exchange or quoted on an automated
quotation system. Executive's participation in an entity in any of the foregoing
capacities, other than participation described in the foregoing proviso, being
sometimes referred to herein as being a "Participant."
(c) Nonsolicitation of Employees. Executive agrees that during
the Employment Term and the Severance Pay Period (if applicable), and the
36-month period thereafter (the "Nonsolicitation Period"), he will not directly
or indirectly, (i) employ, or be a Participant in any entity that employs any
person previously employed by Employer or any of its subsidiaries or affiliates
or (ii) in any way induce or attempt to induce any person to leave the
employment of Employer or any of its subsidiaries or affiliates.
(d) Nonsolicitation of Customers. Executive agrees that during
the Nonsolicitation Period, he will not directly or indirectly, solicit or do
business with, or be a Participant in any entity that solicits or does business
with, any customer of Employer or any of its subsidiaries or affiliates, nor
shall Executive in any way induce or attempt to induce any customer of Employer
or its subsidiaries or affiliates to do business with any person or entity other
than Employer or its subsidiaries or affiliates; provided however, that, the
foregoing shall not restrict Executive or any entity in which he is a
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Participant from soliciting or doing business with any customer of Employer or
any of its subsidiaries or affiliates with respect to a business that is not
competitive with the business of Employer or any of its subsidiaries or
affiliates or any line of business that Employer or any of its subsidiaries or
affiliates is contemplating. Notwithstanding the foregoing, after the expiration
of the noncompetition period set forth in Paragraph 11(b), Executive may
participate as an investor in, an officer, employee, director or agent of or
consultant for an entity that does business with one or more customers of
Employer so long as Executive has no contact with such customer and has no
direct or indirect involvement in the solicitation of business from any such
customer.
(e) Standstill. Executive agrees that during the Nonsolicitation
Period, Executive shall not, except at the specific written request of the
Board:
(i) engage in or propose, or be a Participant in any entity
that engages in or proposes, a Rule l3e-3 Transaction (as defined in Rule
l3e-3 under the Securities Exchange Act of 1934) or any other material
transaction, between ASC or any of its subsidiaries or affiliates, on the
one hand, and Executive or any entity in which Executive is a Participant,
on the other hand;
(ii) acquire any equity securities of ASC or any of its
subsidiaries or affiliates (other than equity securities of ASC acquired by
Executive through the exchange of partnership units of ASLP, issued to
Executive upon exercise of options previously issued to Executive by ASLP),
or be a Participant in any entity that acquires any equity securities of
ASC or any of its subsidiaries or affiliates, provided however, that the
foregoing shall not apply so long as Executive's beneficial ownership of
any class of ASC's securities does not exceed 5% of the outstanding
securities of such class;
(iii) solicit proxies, or be a Participant in any entity that
solicits proxies, or become a Participant in any solicitation of proxies,
with respect to the election of directors of ASC or any of its subsidiaries
or affiliates in opposition to the nominees recommended by the Board of any
such entity; or
(iv) directly or indirectly, engage in or participate in any
other activity that would be reasonably expected to result in a change of
control of ASC or any of its subsidiaries or affiliates.
The foregoing provisions of this Paragraph shall not be construed to prohibit or
restrict the manner in which Executive exercises his voting rights in respect of
any securities of ASC or any of its subsidiaries or affiliates acquired in a
manner that is not a violation of the terms of this Paragraph 11.
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12. Nondisparagement, Executive will not at any time during or after
this Agreement directly (or through any other person or entity) make any public
or private statements (whether oral or in writing) which are derogatory or
damaging to Employer or any of its subsidiaries, affiliates, businesses,
activities, operations, affairs, reputations or prospects or any of their
respective officers, employees, directors or shareholders. Employer will not at
any time during or after the term of this Agreement directly (or through any
other person or entity) make any defamatory public or private statements
(whether oral or in writing) concerning the Executive.
13. Representations of the Parties. Executive represents and warrants
to Employer and Holdings that Executive has the capacity to enter into this
Agreement and the other agreements referred to herein, and that the execution,
delivery and performance of this Agreement and such other agreements by
Executive will not violate any agreement, undertaking or covenant to which
Executive is party or is otherwise bound. Each of ASC and the Company represents
to Executive that it is a corporation or limited liability company, as
applicable, duly organized and validly existing under the laws of the State of
Delaware. Each of ASC and the Company represents that it is fully authorized and
empowered by action of its Board, as applicable, to enter into this Agreement
and the other agreements referred to herein, and that performance of its
obligations under this Agreement and such other agreements will not violate any
agreement between it and any other person, firm or other entity.
14. Key Man Insurance. Employer will have the right throughout the
term of this Agreement, to obtain or increase insurance on Executive's life in
such amount as the Board determines, in the name of Employer and for its sole
benefit or otherwise, in the discretion of the Board. Executive will cooperate
in any and all necessary physical examinations without expense to Executive,
supply information, and sign documents, and otherwise cooperate fully with
Employer in connection with any such insurance. Executive warrants and
represents that, to his best knowledge, he is in good health and does not suffer
from any medical condition which might interfere with the timely performance of
his obligations under this Agreement.
15. Notices. All notices given under this Agreement shall be in
writing and shall be deemed to have been duly given (a) when delivered
personally, (b) three business days after being mailed by first class certified
mail, return receipt requested, postage prepaid, (c) one business day after
being sent by a reputable overnight delivery service, postage or delivery
charges prepaid, or (d) on the date on which a facsimile is transmitted to the
parties at their respective addresses stated below. Any party may change its
address for notice and the address to which copies must be sent by giving notice
of the new addresses to the other parties in accordance with this Paragraph 15,
except that any such change of address notice shall not be effective unless and
until received.
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If to Employer:
American Seafoods Corporation
Market Place Tower
2025 First Avenue, Suite 900
Seattle, Washington 98121
Facsimile: 206-374-1516
Attention: Michael J. Hyde
with a copy to:
Debevoise & Plimpton
919 Third Avenue
New York, New York 10022
Facsimile: 212-909-6836
Attention: Jeffrey J. Rosen, Esq.
If to the Executive, to his address set forth above.
with a copy to:
Dorsey & Whitney
1420 Fifth Avenue
Suite 400
Seattle, WA 98101
Attention: Michael Brown, Esq.
16. Entire Agreement, Amendments, Waivers, Etc.
(a) No amendment or modification of this Agreement shall be
effective unless set forth in a writing signed by Employer and Executive. No
waiver by either party of any breach by the other party of any provision or
condition of this Agreement shall be deemed a waiver of any similar or
dissimilar provision or condition at the same or any prior or subsequent time.
Any waiver must be in writing and signed by the waiving party.
(b) This Agreement together with the Schedules hereto and the
documents referred to herein and therein, sets forth the entire understanding,
and agreement of the parties with respect to the subject matter hereof and
supersedes all prior oral and written understandings and agreements. There are
no representations, agreements, arrangements or understandings, oral or written,
among the parties relating to the subject matter hereof which are not expressly
set forth herein, and no party hereto has been induced to enter into this
Agreement, except by the agreements expressly contained herein. For the
avoidance of doubt, the Prior Employment Agreement is hereby
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superseded and except to the extent expressly provided herein no party thereto
shall have any obligation thereunder.
(c) Nothing herein contained shall be construed so as to require
the commission of any act contrary to law, and wherever there is a conflict
between any provision of this Agreement and any present or future statute, law,
ordinance or regulation, the latter shall prevail, but in such event the
provision of this Agreement affected shall be curtailed and limited only to the
extent necessary to bring it within legal requirements.
(d) This Agreement shall inure to the benefit of and be
enforceable by Executive and his heirs, executors, administrators and legal
representatives, by Employer and its successors and assigns, and by Holdings and
its successors and assigns. This Agreement and all rights hereunder are personal
to Executive and shall not be assignable. Each of Employer and Holdings may
assign its rights under this Agreement to any successor by merger,
consolidation, purchase of all or substantially all of its and its subsidiaries'
assets, or otherwise; provided that such successor assumes all of the
liabilities, obligations and duties of Employer under this Agreement, either
contractually or as a matter of law.
(e) If any provision of this Agreement or the application
thereof is held invalid, the invalidity shall not affect the other provisions or
application of this Agreement that can be given effect without the invalid
provisions or application, and to this end the provisions of this Agreement are
declared to be severable. It is expressly understood and agreed that although
Executive and Employer consider the restrictions contained in this Agreement to
be reasonable, if a final determination is made by an arbitrator to whom the
parties have assigned the matter or a court of competent jurisdiction that any
such restriction contained in this Agreement is an unenforceable restriction
against Executive, the provisions of this Agreement shall not be rendered void
but shall be reformed to apply as to such maximum time and to such maximum
extent as such arbitrator or court may determine or indicate to be enforceable.
Alternatively, if such arbitrator or court finds that any restriction contained
in this Agreement is unenforceable, and such restriction cannot be reformed so
as to make it enforceable, such finding shall not affect the enforceability of
any of the other restrictions contained herein.
17. Governing Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of New York without reference to
principles of conflict of laws.
18. Right to Equitable Relief. Executive recognizes that Employer
will have no adequate remedy at law for his breach of any provision of Paragraph
10, 11 or 12 and in the event of any such breach or threatened breach he agrees
that Employer
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shall be entitled to obtain equitable relief in addition to other remedies
available at law and/or hereunder.
19. Taxes. All payments required to be made to Executive hereunder,
whether during the term of his employment hereunder or otherwise shall be
subject to all applicable federal, state and local tax withholding laws.
20. Headings, Etc. The headings set forth herein are included solely
for the purpose of identification and shall not be used for the purpose of
construing the meaning of the provisions of this Agreement. Unless otherwise
provided, references herein to Schedules and Paragraphs refer to Schedules and
Paragraphs of this Agreement.
21. Arbitration. Subject to the provisions of Paragraph 9, any
dispute or controversy between Employer and Executive, arising out of or
relating to this Agreement, the breach of this Agreement, or otherwise, shall be
settled by arbitration in New York, New York, administered by the American
Arbitration Association in accordance with its Commercial Rules then in effect
and judgment on the award rendered by the arbitrator may be entered in any court
having jurisdiction thereof. The arbitrator shall have the authority to award
any remedy or relief that a court of competent jurisdiction could order or
grant, including, without limitation, the issuance of an injunction. However,
either party may, without inconsistency with this arbitration provision, apply
to any court having jurisdiction over such dispute or controversy and seek
interim provisional, injunctive or other equitable relief until the arbitration
award is rendered or the controversy is otherwise resolved. Except as necessary
in court proceedings to enforce this arbitration provision or an award rendered
hereunder, or to obtain interim relief, neither a party nor an arbitrator may
disclose the existence, content or results of any arbitration hereunder without
the prior written consent of Employer and Executive.
22. Survival. Executive's obligations under the provisions of
Paragraphs 10, 11 and 12, as well as the provisions of Paragraphs 6, 7(b), 8(b)
and 15 through and including 19 and Paragraphs 21 and 22, shall survive the
termination or expiration of this Agreement.
23. Construction. Each party has cooperated in the drafting and
preparation of this Agreement. Therefore, in any construction to be made of this
Agreement, the same shall not be construed against any party on the basis that
the party was the drafter.
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.
AMERICAN SEAFOODS CORPORATION:
By:
------------------------------------
Name:
Title:
AMERICAN SEAFOODS HOLDINGS LLC:
By:
------------------------------------
Name:
Title:
AMERICAN SEAFOODS GROUP LLC:
By:
------------------------------------
Name:
Title:
EXECUTIVE:
---------------------------------------
Bernt O. Bodal
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SCHEDULE I
BONUS CALCULATION
Subject to the terms and conditions of Paragraph 3(b) (including the
requirement that there shall have occurred no default under credit agreements
applicable to Employer or its affiliates), the nondiscretionary bonus described
in Paragraph 3(b) for any fiscal year shall be equal to (i) if EBITDA for such
fiscal year is less than 80% of Target EBITDA for such fiscal year, zero
dollars; (ii) if EBITDA for such fiscal year exceeds 120% of Target EBITDA for
such fiscal year, 150% of Executive's Base Salary for such fiscal year; and
(iii) if neither (i) nor (ii) applies, the product of 150% of Executive's Base
Salary during such fiscal year multiplied by a fraction, the numerator of which
is the amount by which EBITDA for such fiscal year exceeds 80% of Target EBITDA
for such fiscal year, and the denominator of which is 40% of Target EBITDA for
such fiscal year. Such bonus shall be determined by the Board in good faith on
the basis of the audited financial statements of Holdings and its subsidiaries.
For these purposes:
"EBITDA" means, for any period, the sum of the amounts for such period
of (i) net income (or loss) (excluding (I) interest income, (II) noncash income
items (other than ordinary accruals) and (III) extraordinary items), plus (ii)
to the extent deducted in determining consolidated net income, (x) interest
expense, (y) provisions for taxes based on net income and (z) depreciation and
amortization expense, each as determined for Holdings and its subsidiaries on a
consolidated basis in accordance with generally accepted accounting principals,
consistently applied, except that no effect shall be given to noncash gains and
losses on foreign exchange contracts. EBITDA for any period shall be determined
by the Board acting in good faith following receipt of audited financial
statements for the relevant period and shall reflect as expenses (determined on
an iterative basis if necessary) any bonuses payable in respect of such year.
"Target EBITDA" means, for any fiscal year, the amount set forth in
the table below opposite such fiscal year subject to adjustment on a pro forma
basis, if and to the extent determined appropriate by the Board, to reflect any
acquisitions or dispositions effected by Holdings or any of its subsidiaries
after the date hereof.
ANNUAL EBITDA TARGET
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EBITDA
FISCAL YEAR (in millions)
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2000 $ 88.6
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2001 $ 106.8
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2002 $ 109.9
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2003 $ 111.4
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2004 $ 116.4
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I-1