Executive Employment Agreement - Enron Corp. and Mark A. Frevert
EXECUTIVE EMPLOYMENT AGREEMENT
This Employment Agreement ("Agreement"), including the
attached Exhibit "A," is entered into between Enron Corp.,
an Oregon corporation ("ENRON" and/or "Enron"), and
Mark A. Frevert, ("Employee"), to be effective as of June 1,
1998 (the "Effective Date").
WITNESSETH:
WHEREAS, ENRON is desirous of employing Employee pursuant
to the terms and conditions and for the consideration set
forth in this Agreement, and Employee is desirous of
entering the employ of ENRON pursuant to such terms and
conditions and for such consideration.
NOW, THEREFORE, for and in consideration of the mutual
promises, covenants, and obligations contained herein, ENRON
and Employee agree as follows:
ARTICLE 1: EMPLOYMENT AND DUTIES:
1.1 ENRON agrees to employ Employee, and Employee agrees
to be employed by ENRON, beginning as of the Effective Date
and continuing until the date set forth on Exhibit "A" (the
"Term"), subject to the terms and conditions of this
Agreement.
1.2 Employee initially shall be employed in the position
set forth on Exhibit "A." ENRON may subsequently assign
Employee to a different position or modify Employee's duties
and responsibilities; provided however, if ENRON assigns
Employee to a different position, the assignment shall not
be a material reduction, or if ENRON modifies Employee's
duties and responsibilities, any such modification shall not
materially reduce Employee's duties and responsibilities,
neither of which event shall occur without Employee's prior
consent. Moreover, ENRON may assign this Agreement and
Employee's employment to Enron or any affiliates of Enron.
Employee agrees to serve in the assigned position and to
perform diligently and to the best of Employee's abilities
the duties and services appertaining to such position as
determined by ENRON, as well as such additional or different
duties and services appropriate to such position which
Employee from time to time may be reasonably directed to
perform by ENRON. Employee shall at all times comply with
and be subject to such policies and procedures as ENRON may
establish from time to time.
1.3 Employee shall, during the period of Employee's
employment by ENRON, devote Employee's full business time,
energy, and best efforts to the business and affairs of
ENRON. Employee may not engage, directly or indirectly, in
any other business, investment, or activity that interferes
with Employee's performance of Employee's duties hereunder,
is contrary to the interests of ENRON or Enron, or requires
any significant portion of Employee's business time.
1.4 In connection with Employee's employment by ENRON,
ENRON shall provide Employee access to such confidential
information pertaining to the business and services of ENRON
as is appropriate for Employee's employment
responsibilities. ENRON also shall provide to Employee the
opportunity to develop business relationships with ENRON's
clients and potential clients that are appropriate for
Employee's employment responsibilities.
1.5 Employee acknowledges and agrees that Employee owes
a fiduciary duty of loyalty, fidelity and allegiance to act
at all times in the best interests of the ENRON and to
engage in no act which would injure Employer's business, its
interests, or its reputation. It is agreed that any direct
or indirect interest in, connection with, or benefit from
any outside activities, particularly commercial activities,
which interest might in any way adversely affect ENRON, or
any of its subsidiaries, or affiliates, involves a possible
conflict of interest. In keeping with Employee's fiduciary
duties to ENRON, Employee agrees that Employee shall not
knowingly become involved in a conflict of interest with
ENRON, its subsidiaries, divisions, or affiliates, or upon
discovery thereof, allow such a conflict to continue.
Moreover, Employee agrees that Employee shall disclose to
ENRON's General Counsel any facts which might involve such a
conflict of interest that has not been approved by ENRON's
Board of Directors.
1.6 ENRON and Employee recognize that it is impossible
to provide an exhaustive list of actions or interests which
constitute a "conflict of interest." Moreover, ENRON and
Employee recognize there are many borderline situations. In
some instances, full disclosure of facts by the Employee to
ENRON's General Counsel may be all that is necessary to
enable ENRON, or their affiliates to protect their inter
ests. In other instances, if no improper motivation appears
to exist and the interests of ENRON, or their affiliates
have not suffered, prompt elimination of the outside
interest will suffice. In still others, it may be necessary
for ENRON to terminate the employment relationship. ENRON
and Employee agree that Employer's determination as to
whether a conflict of interest exists shall be conclusive.
ENRON reserves the right to take such action as, in its
judgment, will end the conflict.
ARTICLE 2: COMPENSATION AND BENEFITS:
2.1 Employee's base salary during the Term shall be not
less than the amount set forth under the heading "Monthly
Base Salary" on Exhibit "A," which shall be paid in
semimonthly installments in accordance with Employer's
standard payroll practice.
2.2 While employed by ENRON (both during the Term and
thereafter), Employee shall be allowed to participate, on
the same basis generally as other employees of ENRON, in all
general employee benefit plans and programs, including
improvements or modifications of the same, which on the
Effective Date or thereafter are made available by ENRON to
all or substantially all of Employer's employees. Such
benefits, plans, and programs may include, without
limitation, medical, health, and dental care, life
insurance, disability protection, and pension plans.
Nothing in this Agreement is to be construed or interpreted
to provide greater rights, participation, coverage, or
benefits under such benefit plans or programs than provided
to similarly situated employees pursuant to the terms and
conditions of such benefit plans and programs.
2.3 ENRON shall not by reason of this Article 2 be
obligated to institute, maintain, or refrain from changing,
amending, or discontinuing, any such incentive compensation
or employee benefit program or plan, so long as such actions
are similarly applicable to covered employees generally.
Moreover, unless specifically provided for in a written plan
document adopted by the Board of Directors of either ENRON
or its subsidiaries, divisions, or affiliates, none of the
benefits or arrangements described in this Article 2 shall
be secured or funded in any way, and each shall instead
constitute an unfunded and unsecured promise to pay money in
the future exclusively from the general assets of ENRON.
2.4 ENRON may withhold from any compensation, benefits,
or amounts payable under this Agreement all federal, state,
city, or other taxes as may be required pursuant to any law
or governmental regulation or ruling.
ARTICLE 3: TERMINATION BEFORE THE TERM EXPIRES AND EFFECTS
OF SUCH TERMINATION:
3.1. ENRON may terminate Employee's employment before
the Term expires for the following reasons:
a. For "cause" upon the determination by ENRON's
management committee (or, if there is no management
committee, the highest applicable level of management)
that "cause" exists to terminate the Employee. "Cause"
means (i) Employee's gross negligence, willful
misconduct, or neglect in the performance of the duties
and services as an ENRON employee; (ii) Employee's
final conviction of a felony; (iii) Employee's material
breach of any material provision of this Agreement
which remains uncorrected for 30 days following Enron's
written notice to Employee of such breach; (iv)
Employee's violation of any policy of ENRON; (v) if
Employee has willfully engaged in conduct that Employee
knows or should know is materially injurious to Enron,
or any of its respective subsidiaries, divisions, or
affiliates; or (vi) if Employee violates the Foreign
Corrupt Practices Act or other applicable United States
law as proscribed by Section 6.8. If ENRON terminates
Employee's employment for Cause, Employee shall be
entitled only to pro rata salary through the date of
such termination, and all future compensation and
benefits, other than benefits to which Employee is
entitled under the terms of ENRON or Enron Capital &
Trade Resources Corp. compensation and/or benefit
plans, shall cease.
b. Involuntary termination at ENRON's option for
any reason whatsoever, including termination without
cause, in the sole discretion of ENRON's management
committee (or, if there is no management committee, the
highest applicable level of management). Upon an
Involuntary Termination before the Term expires,
Employee is entitled to receive the greater of (a) the
monthly salary on Exhibit "A" as if Employee's
employment (which ends on the date of Involuntary
Termination) had continued for the full Term, or (b)
$750,000.00, payable in a lump sum payment. If,
however, Employee accepts employment with a competitor
as described in Sections 5.2a., b., c., or d. of
Article 5, ENRON's obligations to pay Employee pursuant
to this section shall cease as of the first day of such
employment by Employee. Employee will not accrue or
receive any vacation pay during the Term following
Involuntary Termination.
c. Upon Employee's (i) death, or (ii) becoming
incapacitated or disabled so as to entitle Employee to
benefits under Enron's long-term disability plan, or
(iii) becoming permanently and totally unable to
perform Employee's duties for ENRON as a result of any
physical or mental impairment supported by a written
opinion by a physician selected by ENRON. Upon
termination of employment under this paragraph,
Employee or Employee's heirs shall be entitled only to
Employee's pro rata salary through the date of such
termination, and all future compensation and benefits,
other than benefits to which Employee is entitled under
the terms of ENRON or Enron Capital & Trade Resources
Corp. compensation and/or benefit plans, shall cease.
3.2 Employee may terminate the employment relationship
before the Term expires for the following reasons:
a. A material breach by ENRON of any material
provision of this Agreement which remains uncorrected
for 30 days following Employee's written notice to
ENRON of such breach. Upon such a termination,
Employee shall be entitled to receive the monthly
salary on Exhibit "A" as if Employee's employment had
continued for the full Term.
b. Involuntary termination at Employee's option
if ENRON assigns Employee to a different position and
the assignment results in a material reduction, or
ENRON modifies Employee's duties or responsibilities
and said modification materially reduces Employee's
duties or responsibilities, and ENRON fails to secure
Employee's prior consent to either the assignment or
modification. Upon such a termination, Employee shall
be entitled to receive the greater of (a) the monthly
salary on Exhibit "A" as if Employee's employment had
continued for the full Term, or (b) $750,000.00,
payable in a lump sum payment.
c. For any other reason whatsoever, in
Employee's sole discretion. If Employee voluntarily
terminates his or her employment to accept a position
with ENRON, or one of its subsidiaries, divisions, or
affiliates, Employee will notify his or her Human
Resources Representative in writing within ten (10)
days of beginning such employment. Upon a Voluntary
Termination before the Term expires, all of Employee's
future compensation and benefits, other than benefits
to which Employee is entitled under the terms of ENRON
or Enron Capital & Trade Resources Corp. compensation
and/or benefit plans, shall cease as of the date of
termination, and Employee shall be entitled only to pro
rata salary through the termination date.
3.3 In all cases, the compensation and benefits
payable to Employee under this Agreement upon termination of
employment shall be offset by any amounts to which Employee
otherwise may be entitled under any benefit plans, severance
plans, voluntary payments, and policies of ENRON, or its
subsidiaries, divisions, or affiliates, or amounts Employee
owes to ENRON.
3.4 Neither termination of employment nor expiration
of the Term terminates the continuing obligations of this
Agreement, including obligations under Articles 4, 5 and
6.1.
3.5 Should Employee remain employed by ENRON after the
Term expires, such employment shall convert to an employment-
at-will relationship, terminable at any time by either ENRON
or Employee for any reason whatsoever, with or without
cause. Upon such termination of the employment relationship
by either ENRON or Employee for any reason whatsoever, all
future compensation to which Employee is entitled and all
future benefits for which Employee is eligible shall cease
and terminate. Employee shall be entitled to pro rata
salary through the date of such termination, but Employee
shall not be entitled to any individual bonuses or
individual incentive compensation not yet paid at the date
of such termination.
ARTICLE 4: OWNERSHIP AND PROTECTION OF INFORMATION;
COPYRIGHTS:
4.1 All information, ideas, concepts, improvements,
discoveries, and inventions, whether patentable or not,
which are conceived, made, developed or acquired by Employ
ee, individually or in conjunction with others, during
Employee's employment by ENRON (whether during business
hours or otherwise and whether on Employer's premises or
otherwise) which relate to Employer's business, products or
services (including, without limitation, all such
information relating to corporate opportunities, research,
financial and sales data, pricing and trading terms, evalua
tions, opinions, interpretations, acquisition prospects, the
identity of customers or their requirements, the identity of
key contacts within the customer's organizations or within
the organization of acquisition prospects, or marketing and
merchandising techniques, prospective names, and marks)
shall be disclosed to ENRON and are and shall be the sole
and exclusive property of ENRON. Moreover, all drawings,
memoranda, notes, records, files, correspondence, manuals,
models, specifications, computer programs, maps and all
other writings or materials of any type embodying any of
such information, ideas, concepts, improvements,
discoveries, and inventions are and shall be the sole and
exclusive property of ENRON.
4.2 Employee acknowledges that the business of ENRON,
its subsidiaries, divisions, and affiliates is highly
competitive and that ENRON has provided and will provide
Employee with access to Confidential Information relating to
the business of ENRON, its subsidiaries, divisions, and
affiliates. "Confidential Information" means and includes
ENRON's confidential and/or proprietary information and/or
trade secrets that have been developed or used and/or will
be developed and that cannot be obtained readily by third
parties from outside sources. Confidential Information
includes, by way of example and without limitation, the
following: information regarding customers, employees,
contractors, and the industry not generally known to the
public; strategies, methods, books, records, and documents;
technical information concerning products, equipment,
services, and processes; procurement procedures and pricing
techniques; the names of and other information concerning
customers, investors, and business affiliates (such as
contact name, service provided, pricing for that customer,
amount of services used, credit and financial data, and/or
other information relating to ENRON's relationship with that
customer); pricing strategies and price curves; positions;
plans and strategies for expansion or acquisitions; budgets;
customer lists; research; weather data; financial and sales
data; trading methodologies and terms; evaluations,
opinions, and interpretations of information and data;
marketing and merchandising techniques; prospective
customers' names and marks; grids and maps; electronic
databases; models; specifications; computer programs;
internal business records; contracts benefiting or
obligating ENRON; bids or proposals submitted to any third
party; technologies and methods; training methods and
training processes; organizational structure; salaries of
personnel; payment amounts or rates paid to consultants or
other service providers; and other such confidential or
proprietary information. Employee acknowledges that this
Confidential Information constitutes a valuable, special,
and unique asset used by ENRON, its subsidiaries, divisions,
or affiliates in their business to obtain a competitive
advantage over their competitors. Employee further
acknowledges that protection of such Confidential
Information against unauthorized disclosure and use is of
critical importance to ENRON, its subsidiaries, divisions,
and affiliates in maintaining their competitive position.
Employee also will have access to, or knowledge of,
Confidential Information of third parties, such as actual
and potential customers, suppliers, partners, joint
venturers, investors, financing sources and the like, of
ENRON, its subsidiaries, divisions, and affiliates. ENRON
also shall provide Employee with Confidential Information
and training regarding ENRON's methodologies and business
strategies. Employee acknowledges that he has and will
receive training that enables him to perform his job at
ENRON. Employee acknowledges that money damages would not
be sufficient remedy for any breach of this Article 4 by
Employee, and ENRON shall be entitled to enforce the
provisions of this Article 4 by terminating any payments
then owing to Employee under this Agreement and/or to
specific performance and injunctive relief as remedies for
such breach or any threatened breach. Such remedies shall
not be deemed the exclusive remedies for a breach of this
Article 4, but shall be in addition to all remedies
available at law or in equity to ENRON, including the
recovery of damages from Employee and his agents involved in
such breach.
4.3 All written materials, records, and other documents
made by, or coming into the possession of, Employee during
the period of Employee's employment by ENRON which contain
or disclose confidential business information or trade
secrets of ENRON, its subsidiaries, divisions, or affiliates
shall be and remain the property of ENRON, its subsidiaries,
divisions, or affiliates, as the case may be. Upon
termination of Employee's employment by ENRON, for any
reason, Employee promptly shall deliver the same, and all
copies thereof, to ENRON.
4.4 If, during Employee's employment by ENRON, Employee
creates any original work of authorship fixed in any
tangible medium of expression which is the subject matter of
copyright (such as videotapes, written presentations on
acquisitions, computer programs, drawings, maps,
architectural renditions, models, manuals, brochures, or the
like) relating to Employer's business, products, or
services, whether such work is created solely by Employee or
jointly with others (whether during business hours or
otherwise and whether on Employer's premises or otherwise),
Employee shall disclose such work to ENRON. ENRON shall be
deemed the author of such work if the work is prepared by
Employee in the scope of his employment; or, if the work is
not prepared by Employee within the scope of his employment
but is specially ordered by ENRON as a contribution to a
collaborative work, as a part of a motion picture or other
audiovisual work, as a translation, as a supplementary work,
as a compilation, or as an instructional text, then the work
shall be considered to be work made for hire and ENRON shall
be the author of the work. If such work is neither prepared
by the Employee within the scope of his employment nor a
work specially ordered and is deemed to be a work made for
hire, then Employee hereby agrees to assign, and by these
presents does assign, to ENRON all of Employee's worldwide
right, title, and interest in and to such work and all
rights of copyright therein.
4.5 Both during the period of Employee's employment by
ENRON and thereafter, Employee shall assist ENRON and its
nominee, at any time, in the protection of Employer's
worldwide right, title, and interest in and to information,
ideas, concepts, improvements, discoveries, and inventions,
and its copyrighted works, including without limitation, the
execution of all formal assignment documents requested by
ENRON or its nominee and the execution of all lawful oaths
and applications for applications for patents and regis
tration of copyright in the United States and foreign
countries.
ARTICLE 5: CONFIDENTIAL INFORMATION; POST-EMPLOYMENT
OBLIGATIONS
5.1 The terms of this Agreement constitute
confidential information, which Employee shall not disclose
to anyone other than Employee's spouse, attorneys, tax
advisors, or as required by law. Disclosure of these terms
is a material breach of this Agreement and could subject
Employee to disciplinary action, including without
limitation, termination of employment for cause.
5.2 ENRON agrees to and shall provide Employee with
access to Confidential Information as described in Paragraph
4.2. Ancillary to the rights provided to Employee in
Section 3.1, ENRON's provision of Confidential Information
to Employee, and Employee's agreement not to disclose
Confidential Information, and in order to protect the
Confidential Information described above, ENRON and
Employee agree to the following non-competition provisions.
Employee agrees that during the Period of Post-Employment
Non-Competition Obligations defined in Exhibit "A," Employee
will not, directly or indirectly, for Employee or for
others, in the Geographic Region of Responsibility described
on Exhibit "A," or, if Employee's geographic region has
changed, in any and all geographic regions in which Employee
has worked during the 12-month period immediately preceding
Employee's termination of Employment:
a. engage in the business of buying, selling,
trading, structuring, or executing transactions in
commodities, assets, or products in which ENRON is
doing business, has plans to engage in business, or has
engaged in business in the preceding 12-month period,
including, but not limited to, gas, electricity, coal,
chilled water, clean fuel, energy assets, paper, pulp,
packaging, metals, weather products, interest rates,
currencies, securities, or other commodities
(including, without limitation, other energy
commodities), or any futures, derivatives, or equities
related to any of the foregoing, whether at wholesale
or retail, or the development of systems, information
technology, accounting, or risk management with respect
to any of the foregoing;
b. engage in other types of business performed
by ENRON, including the acquiring or disposing of
assets or equity investments or providing or raising
capital, through loans, equity, joint ventures,
partnerships, working interests, production payments,
or similar arrangements into products, commodities,
futures, derivatives, or other items in which ENRON
currently is engaging in business, has plans to engage
in business, or has engaged in business in the
preceding 12-month period;
c. perform any job, task, function, skill, or
responsibility that Employee has provided for ENRON in
the preceding 12-month period; or
d. render advice or services to, or otherwise
assist, any other person, association or entity in the
business of "a," "b," or "c" above.
Employee understands that the foregoing restrictions may
limit his or her ability to engage in certain businesses in
the geographic region and during the period provided for
above, but acknowledges that these restrictions are
necessary to protect the Confidential Information ENRON has
provided to Employee.
Employee further understands that if Employee accepts
employment with a competitor as described in Section 5.2.a.,
b., c., or d. after the expiration of the Period of Post-
Employment Non-Competition Obligations defined in Exhibit A,
then any continuing obligations to pay Employee under
Section 3.1.b. shall cease as of the first day of such
employment by Employee.
Employee agrees that this provision defining the scope of
activities constituting competition with ENRON is narrow and
reasonable for the following reasons: (i) Employee is free
to seek employment with other companies providing services
that do not directly or indirectly compete with any business
of ENRON; (ii) Employee is free to seek employment with
other companies in the energy business that do not directly
or indirectly compete with any business of ENRON, such as
oil field service companies, drilling contractors, and oil
field equipment manufacturers; and (iii) there are many
other companies in the energy industry and in other
industries that do not directly or indirectly compete with
any business of ENRON. Thus, this restriction on Employee's
ability to compete does not prevent Employee from using and
offering the skills that Employee possessed prior to
receiving Confidential Information, trade secrets,
confidential training, and knowledge from ENRON.
5.3 For a period of twelve (12) months following the
termination of employment for any reason, Employee will not
call on, service, or solicit competing business from
customers of ENRON, its subsidiaries, divisions, or
affiliates whom that Employee, within the previous twenty-
four (24) months, (i) had or made contact with, or (ii) had
access to information and files about. These restrictions
are limited by geography to the specific places, addresses,
or locations where a customer is present and available for
soliciting or servicing.
5.4 During Employee's employment, and for a period of
twelve (12) months following the termination of employment
for any reason, Employee will not, either Directly or
Indirectly, call on, solicit, or induce any other employee
or officer of ENRON, its subsidiaries, divisions, or
affiliates whom Employee had contact with, knowledge of, or
association with in the course of employment with ENRON to
terminate his or her employment, and will not assist any
other person or entity in such a solicitation.
5.5 The parties are entering into this Agreement with
the express understanding that this Agreement is clear and
fully enforceable as written. If Employee ever decides
later to contend that any restriction on activities imposed
by this Agreement no longer is enforceable as written or
does not apply to an activity Employee intends to engage in
on behalf of a competing business, Employee first will
notify a member of ENRON's Board of Directors in writing and
meet with a company representative at least fourteen (14)
days before engaging in any activity that foreseeably could
fall within the questioned restriction to discuss resolution
of such claims (an "Early Resolution Conference"). Should
the parties not be able to resolve disputes at the Early
Resolution Conference, the parties agree to use
confidential, binding arbitration to resolve the disputes.
The arbitration shall be conducted in accordance with the
then-current employment arbitration rules of the Judicial
Arbitration & Mediation Services, Inc. (JAMS) before an
arbitrator licensed to practice law in Texas. Either party
may seek a temporary restraining order, injunction, specific
performance, or other equitable relief regarding the
provisions of this Section if the other party fails to
comply with obligations stated herein. The parties'
agreement to arbitrate applies only to the matters subject
to an Early Resolution Conference.
5.6 Employee warrants that Employee is not a party to
any other restrictive agreement limiting Employee's
activities in his/her employment by ENRON. Employee further
warrants that at the time of the signing of this Agreement,
Employee knows of no written or oral contract or of any
other impediment that would inhibit or prohibit employment
with ENRON, and that Employee will not knowingly use any
trade secret, confidential information, or other
intellectual property right of any other party in the
performance of Employee's duties hereunder. Employee shall
hold ENRON harmless from any and all suits and claims
arising out of any breach of such restrictive agreement or
contracts.
ARTICLE 6: MISCELLANEOUS:
6.1 Employee shall refrain, both during and after his
or her employment, from publishing any oral or written
statements about ENRON, its respective subsidiaries or
affiliates, or any of such entities' officers, employees,
agents, or representatives that are slanderous, libelous, or
defamatory; or that disclose private or confidential
information about their business affairs; or that constitute
an intrusion into their seclusion or private lives; or that
give rise to unreasonable publicity about their private
lives; or that place them in a false light before the
public; or that constitute a misappropriation of their name
or likeness.
6.2 Notices and all other communications shall be in
writing and shall be deemed to have been duly given when
personally delivered or when mailed by United States
registered or certified mail. Notices to ENRON shall be
sent to Enron Corp., 1400 Smith Street, Houston, Texas
77002, Attention: Corporate Secretary. Notices and
communications to Employee shall be sent to the address
Employee most recently provided to ENRON.
6.3 ENRON is an Oregon citizen. ENRON's principal
place of business is in Houston, Texas. Employee resides in
London, England. This Agreement was negotiated and signed
in Houston, Texas, and shall be performed in London,
England. Any litigation that may be brought by either party
involving the enforcement of this Agreement or the rights,
duties, or obligations of this Agreement, shall be brought
by either party involving the enforcement of this Agreement
or the rights, duties, or obligations of this Agreement,
shall be brought exclusively in the state or federal courts
sitting in Houston, Harris County, Texas. This Agreement
shall be governed in all respects by the laws of the state
of Texas, excluding any conflict-of-law rule or principle
that might refer the construction of the Agreement to the
laws of another state or country.
6.4 Other than as described in section 3.2 a, no
failure by either party at any time to give notice of any
breach by the other party of, or to require compliance with,
any condition or provision of this Agreement shall be deemed
a waiver of any provisions or conditions of this Agreement.
6.5 If a dispute arises out of or related to this
Agreement, other than a dispute regarding Employee's
obligations under Articles 4, 5 and 6.1, and if the dispute
cannot be settled through direct discussions, then ENRON and
Employee agree to try to settle the dispute in an amicable
manner by confidential mediation before having recourse to
any other proceeding or forum.
6.6 This Agreement shall be binding upon and inure to
the benefit of ENRON and any other person, association, or
entity that may acquire or succeed to all or substantially
all of the business or assets of ENRON. Employee's rights
and obligations under this Agreement are personal, and they
shall not be assigned or transferred without ENRON's prior
written consent.
6.7 Other agreements exist between ENRON and Employee
relating to the employment relationship (e.g., obligations
contained in Enron's Conduct of Business Affairs booklet and
benefit plans). This Agreement replaces and merges other,
previous agreements and discussions pertaining to the nature
of, term, and termination of Employee's employment
relationship with ENRON, and this Agreement constitutes the
entire agreement of the parties with respect to such subject
matters. No representation, inducement, promise, or
agreement has been made by either party with respect to such
subject matters, and no agreement, statement, or promise
relating to the employment of Employee by ENRON that is not
contained in this Agreement shall be valid or binding. Any
modification of this Agreement will be effective only if it
is in writing and signed by each party.
6.8 Employee shall at all times comply with United
States laws applicable to Employee's actions on behalf of
ENRON, including specifically, without limitation, the
United States Foreign Corrupt Practices Act, generally
codified in 15 USC 78 (FCPA), as the FCPA may hereafter be
amended, and/or its successor statutes. If Employee pleads
guilty to or nolo contendere or admits civil or criminal
liability under the FCPA or other applicable United States
law, or if a court finds that Employee has personal civil or
criminal liability under the FCPA or other applicable United
States law, or if a court finds that Employee committed an
action resulting in any Enron entity having civil or
criminal liability or responsibility under the FCPA or other
applicable United States law with knowledge of the
activities giving rise to such liability or knowledge of
facts from which Employee should have reasonably inferred
the activities giving rise to liability had occurred or were
likely to occur, such action or finding shall constitute
"cause" for termination under this Agreement unless ENRON'S
management committee (or, if there is no management
committee, the highest applicable level of ENRON's
management) determines that the actions found to be in
violation of the FCPA or other applicable United States law
were taken in good faith and in compliance with all
applicable policies of ENRON and its subsidiaries,
divisions, and affiliates.
IN WITNESS WHEREOF, ENRON and Employee have duly executed
this Agreement in multiple originals to be effective on the
date first stated above.
Enron Corp.
By: /s/ JEFFREY K. SKILLING
Jeffrey K. Skilling
President and Chief
Operating Officer
This ____ day of ________, 1998
Mark A. Frevert
/s/ MARK A. FREVERT
This 7th day of September, 1998
EXHIBIT "A" TO
EXECUTIVE EMPLOYMENT AGREEMENT
BETWEEN ENRON CORP. AND
MARK A. FREVERT
Employee Name: Mark A. Frevert
Term: June 1, 1998 through May 31, 2001
Position: Chairman and Chief Executive Officer,
Enron Capital & Trade Resources Corp. Europe
Location: London, England
Monthly Base Salary: Employee's monthly base salary
shall be Forty-One Thousand Six Hundred
and Sixty-Six and 67/100 Dollars
($41,666.67).
Bonus: Employee shall be eligible to
participate in the Enron Corp. Annual
Incentive Plan ("Plan") or any
appropriate replacement bonus plan of
ENRON. All bonuses shall be paid in
accordance with the terms and provisions
of the Plan, a portion of which may be
paid in cash and a portion of which may
be paid in stock options. Employee's
bonus amounts under this Plan shall be
based on a bonus target of $500,000.00.
In addition, if the Enron Wholesale
Group meets their financial targets,
Employee shall be eligible to receive an
additional $300,000.00 bonus target.
Geographic Region Worldwide
of Responsibility:
Period of Post- Employee's obligations in paragraph 5.2 shall
Employment survive the termination of employment and
Non-Competition extend through: (a) Twelve (12) months after
Obligations: Employee's last bonus payment of any kind from
ENRON; or (b) twelve (12) months after the
last date of Employee's employment with ENRON
if such employment ends during the Term of
this Agreement; or (c) twelve (12) months
following the expiration of the Term of this
Agreement, whichever is applicable.
Incentive Compensation:
Long Term Incentive
Compensation: Employee shall receive the following
Long Term Incentive Compensation:
1998
1. A grant of 30,000 shares
of Enron Corp. Restricted Stock with 25%
vesting on the date of Grant, and the
remainder to vest in 25% increments on
January 31, 1999, January 31, 2000, and
January 31, 2001. The specific terms
and conditions of these Restricted
Shares will be evidenced by a Grant
Agreement, which will govern.
2. A grant of 200,000 stock options,
with 20% vesting upon date of Grant, with
the remainder to vest in increments of
20% on December 31, 1998, December 31, 1999,
December 31, 2000, and December 31, 2001.
For 100,000 of the 200,000 options, the
difference between the $40-1/8 Enron Corp.
stock price and the actual grant price for
these options shall be delivered in additional
shares of Enron Corp. restricted stock tied
to the restricted stock vesting schedule
described above. For example, if the stock
option grant price is $55-1/8, the $15.00
difference will be multiplied by 100,000
and the sum shall be divided by 55-1/8 to
determine the number of additional shares
of Enron Corp. restricted stock.
1999 and 2000
3. In both 1999 and 2000,
Employee shall be granted stock options
having a grant value based on Black-
Scholes (as determined annually by the
Compensation Committee of the Enron
Corp. Board of directors similar to
other Enron Executives) of $2,120,000.00
for each year. For example, if the
Black-Scholes value of an Enron stock
option was $10.60, Employee would
receive 200,000 stock options
($2,120,000.00 , $10.60). These stock
options will be granted on December 31,
1998 and December 31, 1999, and shall
vest 20% on the date of grant and 20% on
December 31, of each of the next four
(4) years following the date of grant.
Each grant shall be evidenced by an
award agreement, which shall govern.
Enron Corp.
By: /s/ JEFFREY K. SKILLING
Jeffrey K. Skilling
President and Chief Operating Officer
This _____ day of ___________, 1998
Mark A. Frevert
/s/ MARK A. FREVERT
This 7th day of September, 1998