Retirement Agreement - Wackenhut Corrections Corp. and Wayne H. Calabrese
WACKENHUT CORRECTIONS CORPORATION
RETIREMENT AGREEMENT
This Retirement Agreement is entered into by and between WACKENHUT
CORRECTIONS CORPORATION, a Florida corporation ("Company"), and WAYNE H.
CALABRESE ("Executive").
WHEREAS, the Executive was a participant in the Wackenhut Corrections
Corporation's Senior Officer Retirement Plan (the "Former Plan"); and
WHEREAS, Executive has agreed to terminate his participation in the
Former Plan; and
WHEREAS, the Company desires to provide Executive with certain
retirement benefits, as set forth in this Agreement.
NOW THEREFORE, it is agreed as follows:
1. Employment
Company currently employs Executive as President and Chief Operating Officer
and may employ Executive in such other positions as may be determined from
time to time by the Board of Directors of Company and at such rate of
compensation as may be so determined. Executive will devote his full energy,
skill and best efforts to the affairs of Company on a full-time basis. It is
contemplated that such employment will continue until November 5, 2010 (the
"Retirement Date"), but nevertheless either Company or Executive may
terminate Executive's employment at any time and for any reason upon ten
(10) days written notice to the other.
2. Retirement
In the event Executive's employment continues until his Retirement Date,
upon retirement, and commencing with the first month after Executive
actually retires, Company will pay Executive $16,666.66 monthly for three
hundred (300) months.
3. Termination of Employment
If Executive terminates his employment with the Company for reason other
than death, or if Company terminates Executive's employment prior to
Executive's Retirement for reason other than death, Company will pay
Executive monthly, commencing with the first month after Executive's
Retirement Date and continuing for three hundred (300) months, the amount
specified in Section 2 above.
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4. Death
If Executive dies before his Retirement Date and before termination of his
employment with the Company, the Company shall pay Executive's named
beneficiary (designated as provided in Section 6 of this Agreement and
hereinafter referred to as "Beneficiary") a monthly amount of $8,333.33
commencing with the first month following death and continuing for one
hundred fifty (150) months thereafter. In the case of the death of Executive
after termination of employment with Company, but before his Retirement
Date, the Company shall pay to Beneficiary $8,333.33 commencing with the
first month following death and continuing for one hundred fifty (150)
months thereafter. If Executive dies within three hundred (300) months
following his Retirement Date and while receiving payments hereunder, the
Company shall pay Beneficiary the payments that would have been made to
Executive had he lived for the balance of said three hundred (300) month
period.
5. Change in Control
Upon the occurrence of a "Change in Control" (as defined in the Executive
Severance Agreement between the Executive and Company, dated May 4, 2001),
the Executive's Retirement Date shall automatically be changed for all
purpose to the date which is five years prior to the date specified in
Section 1 hereof. In addition, within ten (10) days following the date the
Executive's employment with the Company is terminated following a Change in
Control, the Company shall pay to the Executive or if the Executive dies to
the Beneficiary or Beneficiaries, the present value of all deferred
compensation provided for pursuant to this Agreement that would have been
paid if the Executive remained employed with the Company through the
Retirement Date. The present value shall be calculated (i) using a discount
rate equal to the lower of the rate provided in Internal Revenue Code
Section 28OG(d)(4), or six and one half percent (6-1/2%), and (ii) without
regard to any mortality factor or related probabilities.
6. Small Amounts
In the event the amount of any monthly payments provided herein shall be
less than Twenty ($20) Dollars, the Company in its sole discretion may in
lieu thereof pay the commuted value of such payments (calculated on the
basis of the interest rate and mortality assumptions being used by The
Northwestern Mutual Life Insurance Company of Milwaukee, Wisconsin, to
calculate immediate annuity rates on the date of this Agreement) to the
person entitled to such payments.
7. Beneficiary
The Beneficiary (or Beneficiaries) of any payments to be made after
Executive's death, shall be as designated by Executive and shown on Exhibit
A attached hereto or such other person or persons as Executive shall
designate in writing to the Company. If Executive has made no effective
designation of Beneficiaries, any such payments shall be made to Executive's
estate.
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8. Restrictions and Non-Competition
Executive shall not at any time, either directly or indirectly, accept
employment with, render service, assistance or advice to, own, manage,
operate, control or participate in the ownership, or allow his name to be
used by any competitor of the Company unless approved by the Board of
Directors of the Company. Determination by the Board of Directors of the
Company that Executive has engaged in any such activity shall be binding and
conclusive on all parties, and in addition to all other rights and remedies
which Company shall have, neither Executive nor Beneficiary shall be
entitled to any payments hereunder. In the event of a "Change in Control",
the provisions of this Section 8 shall no longer apply.
9. Insurance
If Company shall elect to purchase a life insurance contract to provide
Company with funds to make payments hereunder, Company shall at all times be
the sole and complete owner and beneficiary of such contract, and shall have
the unrestricted right to use all amounts and exercise all options and
privileges thereunder without knowledge or consent of Executive of
Beneficiary or any other person, it being expressly agreed that neither
Executive nor Beneficiary nor any other person shall have any right, title
or interest whatsoever in or to any such contract.
10. Source of Payments
Executive, Beneficiary and any other person or persons having or claiming a
right to payments hereunder or to any interest in this Agreement shall rely
solely on the unsecured promise of Company set forth herein, and nothing in
this Agreement shall be construed to give Executive, Beneficiary or any
other person or persons any right, title, interest or claim in or to any
specific asset, fund, reserve, account or property of any kind whatsoever
owned by Company or in which it may have any right, title or interest now or
in the future, but Executive shall have the right to enforce his claim
against Company in the same manner as any unsecured creditor.
11. Amendment
This Agreement may be amended at any time or from time to time by written
agreement of the parties.
12. Assignment
Neither Executive, nor Beneficiary, nor any other person entitled to
payments hereunder shall have power to transfer, assign, anticipate,
mortgage or otherwise encumber in advance any of such payments, nor shall
such payments be subject to seizure for the payment of public or private
debts, judgments, alimony or separate maintenance, or be transferable by
operation of law in event of bankruptcy, insolvency or otherwise.
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13. Waiver of Benefits under Former Plan
As consideration for this Agreement, Executive waives all benefits available
under the Former Plan and waives all claims, however arising, which he now
has or hereafter may be entitled to claim against the Company or its
affiliates under the Former Plan, and the Company's respective predecessors,
successors, assigns, owners, any affiliated or related corporations or
entities, arising from or in connection with or otherwise resulting from any
matter, event, state of facts, claim, contention or cause whatsoever,
occurring or existing from the beginning of time, in connection with or
relating to the Former Plan.
14. Binding Effect
This Agreement shall be binding upon the parties hereto, their heirs,
executors, administrators, successors and assigns. The Company agrees it
will not be a party to any merger, consolidation or reorganization, unless
and until its obligations hereunder shall be expressly assumed by its
successors.
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IN WITNESS WHEREOF, this Agreement shall be effective the 4th day of
May, 2001.
(Executive) (Company)
WACKENHUT CORRECTIONS
CORPORATION
/S/ Wayne H. Calabrese By: /S/ George R. Wackenhut
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Wayne H. Calabrese George R. Wackenhut
President and Chief Operating Officer
Attest:
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(CORPORATE SEAL)
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