Retirement Agreement - Wackenhut Corrections Corp. and John O'Rourke
WACKENHUT CORRECTIONS CORPORATION
RETIREMENT AGREEMENT
This Retirement Agreement is entered into by and between WACKENHUT
CORRECTIONS CORPORATION, a Florida corporation ("Company"), and JOHN O'ROURKE
("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 Chief Financial Officer and
Treasurer 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 August 1, 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 $12,500.00
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 Executives's
named beneficiary (designated as provided in Section 6 of this
Agreement and hereinafter referred to as "Beneficiary") a monthly
amount of $6,250.00 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 $6,250.00 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 purposes 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
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 280G(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
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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.
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
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public or private debts, judgments, alimony or separate maintenance, or
be transferable by operation of law in event of bankruptcy, insolvency
or otherwise.
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/ John G. O'Rourke By: /S/ George R. Wackenhut
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John G. O'Rourke George R. Wackenhut
Chief Financial Officer and Treasurer
Attest:
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(CORPORATE SEAL)
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