Exhibit 10.4
EMPLOYMENT AGREEMENT
EMPLOYMENT
AGREEMENT dated as of October 20, 2009, by and between NRDC
Acquisition Corp., a Delaware corporation (the
“Company”), and John Roche, residing at the address set
forth on the signature page hereof (the
“Executive”).
WHEREAS,
the Executive agrees to purchase common stock in the amount of up
to $2 million dollars, but in no event less than $500,000, at
market prices, prior to the record date (for the Special Meeting
for the stockholders’ and warrantholders of the Company
relating to the Framework Agreement (as defined below)), in
connection with the commencement of his employment with the
Company; and
WHEREAS,
the Company wishes to offer employment to the Executive, and the
Executive wishes to accept such offer on the terms set forth
below.
Accordingly,
in consideration of the mutual covenants contained herein and for
other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto agree as
follows:
1.
Term . The Company hereby employs the Executive, and the
Executive hereby accepts such employment, for an initial term
commencing as of the date on which the transactions contemplated by
the Framework Agreement are consummated (the “Commencement
Date”) and continuing for a three-year (3) period, unless
sooner terminated in accordance with the provisions of Section 4 or
Section 5; with such employment to continue for successive one-year
(1) periods in accordance with the terms of this Agreement (subject
to termination as aforesaid) unless the Company notifies the
Executive of non-renewal in writing six (6) months prior to the
expiration of the initial term and each annual renewal, as
applicable (the period during which the Executive is employed
hereunder being hereinafter referred to as the “Term”).
As referenced herein, the “Framework Agreement” shall
mean that certain agreement by and between the Company and NRDC
Capital Management, LLC, dated as of August 7, 2009. For the
avoidance of doubt, the Agreement, other than Sections 7.9 and 7.15
which shall be operative as of the
date of execution of this
Agreement, shall not become effective and the Term shall not
commence unless and until the transactions contemplated by the
Framework Agreement are consummated, and the Executive begins
actually performing services for the Company within five (5)
business days thereafter.
2.
Duties . During the Term, the Executive shall be employed by
the Company as Chief Financial Officer, and, as such, the Executive
shall faithfully perform for the Company the duties of said office
and shall perform such other duties of an executive, managerial or
administrative nature as shall be specified and designated from
time to time by the Chief Executive Officer of the Company. The
Executive shall devote substantially all of his business time and
effort to the performance of his duties hereunder; provided,
however, that Executive may engage in other activities for
Executive’s own account while employed hereunder, including,
without limitation, charitable, community and other business
activities, provided that such other activities do not materially
interfere with the performance of Executive’s duties
hereunder.
3.
Compensation .
3.1
Salary .
(a)
Subject
to Section 3.1(b), the Company shall pay the Executive during the
Term a salary at the rate of $500,000 per annum, in accordance with
the customary payroll practices of the Company applicable to senior
executives. At least annually, the Board of Directors of the
Company (the “Board”) shall review the
Executive’s Annual Salary and may provide for increases
therein as it may in its discretion deem appropriate (such annual
salary, as increased, the “Annual Salary”). In
addition, the Executive shall receive a payment, within five (5)
business days of the Commencement Date, equal to a pro rata portion
of the amount of his Annual Salary that would have been payable for
the period beginning on September 17, 2009 and ending on the
Commencement Date had he been employed by the Company during such
period.
(b) Notwithstanding
the foregoing, in the event the value of the “trust
account” (as defined in the Framework Agreement) following
the consummation of the transactions contemplated by the Framework
Agreement is less than $410 million, without deduction for any
expenses incurred by the
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Company in connection with the
transactions contemplated by the Framework Agreement but after
deducting the following amounts, (i) any amounts paid to
stockholders with whom the Company entered into forward or other
contracts to purchase such stockholders’ shares, as issued in
the Company’s initial public offering on October 23, 2007
(including shares purchased in the secondary market), and (ii) any
amounts paid to the Company’s stockholders who vote against
the transactions contemplated by the Framework Agreement and demand
that the Company convert their shares into cash, the
Executive’s Annual Salary will be reduced pro-rata according
to the amount by which the $410 million threshold is not met;
provided, however, that the Executive’s Annual Salary will in
no event be reduced below $350,000. To the extent the Company later
raises additional gross capital up to the $400 million initial
target, the Executive’s Annual Salary will be increased
pro-rata up to a maximum of $500,000. The parties acknowledge that
as of August 31, 2009, there was $410,128,745 (or $409,402,665 net
of $726,080 of accrued but unpaid expenses) in the trust
account.
3.2
Bonus . During the Term, in addition to the Annual Salary,
for each fiscal year of the Company ending during the Term, the
Executive shall receive an annual bonus of between 0% and 200% of
Annual Salary, as determined in the sole discretion of the Board
and based on both the Executive’s performance and the
performance of the Company (the “Annual Bonus”). Each
Annual Bonus shall be paid in the fiscal year following the year
for which such bonus is awarded, and in any event shall be paid
within 30 days after the financial statements for such prior fiscal
year are finalized.
3.3
Benefits - In General . Except with respect to benefits of a
type otherwise provided for under Section 3.4, the Executive shall
be permitted during the Term to participate in any group life,
hospitalization or disability insurance plans, health programs,
equity incentive plans, retirement plans, fringe benefit programs
and similar benefits that may be available to other senior
executives of the Company generally, in each case to the extent
that the Executive is eligible under the terms of such plans or
programs.
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3.4
Specific Benefits . Without limiting the generality of
Section 3.3, the Executive shall be entitled to vacation of twenty
(20) business days per year (to be taken at reasonable times in
accordance with the Company’s policies) and an automobile
allowance of $1,500 per month.
3.5
Equity Incentive Compensation . As of the Commencement Date,
the Executive shall be granted an award consisting of 50,000 shares
of restricted stock and 50,000 stock options under the
Company’s Equity Incentive Plan. In accordance with the terms
of the Company’s Equity Incentive Plan, the exercise price of
such stock options shall be at fair market value of the shares of
the Company’s common stock on the date on which the options
are granted. The stock options and restricted stock shall each vest
in equal installments on the first three anniversaries of the grant
date thereof.
3.6
Expenses . The Company shall pay or reimburse the Executive
for all ordinary and reasonable out-of-pocket expenses actually
incurred (and, in the case of reimbursement, paid) by the Executive
during the Term in the performance of the Executive’s
services under this Agreement; provided that the Executive submits
proof of such expenses, with the properly completed forms as
prescribed from time to time by the Company in accordance with the
Company’s policies, plans and/or programs.
4.
Termination upon Death or Disability . If the Executive dies
during the Term, the Term shall terminate as of the date of death,
and the obligations of the Company to or with respect to the
Executive shall terminate in their entirety upon such date except
as otherwise provided under this Section 4. If there is a
determination by the Company that the Executive has become
physically or mentally incapable of performing his duties under the
Agreement and such disability has disabled the Executive for a
cumulative period of one hundred eighty (180) days within a twelve
(12) month period (a “Disability”), the Company shall
have the right, to the extent permitted by law, to terminate the
employment of the Executive upon notice in writing to the
Executive. Upon termination of employment due to death or
Disability, (i) the Executive (or the Executive’s estate or
beneficiaries in the case of the death of the Executive) shall be
entitled to receive, in a lump sum payment (subject to Section 7.17
of this Agreement) within thirty (30) days following
Executive’s termination of employment, (A) Annual Salary,
Annual Bonus and other benefits earned and accrued under this
Agreement prior to the date of termination (and
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reimbursement under this
Agreement for expenses incurred prior to the date of termination),
(B) (x) the Executive’s Annual Salary and (y) an amount equal
to the average of the Annual Bonuses awarded to the Executive for
the last two years immediately preceding the year in which
Executive’s employment is terminated, provided, however, that
if no Annual Bonus is awarded to Executive for the year (or two
years) preceding the year in which Executive’s employment is
terminated, Executive will be entitled to a minimum bonus equal to
50% of the Executive’s Annual Salary (i.e., initially
$250,000), and (C) the Executive’s car allowance for one (1)
year; (ii) all outstanding unvested equity-based inc