UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
Form 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Date of Report (Date of earliest event reported) June 3, 2011 (May 27, 2011)
Travelport Limited
(Exact name of Registrant as specified in its charter)
         
Bermuda
(State or other jurisdiction
of incorporation)
  333-141714
(Commission File No.)
  98-0505100
(I.R.S. Employer
Identification Number)
300 Galleria Parkway
Atlanta, GA 30339

(Address of principal executive office)
Registrant’s telephone number, including area code (770) 563-7400
N/A
(Former name or former address if changed since last report)
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 


 

Item 5.02   Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
Changes in Roles; Appointment of Gordon Wilson to the Board
On May 27, 2011, the Compensation Committee of the Board of Directors (the “Board”) of Travelport Limited (the “Company”) approved certain actions set forth below in this Item 5.02.
Effective June 1, 2011, Jeff Clarke has transitioned from serving as our President and Chief Executive Officer to Executive Chairman of the Company in accordance with the provisions of an amended and restated employment agreement (as described below).
Effective June 1, 2011, Gordon Wilson has transitioned from serving as our Deputy Chief Executive Officer and President and Chief Executive Officer, GDS Business to President and Chief Executive Officer pursuant to a new service agreement (as described below). Mr. Wilson has also been appointed as a member of our Board, effective as of June 1, 2011, and is expected to be appointed to the Executive Committee of our Board. Mr. Wilson, age 44, has served as our Deputy Chief Executive Officer since November 2009 and as President and Chief Executive Officer of Travelport’s GDS business since January 2007. Mr. Wilson has 20 years of experience in the electronic travel distribution and airline IT industry. Prior to our acquisition of Worldspan in August 2007, Mr. Wilson served as President and Chief Executive Officer of Galileo. Mr. Wilson was Chief Executive Officer of B2B International Markets for Cendant’s Travel Distribution Services Division from July 2005 to August 2006 and for Travelport’s B2B International Markets from August 2006 to December 2006, as well as Executive Vice President of International Markets from 2003 to 2005. Mr. Wilson holds a Master’s degree in Law from the University of Cambridge, UK and a postgraduate diploma in Air and Space Law from University College, London.
Mr. Wilson does not have any family relationship with any director or executive officer of the Company. The Board did not appoint Mr. Wilson pursuant to any arrangement or understanding between Mr. Wilson and the Company or any other person.
Other than in connection with the employment arrangements described below, neither Mr. Clarke nor Mr. Wilson has a direct or indirect material interest in any transaction or currently proposed transaction in which the Company is or is to be a party in which the amount involved exceeds $120,000.
A copy of the press release issued by the Company on May 31, 2011 in connection with the transition of Mr. Clarke to Executive Chairman and Mr. Wilson to President and Chief Executive Officer is attached hereto as Exhibit 99.1.
Jeff Clarke’s Employment Agreement
On May 27, 2011, in connection with Mr. Clarke’s transition from the role of President and Chief Executive Officer to Executive Chairman, the Company entered into an amended and restated employment agreement with Mr. Clarke providing for this change in position and a related reduction in base salary to $750,000 per year.
Under the terms of the amended and restated employment agreement, Mr. Clarke will not be entitled to any cash severance benefits on termination of employment for any reason (his rights to a pro-rata bonus based on actual performance, equity acceleration and continued medical benefits remain in effect on the same terms as were in effect under his pre-existing employment agreement).
In connection with Mr. Clarke transitioning to the role of Executive Chairman and in settlement of the Company’s severance obligations under Mr. Clarke’s pre-existing employment agreement, the Company will establish a secular trust and deposit $2,605,104, less applicable

 


 

withholdings and deductions, into the trust. This amount will be paid to Mr. Clarke on the earliest to occur of (1) a Change in Control (as defined in the TDS Investor (Cayman) L.P. Agreement of Exempted Limited Partnership, as amended and/or restated from time to time); (2) the termination of Mr. Clarke’s employment; and (3) May 26, 2012. In addition, on May 31, 2011, in recognition of Mr. Clarke’s contribution to the sale of the Company’s GTA business, Mr. Clarke received a bonus equal to $5,000,000, less applicable withholdings and deductions.
A copy of the amended and restated employment agreement between the Company and Mr. Clarke, dated May 27, 2011, is attached hereto as Exhibit 10.1. The summary above is qualified in its entirety by the terms of the amended and restated employment agreement.
Gordon Wilson’s Service Agreement
On May 31, 2011, in connection with Mr. Wilson’s transition from the role of Deputy Chief Executive Officer and President and Chief Executive Officer, GDS Business to President and Chief Executive Officer and a member of the Board of Directors of the Company, the Company and Travelport International Limited, an indirect wholly owned subsidiary of the Company, entered into a new service agreement with Mr. Wilson providing for this change in position, effective June 1, 2011, and a related increase in base salary to £550,000 per year and target bonus to 150% of base salary. Other than as set forth in the previous sentence, the terms of Mr. Wilson’s service agreement are the same as those in his service agreement, dated as of March 30, 2007, between Mr. Wilson and Travelport International Limited, as amended in March 2011.
A copy of the service agreement among the Company, Travelport International Limited and Mr. Wilson, dated May 31, 2011, is attached hereto as Exhibit 10.2. The summary above is qualified in its entirety by the terms of the service agreement.
Eric Bock’s Letter Agreement
On May 27, 2011, the Company entered into a letter agreement with Mr. Bock, Executive Vice President, Chief Administrative Officer and General Counsel of the Company, which serves as an amendment to his employment agreement with Travelport Limited, dated August 3, 2009.
The letter agreement provides for Mr. Bock’s base salary to be increased, retroactive to January 1, 2011, to $600,000 per year. In addition, the letter agreement provides that Mr. Bock will not be entitled to any cash severance benefits on termination of employment for any reason (his rights to a pro-rata bonus based on actual performance, equity acceleration and continued medical benefits remain in effect in accordance with the terms of his employment agreement). In addition, on May 31, 2011, in recognition of Mr. Bock’s contribution to the sale of the Company’s GTA business, Mr. Bock received a bonus equal to $2,000,000, less applicable withholdings and deductions.
Except as described in the letter agreement, Mr. Bock’s employment agreement will continue in effect in accordance with its existing terms.
A copy of the letter agreement between the Company and Mr. Bock, dated May 27, 2011, is attached hereto as Exhibit 10.3. The summary above is qualified in its entirety by the terms of the letter agreement.
Philip Emery
On June 2, 2011, the Compensation Committee of the Board approved a bonus of £100,000, less applicable withholdings and deductions, to be paid to Philip Emery, Executive Vice President and Chief Financial Officer of the Company, in recognition of his contribution to the sale of the GTA business.

 


 

In addition, on June 2, 2011, the Board of Directors of TDS Investor (Cayman) L.P., our ultimate parent, approved a grant of 500,000 restricted equity units (“REUs”) to Mr. Emery pursuant to the TDS Investor (Cayman) L.P. Fifth Amended and Restated 2006 Interest Plan, the Sixth Amended and Restated Agreement of Exempted Limited Partnership in respect of the Partnership and an award agreement. The REUs will vest over a four-year period, based on the Company’s performance, and on the terms and conditions to be set forth in the REU award agreement.
The form of award agreement will be filed as an exhibit to our Quarterly Report on Form 10-Q for the fiscal quarter ending June 30, 2011. The form of TDS Investor (Cayman) L.P. Sixth Amended and Restated Agreement of Exempted Limited Partnership was filed as Exhibit 10.28 to the Annual Report on Form 10-K filed by the Company on May 11, 2008, and the TDS Investor (Cayman) L.P. Fifth Amended and Restated 2006 Interest Plan was filed as Exhibit 10.2 to the Quarterly Report on Form 10-Q filed by the Company on November 10, 2010.
Item 9.01   Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are filed as part of this report:
     
Exhibit No.   Description
10.1
  Amended and Restated Employment Agreement of Jeff Clarke, dated as of May 27, 2011.
 
   
10.2
  Service Agreement of Gordon A. Wilson, dated as of May 31, 2011.
 
   
10.3
  Letter Agreement of Eric J. Bock, dated as of May 27, 2011.
 
   
99.1
  Press Release, dated May 31, 2011.

 


 

SIGNATURE
     Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  TRAVELPORT LIMITED
 
 
  By:   /s/ Eric J. Bock    
    Eric J. Bock   
    Executive Vice President,
Chief Administrative Officer and
General Counsel 
 
 
Date: June 3, 2011

 


 

TRAVELPORT LIMITED
CURRENT REPORT ON FORM 8-K
      Report Dated June 3, 2011 (May 27, 2011)
EXHIBIT INDEX
     
10.1
  Amended and Restated Employment Agreement of Jeff Clarke, dated as of May 27, 2011.
 
   
10.2
  Service Agreement of Gordon A. Wilson, dated as of May 31, 2011.
 
   
10.3
  Letter Agreement of Eric J. Bock, dated as of May 27, 2011.
 
   
99.1
  Press Release, dated May 31, 2011.

 

Exhibit 10.1
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
(Jeff Clarke; Executive Chairman)
     AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “ Agreement ”) dated May 27, 2011 by and between Travelport Limited (formerly TDS Investor (Bermuda) Ltd.) (the “ Company ”), and Jeff Clarke (the “ Executive ”).
     WHEREAS, the Company and Executive previously entered into an Employment Agreement dated August 3, 2009 (the “ Prior Agreement ”); and
     WHEREAS, the Company and Executive wish to amend and restate the Prior Agreement as set forth below.
     NOW, THEREFORE, in consideration of the premises and mutual covenants herein and for other good and valuable consideration, the sufficiency of which is acknowledged, the parties agree as follows:
           1. Term of Employment . Subject to the provisions of Section 8 of this Agreement, Executive shall continue to be employed by the Company for a period commencing on June 1, 2011 and ending on June 1, 2012 (the “ Employment Term ”) on the terms and subject to the conditions set forth in this Agreement; provided , however , that commencing with June 1, 2012 and on each June 1 st thereafter (each an “ Extension Date ”), the Employment Term shall be automatically extended for an additional one-year period, unless the Company or Executive provides the other party hereto 120 days prior written notice before the next Extension Date that the Employment Term shall not be so extended.
           2. Position .
          (a) Effective June 1, 2011, Executive shall serve as the Company’s Executive Chairman. In such position, Executive shall have such duties and authority as shall be determined from time to time by the Board of Directors of the Company (the “Board”) and which are typically associated with the role of Executive Chairman.
          (b) During the Employment Term, Executive will devote Executive’s business time and best efforts to the performance of Executive’s duties hereunder and will not engage in any other business, profession or occupation for compensation or otherwise which would conflict or interfere with the rendition of such services either directly or indirectly, without the prior written consent of the Board; provided that nothing herein shall preclude Executive, subject to the prior approval of the Board, from accepting appointment to or continuing to serve on any board of directors or trustees of any business corporation or any charitable organization; provided in each case, and in the aggregate, that such activities do not conflict or interfere with the performance of Executive’s duties hereunder or conflict with Section 9.
           3. Base Salary . During the Employment Term, the Company shall pay Executive a base salary at the annual rate of no less than $750,000, payable in regular

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installments in accordance with the Company’s usual payment practices. Executive shall be entitled to such increases in Executive’s base salary, if any, as may be determined from time to time in the sole discretion of the Board. Executive’s annual base salary, as in effect from time to time, is hereinafter referred to as the “ Base Salary .”
           4. Annual Bonus . With respect to each full fiscal year during the Employment Term, Executive shall be eligible to earn an annual bonus award (an “ Annual Bonus ”) of up to one hundred and fifty percent (150%) of Executive’s Base Salary (the “ Target ”) based upon the achievement of an annual EBITDA target established by the Board within the first three months of each fiscal year during the Employment Term. As the Annual Bonus award is subject to the attainment of performance criteria, it may be paid, to the extent earned or not earned, at below target levels, and above target levels (with a maximum of 350% of the above referenced target level). The Annual Bonus, if any, shall be paid to Executive within two and one-half (2.5) months after the end of the applicable fiscal year.
           5. Special Bonus .
          (a) As soon as practicable following the date hereof, in recognition of Executive’s contribution to the sale of the GTA business, the Company or one of its subsidiaries shall pay to Executive a bonus equal to $5,000,000.00, less applicable withholdings and deductions.
          (b) In addition, in connection with Executive’s transition hereunder from President and Chief Executive Officer of the Company to its Executive Chairman and in settlement of severance obligations of the Company under the Prior Agreement, as soon as practicable following the date hereof, the Company shall establish a secular trust and deposit into such trust an amount equal to $2,605,104, less applicable withholdings and deductions (the “Trust Amount”). As soon as practicable following the earliest to occur of (1) a Change in Control (as defined in the TDS Investor (Cayman) L.P. Agreement of Exempted Limited Partnership, as amended and/or restated from time to time); (2) the termination of Executive’s employment; and (3) May 26, 2012 (the earliest to occur, the “ Payment Date ”), such trust shall pay to Executive the Trust Amount. Any earnings accrued on the Trust Amount will be paid to Executive on the Payment Date; provided, however, that if the Payment Date has not occurred prior to January 1, 2012, then earnings accrued on the Trust Amount through December 31, 2011 shall be paid to Executive on or prior to January 31, 2012.
           6. Employee Benefits . During the Employment Term, Executive shall be entitled to participate in the Company’s employee benefit plans (other than annual bonus and incentive plans) as in effect from time to time (collectively “ Employee Benefits ”), on the same basis as those benefits are generally made available to other senior executives of the Company.
           7. Business Expenses . During the Employment Term, reasonable business expenses incurred by Executive in the performance of Executive’s duties hereunder shall be reimbursed by the Company in accordance with Company policies.

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           8. Termination . The Employment Term and Executive’s employment hereunder may be terminated by either party at any time and for any reason; provided that Executive will be required to give the Company at least 30 days advance written notice of any resignation of Executive’s employment. Notwithstanding any other provision of this Agreement, the provisions of this Section 8 shall exclusively govern Executive’s rights upon termination of employment with the Company and its affiliates.
          (a)  By the Company For Cause or By Executive Other Than as a Result of a Constructive Termination .
          (i) The Employment Term and Executive’s employment hereunder may be terminated by the Company for Cause (as defined below) and shall terminate automatically upon Executive’s resignation other than as a result of a Constructive Termination (as defined in Section 8(c)); provided that Executive will be required to give the Company at least 30 days advance written notice of a resignation other than as a result of a Constructive Termination.
          (ii) For purposes of this Agreement, “ Cause ” means (A) Executive’s willful failure substantially to perform Executive’s duties to the Company (other than as a result of total or partial incapacity due to Disability) for a period of 10 days following receipt of written notice from the Company by Executive of such failure; provided that it is understood that this clause (A) shall not apply if a Company terminates Executive’s employment because of dissatisfaction with actions taken by Executive in the good faith performance of Executive’s duties to the Company, (B) theft or embezzlement of property of the Company or dishonesty in the performance of Executive’s duties to the Company, other than de minimis conduct that would not typically result in sanction by an employer of an executive in similar circumstances, (C) conviction which is not subject to routine appeals of right or a plea of “no contest” for (x) a felony under the laws of the United States or any state thereof or (y) a crime involving moral turpitude for which the potential penalty includes imprisonment of at least one year, (D) Executive’s willful malfeasance or willful misconduct in connection with Executive’s duties or any act or omission which is materially injurious to the financial condition or business reputation of the Company or its affiliates, (E) Executive purposefully or knowingly makes (or has been found to have made) a false certification to the Company pertaining to its financial statements, (F) by reason of any court or administrative order, arbitration award or other ruling, Executive’s ability to fully perform his duties as President and Chief Executive Officer or as a member of the Board is materially impaired or (G) Executive’s breach of the provisions of Sections 9 or 10 of this Agreement (excluding a breach of Section 10(a) by a statement made by Executive in good faith in Executive’s employment capacity). In the event that the Company asserts that grounds exist for Termination for Cause, unless such grounds are egregious and have caused the Company plain material harm, the Company shall so notify Executive and within no less than 5 days, nor more than 15 days, afford Executive a hearing before the Board or, if the Company is publicly traded, a committee consisting of the independent directors of the Board, at the Board’s option, regarding any disputed facts. The Board or the committee of the Board, as the case may be, shall make a determination regarding the existence of Cause upon completion of any such hearing; provided , however , that any determination that Cause exists shall require an affirmative

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resolution of the Board of Directors of the Company or the designated committee of the Board acted upon in accordance with applicable Company By-laws and, if the Company is publicly traded, concurred in by at least a majority of the independent directors (if any) of the Board. Notwithstanding the foregoing, the Company shall be entitled to immediately and unilaterally restrict or suspend Executive’s duties pending determination of the existence of Cause.
          (iii) If Executive’s employment is terminated by the Company for Cause, or if Executive resigns other than as a result of a Constructive Termination, Executive shall be entitled to receive:
     (A) the Base Salary through the date of termination;
     (B) any Annual Bonus earned, but unpaid, as of the date of termination for the immediately preceding fiscal year, paid in accordance with Section 4 (except to the extent payment is otherwise deferred pursuant to any applicable deferred compensation arrangement with the Company);
     (C) reimbursement, within 60 days following submission by Executive to the Company of appropriate supporting documentation) for any unreimbursed business expenses properly incurred by Executive in accordance with Company policy prior to the date of Executive’s termination; provided claims for such reimbursement (accompanied by appropriate supporting documentation) are submitted to the Company within 90 days following the date of Executive’s termination of employment; and
     (D) such Employee Benefits, if any, as to which Executive may be entitled under the employee benefit plans of the Company (the amounts described in clauses (A) through (D) hereof being referred to as the “ Accrued Rights ”).
Following such termination of Executive’s employment by the Company for Cause or resignation by Executive other than as a result of a Constructive Termination, except as set forth in this Section 8(a)(iii), Executive shall have no further rights to any compensation or any other benefits under this Agreement.
          (b)  Disability or Death .
          (i) The Employment Term and Executive’s employment hereunder shall terminate upon Executive’s death and may be terminated by the Company if Executive becomes physically or mentally incapacitated and is therefore unable for a period of nine (9) consecutive months or for an aggregate of twelve (12) months in any eighteen (18) consecutive month period to perform Executive’s duties (such incapacity is hereinafter referred to as “ Disability ”). Any question as to the existence of the Disability of Executive as to which Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to Executive and the Company. If Executive and the Company cannot agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select

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a third who shall make such determination in writing. The determination of Disability made in writing to the Company and Executive shall be final and conclusive for all purposes of the Agreement and any other agreement between any Company and Executive that incorporates the definition of “ Disability ”.
          (ii) Upon termination of Executive’s employment hereunder for either Disability or death, Executive or Executive’s estate (as the case may be) shall be entitled to receive:
     (A) the Accrued Rights;
     (B) a pro rata portion of any Annual Bonus, if any, that Executive would have been entitled to receive pursuant to Section 4 hereof in such year based upon the percentage of the fiscal year that shall have elapsed through the date of Executive’s termination of employment, payable when such Annual Bonus would have otherwise been payable to Executive pursuant to Section 4 had Executive’s employment not terminated; and
     (C) vesting of any equity-based awards then held by Executive with respect to the Company or its affiliates as, and to the extent, described in the definitive documentation related to such awards.
          Following Executive’s termination of employment due to death or Disability, except as set forth in this Section 8(b)(ii), Executive shall have no further rights to any compensation or any other benefits under this Agreement.
          (c)  By the Company Without Cause or Resignation by Executive as a Result of Constructive Termination .
          (i) The Employment Term and Executive’s employment hereunder may be terminated by the Company without Cause or by Executive’s as a result of a Constructive Termination.
          (ii) For purposes of this Agreement, a “ Constructive Termination ” shall be deemed to have occurred upon (A) any material failure of the Company or its affiliates to fulfill its obligations under this Agreement (including without limitation a reduction to the Base Salary, as increased from time to time) or any agreement pursuant to which Executive holds or is granted equity in the Company or its affiliates, (B) the failure to nominate Executive for election to the Board, (C) a failure of Executive to be elected or re-elected to membership on the Board resulting from the failure of the Company’s majority stockholder (so long as such a majority stockholder exists) to vote shares (other than with respect to shares acquired in a public offering) entitled to vote for the election of directors of the Company held by them in favor of election of Executive as a member of the Board, (D) the failure of any successor to the business operations of the Company to assume the obligations of the Company under this Agreement, (E) the primary business office for Executive being relocated to any location which is more than 30 miles from the city limits of Parsippany, New Jersey, New York, New York, Chicago, Illinois or

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San Francisco, California, (G) the Company’s election not to renew the initial Employment Term or any subsequent extension thereof (except as a result of Executive’s reaching retirement age, as determined by Company policy) or (F) a material and sustained diminution to Executive’s duties and responsibilities; provided that any of the events described in clauses (A) through (F) of this Section 8(c)(ii) shall constitute a Constructive Termination only if the Company fails to cure such event within 30 days after receipt from Executive of written notice of the event which constitutes a Constructive Termination; provided , further , that a “ Constructive Termination ” shall cease to exist for an event on the 60th day following the later of its occurrence or Executive’s knowledge thereof, unless Executive has given the Company written notice thereof prior to such date.
          (iii) If Executive’s employment is terminated by the Company without Cause (other than by reason of death or Disability) or if Executive resigns as a result of a Constructive Termination, Executive shall be entitled to receive:
  (A)   the Accrued Rights;
  (B)   a pro rata portion of any Annual Bonus, if any, that Executive would have been entitled to receive pursuant to Section 4 hereof in such year based upon the percentage of the fiscal year that shall have elapsed through the date of Executive’s termination of employment, payable when such Annual Bonus would have otherwise been payable to Executive pursuant to Section 4 had Executive’s employment not terminated;
  (C)   subject to Executive’s execution, delivery and non-revocation of a separation agreement and general release substantially in the form attached hereto as Exhibit A (“the General Release”) within forty-five (45) days following termination of employment, and further subject to Executive’s continued compliance with the provisions of Sections 9 and 10, Executive shall be eligible for continued participation in the health and welfare benefits of Travelport Inc. (or its successor), a subsidiary of Travelport Ltd., for thirty-six (36) months at active employee rates, in accordance with and subject to the terms of Executive’s this Agreement and the General Release;
  (D)   subject to Executive’s execution, delivery and non-revocation of the General Release within forty-five (45) days following termination of employment, vesting of any equity-based awards then held by Executive with respect to the Company or its affiliates as, and to the extent, described in the definitive documentation related to such awards.
          Following Executive’s termination of employment by the Company without Cause (other than by reason of Executive’s death or Disability) or by Executive’s resignation as

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a result of a Constructive Termination, except as set forth in this Section 8(c)(iii), Executive shall have no further rights to any compensation or any other benefits under this Agreement.
          (d)  Deferred Compensation Payout . Upon Executive’s termination of employment, Executive will be paid Executive’s account balance under the Travelport Officer Deferred Compensation Plan (the “Deferred Compensation Plan”) in accordance with the terms of the Deferred Compensation Plan.
          (e)  Expiration of Employment Term .
          (i) Election Not to Extend the Employment Term. In the event either party elects not to extend the Employment Term pursuant to Section 1, unless Executive’s employment is earlier terminated pursuant to paragraphs (a), (b) or (c) of this Section 8 and except as set forth in paragraph (c)(ii) of this Section 8, Executive’s termination of employment hereunder (whether or not Executive continues as an employee of the Company thereafter) shall be deemed to occur on the close of business on the day immediately preceding the next scheduled Extension Date and Executive shall be entitled to receive the Accrued Rights. Following such termination of Executive’s employment hereunder as a result of either party’s election not to extend the Employment Term, except as set forth in this Section 8(e)(i), Executive shall have no further rights to any compensation or any other benefits under this Agreement.
          (ii) Continued Employment Beyond the Expiration of the Employment Term. Unless the parties otherwise agree in writing, continuation of Executive’s employment with the Company beyond the expiration of the Employment Term shall be deemed an employment at-will and shall not be deemed to extend any of the provisions of this Agreement and Executive’s employment may thereafter be terminated at will by either Executive or the Company; provided that the provisions of Sections 9, 10, and 11 of this Agreement shall survive any termination of this Agreement or Executive’s termination of employment hereunder.
          (f)  Notice of Termination . Any purported termination of employment by the Company or by Executive (other than due to Executive’s death) shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 13(i) hereof. For purposes of this Agreement, a “ Notice of Termination ” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of employment under the provision so indicated.
          (g)  Board/Committee Resignation . Upon termination of Executive’s employment for any reason, Executive agrees to resign, as of the date of such termination and to the extent applicable, from the Board (and any committees thereof) and the Board of Directors (and any committees thereof) of any of the Company’s affiliates.
           9. Non-Competition .

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          (a) From the date hereof while employed by the Company and for a two-year period following the date Executive ceases to be employed by the Company (the “ Restricted Period ”), irrespective of the cause, manner or time of any termination, Executive shall not use his status with the Company or any of its affiliates to obtain loans, goods or services from another organization on terms that would not be available to him in the absence of his relationship to the Company or any of its affiliates.
          (b) During the Restricted Period, Executive shall not make any statements or perform any acts intended to or which may have the effect of advancing the interest of any Competitors of the Company or any of its affiliates or in any way injuring the interests of the Company or any of its affiliates and the Company and its affiliates shall not make or authorize any person to make any statement that would in any way injure the personal or business reputation or interests of Executive; provided however , that, subject to Section 10, nothing herein shall preclude the Company and its affiliates or Executive from giving truthful testimony under oath in response to a subpoena or other lawful process or truthful answers in response to questions from a government investigation; provided , further , however, that nothing herein shall prohibit the Company and its affiliates from disclosing the fact of any termination of Executive’s employment or the circumstances for such a termination. For purposes of this Section 9(b), the term “ Competitor ” means any enterprise or business that is engaged in, or has plans to engage in, at any time during the Restricted Period, any activity that competes with the businesses conducted during or at the termination of Executive’s employment, or then proposed to be conducted, by the Company and its affiliates in a manner that is or would be material in relation to the businesses of the Company or the prospects for the businesses of the Company (in each case, within 100 miles of any geographical area where the Company or its affiliates manufactures, produces, sells, leases, rents, licenses or otherwise provides its products or services). During the Restricted Period, Executive, without prior express written approval by the Board, shall not (A) engage in, or directly or indirectly (whether for compensation or otherwise) manage, operate, or control, or join or participate in the management, operation or control of a Competitor, in any capacity (whether as an employee, officer, director, partner, consultant, agent, advisor, or otherwise) or (B) develop, expand or promote, or assist in the development, expansion or promotion of, any division of an enterprise or the business intended to become a Competitor at any time after the end of the Restricted Period or (C) own or hold a Proprietary Interest in, or directly furnish any capital to, any Competitor of the Company. Executive acknowledges that the Company’s and its affiliates businesses are conducted nationally and internationally and agrees that the provisions in the foregoing sentence shall operate throughout the United States and the world (subject to the definition of “ Competitor ”).
          (c) During the Restricted Period, Executive, without express prior written approval from the Board, shall not solicit any members or the then current clients of the Company or any of its affiliates for any existing business of the Company or any of its affiliates or discuss with any employee of the Company or any of its affiliates information or operations of any business intended to compete with the Company or any of its affiliates.

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          (d) During the Restricted Period, Executive shall not interfere with the employees or affairs of the Company or any of its affiliates or solicit or induce any person who is an employee of the Company or any of its affiliates to terminate any relationship such person may have with the Company or any of its affiliates, nor shall Executive during such period directly or indirectly engage, employ or compensate, or cause or permit any person with which Executive may be affiliated, to engage, employ or compensate, any employee of the Company or any of its affiliates.
          (e) For the purposes of this Agreement, “ Proprietary Interest ” means any legal, equitable or other ownership, whether through stock holding or otherwise, of an interest in a business, firm or entity; provided , that ownership of less than 5% of any class of equity interest in a publicly held company shall not be deemed a Proprietary Interest.
          (f) The period of time during which the provisions of this Section 9 shall be in effect shall be extended by the length of time during which Executive is in breach of the terms hereof as determined by any court of competent jurisdiction on the Company’s application for injunctive relief.
          (g) Executive agrees that the restrictions contained in this Section 9 are an essential element of the compensation Executive is granted hereunder and but for Executive’s agreement to comply with such restrictions, the Company would not have entered into this Agreement.
          (h) It is expressly understood and agreed that although Executive and the Company consider the restrictions contained in this Section 9 to be reasonable, if a final judicial determination is made by a court of competent jurisdiction that the time or territory or any other restriction contained in this Agreement is an unenforceable restriction against Executive, the provisions of this Agreement shall not be rendered void but shall be deemed amended to apply as to such maximum time and territory and to such maximum extent as such court may judicially determine or indicate to be enforceable. Alternatively, if any court of competent jurisdiction finds that any restriction contained in this Agreement is unenforceable, and such restriction cannot be amended so as to make it enforceable, such finding shall not affect the enforceability of any of the other restrictions contained herein.
           10. Confidentiality; Intellectual Property .
          (a)  Confidentiality .
          (i) Executive will not at any time (whether during or after Executive’s employment with the Company) (x) retain or use for the benefit, purposes or account of Executive or any other person; or (y) disclose, divulge, reveal, communicate, share, transfer or provide access to any person outside the Company (other than its professional advisers who are bound by confidentiality obligations), any non-public, proprietary or confidential information — including without limitation trade secrets, know-how, research and development, software, databases, inventions, processes, formulae, technology, designs and other intellectual property,

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information concerning finances, investments, profits, pricing, costs, products, services, vendors, customers, clients, partners, investors, personnel, compensation, recruiting, training, advertising, sales, marketing, promotions, government and regulatory activities and approvals — concerning the past, current or future business, activities and operations of the Company, its subsidiaries or affiliates and/or any third party that has disclosed or provided any of same to the Company on a confidential basis (“ Confidential Information ”) without the prior written authorization of the Board.
          (ii) “ Confidential Information ” shall not include any information that is (a) generally known to the industry or the public other than as a result of Executive’s breach of this covenant or any breach of other confidentiality obligations by third parties; (b) made legitimately available to Executive by a third party without breach of any confidentiality obligation; or (c) required by law to be disclosed; provided that Executive shall give prompt written notice to the Company of such requirement, disclose no more information than is so required, and cooperate, at the Company’s cost, with any attempts by the Company to obtain a protective order or similar treatment.
          (iii) Except as required by law, Executive will not disclose to anyone, other than Executive’s immediate family and legal or financial advisors, the existence or contents of this Agreement (unless this Agreement shall be publicly available as a result of a regulatory filing made by the Company or its affiliates); provided that Executive may disclose to any prospective future employer the provisions of Sections 9 and 10 of this Agreement provided they agree to maintain the confidentiality of such terms.
          (iv) Upon termination of Executive’s employment with the Company for any reason, Executive shall (x) cease and not thereafter commence use of any Confidential Information or intellectual property (including without limitation, any patent, invention, copyright, trade secret, trademark, trade name, logo, domain name or other source indicator) owned or used by the Company, its subsidiaries or affiliates; (y) immediately destroy, delete, or return to the Company, at the Company’s option, all originals and copies in any form or medium (including memoranda, books, papers, plans, computer files, letters and other data) in Executive’s possession or control (including any of the foregoing stored or located in Executive’s office, home, laptop or other computer, whether or not Company property) that contain Confidential Information or otherwise relate to the business of the Company, its affiliates and subsidiaries, except that Executive may retain only those portions of any personal notes, notebooks and diaries that do not contain any Confidential Information; and (z) notify and fully cooperate with the Company regarding the delivery or destruction of any other Confidential Information of which Executive is or becomes aware.
          (b)  Intellectual Property .
          (i) If Executive has created, invented, designed, developed, contributed to or improved any works of authorship, inventions, intellectual property, materials, documents or other work product (including without limitation, research, reports, software, databases, systems, applications, presentations, textual works, content, or audiovisual materials) (“ Works ”), either

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alone or with third parties, prior to Executive’s employment by the Company, that are relevant to or implicated by such employment (“ Prior Works ”), Executive hereby grants the Company a perpetual, non-exclusive, royalty-free, worldwide, assignable, sublicensable license under all rights and intellectual property rights (including rights under patent, industrial property, copyright, trademark, trade secret, unfair competition and related laws) therein for all purposes in connection with the Company’s current and future business.
          (ii) If Executive creates, invents, designs, develops, contributes to or improves any Works, either alone or with third parties, at any time during Executive’s employment by the Company and within the scope of such employment and/or with the use of any the Company resources (“ Company Works ”), Executive shall promptly and fully disclose same to the Company and hereby irrevocably assigns, transfers and conveys, to the maximum extent permitted by applicable law, all rights and intellectual property rights therein (including rights under patent, industrial property, copyright, trademark, trade secret, unfair competition and related laws) to the Company to the extent ownership of any such rights does not vest originally in the Company.
          (iii) Executive agrees to keep and maintain adequate and current written records (in the form of notes, sketches, drawings, and any other form or media requested by the Company) of all Company Works. The records will be available to and remain the sole property and intellectual property of the Company at all times.
          (iv) Executive shall take all requested actions and execute all requested documents (including any licenses or assignments required by a government contract) at the Company’s expense (but without further remuneration) to assist the Company in validating, maintaining, protecting, enforcing, perfecting, recording, patenting or registering any of the Company’s rights in the Prior Works and Company Works. If the Company is unable for any other reason to secure Executive’s signature on any document for this purpose, then Executive hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as Executive’s agent and attorney in fact, to act for and in Executive’s behalf and stead to execute any documents and to do all other lawfully permitted acts in connection with the foregoing.
          (v) Executive shall not improperly use for the benefit of, bring to any premises of, divulge, disclose, communicate, reveal, transfer or provide access to, or share with the Company any confidential, proprietary or non-public information or intellectual property relating to a former employer or other third party without the prior written permission of such third party. Executive hereby indemnifies, holds harmless and agrees to defend the Company and its officers, directors, partners, employees, agents and representatives from any breach of the foregoing covenant. Executive shall comply with all relevant policies and guidelines of the Company, including regarding the protection of confidential information and intellectual property and potential conflicts of interest. Executive acknowledges that the Company may amend any such policies and guidelines from time to time, and that Executive remains at all times bound by their most current version.

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          (vi) The provisions of Section 9 and 10 shall survive the termination of Executive’s employment for any reason.
           11. Specific Performance . Executive acknowledges and agrees that the Company’s remedies at law for a breach or threatened breach of any of the provisions of Sections 9 or 10 would be inadequate and the Company would suffer irreparable damages as a result of such breach or threatened breach. In recognition of this fact, Executive agrees that, in the event of such a breach or threatened breach, in addition to any remedies at law, the Company, without posting any bond, shall be entitled to cease making any payments or providing any benefit otherwise required by this Agreement and obtain equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available.
           12. Excess Parachute Excise Tax Payments .
          (a) If it is determined (as hereafter provided) that any payment or distribution by the Company to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise pursuant to or by reason of any other agreement, policy, plan, program or arrangement, including without limitation any stock option, stock appreciation right or similar right, or the lapse or termination of any restriction on or the vesting or exercisability of any of the foregoing (a “ Payment ”), would be subject to the excise tax imposed by Section 4999 of the Code (or any successor provision thereto) by reason of being “contingent on a change in ownership or control” of the Company, within the meaning of Section 280G of the Code (or any successor provision thereto) or to any similar tax imposed by state or local law, or any interest or penalties with respect to such excise tax (such tax or taxes, together with any such interest and penalties, are hereafter collectively referred to as the “ Excise Tax ”), then Executive shall be entitled to receive an additional payment or payments (a “ Gross-Up Payment ”) in an amount such that, after payment by Executive of all taxes (including any interest or penalties imposed with respect to such taxes), including any Excise Tax, imposed upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments; provided , however , if Executive’s Payment is, when calculated on a net-after-tax basis, less than $50,000 in excess of the amount of the Payment which could be paid to Executive under Section 280G of the Code without causing the imposition of the Excise Tax, then the Payment shall be limited to the largest amount payable (as described above) without resulting in the imposition of any Excise Tax (such amount, the “ Capped Amount ”).
          (b) Subject to the provisions of Section 12(a) hereof, all determinations required to be made under this Section 12, including whether an Excise Tax is payable by Executive and the amount of such Excise Tax and whether a Gross-Up Payment is required and the amount of such Gross-Up Payment, shall be made by the nationally recognized firm of certified public accountants (the “ Accounting Firm ”) used by the Company prior to the Change in Control (or, if such Accounting Firm declines to serve, the Accounting Firm shall be a nationally recognized firm of certified public accountants selected by Executive). The Accounting Firm shall be directed by the Company or Executive to submit its preliminary determination and detailed

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supporting calculations to both the Company and Executive within 15 calendar days after the Termination Date, if applicable, and any other such time or times as may be requested by the Company or Executive. If the Accounting Firm determines that any Excise Tax is payable by Executive and that the criteria for reducing the Payment to the Capped Amount (as described in Section 12(a) above) is met, then the Company shall reduce the Payment by the amount which, based on the Accounting Firm’s determination and calculations, would provide Executive with the Capped Amount, and pay to Executive such reduced Payment. If the Accounting Firm determines that an Excise Tax is payable, without reduction pursuant to Section 12(a), above, the Company shall pay the required Gross-Up Payment to, or for the benefit of, Executive within five business days after receipt of such determination and calculations. If the Accounting Firm determines that no Excise Tax is payable by Executive, it shall, at the same time as it makes such determination, furnish Executive with an opinion that he has substantial authority not to report any Excise Tax on his/her federal, state, local income or other tax return. Any determination by the Accounting Firm as to the amount of the Gross-Up Payment shall be binding upon the Company and Executive absent a contrary determination by the Internal Revenue Services or a court of competent jurisdiction; provided , however , that no such determination shall eliminate or reduce the Company’s obligation to provide any Gross-Up Payment that shall be due as a result of such contrary determination. As a result of the uncertainty in the application of Section 4999 of the Code (or any successor provision thereto) and the possibility of similar uncertainty regarding state or local tax law at the time of any determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that will not have been made by the Company should have been made (an “ Underpayment ”), consistent with the calculations required to be made hereunder. In the event that the Company exhausts or fails to pursue its remedies pursuant to Section 12(a) hereof and Executive thereafter is required to make a payment of any Excise Tax, Executive shall direct the Accounting Firm to determine the amount of the Underpayment that has occurred and to submit its determination and detailed supporting calculations to both the Company and Executive as promptly as possible. Any such Underpayment shall be promptly paid by the Company to, or for the benefit of, Executive within five business days after receipt of such determination and calculations.
          (c) The Company and Executive shall each provide the Accounting Firm access to and copies of any books, records and documents in the possession of the Company or Executive, as the case may be, reasonably requested by the Accounting Firm, and otherwise cooperate with the Accounting Firm in connection with the preparation and issuance of the determination contemplated by Section 12(a) hereof.
          (d) The federal, state and local income or other tax returns filed by Executive (or any filing made by a consolidated tax group which includes the Company) shall be prepared and filed on a consistent basis with the determination of the Accounting Firm with respect to the Excise Tax payable by Executive. Executive shall make proper payment of the amount of any Excise Tax, and at the request of the Company, provide to the Company true and correct copies (with any amendments) of his/her federal income tax return as filed with the Internal Revenue Service and corresponding state and local tax returns, if relevant, as filed with the applicable taxing authority, and such other documents reasonably requested by the Company, evidencing

13


 

such payment. If prior to the filing of Executive’s federal income tax return, or corresponding state or local tax return, if relevant, the Accounting Firm determines that the amount of the Gross-Up Payment should be reduced, Executive shall within five business days pay to the Company the amount of such reduction.
          (e) The fees and expenses of the Accounting Firm for its services in connection with the determinations and calculations contemplated by Sections 12(b) and (d) hereof shall be borne by the Company. If such fees and expenses are initially advanced by Executive, the Company shall reimburse Executive the full amount of such fees and expenses within five business days after receipt from Executive of a statement therefor and reasonable evidence of his/her payment thereof.
          (f) In the event that the Internal Revenue Service claims that any payment or benefit received under this Agreement constitutes an “excess parachute payment,” within the meaning of Section 280G(b)(1) of the Code, Executive shall notify the Company in writing of such claim. Such notification shall be given as soon as practicable but no later than 10 business days after Executive is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. Executive shall not pay such claim prior to the expiration of the 30 day period following the date on which Executive gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company notifies Executive in writing prior to the expiration of such period that it desires to contest such claim, Executive shall (i) give the Company any information reasonably requested by the Company relating to such claim; (ii) take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company and reasonably satisfactory to Executive; (iii) cooperate with the Company in good faith in order to effectively contest such claim; and (iv) permit the Company to participate in any proceedings relating to such claim; provided , however , that the Company shall bear and pay directly all costs and expenses (including, but not limited to, additional interest and penalties and related legal, consulting or other similar fees) incurred in connection with such contest and shall indemnify and hold Executive harmless, on an after-tax basis, for and against any Excise Tax or other tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses.
          (g) The Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct Executive to pay the tax claimed and sue for a refund or contest the claim in any permissible manner, and Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided , however , that if the Company directs Executive to pay such claim and sue for a refund, the Company shall advance the amount of such payment to Executive on an interest-free basis, and shall indemnify and hold Executive

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harmless, on an after-tax basis, from any Excise Tax or other tax (including interest and penalties with respect thereto) imposed with respect to such advance or with respect to any imputed income with respect to such advance; and provided , further , that if Executive is required to extend the statute of limitations to enable the Company to contest such claim, Executive may limit this extension solely to such contested amount. The Company’s control of the contest shall be limited to issues with respect to which a corporate deduction would be disallowed pursuant to Section 280G of the Code and Executive shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal Revenue Service or any other taxing authority. In addition, no position may be taken nor any final resolution be agreed to by the Company without Executive’s consent if such position or resolution could reasonably be expected to adversely affect Executive (including any other tax position of Executive unrelated to matters covered hereby).
          (h) If, after the receipt by Executive of an amount advanced by the Company in connection with the contest of the Excise Tax claim, Executive becomes entitled to receive any refund with respect to such claim, Executive shall promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto); provided , however , if the amount of that refund exceeds the amount advanced by the Company or it is otherwise determined for any reason that additional amounts could be paid to the Named Executive without incurring any Excise Tax, any such amount will be promptly paid by the Company to the named Executive. If, after the receipt by Executive of an amount advanced by the Company in connection with an Excise Tax claim, a determination is made that Executive shall not be entitled to any refund with respect to such claim and the Company does not notify Executive in writing of its intent to contest the denial of such refund prior to the expiration of 30 days after such determination, such advance shall be forgiven and shall not be required to be repaid and shall be deemed to be in consideration for services rendered after the date of the Termination.
           13. Miscellaneous .
          (a)  Governing Law . This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts of laws principles thereof.
          (b)  Entire Agreement/Amendments . Except as expressly set forth in this Agreement or in any definitive documentation regarding Executive’s equity granted or purchased pursuant to the TDS Investor (Cayman) L.P. 2006 Interest Plan, as amended and/or restated from time to time (“the Equity Plan”), this Agreement contains the entire understanding of the parties with respect to the employment of Executive by the Company. There are no restrictions, agreements, promises, warranties, covenants or undertakings between the parties with respect to the subject matter herein other than those expressly set forth herein. This Agreement may not be altered, modified, or amended except by written instrument signed by the parties hereto.
          (c)  No Waiver . The failure of a party to insist upon strict adherence to any term of this Agreement on any occasion shall not be considered a waiver of such party’s rights or

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deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Agreement.
          (d)  Severability . In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions of this Agreement shall not be affected thereby.
          (e)  Assignment . This Agreement, and all of Executive’s rights and duties hereunder, shall not be assignable or delegable by Executive. Any purported assignment or delegation by Executive in violation of the foregoing shall be null and void ab initio and of no force and effect. This Agreement may be assigned by the Company to a person or entity which is an affiliate or a successor in interest to substantially all of the business operations of the Company. Upon such assignment, the rights and obligations of the Company hereunder shall become the rights and obligations of such affiliate or successor person or entity.
          (f)  Set Off; No Mitigation . The Company’s obligation to pay Executive the amounts provided and to make the arrangements provided hereunder shall be subject to set-off, counterclaim or recoupment of amounts owed by Executive to the Company or its affiliates. Executive shall not be required to mitigate the amount of any payment provided for pursuant to this Agreement by seeking other employment, taking into account the provisions of Section 10 of this Agreement.
          (g)  Compliance with IRC Section 409A . Notwithstanding anything herein to the contrary, (i) if at the time of Executive’s termination of employment with the Company Executive is a “specified employee” as defined in Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the deferral of the commencement of any payments or benefits otherwise payable hereunder as a result of such termination of employment is necessary in order to prevent any accelerated or additional tax under Section 409A of the Code, then the Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Executive) until the date that is six months following Executive’s termination of employment with the Company (or the earliest date as is permitted under Section 409A of the Code) and (ii) if any other payments of money or other benefits due to Executive hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner, determined by the Board, that does not cause such an accelerated or additional tax. The Company shall consult with Executive in good faith regarding the implementation of the provisions of this Section 13(g); provided that neither the Company nor any of its employees or representatives shall have any liability to Executive with respect to thereto.

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          (h)  Successors; Binding Agreement . This Agreement shall inure to the benefit of and be binding upon personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.
          (i)  Notice . For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand or overnight courier or three days after it has been mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth below in this Agreement, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt.
          If to the Company, addressed to:
Travelport Limited
300 Galleria Parkway
Atlanta, GA 30339
Attention: Eric Bock, General Counsel
Fax: (770) 563-7878
If to Executive, to the address set forth on the signature page of this Agreement or at the current address listed in the Company’s records.
          (j)  Executive Representation . Executive hereby represents to the Company that the execution and delivery of this Agreement by Executive and the Company and the performance by Executive of Executive’s duties hereunder shall not constitute a breach of, or otherwise contravene, the terms of any employment agreement or other agreement or policy to which Executive is a party or otherwise bound.
          (k)  Prior Agreements . Upon the commencement of the Employment Term, this Agreement supersedes all prior agreements and understandings (including verbal agreements) between Executive and the Company and/or its affiliates regarding the terms and conditions of Executive’s employment with the Company and/or its affiliates including, without limitation, the Prior Agreement; provided, however that this Agreement does not supersede any prior written agreements with Executive regarding his housing allowance and related benefits, which shall continue only until the end of his current lease. The Prior Agreements are hereby terminated upon the commencement of the Employment Term covered by this Agreement.
          (l)  Cooperation . Executive shall provide Executive’s reasonable cooperation in connection with any action or proceeding (or any appeal from any action or proceeding) which relates to events occurring during Executive’s employment hereunder. The Company will reimburse Executive for any and all reasonable expenses reasonably incurred in connection with Executive’s compliance with this Section 13(l). This provision shall survive any termination of this Agreement.

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          (m)  Release . Executive hereby acknowledges that no event or circumstance has occurred on or prior to the date hereof that would constitute a Constructive Termination within the meaning of the Prior Agreement or this Agreement and, by executing this Agreement, Executive hereby releases the Company and its affiliates from any and all claims under or in connection with the Prior Agreement or this Agreement arising from facts and circumstances occurring prior to Executive’s execution of this Agreement.
          (n)  Withholding Taxes . The Company may withhold from any amounts payable under this Agreement such Federal, state and local taxes as may be required to be withheld pursuant to any applicable law or regulation.
          (o)  Counterparts . This Agreement may be signed in counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.
          (p)  Arbitration . Except as otherwise provided in Section 11 of this Agreement, any controversy, dispute, or claim arising out of, in connection with, or in relation to, the interpretation, performance or breach of this Agreement, including, without limitation, the validity, scope, and enforceability of this section, may at the election of any party, be solely and finally settled by arbitration conducted in New York, New York, by and in accordance with the then existing rules for commercial arbitration of the American Arbitration Association, or any successor organization and with the Expedited Procedures thereof (collectively, the “ Rules ”). Each of the parties hereto agrees that such arbitration shall be conducted by a single arbitrator selected in accordance with the Rules; provided that such arbitrator shall be experienced in deciding cases concerning the matter which is the subject of the dispute. Any of the parties may demand arbitration by written notice to the other and to the Arbitrator set forth in this Section 1(o) (“ Demand for Arbitration ”). Each of the parties agrees that if possible, the award shall be made in writing no more than 30 days following the end of the proceeding. Any award rendered by the arbitrator(s) shall be final and binding and judgment may be entered on it in any court of competent jurisdiction. Each of the parties hereto agrees to treat as confidential the results of any arbitration (including, without limitation, any findings of fact and/or law made by the arbitrator) and not to disclose such results to any unauthorized person. The parties intend that this agreement to arbitrate be valid, enforceable and irrevocable. In the event of any arbitration with regard to this Agreement, each party shall pay its own legal fees and expenses, provided , however , that the parties agree to share the cost of the Arbitrator’s fees.
          (q)  Public Corporation . Executive represents that, as of the date of the filing of the particular financial statement or other public filing referred to below, he had no knowledge of any accounting irregularity with respect to, or any material misstatement or omission contained in, any financial statement or other public filing made by any publicly-traded corporation on whose board of directors Executive served as of such date (each such corporation being referred to as a “ Public Corporation ”).

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     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.
         
  TRAVELPORT LIMITED
 
 
  By:   /s/ Eric J. Bock   
    Name:   Eric J. Bock   
    Title:   EVP & General Counsel    
 
 
  EXECUTIVE
 
 
  /s/ Jeff Clarke   
  Jeff Clarke   
     

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Exhibit A — Form of General Release
AGREEMENT AND GENERAL RELEASE
Travelport Limited (“Travelport”) and Travelport Operations, Inc. (collectively, the “Company”) and [NAME OF EXECUTIVE] (hereinafter collectively with his heirs, executors, administrators, successors and assigns, “EXECUTIVE”), mutually desire to enter into this Agreement and General Release (“Agreement” or “Agreement and General Release”) and agree that:
     The terms of this Agreement are the products of mutual negotiation and compromise between EXECUTIVE and the Company; and
     The meaning, effect and terms of this Agreement have been fully explained to EXECUTIVE; and
     EXECUTIVE is hereby advised, in writing, by the Company that he should consult with an attorney prior to executing this Agreement; and
     EXECUTIVE is being afforded twenty-one (21) days from the date of this Agreement to consider the meaning and effect of this Agreement; and
     EXECUTIVE understands that he may revoke the general release contained in paragraph 4 of this Agreement (“the General Release”) for a period of seven (7) calendar days following the day he executes this Agreement and the General Release shall not become effective or enforceable until the revocation period has expired, and no revocation has occurred. Any revocation within this period must be submitted, in writing, to [NAME OF CONTACT] in the Company’s [NAME] Department and state, “I hereby revoke my acceptance of the General Release.” Said revocation must be personally delivered to [NAME OF CONTACT] in the Company’s [NAME] Department, or mailed to [NAME OF CONTACT] in the Company’s [NAME] Department and postmarked within seven (7) calendar days of execution of this Agreement. In the event of a revocation of the General Release, the remainder of this Agreement shall remain in full force and effect; and
     EXECUTIVE has carefully considered other alternatives to executing this Agreement and General Release.
     THEREFORE, EXECUTIVE and the Company, for the full and sufficient consideration set forth below, agree as follows:

 


 

[EXECUTIVE] Agreement and General Release
[DATE]
Page 2 of 11
     1. EXECUTIVE’s employment shall be terminated effective on the Last Day of Employment. Following his Last Day of Employment, other than as set forth below or in the attached Personal Statement of Termination Benefits, EXECUTIVE shall not be eligible for any other payments from the Company.
     2. In full satisfaction of the Company’s obligations under Section 8(c)(iii) of the Employment Agreement, the Company agrees to provide EXECUTIVE with the benefits set forth in the attached Personal Statement of Termination Benefits under the captions “Accrued Rights”, “Pro Rata Portion of [YEAR] BONUS”, “Severance Benefits”, and “Equity”. The Severance Benefits are subject to EXECUTIVE’s continued compliance with the provisions of Section 9 and 10 of the Employment Agreement. EXECUTIVE understands and agrees that he would not receive the Severance Benefits or the Equity Acceleration, except for his execution of this Agreement and the fulfillment of the promises contained herein, and that such consideration is greater than any amount to which he would otherwise be entitled as an employee of the Company.
     3. The Company will also provide EXECUTIVE with a neutral reference to any entity other than the Released Parties. Upon inquiry to the Human Resources department, prospective employers (other than the Released Parties) will be advised only as to the dates of EXECUTIVE’s employment and his most recent job title. Last salary will be provided if EXECUTIVE has provided a written release for the same.
     4. Except as otherwise expressly provided by this Agreement or the right to enforce the terms of this Agreement, EXECUTIVE, of his own free will knowingly and voluntarily releases and forever discharges the Company, their current and former parents, and their shareholders, affiliates (including without limitation Orbitz Worldwide, Inc. and its subsidiaries), subsidiaries, divisions, predecessors, successors and assigns and the employees, officers, directors, advisors and agents thereof (collectively referred to throughout this Agreement as the “Released Parties”, or a “Released Party”) from any and all actions or causes of action, suits, claims, charges, complaints, promises demands and contracts (whether oral or written, express or implied from any source), or any nature whatsoever, known or unknown, suspected or unsuspected, which against the Released Parties EXECUTIVE or EXECUTIVE’s heirs, executors, administrators, successors or assigns ever had, now have or hereafter can shall or may have by reason of any matter, cause or thing whatsoever arising any time prior to the time EXECUTIVE executes this Agreement, including, but not limited to:
  a.   any and all matters arising out of EXECUTIVE’s employment by the Company or any of the Released Parties and the termination of that

 


 

[EXECUTIVE] Agreement and General Release
[DATE]
Page 3 of 11
      employment, and that includes but is not limited to any claims for salary, allegedly unpaid wages, bonuses, commissions, retention pay, severance pay, vacation pay, or any alleged violation of the National Labor Relations Act, any claims for discrimination of any kind under the Age Discrimination in Employment Act of 1967 as amended by the Older Workers Benefit Protection Act, Title VII of the Civil Rights Act of 1964, Sections 1981 through 1988 of Title 42 of the United States Code, any claims under the Employee Retirement Income Security Act of 1974 (except for benefits that are or become vested on or prior to the Last Day of Employment, which are not affected by this Agreement, including without limitation any benefits under the 401(k) Plan and the Deferred Compensation Plan, as each of such terms is defined in the attached Personal Statement of Termination Benefits, which the Company acknowledges are fully vested and which shall be paid in accordance with their respective terms and EXECUTIVE’s applicable payment elections), the Americans With Disabilities Act of 1990, the Fair Labor Standards Act (to the extent such claims can be released), the Occupational Safety and Health Act, the Consolidated Omnibus Budget Reconciliation Act of 1985, the Federal Family and Medical Leave Act (to the extent such claims can be released); and
 
  b.   [APPLICABLE STATE(S) PROVISIONS]
 
  c.   any other federal, state or local civil or human rights law, or any other alleged violation of any local, state or federal law, regulation or ordinance, and/or public policy, implied or expressed contract, fraud, negligence, estoppel, defamation, infliction of emotional distress or other tort or common-law claim having any bearing whatsoever on the terms and conditions and/or termination of his employment with the Company including, but not limited to, any statutes or claims providing for the award of costs, fees, or other expenses, including reasonable attorneys’ fees, incurred in these matters.
Notwithstanding the foregoing release of claims in this paragraph of this Agreement:
    Nothing in the release of claims in this paragraph shall impact EXECUTIVE’s equity granted or purchased pursuant to the TDS Investor (Cayman) L.P. 2006 Interest Plan, as amended and/or restated from time to time.
 
    EXECUTIVE has a right to indemnification and advancement from and by the Company, to the extent in existence as of the date hereof pursuant to the Company’s by-

 


 

[EXECUTIVE] Agreement and General Release
[DATE]
Page 4 of 11
      laws, and such right to indemnification and advancement shall survive the termination of his employment in accordance with such by-laws and applicable law.
 
    The Company represents that it had Directors & Officers (“D&O”) insurance coverage, including “tail coverage”, during EXECUTIVE’s employment with the Company, and while he served as an officer for TDS Investor (Cayman) L.P and its subsidiaries, EXECUTIVE was covered under such D&O coverage for the period he served as an officer. EXECUTIVE shall continue to be entitled to the benefits of such coverage with respect to his services performed through the Last Day of Employment, subject to the applicable terms of the applicable policies.
     5. EXECUTIVE also acknowledges that he does not have any current charge, claim or lawsuit against one or more of the Released Parties pending before any local, state or federal agency or court regarding his employment and his separation from employment. EXECUTIVE understands that nothing in this Agreement prevents him from filing a charge or complaint with or from participating in an investigation or proceeding conducted by the Equal Employment Opportunity Commission (“EEOC”) or any other federal, state or local agency charged with the enforcement of any employment or labor laws, although by signing this Agreement EXECUTIVE is giving up any right to monetary recovery that is based on any of the claims he has released. EXECUTIVE also understands that if he files such a charge or complaint, he has, as part of this Agreement, waived the right to receive any remuneration beyond what EXECUTIVE has received in this Agreement.
     6. EXECUTIVE shall not seek or be entitled to any personal recovery, in any action or proceeding that may be commenced on EXECUTIVE’s behalf in any way arising out of or relating to the matters released under this Agreement.
     7. EXECUTIVE represents that he has not and agrees that he will not in any way disparage the Company or any Released Party, their current and former officers, directors and employees, or make or solicit any comments, statements, or the like to the media or to others that may be considered to be derogatory or detrimental to the good name or business reputation of any of the aforementioned parties or entities. Following the full execution of and the effective date of this Agreement, the Company will direct the then-current members of the Travelport Senior Leadership Team (“the SLT”) not to disparage EXECUTIVE; provided, however, that the Company’s obligation under this paragraph shall not be ongoing and will be fulfilled once the Company directs the SLT not to disparage EXECUTIVE.
     8. EXECUTIVE understands that if this Agreement were not signed, he would have the right to voluntarily assist other individuals or entities in bringing claims against Released Parties. EXECUTIVE hereby waives that right and agrees that he will not provide any such

 


 

[EXECUTIVE] Agreement and General Release
[DATE]
Page 5 of 11
assistance other than assistance in an investigation or proceeding conducted by the United States Equal Employment Opportunity Commission or other federal, state or local agency, or pursuant to a valid subpoena or court order. EXECUTIVE agrees that if such a request for assistance if by any agency of the federal, state or local government, or pursuant to a valid subpoena or court order, he shall advise the Company in writing of such a request no later than three (3) days after receipt of such request.
     9. EXECUTIVE acknowledges and confirms that he has returned all Company property to the Company, including his identification card, and computer hardware and software, all paper or computer based files, business documents, and/or other records as well as all copies thereof, credit cards, keys and any other Company supplies or equipment in his possession. Finally, any amounts owed to the Company have been paid.
     10. This Agreement is made in the State of [NAME OF STATE] and shall be interpreted under the laws of said State. Its language shall be construed as a whole, according to its fair meaning, and not strictly for or against either party. Should any provision of this Agreement be declared illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be enforceable, including the General Release (as defined herein), such provision shall immediately become null and void, leaving the remainder of this Agreement in full force and effect. However, if as a result of any action initiated by EXECUTIVE, any portion of the General Release (as defined herein) were ruled to be unenforceable for any reason, EXECUTIVE shall return consideration equal to the Severance Benefits and Equity Acceleration provided to EXECUTIVE under this Agreement.
     11. EXECUTIVE agrees that neither this Agreement nor the furnishing of the consideration for this Agreement shall be deemed or construed at any time for any purpose as an admission by the Company of any liability or unlawful conduct of any kind, all of which the Company denies.
     12. This Agreement may not be modified, altered or changed except upon express written consent of both parties wherein specific reference is made to this Agreement.
     13. This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any prior agreements or understandings between the parties other than the Employment Agreement and the Management Equity Award Agreements (including without limitation the post-employment restrictive covenants contained in the Employment Agreement and the Management Equity Award Agreements), which agreements shall continue to apply in

 


 

[EXECUTIVE] Agreement and General Release
[DATE]
Page 6 of 11
accordance with their respective terms, except to the extent otherwise specifically provided herein.
     14. EXECUTIVE agrees to cooperate with and, consistent with his other employment obligations, to make himself reasonably available to Travelport Limited and its General Counsel, the Company may reasonably request, to assist it in any matter regarding Travelport or its affiliates, subsidiaries, and predecessors, including giving truthful testimony in any potential or filed litigation, arbitration, mediation or similar proceeding litigation involving Travelport and its affiliates, subsidiaries, and their predecessors, over which EXECUTIVE has knowledge or information. The Company will reimburse EXECUTIVE for any and all reasonable expenses reasonably incurred in connection with EXECUTIVE’s compliance with this paragraph.
     15. In consideration for the Severance Benefits and Equity Acceleration being provided to EXECUTIVE pursuant to this Agreement, EXECUTIVE warrants and affirms to Travelport that he has at all times conducted herself as a fiduciary of, and with sole regard to that which is in best interests of, Travelport and its affiliates and their predecessors. He affirms that in conducting business for Travelport and its affiliates and their predecessors, he has done so free from the influence of any conflicting personal or professional interests, without favor for or regard of personal considerations, and that he has not in any material respect violated the Travelport Code of Business Conduct & Ethics (“Travelport Code”). Toward that end, EXECUTIVE understands that this affirmation is a material provision of this Agreement, and, should the Company determine that EXECUTIVE has engaged in business practices inconsistent with the affirmation set forth herein then EXECUTIVE agrees that he shall have committed a material breach of this Agreement, and the Severance Benefits provided to EXECUTIVE under this Agreement shall not have been earned. In that case, EXECUTIVE shall be liable for the return of consideration equal to such payments and benefits.
THE PARTIES HAVE READ AND FULLY CONSIDERED THIS AGREEMENT AND GENERAL RELEASE AND ARE MUTUALLY DESIROUS OF ENTERING INTO SUCH AGREEMENT AND GENERAL RELEASE. EXECUTIVE UNDERSTANDS THAT THIS DOCUMENT SETTLES, BARS AND WAIVES ANY AND ALL CLAIMS HE HAD OR MIGHT HAVE AGAINST THE COMPANY; AND HE ACKNOWLEDGES THAT HE IS NOT RELYING ON ANY OTHER REPRESENTATIONS, WRITTEN OR ORAL, NOT SET FORTH IN THIS DOCUMENT. HAVING ELECTED TO EXECUTE THIS AGREEMENT AND GENERAL RELEASE, TO FULFILL THE PROMISES SET FORTH HEREIN, AND TO RECEIVE THEREBY THE SUMS AND BENEFITS SET FORTH IN PARAGRAPH 2 ABOVE, EXECUTIVE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS AGREEMENT AND GENERAL RELEASE. IF

 


 

[EXECUTIVE] Agreement and General Release
[DATE]
Page 7 of 11
THIS DOCUMENT IS RETURNED EARLIER THAN 21 DAYS FROM THE LAST DATE OF EMPLOYMENT, THEN EXECUTIVE ADDITIONALLY ACKNOWLEDGES AND WARRANTS THAT HE HAS VOLUNTARILY AND KNOWINGLY WAIVED THE 21 DAY REVIEW PERIOD, AND THIS DECISION TO ACCEPT A SHORTENED PERIOD OF TIME IS NOT INDUCED BY THE COMPANY THROUGH FRAUD,MISREPRESENTATION, A THREAT TO WITHDRAW OR ALTER THE OFFER PRIOR TO THE EXPIRATION OF THE 21 DAYS, OR BY PROVIDING DIFFERENT TERMS TO EMPLOYEES WHO SIGN RELEASES PRIOR TO THE EXPIRATION OF SUCH TIME PERIOD.

 


 

[EXECUTIVE] Agreement and General Release
[DATE]
Page 8 of 11
     THEREFORE, the parties to this Agreement and General Release now voluntarily and knowingly execute this Agreement.
     
 
  EXECUTIVE
 
 
   
 
 
   
Signed and sworn before me this __ day of ____, _____
   
 
   
 
   
 
Notary Public
   
 
  TRAVELPORT LIMITED
 
   
 
  By:
 
  Name:
 
  Title:
 
   
Signed and sworn to before me this __ day of _____, ___
   
 
   
 
   
 
Notary Public
   
 
  TRAVELPORT OPERATIONS, INC.
 
   
 
  By:
 
  Name:
 
  Title:
 
   
Signed and sworn to before me this __ day of ____, __
   
 
   
 
   
 
Notary Public
   

 


 

[EXECUTIVE] Agreement and General Release
[DATE]
Page 9 of 11
PERSONAL STATEMENT OF TERMINATION BENEFITS
Date: MONTH DAY, YEAR
     
EXECUTIVE NAME:
  NAME
 
  (“you” or “EXECUTIVE”)
 
   
LAST DAY OF EMPLOYMENT:
  MONTH DAY, YEAR
ACCRUED RIGHTS :
As set forth as Section 8(c)(iii)(A) and Section 8(a)(iii)(A)-(D) of the Employment Agreement and subject to the conditions thereof, you will receive the following basic benefits following the termination of your employment:
    Base Salary through your Last Day of Employment;
 
    Any Annual Bonus earned, but unpaid, as of the date of termination for the immediately preceding fiscal year, paid in accordance with Section 4 of the Employment Agreement (except to the extent payment is otherwise deferred pursuant to any applicable deferred compensation arrangement with the Company);
 
    Reimbursement of unreimbursed business expenses pursuant to Travelport policy; and
 
    Employee Benefits pursuant to employee benefit plans of the Company through the Last Day of Employment.
PRO RATA PORTION OF [YEAR/PORTION OF YEAR] BONUS :
Pursuant to Section 8(c)(iii)(B) of the Employment Agreement, you will receive the following benefit following the termination of your employment:
      A pro rata portion of any Annual Bonus, if any, that you would have been entitled to receive pursuant to Section 4 of the Employment Agreement in such year based upon the percentage of the fiscal year that shall have lapsed through the Last Day of Employment (and for which you have not already received an Annual Bonus), payable when the [YEAR/PORTION OF YEAR] bonus would have otherwise been payable to you pursuant to Section 4 of the Employment Agreement had your employment not been terminated.

 


 

[EXECUTIVE] Agreement and General Release
[DATE]
Page 10 of 11
SEVERANCE BENEFITS (“Severance Benefits”) :
Pursuant to and subject to Section 8(c)(iii)(C) of the Employment Agreement, you will receive the following payments and benefits following the termination of your employment:
     HEALTH AND WELFARE BENEFITS:
      Continued participation for thirty-six (36) months at active employee rates. This period shall run concurrently with COBRA. To the extent that these benefits are taxable to you under Section 105(h) of the Internal Revenue Code, the Company will provide a gross-up to you to cover any taxes due from you on such benefits.
     LAPTOP COMPUTER:
      At your option, the sale to you, on or about the time of your Last Day of Employment, of the ownership interest in the [MAKE AND MODEL NUMBER] laptop computer that the Company has assigned to you, Serial Number [XXXXXXX], as of the date of this Agreement, (“the Laptop”), for fair market value pursuant to the Company’s policy. You shall provide the Company with reasonable advance written notice prior to your Last Day of Employment as to whether you wish to purchase the Laptop. The ownership interest in the Laptop shall be transferred only after the Company has removed all confidential and proprietary information from the computer and taken any other measures it deems necessary to protect its interests.
Unless otherwise defined herein, all capitalized terms set forth above shall have the meaning set forth in the Employment Agreement. In the event of Executive’s death or disability after the Last Day of Employment, Executive’s estate and beneficiaries, as applicable, shall receive the pay and benefits (or remaining portion thereof) the set forth in this Personal Statement of Termination Benefits, subject to Executive’s (or his estate’s) execution, delivery, and non-revocation of the General Release within the applicable time period.
POST-EMPLOYMENT RESTRICTIVE COVENANTS (as set forth in Employment Agreement and Management Equity Award Agreements):
     
Non-competition:
  Two (2) years from Last Day of Employment
Non-solicitation of clients and employees:
  Two (2) years from Last Day of Employment
Confidential Information:
  No time limit
Intellectual Property:
  No time limit

 


 

[EXECUTIVE] Agreement and General Release
[DATE]
Page 11 of 11
For the avoidance of doubt, the term “affiliates” in the post-employment restrictive covenants in the Employment Agreement and your Management Equity Award Agreements only include entities owned by The Blackstone Group to the extent such entities are engaged in the same businesses of Travelport Limited and its subsidiaries as of the Last Day of Employment.
EQUITY (“Equity Acceleration”) :
You will remain the owner of certain Class A-2 Interests, subject to the terms of the applicable Management Equity Award Agreements (including any amendments thereto), the TDS Investor (Cayman) L.P. Agreement of Limited Partnership (as amended and/or restated from time to time), the TDS Investor (Cayman) Interest Plan (as amended and/or restated from time to time), and any other definitive documentation entered into by you and TDS Investor (Cayman) L.P. regarding your Travelport equity.
TAX ISSUES :
As set forth in Section 13(g) of the Employment Agreement, this Personal Statement of Termination Benefits is intended to comply with the requirements of Section 409A of the Internal Revenue Code (“ Section 409A ”) and regulations promulgated thereunder. To the extent that any provision in this agreement is ambiguous as to its compliance with Section 409A, the provision shall be read in such a manner so that all payments under this Agreement shall not be subject to an excise tax under Section 409A. Notwithstanding anything contained in the agreement to the contrary, if necessary to comply with the restriction in Section 409A(a)(2)(B) of the Code concerning payments to “specified employees”, any payment on account of your separation from service that would otherwise be due hereunder within six months after such separation shall nonetheless be delayed until no later than the first full pay period following the first business day of the seventh month following your separation from service. In addition, notwithstanding anything contained herein to the contrary, you shall not be considered to have terminated employment with the Company for purposes of causing any amount due under this agreement to be made unless you would be considered to have incurred a “termination of employment” from the Company and its affiliates within the meaning of Treasury Regulation §1.409A-1(h)(1)(ii). All amounts provided above will be subject to applicable taxes, deductions and withholding.

 

Exhibit 10.2
31 May 2011
TRAVELPORT INTERNATIONAL LIMITED
and
GORDON WILSON
 
SERVICE AGREEMENT
 

 


 

SERVICE AGREEMENT
DATE: 31 May 2011
PARTIES
  1.   Travelport International Limited (formerly Galileo International Ltd) (the “Company”) (a wholly owned indirect subsidiary of Travelport Limited), the registered office of which is at Axis Park, 10 Hurricane Way, Langley, Berks SL3 8US, UK or such other location the Company determines to be its corporate headquarters;
  2.   Solely for purposes of clause 4.9 hereof, Travelport Limited, a Bermudan Corporation, (“Travelport”);
  3.   Gordon Wilson (the “Executive” ).
IT IS AGREED AS FOLLOWS:
1.   DEFINITIONS
    In this agreement the following definitions apply:
    “Agent” means all and any travel agents with whom the Executive had contact or about whom he became aware of or informed in the course of his employment:
  (a)   who shall at the Termination Date be negotiating with a Group Company to be involved in the supply of Restricted Products or Restricted Services; or
  (b)   who has at any time during the period of twelve months prior to the Termination Date been involved in the supply of Restricted Products or Restricted Services.
    “Associated Company” means any company 20 per cent or more of the equity share capital of which is owned directly or indirectly by the Company (applying the provisions of section 838 of the Income and Corporation Taxes Act 1988 in the determination of ownership), or any other Group Company or any company to which the Company (or any other Group Company) renders managerial, administrative or technical services;
    “Board” means the board of directors of Travelport from time to time including any committee to which he is appointed;
    “Business Day” means a day other than a Saturday, Sunday or a day which is a Public Holiday in the United Kingdom;
    “Businesses” means all and any trades or other commercial activities of any Group Company
  (a)   with which the Executive shall have been concerned or involved to any material extent at any time during the period of twelve months prior to the Termination Date and which the relevant Group Company shall carry on with a view to profit;

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    “Client” means any person with whom the Executive had material contact or about whom he became aware of or informed in the course of his employment:
  (a)   who shall at the Termination Date be negotiating with a Group Company for the supply of any Restricted Products or the provision of any Restricted Services; or
 
  (b)   to whom a Group Company shall at the Termination Date supply any Restricted Products or provide any Restricted Services;
    “Confidential Business Information” means all and any Corporate Information, Marketing Information, Technical Information and other information (whether or not recorded in documentary form or on computer disk or tape) which is of a commercially sensitive or confidential nature and any information in respect of which the Company or any Group Company owes an obligation of confidentiality to any third party:
  (a)   which the Executive shall acquire or has acquired at any time during his employment by the Company but which does not form part of the Executive’s own stock in trade; and
  (b)   which is not readily ascertainable to persons not connected with the Company either at all or without a significant expenditure of labour, skill or money;
    “Corporate Information” means all and any information (whether or not recorded in documentary form or on computer disk or tape) relating to the business methods, corporate plans, management systems, finances, maturing new business opportunities or research and development projects of any Group Company;
    “Distributor” means any person with whom the Executive had material contact or about whom he became aware of or informed in the course of his employment
  (a)   who pursuant to a contract provides sales and marketing services to a Group Company in any territory of the world at the Termination Date; or
  (b)   who shall at the Termination Date be negotiating with a Group Company to provide sales and marketing services to a Group Company in any territory of the world;
    “Employee” means any person who is or was, at any time during the period of twelve months ending on the Termination Date, employed or engaged by a Group Company in a senior management, senior sales or senior technical position and who, by reason of such a position, possesses any Confidential Business Information;
 
    “Employment” means the Executive’s employment under this agreement;
 
    “Group” means all Group Companies from time to time;
    “Group Company” means any Subsidiary, Holding Company or Ultimate Holding Company of the Company (or any Associated Company of the Company) from time to time and the Company;

Page 3


 

    “Holding Company” means a holding company as defined in section 1159 of the Companies Act 2006;
    “Intellectual Property” means any invention, which is wholly or partly the property of the Company (or any other Group Company), design or copyright work which is devised, developed or created by the Executive (whether alone or in conjunction with any other person) in the course of his employment by the Company (or any other Group Company);
    “Marketing Information” means all and any information (whether or not recorded in documentary form or on computer disk or tape) relating to the marketing or sales of any past, present or future product or service of a Group Company including, without limitation, sales targets and statistics, market research reports, sales techniques, price lists, discount structures, advertising and promotional material, the names, addresses, telephone numbers, contact names and identities of clients and potential clients, commercial, technical contacts of and suppliers and potential suppliers or consultants to a Group Company, the nature of their business operations, their requirements for any product or service sold or purchased by a Group Company and all confidential aspects of their business relationship with the relevant Group Company;
    “Material Interest” means:
  (a)   the holding of any position as director, officer, employee, consultant, partner, principal or agent;
  (b)   the direct or indirect control or ownership (whether jointly or alone) of any shares (or any voting rights attached to them) or debentures save for the ownership for investment purposes only of not more than 3 per cent of the issued ordinary share of any company whose shares are listed on any Recognised Investment Exchange (as defined in section 285 of the Financial Services and Markets Act 2000); or
  (c)   the direct or indirect provision of any financial assistance;
    “Named Competitor” means any business or entity that competes with the Company, any Group Company or any part of Travelport’s business with which the Executive is involved.
    Restricted Period” means the period of twelve months commencing on the Termination Date unless the Company shall have exercised its right to place the Executive on “garden leave” under clause 3.4 of this Agreement in which case such period of twelve months shall be reduced by such period as the Executive shall have spent on “garden leave”;
    “Restricted Products” means all and any products of a kind which shall be dealt in, produced, marketed or sold by a Group Company in the ordinary course of the Businesses;
    “Restricted Services” means all and any services of a kind which shall be provided by a Group Company in the ordinary course of the Businesses;

Page 4


 

    “Subsidiary” means a subsidiary as defined in section 1159 of the Companies Act 2006;
    “Supplier” means any person with whom the Executive had material contact or about whom he became aware of or informed in the course of his employment:
  (a)   who shall at the Termination Date be negotiating with a Group Company to supply goods and/or services; or
  (b)   who, at the time of the Termination Date supplies goods and / or services to a Group Company;
    “Technical Information” means all and any trade secrets, source codes, computer programs, inventions, designs, know-how discoveries, technical specifications and other technical information (whether or not recorded in documentary form or on computer disk or tape) relating to the creation, production or supply of any past, present or future product or service of a Group Company; and
    Termination Date” means the date on which the Executive’s employment hereunder terminates and references to “following the Termination Date” shall be construed as from and including such date of termination.
    “Ultimate Holding Company” shall mean a Holding Company that is not also a Subsidiary.
2.   INTERPRETATION
2.1   In this agreement:
2.1.1   the contents and clause headings are included for convenience only and do not affect its construction;
2.1.2   words denoting the singular include the plural and vice versa; and
2.1.3   words denoting one gender include each gender and all genders.
2.2   In this agreement, unless otherwise specified or the context otherwise requires, a reference to:
2.2.1   a person is to be construed to include a reference to an individual, firm, partnership, company, corporation, association, organisation and trust (in each case whether or not having a separate legal personality);
2.2.2   a document, instrument or agreement (including, without limitation, this agreement) is a reference to any such document, instrument or agreement as modified, amended, varied, supplemented or novated from time to time;
2.2.3   a clause or schedule is a reference to a clause of or schedule to this agreement; and a reference to this agreement includes its schedule;
2.2.4   a statutory provision is to be construed as a reference to such a provision as amended, consolidated or re-enacted from time to time and to any orders, regulations, instruments or other subordinate legislation made under the relevant

Page 5


 

    statute (except to the extent that any amendment, consolidation or re-enactment coming into force after the date of this agreement would increase or extend the liability of any party to this agreement to any other party).
3.   EMPLOYMENT
3.1   The Executive is employed by the Company as President and CEO of Travelport at the Senior Executive Leadership Level (“SEL”) or its equivalent as defined by Travelport or its successors from time to time. The content of the Executive’s job description may be varied from time to time subject to any variations being reasonable, mutually agreed and subject to no diminution in conditions of employment or status.
3.2   The Executive’s employment hereunder shall continue (subject as hereinafter mentioned) until terminated by either party giving to the other not less than twelve (12) months’ prior written notice.
3.3   If full notice is not given under clause 3.2 the Company will pay salary and benefits in lieu of notice or any unexpired period of notice whether notice is given by the Company or the Executive. Any payment in lieu shall consist solely of a sum equivalent to (i) the Executive’s salary (at the rate applicable at the date notice is given); (ii) other cash remuneration and benefits (excluding, for the avoidance of doubt, any bonus under clause 8) and (iii) the cash equivalent of any entitlement to non-cash benefits (which shall be the cost to the Company of providing such non-cash benefits), in each case for the notice period or any unexpired period of notice and shall be subject to such deductions for tax and national insurance as the Company is required to make.
3.4   If either the Executive or the Company serve notice on the other to terminate the Executive’s employment the Company may, in its absolute discretion, require the Executive to take ‘garden leave’ for all or part of the remaining period of his employment.
3.5   If the Executive is asked to take garden leave he:
  (a)   Upon request by the Company or any Group Company, resign from all offices, committees, trusteeships or positions held by him in the Company (or any other Group Company), including without limitation the Board, and transfer all nominee shares held by him in the Company (or any other Group Company) without compensation for loss of office or otherwise and, should he fail to do, the Board or its designee is irrevocably authorized to appoint some person in his name and on his behalf to do, execute and perform any acts, deeds, documents or things necessary to effect such resignation or transfer;
 
  (b)   may be required to carry out none or some only of his duties during the remaining period of his employment;
 
  (c)   must return to the Company all documents and other materials (including copies) belonging to any Group Company containing Confidential Business Information;
 
  (d)   may not without the permission of the Company contact or attempt to contact in a business context any Employee, Client, Supplier or professional

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      adviser of the Company or any Group Company that the Executive is reasonably expected to know/have known in the course of his duties with the Company;
 
  (e)   may not attend his place of work or any other premises of any Group Company unless requested to do so.
3.6   During any period of garden leave the Executive will continue to receive his full salary, other remuneration and benefits.
3.7   The Executive’s period of continuous employment with the Group commenced on 13 May 1991.
4.   DUTIES
    During the Employment the Executive will:
4.1   faithfully and diligently perform such duties within the scope of the Executive’s normal duties as President and CEO of Travelport and exercise such powers (not only for the Company but also any other Group Company) as may be assigned to or vested in him from time to time by the Board and will use his best endeavours to promote the interests of the Company, subject to the terms of clause 3.1;
4.2   give to the Board or such persons as it from time to time nominates such information regarding the affairs of the Company or any Group Company as the Board may require and at all times conform to the reasonable and lawful directions of the Board;
4.3   devote the whole of his working time, attention and skills to the business and affairs of the Company (or such other Group Company, if any, to which the Executive may from time to time with his consent be seconded, subject to clause 3.1) and will not, save as a representative of the Company or with the consent of the Board, be directly or indirectly engaged or concerned in the conduct of any other business whether or not competing in any respect with the business from time to time of the Company or any Group Company nor hold any other office or employment (whether paid or unpaid) nor will the Executive be directly or indirectly interested in any such business save through his holding, or being interested in, less than 3 per cent of the issued securities of any class of any listed company;
4.4   without prejudice to the generality of clause 4.3, conform to normal hours of work which are 9.00am to 5.00pm United Kingdom time, Monday to Friday inclusive and without additional payment to such other hours of work as may from time to time reasonably be required of him for the proper performance of his duties under this agreement. The seniority of this position exempts the Executive from the maximum working week of 48 hours over a 17 week reference period as specified in the Working Time Regulations. Other stipulations of the aforementioned Regulations apply;
4.5   be located at Axis Park, 10 Hurricane Way, Langley, Berks SL3 8US and shall travel to such other offices or places as from time to time directed by the Board but the Executive will not normally be obliged, except for visits for reasonable periods in the ordinary course of his duties, to work or to reside outside the United Kingdom. Any special provisions relating to employment outside the United Kingdom for a period of

Page 7


 

  one month or more will be mutually agreed with the Executive separately and reasonable terms and conditions for such a move agreed in good faith and with as much notice as reasonably possible.
4.6   if the Company deems it necessary for the Executive to undergo at the Company’s expense any medical examinations or tests, the Executive will be required to undergo such examinations with a Registered Medical Practitioner who will make recommendations to the Board and retain the medical report;
4.7   at all times consider in what manner and by what new methods or devices the products, services, processes, equipment or systems of the Company or any Group Company might be improved;
4.8   without prejudice to the Executive’s statutory obligations in relation to share dealings and his share holdings, comply with the terms of the Model Code of the London Stock Exchange Limited and with such other code of practice as the Company (or its Holding Company) may from time to time adopt and impose upon employees whether in respect of dealings in shares of the Company (or any other Group Company) or otherwise.
4.9   The Executive shall also serve as a member of the Board without additional compensation.
5.   REMUNERATION
5.1   During the Employment the Company will:
5.1.1   pay a salary at the annual rate of £550,000 effective June 1, 2011 (or such higher rate as may from time to time be agreed or determined by the Company and notified to the Executive) which salary will be payable by monthly instalments in arrears (by direct credit transfer) less all deductions required by law or under this agreement and accrue from day to day and be payable by the last day of every month and will be deemed to include all directors’ and other fees or emoluments receivable from the Company;
5.1.2   review the Executive’s remuneration once every 12 calendar months usually in March of each year;
5.1.3   subject to agreement with the Executive be entitled, at any time and in any event on termination however it arises, to deduct from the Executive’s remuneration under this agreement or from any other sums owed or owing by the Company (or any other Group Company) to the Executive any moneys due from him to the Company or any Group Company in respect of outstanding loans, advances, overpayments, or loss of property of the Company and excess holiday taken.
6.   BENEFITS
6.1   Expenses
    Upon production of appropriate receipts and vouchers all reasonable expenses (including travel and hotel expenses) properly incurred by him in the performance of his duties will be refunded to the Executive provided that such expenses are submitted within a reasonable time from the date they were incurred and the

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    Executive complies with the Company’s rules and procedures from time to time in force in respect of expenses.
6.2   Pension & Cash Allowance
  (a)   The Company operates a defined contribution pension plan. While the Executive remains eligible for the Group Personal Pension Plan (or another personal pension plan of the Executive’s choosing or the equivalent cash compensation), the Company’s contributions are capped at the lesser of (a) 15% of the Executive’s then-current annual base salary (currently £550,000 under clause 5.1.1) or (b) the maximum amount of the annual allowance permitted by HM Revenue & Customs without additional tax ( i.e. £50,000 per annum for the 2011-2012 tax year), to be contributed monthly by the Company. The Company pension scheme is contracted in to the State Earnings Related Pension Scheme and National Insurance contributions are payable accordingly.
  (b)   The Executive will receive a per annum cash allowance in an amount equal to (a) 15% of his then-current annual base salary minus (b) the Company’s pension contribution under clause 6.2(a), less all required deductions and withholdings, to be paid monthly. Based on the Executive’s current base annual salary of £550,000 and the current 2011-2012 tax year cap of £50,000, this annual cash allowance will be £32,500 ((£550,000 x 15%) — £50,000), which will be prorated for the remainder of the 2011-2012 tax year. For the avoidance of doubt, this amount is not part of the Executive’s annual base salary and therefore shall not be used as the basis for calculating bonus (including under clause 8.1), the termination payment under clause 9.1, pension under clause 6.2(a) or any other entitlements.
6.3   Holiday Entitlement
    The Executive is entitled to thirty (30) days per year in addition to Public Holidays in the United Kingdom. The holiday year runs from 01 January to 31 December each year.
    Before any annual leave is taken, the Executive must apply to the Board or its designee for approval and comply with all other rules as set out in the Annual Leave Policy. The Company reserves the right to alter the terms of the Annual Leave Policy from time to time with a minimum of one month’s notice to each employee to whom it applies, except in relation to the number of days per annum of Holiday Entitlement.
6.4   Holiday Pay
    The Executive will be paid at the full basis rate of salary for all holidays, including Public Holidays, taken within the Holiday Allowance limit specified above under Holiday Entitlement. This is subject to the conditions specified within the Annual Leave Policy being complied with.
6.5   Accrued Holiday Pay
    If, at the effective date of Employment termination, there is still annual leave due to the Executive, an accrued payment will be made in respect of those days on a pro

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    rata basis at the same rate of pay as described in clause 6.4 above. This payment will be in addition to any other payments due from the Company.
    If, however, the Executive leaves the Company’s service without giving due notice in accordance with this contract of employment, no entitlement to accrued holiday pay will exist although any accrued statutory holiday pay outstanding will be paid.
    If at the effective date of Employment termination, annual leave has been taken in excess of what is due, the excess will be deducted from the Executive’s final pay, subject to agreement with the Executive.
6.6   Absence through Sickness or Injury
    If the Executive is absent through sickness or injury, the Company’s Sickness Absence and Pay Policy and Procedure must be complied with. This document is obtainable from the HR department.
6.7   Sick Pay
    During absence for illness (including absence due to injury or other disability) the Executive will be entitled to receive a sick pay allowance in accordance with, and subject to, the provisions set out in the Company’s Sickness Absence and Pay Policy and Procedure under the heading ‘Sick Pay’.
    The Company reserves the right to alter the terms of the Company’s Sickness Absence and Pay Policy and Procedure from time to time with a minimum of one month’s notice to each employee to whom it applies, save that any change to the amount of sick pay or to the length of time sick pay is paid shall only be made with the Executive’s consent.
6.8   Private Medical Insurance
    The Company will pay subscriptions on the Executive’s behalf (and for the Executive’s spouse and children under the age of 18 years) to such medical benefits insurance scheme as the Board or its designee may from time to time decide, consistent with SEL level cover in other Travelport owned companies, and subject to the rules of the scheme.
6.9   Life Assurance Benefit
    Life Assurance Benefit is payable to the Executive’s beneficiary(s) should the Executive die whilst in the service of the Company, subject to certain criteria but which will be no less than four (4) times the then prevailing annual salary of the Executive. Payments under the Scheme are subject to approval by the Trustees and the rules of the scheme. Details are available from the HR department.
6.10   Permanent Health Insurance
    The Executive will be covered under the Company’s Permanent Health Insurance Scheme (the “PHI Scheme”), subject to the terms of the policy of the PHI Scheme. Further details are available from the HR department. Acceptance into the scheme and payments under it are subject to the Executive’s continued employment by the Company and the rules of the scheme.

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7.   CAR ALLOWANCE
7.1   The Executive is eligible to receive the benefit of a company car allowance. This allowance is £20,000 per annum and will be paid in monthly instalments along with the Executive’s salary. This allowance is taxable but not pensionable and will not be included in the basis for any bonus calculations.
7.2   It is a condition of the Employment that the Executive will at all times be the holder of a current UK driving licence and will notify the Company immediately in the event that he loses his licence. The Executive will bear any fines incurred for motoring offences in respect of the motor car whether during private use or in the performance of his duties under this agreement.
7.3   The Executive is eligible to receive the benefit of a company fuel card allowance. This allowance is £3,000 per annum. This allowance is taxable but not pensionable and will not be included in the basis for any bonus calculations. The allowance will be reviewed on an annual basis.
8.   BONUS AND PERQUISITES
8.1   The Executive qualifies for the discretionary Travelport bonus plan which is payable annually on a base of 150% of his earned per annum salary, which is his bonus at target. This percentage is determined by the Company and Travelport performance as a whole. As such it may vary. Exceptionally the bonus could be less than the specified amount where business and individual performance is below expectation. Notwithstanding that the bonus plan is discretionary, the Company will procure that discretion will not be exercised in such a way that would result in the Executive being treated on a different basis from other employees at his level of seniority;
8.2   The bonus scheme is designed to retain and motivate employees. Should Employment terminate before the end of a bonus year, or the Executive is under notice or on garden leave at that time, the Company will procure that the Executive shall be paid bonus on a pro rata basis up to and including the Termination Date notwithstanding any rules of the bonus plan. Further, the Company will procure that any rules of the bonus plan that provide for the Executive to be ineligible for a bonus if he is entitled to any other incentive or commission plan payments or if he is on garden leave or under notice of termination, will not apply to the Executive;
8.3   Any bonus payment will be subject to applicable taxes and National Insurance but will not be pensionable.
8.4   The Executive is also eligible at the SEL or its equivalent level to receive the following perquisites according to the rules of the applicable plan or policy. These are:
  8.4.1   Financial advice and other professional services as arranged for SEL executives of Travelport based in Europe of up to £5,000 (five thousand pounds) per annum;
  8.4.2   The provision of a company vehicle up to an annual lease cost of £9,000 (nine thousand pounds); and

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  8.4.3   An allowance of up to £5,000 (five thousand pounds) per annum for personal travel or travel related expenditure subject to the prevailing travel allowance policy as operated by Travelport in Europe which is reimbursable against receipts.
8.5   The benefits outlined in clause 8.4 above will include income tax relief on the difference between basic rate income tax and the Executive’s actual rate of income tax charged in the United Kingdom to a maximum of 28% (twenty eight percent) differential. Such relief will be paid to the Executive in cash on a monthly basis. The benefits outlined in clause 8.4 above are not and shall not be pensionable.
9.   TERMINATION PAYMENT
9.1   In the event that the Executive’s employment is terminated without cause by the Company, Travelport, an Associated Company or an acquirer of Travelport’s business or assets or the Executive resigns in circumstances where he is entitled to resign in response to a fundamental breach of contract by the Company or Travelport (by way of non-exhaustive example only, it is agreed that any reduction in Executive’s base annual salary and bonus opportunity under this agreement that is not remedied by the Company within 30 days after written notice by Executive shall constitute a fundamental breach of contract by the Company under this agreement), the Executive will be eligible to receive the following additional benefits:
9.1.1   a lump sum severance payment that is equivalent to twice the Executive’s then annual base salary and 100% of his target annual bonus payable at the time of termination; and
9.1.2   vesting of any equity-based awards then held by Executive with respect to Travelport or any Group Company as, and to the extent, described in and subject to the definitive documentation related to such awards.
9.2   Any payments made to or received by the Executive under this clause 9 will be subject to tax and National Insurance and any other deductions as may be required by law.
10.   CONFIDENTIAL BUSINESS INFORMATION
10.1   The Executive shall not either during the continuance of the Executive’s employment or at any time thereafter:
  (a)   disclose or communicate to any person or permit or enable any person to acquire any Confidential Business Information other than for any legitimate purposes of a Group Company; or
  (b)   use or attempt to use any of the Confidential Business Information in any manner which may injure or cause loss either directly or indirectly to any Group Company or its Clients or may be likely to do so or for any purpose other than in the discharge of The Executive’s duties hereunder; or
  (c)   sell or seek to sell to anyone Confidential Business Information other than for any legitimate purposes of a Group Company; or

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  (d)   obtain or seek to obtain any financial advantage direct or indirect from the disclosure of Confidential Business Information other than for a Group Company.
10.2   During the continuance of the Executive’s employment and at all times thereafter the Executive shall use his reasonable endeavours to prevent the unauthorised publication or disclosure of the Confidential Business Information or any part thereof.
10.3   This Clause shall not apply to:-
  (a)   information or knowledge which comes into the public domain other than in consequence of the Executive’s default;
  (b)   any information which the Executive has acquired other than through the performance of his duties for a Group Company;
  (c)   any information which is required to be disclosed by the Executive by order of a court of competent jurisdiction or an appropriate regulatory authority or otherwise required by law.
  10.4   Nothing in this agreement shall preclude the Executive from making a protected disclosure for the purposes of the Public Interest Disclosure Act 1998.
11.   RECORDS
11.1   The Executive shall not during his employment by the Company make otherwise than for the benefit of a Group Company any form of record on whatever medium relating to any Group Company (“the Records”).
11.2   The Executive shall not either during his employment or thereafter use or permit to be used any of the Records otherwise than for the benefit of a Group Company.
11.3   The Executive shall not, without the prior authority of the Company, remove from the Company’s premises or copy or allow others to copy the contents of any document, computer disk, tape or other tangible item which contains any Confidential Business Information or which belongs to any Group Company.
11.4   The Executive shall return to the Company upon request and, in any event, at the Termination Date all documents, computer disks and tapes and other tangible items in his possession or under his control which belong to any Group Company or which contain or refer to any Confidential Business Information.
11.5   If so requested by the Company, the Executive shall delete all Confidential Business Information from any computer disks, tapes or other re-usable material in his possession or under his control and destroy all other documents and tangible items in his possession or under his control which contain or refer to any Confidential Business Information.
12.   COVENANTS
12.1   The Executive acknowledges that in the course of his employment he is likely to obtain knowledge of Group Companies’ trade secrets and other confidential information and will have dealings with Clients, Suppliers, Agents and Distributors

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    (collectively referred hereafter as Business Partners) and that it is fair and reasonable for the Company to seek to protect the interests of the Group by the provisions of this Clause.
12.2   The Executive shall not directly or indirectly:
  (a)   at any time during the Restricted Period hold any Material Interest in a business which is either wholly or partially in competition with any of the Businesses;
  (b)   at any time during the Restricted Period hold any Material Interest in a Named Competitor;
  (c)   at any time during the Restricted Period, seek in any capacity whatsoever any business, orders or custom for any Restricted Products or Restricted Services from any Client with whom he shall have dealt at any time during the period of twelve months prior to the Termination Date or, if Executive has been placed on ‘garden leave’ under clause 3.4, the period of twelve (12) months prior to commencing ‘garden leave’;
  (d)   at any time before or after the Termination Date, induce or seek to induce by any means involving the disclosure or use of Confidential Business Information any Business Partner to cease dealing with a Group Company or to restrict or vary the terms upon which it deals with the relevant Group Company;
  (e)   at any time during the Restricted Period be employed or engaged by any person who at the time of the Termination Date is a Business Partner for the purpose of carrying out the same kind of work as the Executive shall have performed for that Client during the period of twelve months prior to the Termination Date or, if Executive has been placed on ‘garden leave’ under clause 3.4, the period of twelve (12) months prior to commencing ‘garden leave’;
  (f)   at any time during the Restricted Period approach or solicit any Supplier, Agent or Distributor with whom the Executive shall have dealt at any time during the period of twelve (12) months prior to the Termination Date or, if Executive has been placed on ‘garden leave’ under clause 3.4, the period of twelve (12) months prior to commencing ‘garden leave’, for any purpose which could reasonably be in competition with the Company;
  (g)   at any time during the Restricted Period endeavour to entice away from the relevant Group Company or knowingly employ or engage the services of or procure or assist any third party so to employ or engage the services of any person who is an Employee with whom the Executive shall have dealt at any the time during the period of twelve (12) months prior to the Termination Date or, if Executive has been placed on ‘garden leave’ under clause 3.4, the period of twelve (12) months prior to commencing ‘garden leave’;
  (h)   at any time during the Restricted Period endeavour to entice away from the relevant Group Company or knowingly employ or engage the services of or procure or assist any third party so to employ or engage the services of any person who shall have been providing consultancy services to the relevant

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      Group Company at the time of the Termination Date and who the Executive shall have had material contact in the course of his employment during the period of twelve (12) months prior to the Termination Date or, if the Executive has been placed on ‘garden leave’ under clause 3.4, the period of twelve (12) months prior to commencing ‘garden leave’ and who:
  (i)   by reason of his engagement as a consultant by such Group Company is likely to be able to assist a business in or intending to be in competition with such Group Company so to compete; or
  (ii)   by reason of his engagement as a consultant by such Group Company is likely to be in possession of any Confidential Business Information; or
  (j)   at any time after the Termination Date represent himself or permit himself to be held out by any person, firm or company as being in any way connected with or interested in the Company or any Group Company.
12.3   Whilst the restrictions referred to in this Clause are regarded by the parties hereto as fair and reasonable restrictions to be imposed on the Executive, it is hereby declared that the wording of this Clause is severable and so much of the same as a court of competent jurisdiction may regard as unreasonable shall (so far as the same is possible) be deleted.
12.4   If after the Executive’s employment ends he proposes to enter into any contract of employment, appointment or engagement with a third party, he agrees that he will before doing so bring clauses 10, 11, 12 and 15 of this agreement to the attention of any proposed new employer or organisation appointing him.
13.   TERMINATION PROVISIONS
13.1   The Executive acknowledges and agrees that (notwithstanding that the personal contact is between him and representatives of the Business Partners) the relationship with them is one which exists with the Company and is valuable to the Company and that, so far as concerns those Business Partners whose business is handled by the Executive, it is capable of being damaged inter alia upon the cessation for any reason of the contract of employment between the Company and the Executive. For the purposes of permitting the Company to ensure so far as possible that any such damage is minimised, and so as to preserve the Company’s relationship with its Business Partners after the termination of the contract of employment, and to ensure the continued proper servicing of the requirements of such Business Partners the Executive hereby undertakes generally to co-operate with the Company and comply with the instructions of the Board or its designee in securing the handover of the affairs of any such Client, Agent, Supplier or Distributor to any other employee(s) designated by the Company in a manner which will or is designed to ensure that the Company’s relationship with such Client is preserved and that the Client continues to receive a proper service from the Company; and acknowledges that any breach of the above undertakings may cause loss or damage to the Company for which it may reasonably seek compensation or injunctive relief from him.
13.2   With a view to ensuring that the Executive’s departure can be arranged with the minimum of inconvenience or disruption to the business of the Company and its

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    relationship with its Clients and its other employees, the Executive undertakes to mutually agree with the Board or its designee the timing and manner of any communication about his departure, and to refrain from informing any of the Executive’s colleagues (excluding the Board) about the proposed cessation of his employment hereunder, other than within the agreed communication plan.
13.3   The Executive acknowledges the right of the Company to monitor and control the performance of its employees and ensure the proper servicing of the requirements of its Clients, and acknowledges the fiduciary obligations attaching to his position.
14.   TERMINATION
14.1   The Company may terminate the Employment by summary notice if the Executive has:
14.1.1   been in serious breach of his obligations as a director or become disqualified or prohibited by law from being or acting as a director or from being directly or indirectly concerned in the promotion, formation or management of a company or from carrying out any of the duties or functions he is employed under this agreement to carry out; or
14.1.2   become bankrupt or made any arrangement or composition with his creditors or taken advantage of any statute from time to time in force affording relief for instalment debtors; or
14.1.3   been convicted of any criminal offence (save for road traffic or other minor offences) or became a patient within the meaning of the Mental Health Act 1983; or
14.1.4   been guilty of gross misconduct in the course of the Employment or committed any serious breach or persistent breach (after warnings) or any failure of his duties or obligations under this agreement; or
14.1.5   been guilty of conduct tending to bring himself or the Company (or any other Group Company) into disrepute; or
14.1.6   solicited or attempted to solicit or entice away any Client, Distributor, Supplier, Employee or consultant of the Company (or any other Group Company).
14.2   The Company may terminate the Employment by giving 12 months notice if the Executive has been incapacitated by reason of Ill-Health, accident or otherwise from performing his duties under this agreement for a total of 183 or more consecutive days in the preceding 12 months save that the Company may not terminate the Employment in this way if the Executive is in receipt of sick pay, or receipt of benefits under the PHI Scheme, or he has made a claim (or a claim has been made on his behalf) under such PHI Scheme and a decision is awaited from the relevant insurers, or he has appealed (or an appeal has been made on his behalf) against a decision of the insurers under such PHI Scheme and the result of that appeal is awaited. It is the intent of the Company to comply with PHI Scheme requirements, while not unintentionally extending employment rights. It is not the intention of the Company to inhibit payment under PHI when reliant on continued employment with the Company by terminating such employment but that equally it is not the intention of the Company where PHI is being paid also to pay regular salary under the contract.

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14.3   Upon the termination of the Employment howsoever arising the Executive will:
14.3.1   resign from all offices, committees, trusteeships or positions held by him in the Company (or any other Group Company), including without limitation the Board, and transfer all nominee shares held by him in the Company (or any other Group Company) without compensation for loss of office or otherwise and, should he fail to do so, the Board or its designee is irrevocably authorised to appoint some person in his name and on his behalf to do, execute and perform any acts, deeds, documents or things necessary to effect such resignation or transfer;
14.3.2   deliver (or, if he is dead, of unsound mind or bankrupt, then his personal representatives or such other persons as may be appointed to administer his estate and affairs will deliver) up to the Company or its authorised representative all property including (without limitation) all documents, records, keys, correspondence, discs, tapes, telephones, credit cards or other items in his possession or under his control which relate in any way to the business or affairs or customers of the Company (or any other Group Company) or are the property of the Company (or any other Group Company) and all extracts or copies of them regardless of the medium on which such extracts or copies are stored or held; and
14.3.3   not at any time after the termination of the Employment wrongfully represent himself as being a director of or employed by or connected with the Company (or any other Group Company) nor make or publish any untrue or misleading statement or comment about the Company (or any other Group Company) or their respective officers and employees.
15.   INTELLECTUAL PROPERTY
15.1   All copyright, design rights, database rights, trade marks, and any other intellectual property rights (other than patents) in any software, databases, specifications, manuals, prototypes, records, documents, (including all material stored in computer readable form), drawings, designs, business ideas or methods and any other material or work (the “Materials”) of any description that is capable of protection under the intellectual property laws (other than patent law) or laws of confidence of any country which is made, developed, created, devised or designed (whether alone or with any other person) by the Executive in the course of his employment will be the property of and will belong to the Company unless otherwise agreed in writing by the Company.
15.2   The Executive agrees that he will use the Materials only for the purpose of the Company’s business and that he will return the Materials and all copies and extracts from the Materials, to the Company on demand at any time and without demand on the termination of his employment, howsoever arising.
15.3   The Executive shall promptly disclose full details of all inventions, discoveries, processes or formulae or any other matter which is capable of patent protection under the intellectual property laws of any country which is made, created, developed, or devised by him in the course of his employment (“Inventions”) in writing to a Director of the Company, and shall if requested by the Company deliver to the Company all copies and material representations of such Inventions in his possession, custody or control.

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15.4   To the extent that under the mandatory laws of any country an Invention or any patent or other rights therein belongs to him, the Executive shall on request by the Company negotiate with the Company in good faith for the assignment or licence of the Invention and such rights to the Company.
15.5   All other Inventions and all other rights therein shall belong to the Company, and, to the extent not already legally owned by the Company, shall be held on trust for the Company, and at the Company’s request and cost the Executive shall execute any documents and do all things necessary to substantiate the Company’s ownership thereof and to obtain registration or protection thereof in any country.
15.6   The Executive irrevocably appoints the Company to be his attorney in his name, and on his behalf:
15.6.1   to execute any instrument, to do any thing, and generally to use his name for the purpose of giving the Company (or its nominee) the full benefit of the provisions of clauses 15.1 to 15.5 above; and
15.6.2   to give to any third party a certificate in writing (signed by a director or secretary of the Company) confirming that any instrument or act falls within the authority conferred by this clause; such a certificate will be deemed to be conclusive evidence that this is the case.
15.6.3   Save as provided above, the Executive shall keep all Inventions and all details thereof confidential to himself and any lawyer or patent agent instructed by him. He shall not without the Company’s consent apply for protection or registration in any country of any Invention belonging to the Company and shall promptly inform the Company if he applies for protection or registration of an Invention belonging to him in any country.
16 .     RULES, POLICIES AND PROCEDURES
    The Executive must comply at all times with the Company’s rules policies and procedures relating to equal opportunities, harassment, health and safety, e-mail and internet use, insider trading and all other rules and procedures introduced by the Company from time to time provided they are reasonable. Both parties agree to comply with the Company disciplinary and grievance procedures. Copies of all rules, policies and procedures appear in the UK policies posted on the Company’s Intranet. For the avoidance of doubt such rules, policies and procedures are not incorporated by reference into this contract and they may be changed, replaced or withdrawn at any time at the discretion of the Company. Breach of the Company rules, policies or procedures may result in disciplinary action.
17.   DATA PROTECTION
17.1   The Executive agrees that personal data (including sensitive data) relating to him which has been or is in the future obtained by the Company may be held and processed by the Company (and where necessary its agents or appointed third parties) either by computer or manually for any purpose relating to the administration, management and operation of his employment, or in relation to the Company’s legal obligations or business needs.

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17.2   The Group has offices in various countries throughout the world and it may be necessary for one or more of the Group’s overseas offices to have access to information held about the Executive by the Company in the UK. However it is only intended by the Company that information about the Executive will be used by the Group’s overseas offices for the purpose of enabling the Group to deal with personal issues connected with his employment, including advising relevant statutory authorities in order to obtain a work permit or visa or assisting in his secondment to an overseas office or for pay roll purposes. The Executive agrees that the Company may where appropriate transfer personal data (including sensitive data) relating to him to the Group’s overseas offices.
17.3   The Executive agrees and gives authorisation that his company electronic mail and computing resources will be accessible to the company without any further prior consent during his employment and where appropriate after leaving the company. All user ID and passwords combinations may be reset for access in appropriate business circumstances.
18.   MONITORING
    For the purposes of the Telecommunications (Lawful Business Practice) (Interception of Communications) Regulations 2000 and the Human Rights Act 1998, the Executive acknowledges that the Company may monitor and/or record communications which he makes in the course of his employment, so far as it is lawful for the Company to do so. In this clause, “communications” include, without limitation, communications made by telephone, e-mail and fax, or over the internet.
19.   ENTIRE AGREEMENT
19.1   This agreement takes effect on 1 June 2011 in substitution for the Service Agreement signed by and between the Executive and Galileo International Ltd. (now known as Travelport International Limited) in March 2007, and the 28 March 2011 letter agreement between the same parties , and all other previous agreements and arrangements whether written, oral or implied between the Company, and Group Company or their Affiliates and the Executive relating to the employment of the Executive and all such agreements and arrangements shall be deemed to have been terminated by mutual consent as from the date of commencement of this agreement; provided, however, that this agreement shall not supersede any documents related to any equity granted to the Executive by the Company or any Group Company, including without limitation under the TDS Investor (Cayman) L.P. 2006 Interest Plan, which remain in full force and effect.
19.2   The Executive represents and warrants that he is not a party to any agreement, contract (whether of employment or otherwise) or understanding which would in any way restrict or prohibit him from undertaking or performing any of the duties in accordance with this agreement.

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20   OTHER PROVISIONS
20.1   Subject to the prevailing severance policy in force at the time, the Executive will have no claim against the Company (or any other Group Company) arising out of the termination of this agreement if:
20.1.1   termination is by reason of reconstruction or amalgamation whether by winding up the Company or otherwise, and the Executive is offered employment with any company, concern or undertaking resulting from such reconstruction or amalgamation and the parties agree that this is of substantially the same nature to his appointment under this agreement and is on terms which when taken as a whole are no less favourable to the Executive than those contained in this agreement; or
20.1.2   in relation to any provision in any articles of association, agreement or arrangement which has the effect of requiring the Executive to sell or give up any shares, securities, options or rights at any price or which causes any options or other rights granted to him to become prematurely exercisable or to lapse.
20.2   No failure or delay to exercise, or other relaxation or indulgence granted in relation to, any power, right or remedy under this agreement of either party shall operate as a waiver of it or impair or prejudice it nor shall any single or partial exercise or waiver of any power, right or remedy preclude its further exercise or the exercise of any other power, right or remedy.
20.3   There are no collective agreements in force which affect this agreement.
20.4   The parties recognise that during the normal course of his employment, the Executive will be required to make statements, directly or indirectly, written or oral, to, and/or provide material for publication by, television, radio, film or other similar media and/or write article(s) for the press or otherwise for publication on matters relating to the business and affairs of the Company (or any other Group Company) and/or matters relating to any customer, client or connection of the Company or any other Group Company). The Executive however recognises that such activities should be agreed with the Board or its designee on either a case by case or “blanket” basis according to the type of activity and explicitly that where comment is to be made on the financial performance of the Group Company such comment will need the prior approval of the Board or its designee.
20.5   This agreement may be executed in 2 counterparts, each of which shall be deemed an original and which shall together constitute one and the same document.
20.6   If this agreement is executed in 2 counterparts, it shall be deemed to be delivered and shall have effect when a) each party has signed a counterpart of this deed; b) each party has handed over such counterpart to the other party to this deed; and c) each of the counterparts has been dated.
20.7   The Company acknowledges and declares itself trustee of the obligations and covenants given in this agreement insofar as they are expressed to be for the benefit of any other Group Company and holds them on trust for the absolute benefit of any

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    such Group Company and the Executive covenants with the Company in its capacity as such trustee to observe and perform each of such obligations and covenants.
20.8   No variation of this agreement will be effective unless agreed in writing by or on behalf of both parties.
21.   NOTICES
21.1   Each party to this agreement may give any notice or other communication under or in connection with this agreement by letter or facsimile transmission addressed to the other party. The address for service for the Executive shall be the address provided to the Company and reflected in its records or such other address within the United Kingdom for service as the Executive may from time to time notify to the Company for the purposes of this clause and the address for service for the Company shall be its registered office from time to time.
21.2   Any notice or other communication will be deemed to be served:
21.2.1   if personally delivered, at the time of delivery and, in proving service, it shall be sufficient to produce a receipt for the notice signed by or on behalf of the addressee;
21.2.2   if by letter, at noon on the Business Day after such letter was posted and, in proving service, it shall be sufficient to prove that the letter was properly stamped first class addressed and delivered to the postal authorities; and
21.2.3   if by facsimile transmission, at the time and on the day of transmission, and, in proving service, it shall be sufficient to produce a transmission report from the sender’s facsimile machine indicating that the facsimile was sent in its entirety to the recipient’s facsimile number.
21.2.4   Details for service of any notice or other communication on the Company are as follows:
Eric Bock
Chief Administrative Officer & General Counsel
Travelport
300 Galleria Parkway
Atlanta, Georgia 30339 USA
Fax: (770)563-7878
22.   LAW AND JURISDICTION
22.1   This agreement, and all disputes or claims arising out of or in connection with it, shall be governed by and construed in accordance with English law.
22.2   The parties to this agreement irrevocably and unconditionally agree that the High Court of Justice in England shall have exclusive jurisdiction over all disputes or claims arising out of or in connection with this agreement.

Page 21


 

IN WITNESS of which this document has been duly signed as a deed and delivered on the date written at the beginning of this deed:
Please sign and return both copies of this agreement to me.
Yours sincerely,
/s/ Lee Golding
Lee Golding
Executive Vice President — Human Resources
Attorney-in-Fact, Travelport International Limited
Solely for purposes of clause 4.9 hereof
TRAVELPORT LIMITED
         
  By:   /s/ Lee Golding   
    Name:   Lee Golding   
    Title:   EVP Human Resources   
 
IN WITNESS of which this document has been duly signed by Gordon Wilson as a deed and delivered on the date written at the beginning of this deed:
Signed by Gordon Wilson: /s/ Gordon Wilson
in the presence of:
         
Witness:
       
 
Signature:
  /s/ Tad Ostrowski     
 
       
 
       
Name:
  T. Ostrowski     
 
       
 
       
Work Address:
  Travelport, 10 Hurricane Way     
 
       
 
       
 
  Langley, Berkshire SL3 8AG     
 
       
 
       
Date:
  31 st May 2011     
 
       
 
       

Page 22

Exhibit 10.3
(TRAVELPORT LOGO)
May 27, 2011
          Re: Employment Agreement
Dear Eric:
          This Letter Agreement, entered into effective as of the date hereof between you and Travelport Limited (“Travelport Ltd.”), memorializes certain agreements between Travelport Ltd. and you relating to your continued employment with Travelport Ltd. Capitalized terms used but not defined herein shall have the meaning ascribed to such terms in the employment agreement entered into between you and Travelport Ltd. dated August 3, 2009 (the “Employment Agreement”).
          1. Effective as of January 1, 2011, your Base Salary shall be at an annual rate of no less than $600,000. The amounts representing the increase in your base salary from January 1, 2011 through the date this change is processed shall be paid as soon as reasonably practicable following the date hereof.
          2. As soon as practicable following the date hereof, in recognition of your contribution to the sale of the GTA business, Travelport Ltd. or one of its subsidiaries shall pay to you a bonus equal to $2,000,000.00, less applicable withholdings and deductions.
          3. Your Employment Agreement is hereby amended to delete Section 7(c)(iii)(C) thereof; provided, however, subject to your execution, delivery and non-revocation of a General Release in accordance with the provisions of the Employment Agreement and continued compliance with any other applicable terms and conditions of the Employment Agreement, you shall be eligible for continued participation in the health and welfare benefits of Travelport Inc. (or its successor), a subsidiary of Travelport Ltd., for thirty-six (36) months at active employee rates in the event your employment is terminated without Cause or as a result of a Constructive Termination, in accordance with and subject to the terms of your Employment Agreement and the General Release.
          4. Section 7(c)(iii)(D) of the Employment Agreement is hereby amended to require your execution of a General Release (substantially in the form attached to the Employment Agreement) within forty-five (45) days following termination of employment (and non-revocation of such release) as a condition to the accelerated vesting of any equity-based awards, as described in such section.
          5. Upon your termination of employment, you will be paid your account balance under the Travelport Officer Deferred Compensation Plan (the “Deferred Compensation Plan”) in accordance with the terms of the Deferred Compensation Plan.
          6. By executing this Letter Agreement, you hereby acknowledge that no event or circumstance has occurred on or prior to the date hereof that would constitute a Constructive Termination within the meaning of your Employment Agreement and, by executing this Letter Agreement, you hereby release the Company and its affiliates from any and all claims under or in connection with your Employment Agreement arising from facts and circumstances occurring prior to your execution of this Letter Agreement.

 


 

          Please indicate your agreement and acceptance of the terms of this Letter Agreement by signing below. Except as modified by this Letter Agreement, the Employment Agreement is confirmed in all respects.
         
  TRAVELPORT LIMITED
 
 
  By:   /s/ Jeffrey J. Clarke   
    Name:   Jeffrey J. Clarke   
    Title:   President and CEO   
 
         
  ACCEPTED AND AGREED TO:
 
 
  /s/ Eric J. Bock   
  Eric J. Bock   
       
 

2

Exhibit 99.1
     
NEWS RELEASE   (TRAVELPORT LOGO)
TRAVELPORT NAMES GORDON WILSON AS PRESIDENT AND CEO
Jeff Clarke appointed Executive Chairman of the Board of Directors
Atlanta, GA, 31 May, 2011 : Travelport Limited, a leading provider of critical transaction processing and business services for the global travel industry, today names Gordon Wilson as President and Chief Executive Officer, effective June 1, 2011.
“Gordon has led Travelport’s GDS, the firm’s core business, comprising its global travel distribution capabilities and Airline IT operations, for the last five years and has served as Deputy CEO for the last year. With Gordon’s vision, deep industry, commercial and operational expertise he is ideally qualified to manage the firm globally,” said Jeff Clarke, current President and CEO. Gordon Wilson has also been named to the Travelport Limited Board of Directors.
“I’d like to thank Jeff Clarke for his transformative leadership of Travelport over his tenure as President and CEO. With the completed sale of GTA to Kuoni Travel Ltd on May 5 th , Travelport is now focused on its GDS business; the firm’s most strategic and largest business. Over the last five years of Jeff’s leadership, Travelport has been successfully repositioned as a globally diversified GDS with a culture of innovation in key products and technologies along with improved efficiency and execution,” said Chip Schorr, current Chairman.
As Executive Chairman, Clarke will be responsible for Travelport’s strategic investments — including remaining as Chairman of Orbitz Worldwide, mergers and acquisitions and corporate development as well as ensuring a seamless transition of the President and CEO duties to Gordon Wilson.
Eric Bock, Chief Administrative Officer and General Counsel, Phillip Emery, Chief Financial Officer, and Lee Golding, Executive Vice President of Human Resources will continue in their current roles reporting to Wilson.

 


 

Effective June 1st, the Travelport Limited Board of Directors will be comprised of Martin Brand, Jeff Clarke, Will Griffith, Chip Schorr, Gordon Wilson and a representative from One Equity Partners who will be named in the near future.
-ENDS-
About Travelport
Travelport is a broad-based business services company and a leading provider of critical transaction processing solutions to companies operating in the global travel industry.
With a presence in 160 countries, approximately 3, 500 employees and reported 2010 revenues of $2.2 billion, Travelport is comprised of the global distribution system (GDS) business that includes the Galileo and Worldspan brands; and Airline IT Solutions, which hosts mission critical applications and provides business and data analysis solutions for major airlines.
Travelport also owns approximately 48% of Orbitz Worldwide (NYSE: OWW), a leading global online travel company. Travelport is a private company owned by The Blackstone Group, One Equity Partners, Technology Crossover Ventures, and Travelport management.
Follow Travelport on Twitter at http://twitter.com/travelport
Media enquiries:
Jill Brenner
Corporate Communications Director, Americas
Tel: 1 973 939 1325
Email: jill.brenner@travelport.com
Kate Aldridge
Corporate Communications Director, EMEA and APAC
Tel: +44 (0) 7921 698757
Email: kate.aldridge@travelport.com