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8-K - FORM 8-K - DEVON ENERGY CORP/DE | d81608e8vk.htm |
Exhibit 10.1
AMENDMENT NO. 1 TO
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
AMENDED AND RESTATED EMPLOYMENT AGREEMENT
This Amendment No. 1 to [Amended and Restated] Employment Agreement (this
Amendment) dated April 19, 2011 by and between Devon Energy Corporation (the Company) and ____________ (the Executive).
WHEREAS, the Company and the Executive are parties to that certain Amended and Restated
Employment Agreement dated _______________ (the Employment
Agreement);
WHEREAS, the Company and the Executive desire to amend the Employment Agreement with respect
to the tax gross-up payments upon a Change in Control (as defined in the Employment Agreement); and
WHEREAS, pursuant to Section 15(c) of the Employment Agreement, the Employment Agreement may
be amended by written agreement of the parties.
NOW, THEREFORE, the Company and the Executive hereby agree that the Employment Agreement shall
be amended as follows:
1. Subsection 4(b)(iii) is deleted in its entirety, nothing is substituted in its place and
all subsequent Subsections and cross-references thereto are renumbered accordingly.
2. Section 7 is deleted in its entirety and the following is substituted in its place:
7. Section 4999 of the Code Excise Tax; Cap on Payments.
(a) Cap on Payments. If any payment, benefit or distribution by the Company, any
Affiliate or a trust established by the Company or any Affiliate to or for the benefit of
the Executive (whether pursuant to this Agreement or otherwise) (each, a Payment or, collectively, the Payments) is subject to an excise tax imposed by the Code,
including pursuant to Section 4999 of the Code, or the Executive incurs any interest or
penalties with respect to such an excise tax (such excise tax and any such interest and
penalties shall be referred to as the Excise Tax), the
Payments under Section 4 of this Agreement (the Agreement Payments) shall be reduced (but not below zero) to an amount that maximizes
the aggregate present value (determined in accordance with Section 280G(d)(4) of the Code)
of the Payments without causing any Payment to be subject to the limitation of deduction
under Section 280G of the Code or the imposition of any Excise Tax, with such reduction
being made (i) on a nondiscretionary basis so as to minimize the reduction in the economic
value to the Executive, (ii) in a manner consistent with the requirements of Section 409A,
and (iii) on a pro-rata basis where more than one Agreement Payment has the same present
value for this purpose and they are payable at different times; provided, however,
if the net amount retained by the Executive from all the Payments after the reductions
described above in this Section 7(a) would be less than the net amount retained by the
Executive from all the Payments after the Executives payment of any Excise Tax, the
Agreement Payments shall not be reduced as set forth in this Section 7(a).
(b) Determinations. All determinations to be made under this Section 7 shall be
made by a nationally recognized certified public accounting firm designated by the Company
immediately prior to the Change in Control (the Accounting
Firm). The Accounting Firm shall provide its determinations and any
supporting calculations to the Company and the Executive within ten (10) days of the
termination date or Change in Control, as applicable. Any such determination by the
Accounting Firm shall be binding upon the Company and the Executive. All of the fees and
expenses of the Accounting Firm in performing the determinations referred to in this Section
7 shall be borne solely by the Company.
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3. Subsection 12(c) is deleted in its entirety and the following is substituted in its
place:
(c) Gross-Up. If the value of any benefits or payment provided under
Section 12(a) is subject to income taxes, then the Company shall make an additional payment
(a Gross-Up Payment) to the Executive, by December 31 of the
year next following the Executives taxable year in which the income taxes were incurred, in
an amount equal to 75% of the federal, state, and local income taxes imposed upon such
benefits or payment. All determinations to be made under this Section 12(c) (including
whether and when a Gross-Up Payment is required) shall be (i) made within thirty (30) days
of receipt by the Company of the Executives request for the Gross-Up Payment, (ii) made by
a nationally recognized certified public accounting firm designated by the Company, and
(iii) binding upon the Company and the Executive. All of the fees and expenses of the
accounting firm in performing such determinations shall be borne solely by the Company.
4. A new Section 15(i) is added to the end of Section 15 as follows:
(i) Section 409A Compliance. This Agreement is intended to comply with
Section 409A and its corresponding regulations, or an exemption therefrom, and payments may
only be made under this Agreement upon an event and in a manner permitted by Section 409A,
to the extent applicable. All payments to be made upon a termination of employment under
this Agreement may only be made upon a Separation from Service under Section 409A. For
purposes of Section 409A, the right to a series of payments under this Agreement shall be
treated as a right to a series of separate payments. In no event may the Executive,
directly or indirectly, designate the calendar year of a payment, including as a result of
the timing of the Executives execution of the Release. Notwithstanding anything to the
contrary herein, if a payment that is subject to execution of the Release could be made in
more than one taxable year, payment shall be made in the later taxable year.
5. A new Section 7 is added to the Exhibit A, Definitions as follows and all
subsequent Sections are renumbered accordingly:
7. Agreement Payments has the meaning ascribed to
such term in Section 7(a)(i).
6. Section 27 of the Exhibit A, Definitions is deleted in its entirety and the
following is substituted in its place:
27. Gross-Up Payment has the meaning ascribed to such
term in Section 12(c).
7. Sections 40 and 42 of the Exhibit A, Definitions are deleted in their
entirety, nothing is substituted in their place and all subsequent Sections are renumbered
accordingly.
[Signature page follows]
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IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first
written above.
Devon Energy Corporation | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
By: | ||||||
Print Name: | ||||||
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