{"id":39298,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/employment-agreement-kaufman-and-broad-home-corp-and-michael.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"employment-agreement-kaufman-and-broad-home-corp-and-michael","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/employment-agreement-kaufman-and-broad-home-corp-and-michael.html","title":{"rendered":"Employment Agreement &#8211; Kaufman and Broad Home Corp. and Michael F. Henn"},"content":{"rendered":"<pre>\n                          [KAUFMAN-BROAD LETTERHEAD]\n\nJune 7, 1994\n\nMichael F. Henn\n527 East Palm Drive\nGlendora, CA 91741\n\nDear Mike:\n\nI am pleased to confirm the following offer for you to join Kaufman and Broad\nHome Corporation.\n\nTitle\/Position: Senior Vice President, Chief Financial Officer - Kaufman and\nBroad Home Corporation.\n\nStart Date:  July 11, 1994.\n\nBase Salary:  $300,000 per annum payable semi-monthly.\n\nAuto Allowance:  $500 per month and gasoline credit card for business use.\n\nAuto Insurance: Up to $1,000 reimbursement per year for your primary business\nvehicle.\n\nFiscal Year 1994 Incentive Compensation: For fiscal year 1994 (ending November\n30, 1994), you will receive an Incentive Award of $150,000. Receipt of any\nIncentive Award is contingent upon your continuous employment through the\npayment date (normally occurring the following January).\n\nFiscal Year 1995 Incentive Compensation: You will be a participant in the\nCorporate Incentive Compensation pool. This pool is created by 3.5% of the\npre-tax profit of Kaufman and Broad. Your share of the Incentive Compensation\npool for fiscal year 1995, ending November 30, 1995, will be 5%. (This formula\ncan be altered at the discretion of the Board's Compensation Committee, but will\nremain constant in its intent at providing similar compensation.) In addition,\nfor fiscal year 1995, you will be eligible for a Discretionary Incentive Award\nbased on the degree of success achieved in meeting specific mutually agreed upon\ngoals. Your award will range from 0-to-25% of your base salary. Your individual\nperformance shall be judged based on annual performance achievements and is the\nsole discretion of company management. Receipt of any Incentive Award is\ncontingent upon your continuous employment through the payment date (normally\noccurring the following January).\n\n\n\n\n\nPage Two\n- -------------------------------------------------------------------------------\n\nPerformance Share Plan and Stock Options: I will recommend to the Personnel,\nCompensation and Stock Plan Committee of the Board of Directors at its next\nmeeting after your effective date of employment that you be promptly granted\n10,000 units of our Performance Share Plan. This is a new Plan which has been\ninstituted to provide a tangible, performance-driven stake in the long term\nsuccess of our Company. This Plan, which is further explained in the attached\nPlan overview, was created to directly link executive performance and reward\nwith shareholder value creation.\n\nThe 10,000 units that will be granted under this plan is a target number which\ncorresponds to 100% Plan achievement. Based on the performance factors of the\nPlan, the final payout can range from 0 to 150% of the target number. If we\nmaximize our results and the stock price reaches $45.00 per share at the end of\nthe performance period (three years), the value of your award would be $675,000.\nWe believe the Performance Share Plan rewards our senior management for superior\nperformance as a team.\n\nIn addition, the Committee will also be asked to approve the prompt grant of\n20,000 options under our 1988 Employee Stock Plan. Market value will be\ndetermined on the date of grant. It is the Company's policy, although not a\ncommitment, to grant stock options each year to our Senior Officers. In your\nrole as Senior Vice President, Chief Financial Officer, you would be a member of\nthe Senior Management Committee. This committee is comprised of the Chief\nFinancial Officer, the Executive Vice Presidents of United States and European\nOperations, the Senior Vice President of Real Estate and myself and therefore,\nyou would be considered at the highest level when these grants are determined.\n\nExecutive Benefits Program:\n\n- -        Executive Medical Coverage\n\n         -    Plan pays 100% of 'Covered' Medical Expenses.\n\n              Participants pay $400 deductible per calendar year or $800 per\n              family per year for out-of-network charges (Non-PPO usage only).\n              Individuals and family members who are covered and use the PPO\n              Alliance Network will only need to meet the $200\/$400 deductible\n              annually. In addition the participant pays the separate one\n              calendar year $100 deductible for hospital stays. Contributions\n              for employee and Dependent coverage apply.\n\n         -    The Executive Medical Plan does not include coverage of dental\n              expenses at 100%. 'Preventive care', i.e., cleaning and x-rays are\n              normally paid at 80%, 'Major work', i.e., crowns at 50%.\n\n- -        Executive Financial and Tax Planning Service\n\n         -    The purpose of the plan is to assist in maximizing the opportunity\n              to build a personal estate, define and implement personal\n              financial planning objectives and assist with the annual tax\n              planning and return preparation.\n\n\n\nPage Three\n- --------------------------------------------------------------------------------\n\n         -    During the first year ONLY of participation in the Executive\n              Benefits Program, participants will be allowed up to $5,500 in\n              reimbursed expenses for financial\/estate planning through the\n              consulting firm of their choice.\n\n         -    A maximum of $1,250 is reimbursable for tax consulting and return\n              preparation each year.\n\n         -    $1,500 reimbursement is available for audit research and\n              preparation.\n\n- -        Executive Life Insurance\n\n         You are covered under the executive life insurance plan in the amount\n         of $600,000.\n\n         The Company's employee benefits program to include Executive Benefits\n         is subject to future changes at the discretion of Company management.\n\nExecutive Commitment:\n\na.       During the performance of your duties on behalf of the Company, you\n         will receive and be entrusted with certain confidential and\/or secret\n         information of a proprietary nature. You agree not to disclose or use,\n         during your employment or anytime thereafter, any such information\n         which is not otherwise publicly available.\n\nb.       Accordingly, you will not make any public statements concerning Kaufman\n         and Broad Home Corporation or any of their affiliates or subsidiaries\n         regarding your employment, unless previously approved by the Company.\n\nc.       You agree that in the event of your termination, you will not for a\n         period of one year thereafter employ nor seek to employ any person\n         employed by Kaufman and Broad Home Corporation or any of their\n         affiliates or subsidiaries.\n\nd.       You agree that during the term of your employment you will not engage,\n         as owner, part owner, stockholder (other than passive), director, joint\n         venturer, or otherwise, in any business competitive with Kaufman and\n         Broad Home Corporation or any of their affiliates or subsidiaries.\n         Nothing in this paragraph d. shall prevent you from obtaining normal\n         employment (after the termination of your employment with the Company),\n         in general industry, or housing industry as long as you comply with the\n         provisions of this letter.\n\nEmployment at Will; Termination: Nothing in this letter shall be construed as an\nemployment contract obligating the Company (expressly or implicitly) to employ\nyou for any specified period of time. Either party has the right to terminate\nthe employment relationship at any time with or without cause. If the Company\nshould terminate your employment for reasons other than cause at any time prior\nto December 1, 1995, the Company will pay, in twelve equal monthly payments,\n(commencing the day of termination), a sum equal to your base compensation plus\nthe greater of your pro-rated year-to-date bonus in the current fiscal year or\n$150,000.\n\n\n\nPage Four\n- -------------------------------------------------------------------------------\n\nLimitation: The compensation described in the preceding paragraphs represents\nour entire obligation to you during the term of your employment. Kaufman and\nBroad shall have no obligation to pay any compensation (in any form or any kind)\nto you in excess of the above described compensation unless our Human Resources\nDepartment has verified such increased compensation and processed a personnel\nchange notice reflecting such increase.\n\nEmployment References: This offer of employment is extended to you contingent\nupon satisfactory references.\n\nCitizenship Documentation: The Federal Immigration Control and Reform Act of\n1986 requires all employers to verify that employees hired since November 6,\n1986 have the legal right to work in the United States. Accordingly, we ask that\non your first day you bring with you documentation to prove this. A list of\nacceptable documentation is attached.\n\nEntire Agreement: This letter together with the documents referenced herein\ncontain all of the agreements and understandings regarding your employment and\nthe obligations of Kaufman and Broad in connection with employment. Kaufman and\nBroad has not made, nor are you relying upon any oral or written promises or\nstatements made by Kaufman and Broad or any agent of Kaufman and Broad except as\nexpressly set forth herein. This letter supersedes any and all prior agreements\nand understandings between you and Kaufman and Broad and alone expresses the\nagreement of the parties. This letter containing all of the agreements and\nunderstandings regarding your employment cannot be amended other than in writing\nby Kaufman and Broad.\n\nMike, I am very happy to confirm this offer and I am sure you will make\noutstanding contributions to the Kaufman and Broad team. Please sign and return\nthis letter to my attention in the enclosed Federal Express envelope.\n\nSincerely,                                  Agreed to and Acknowledged by:\n\n\/s\/ Bruce E. Karatz\n- -----------------------                     \/s\/ Michael F. Henn\nBruce E. Karatz                             --------------------\nChairman and                                Michael F. Henn\nChief Executive Officer\n                                            6\/15\/94\n                                            --------------------\n                                            Date\n\n\n<\/pre>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7964],"corporate_contracts_industries":[9480],"corporate_contracts_types":[9539,9544],"class_list":["post-39298","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-kb-home","corporate_contracts_industries-construction__contractors","corporate_contracts_types-compensation","corporate_contracts_types-compensation__employment"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/39298","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=39298"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=39298"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=39298"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=39298"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}