{"id":39745,"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-and-post-retirement-consulting-agreement-general.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"employment-and-post-retirement-consulting-agreement-general","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/employment-and-post-retirement-consulting-agreement-general.html","title":{"rendered":"Employment and Post-Retirement Consulting Agreement &#8211; General Electric Co. and John F. Welch Jr."},"content":{"rendered":"<pre>               EMPLOYMENT AND POST-RETIREMENT CONSULTING AGREEMENT\n                                     between\n                            GENERAL ELECTRIC COMPANY\n                                       and\n                               John F. Welch, Jr.\n\n\n         This agreement is entered into on December 20, 1996 by and between\nGeneral Electric Company, a New York corporation, and John F. Welch, Jr.\n\n         WHEREAS, in recognition of Mr. Welch's unique contribution to the\ncreation of more than $150 billion of shareholder value during his tenure as the\nChairman of the Board and Chief Executive Officer of General Electric Company\n('Company'), the Board of Directors wishes to obtain his commitment to serve as\nChairman of the Board of Directors and Chief Executive Officer of the Company\nuntil December 31, 2000, and his commitment to serve thereafter as a consultant\nto and representative of the Company, at the direction of the Chief Executive\nOfficer of the Company; and\n\n         NOW THEREFORE, the Company and Mr. Welch agree as follows:\n\n1. Mr. Welch agrees to continue to serve as Chairman of the Board of Directors\nand Chief Executive Officer of the Company for the period from the date of this\nagreement until December 31, 2000, on terms no less favorable to him than his\npresent conditions of employment, or such earlier date as the Board of Directors\nmay determine at anytime in its sole discretion.\n\n2. Mr. Welch agrees that, following his retirement from the Company, and when\nand as requested by the Chief Executive Officer of the Company, he will provide\nconsulting and advice to the Company and will participate in various external\nactivities and events for the benefit of the Company. Mr. Welch agrees to\nprovide up to 30 days per year to the Company, subject to his reasonable\navailability, for such consulting services or such participation in external\nactivities and events. In addition, Mr. Welch agrees to obtain the approval of\nthe Management Development and Compensation Committee of the Board of Directors\nbefore providing any consulting, advice or service of any kind to any other\ncompany or organization that competes with the Company.\n\n3. The services contemplated under this agreement will require that Mr. Welch\nhave access, following his retirement, to information which is proprietary or\nconfidential to the Company. Mr. Welch agrees not to publish or otherwise\ndisclose to persons outside the Company, without specific permission from the\nCompany, any Company proprietary or confidential information which he acquires\nas a result of services performed under this agreement, and not to use such\ninformation in any way which might be detrimental to the interests of the\nCompany.\n\n4. Mr. Welch also agrees to promptly disclose to the Company any information,\nideas, or inventions made or conceived by him which may result from or be\nsuggested by post-retirement services performed by him under this agreement, and\nto assign to the Company all rights pertaining to such information, ideas, or\ninventions. Knowledge or information of any kind disclosed by Mr. Welch to the\nCompany shall be deemed to have been disclosed without obligation on the part of\nthe Company to hold the same in confidence, and the Company shall have the full\nright to use and disclose such knowledge and information without compensation to\nMr. Welch beyond that specifically provided in this agreement.\n\n5. In return for his willingness to continue to help create value for the\nCompany's shareholders throughout his retirement, and in return for the\nforegoing commitments by Mr. Welch, the Company shall pay Mr. Welch, for\nconsulting services or participation in external activities and events performed\nat the request of the Chief Executive Officer of the Company, a daily consulting\nfee, for the days he renders services, equal to his daily salary rate at the\ntime of his retirement, and, as an annual retainer, shall pay for 5 days of such\nservices in advance at the beginning of each year of his retirement. In\naddition, the Company shall provide Mr. Welch, for the remainder of his life,\ncontinued access to Company facilities and services comparable to those provided\nto him prior to his retirement, including access to Company aircraft, cars,\noffice, apartments, and financial planning services. The Company shall also\nreimburse Mr. Welch, upon the receipt of appropriate documentation, for\nreasonable travel and living expenses which he incurs in providing services at\nthe request of the Chief Executive Officer, or which he incurs because of his\nposition as a retired Chairman of the Board and Chief Executive Officer of the\nCompany. Subject only to Mr. Welch's compliance, to the best of his ability,\nwith his commitments set forth in paragraph 1 of this agreement, the Company's\nobligations set forth in this agreement are unconditional and irrevocable and\nshall apply irrespective of Mr. Welch's incapacitation, prior or subsequent to\nhis retirement, to perform services hereunder, provided, however, that the\nCompany's obligation to pay Mr. Welch an annual retainer shall terminate if he\nshould become totally and permanently unable to provide services hereunder.\n\n\n\n\n\n\n6. Nothing in this agreement shall require any change in the Board's current\nprocesses for establishing Mr. Welch's salary, bonus and long-term incentive\ncompensation awards based on his performance during the remainder of his service\nas Chairman and Chief Executive Officer.\n\n7. Following his retirement, Mr. Welch shall be an independent contractor under\nthis agreement, and no provision of, or action taken under, this agreement shall\naffect in any way Mr. Welch's rights under any Company compensation, employee\nbenefit and welfare plans, programs or practices, including, without limitation,\nCompany executive compensation, insurance, or pension plans.\n\n8. This agreement is the sole agreement between Mr. Welch and the Company with\nrespect to the duration of his service as Chairman of the Board and Chief\nExecutive Officer, and to his post-retirement consulting services and activities\nfor the Company, and supersedes all prior agreements and understandings with\nrespect thereto. No change, modification, alteration or addition to any\nprovision hereof shall be binding unless in writing and signed by both Mr. Welch\nand a duly authorized representative of the Board of Directors of the Company.\n\n\n      GENERAL ELECTRIC COMPANY\n\nBy_______________________________________            Date _________________\n         Silas S. Cathcart\n         By order of the Board of Directors\n\n  __________________________________                 Date _________________\n         John F. Welch, Jr.\n\n\n<\/pre>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7615],"corporate_contracts_industries":[9452],"corporate_contracts_types":[9539,9544],"class_list":["post-39745","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-general-electric-co","corporate_contracts_industries-manufacturing__conglomerates","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\/39745","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=39745"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=39745"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=39745"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=39745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}