2001 Employment Contract, executed January 26, 2001

Points of Interest:

► McGavick’s right to termination payments was fully negotiated and depended upon the context of the termination:

  • If Safeco had terminated McGavick without cause during the first three years, McGavick would have received $5.1 million. ¶ 6.1. After three years, he would have been entitled to half this amount. Id.
  • If a “change in corporate control” caused McGavick’s termination, he would have been entitled to a generous “golden parachute.” ¶ 6.4, Attachment A.
  • But by voluntarily resigning, McGavick forfeits all compensation – including bonuses and stock options – and remains entitled to only his final paycheck. ¶ 6.2.