On February 21, 2020, Xerox Holdings Corporation (“Xerox Holdings”) reported that Hervé N. Tessler, Executive Vice President of Xerox Holdings and Xerox Corporation (together, the “Company”) and President, EMEA Operations, will retire from his role effective February 28, 2020, based on notice provided on February 14, 2020. As described below, it is expected that Mr. Tessler will separate from employment with the Company and its subsidiary Xerox S.A. (France) on May 17, 2020.
Under the Convention Collective d’Enterprise Xerox S.A.S. du 10 December 2015, a collective bargaining agreement between Xerox S.A. (France) and certain French trade unions that governs Mr. Tessler’s employment with Xerox (“
”) and his employment agreement, Mr. Tessler will remain employed as a
non-executive
employee of the Company during a garden leave period ending on May 17, 2020 (the “
”). During the Garden Leave Period, as required under the CBA, Mr. Tessler will (i) continue to receive his current base salary; (ii) remain eligible to participate in the Company’s standard employee benefit plans; (iii) receive a payout under our annual cash incentive plan for 2019 (“
”); (iv) continue to vest in outstanding long-term incentive awards in accordance with the applicable plan documents and agreements, provided that Mr. Tessler will not be eligible for any new long-term incentive grants; and (v) remain eligible for financial planning assistance and benefits under his international assignment agreement. Under the CBA, Mr. Tessler is also entitled to: (x) a
lump-sum
severance payment equal to the sum of 12 months’ annual base salary plus the 2019 MIP Payment, payable promptly following his separation from employment and (y) benefits continuation for Mr. Tessler and his eligible dependents for up to one year following his separation from employment. In addition, under Mr. Tessler’s current employment contract with respect to his assignment to the UK, he is entitled to receive reimbursement for certain relocation expenses, including
gross-up,
for his return to France within 60 days following his separation from employment. It is anticipated that the Company will also enter into a release agreement with Mr. Tessler with terms to be mutually agreed upon.
