Change of Control Severance Agreement离职管理权变更协议

-19-ChangeofControlSeveranceAgreement离职管理权变更协议核心提示：ThisChangeofControlSeveranceAgreement(thisAgreement)ismadeandenteredintoeffectiveasof_________(M,D,Y)(theEffectiveDate),byandbetween_________(theExecutive)andAAA,Inc.,a_________corporation(theCompany).CertaincapitaThisChangeofControlSeveranceAgreement(thisAgreement)ismadeandenteredintoeffectiveasof_________(M,D,Y)(theEffectiveDate),byandbetween_________(theExecutive)andAAA,Inc.,a_________corporation(theCompany).CertaincapitalizedtermsusedinthisAgreementaredefinedinSection1below.RECITALSA.ItisexpectedthattheCompanyfromtimetotimewillconsiderthepossibilityofaChangeofControl.TheBoardofDirectorsoftheCompany(theBoard)recognizesthatsuchconsiderationcanbeadistractiontotheExecutiveandcancausetheExecutivetoconsideralternativeemploymentopportunities.B.TheBoardbelievesthatitisinthebestinterestsoftheCompanyanditsshareholderstoprovidetheExecutivewithanincentivetocontinuehisemploymentandtomaximizethevalueoftheCompanyuponaChangeofControlforthebenefitofitsshareholders.C.InrecognitionofExecutive’slongstandingservicewiththeCompanyduringwhichtimeExecutive’sleadershiphasbeenfundamentaltotheCompany’sdevelopmentandinordertoprovidetheExecutivewithenhancedfinancialsecurityandsufficientencouragementtoremainwiththeCompanynotwithstandingthepossibilityofaChangeofControl,andinconsiderationoftheExecutive’sagreementtoacceptatenpercent(10%)reductioninhisannualbasesalary,theBoardbelievesthatitisimperativetoprovidetheExecutivewithcertainseverancebenefitsupontheExecutive’sterminationofemploymentinconnectionwithaChangeofControl.AGREEMENTInconsiderationofthemutualcovenantshereincontainedandthecontinuedemploymentoftheExecutivebytheCompany,thepartiesagreeasfollows:1.DefinitionofTerms.ThefollowingtermsreferredtointhisAgreementshallhavethefollowingmeanings:(a)Cause.Causeshallmean(i)theExecutive’swillful,repeatedfailuretosubstantiallyperformhisduties(exceptduetophysicalormentalillness),iftheExecutivefailstocurewithinfifteen(15)daysaftertherehasbeendeliveredtotheExecutivefromtheBoardwrittennoticeofsuchfailure;(ii)awillfulactbytheExecutivethatconstitutesgrossmisconductandisinjurioustotheCompany;(iii)anyactofpersonaldishonestytakenbytheExecutiveinconnectionwithhisresponsibilitiesasanemployeewhichisintendedtoresultinsubstantialpersonalenrichmentoftheExecutive;or(iv)theExecutive’sconvictionoforpleaofnocontesttoafelony.(b)ChangeofControl.ChangeofControlshallmeantheoccurrenceofanyofthefollowingevents:(i)theapprovalbytheshareholdersoftheCompanyofaplanofcompleteliquidationoftheCompanyoranagreementforthesaleordispositionbytheCompanyofallorsubstantiallyalloftheCompany’sassets;(ii)theapprovalbyshareholdersoftheCompanyofamergerorconsolidationoftheCompanywithanyothercorporation,otherthanamergerorconsolidationwhichwouldresultinthevotingsecuritiesoftheCompanyoutstandingimmediatelypriortheretocontinuingtorepresent(eitherbyremainingoutstandingorbybeingconvertedintovotingsecuritiesofthesurvivingentity)morethanfiftypercent(50%)ofthetotalvotingpowerrepresentedbythevotingsecuritiesoftheCompanyorsuchsurvivingentityoutstandingimmediatelyaftersuchmergerorconsolidation;(iii)anyperson(assuchtermisusedinSections13(d)and14(d)oftheSecuritiesExchangeActof1934,asamended)becomingthebeneficialowner(asdefinedinRule13d-3undersaidAct),directlyorindirectly,ofsecuritiesoftheCompanyrepresentingthirtypercent(30%)ormoreofthetotalvotingpowerrepresentedbytheCompany’sthenoutstandingvotingsecurities;or(iv)achangeinthecompositionoftheBoard,asaresultofwhichfewerthansixty-sixpercent(66%)ofthedirectorsareIncumbentDirectors.IncumbentDirectorsshallmeandirectorswhoeither(A)aredirectorsoftheCompanyasofthedatehereofor(B)areelected,ornominatedforelection,totheBoardwiththeaffirmativevotesofatleastamajorityofthosedirectorswhoseelectionornominationwasnotinconnectionwithanytransactionsdescribedinsubsections(i),(ii)or(iii),orinconnectionwithanactualorthreatenedproxycontestrelatingtotheelectionofdirectorsoftheCompany.Notwithstandingtheforegoing,thetermChangeofControlshallnotbedeemedtohaveoccurrediftheCompanyfilesforbankruptcyprotection,orifapetitionforinvoluntaryreliefisfiledagainsttheCompany.(c)HighBonus.HighBonusshallmeanthehighestannualbonusthatcouldhavebeenpaidtotheExecutivebytheCompanyunderthebonusplanoragreementapplicabletotheExecutivefortheprecedingfive(5)fiscalyears,whetherornotsuchbonuswaspaid.(d)InvoluntaryTermination.InvoluntaryTerminationshallmean:(i)withouttheExecutive’sexpresswrittenconsent,areductionoftheExecutive’stitle,authority,duties,positionorresponsibilitiesrelativetotheExecutive’stitle,authority,duties,positionorresponsibilitiesineffectimmediatelypriortosuchreduction;ortheremovaloftheExecutive’stitle,authority,position,dutiesorresponsibilities,unlesstheExecutiveisprovidedwithcomparabletitle,authority,duties,positionandresponsibilities;(ii)withouttheExecutive’sexpresswrittenconsent,amaterialreduction,withoutgoodbusinessreasons,ofthefacilitiesandperquisites(includingofficespaceandlocation)availabletotheExecutiveimmediatelypriortosuchreduction;(iii)withouttheExecutive’sexpresswrittenconsent,areductionbytheCompanyoftheExecutive’sbasesalaryorbonusopportunityasineffectimmediatelypriortosuchreduction;(iv)withouttheExecutive’sexpresswrittenconsent,amaterialreductionbytheCompanyinthekindorlevelofemployeebenefitstowhichtheExecutiveisentitledimmediatelypriortosuchreductionwiththeresultthattheExecutive’soverallbenefitspackageismateriallyreduced;(v)withouttheExecutive’sexpresswrittenconsent,therelocationoftheExecutive’sprincipalplaceofemploymenttoafacilityoralocationmorethanthirty(30)milesfromhiscurrentlocation;(vi)anypurportedterminationoftheExecutivebytheCompanywhichisnoteffectedforCauseorforwhichthegroundsrelieduponarenotvalid;or(vii)thefailureoftheCompanytoobtaintheassumptionofthisAgreementoranyotheragreementbetweentheCompanyandExecutivebyanysuccessorscontemplatedinSection7below.(e)TerminationDate.TerminationDateshallmeantheeffectivedateofanynoticeofterminationdeliveredbyonepartytotheotherhereunder.2.TermofAgreement.ThisAgreementshallterminateuponthedatethatallobligationsofthepartiesheretounderthisAgreementhavebeensatisfied.3.At-WillEmployment.TheCompanyandtheExecutiveacknowledgethattheExecutive’semploymentisandshallcontinuetobeat-will,asdefinedunderapplicablelaw.4.SeveranceBenefits.(a)InvoluntaryTerminationinConnectionwithaChangeofControl.IftheExecutive’semploymentwiththeCompanyterminatesasaresultofanInvoluntaryTerminationatanytimewithintwenty-four(24)monthsafteraChangeofControlorwithinthree(3)monthsonorbeforeaChangeofControl,andtheExecutivesignsanddoesnotrevokeastandardreleaseofclaimswiththeCompanyinaformacceptabletotheCompany,thentheExecutiveshallbeentitledtothefollowingseverancebenefits:(i)two(2)timestheExecutive’sannualbasesalaryasineffectasofthedateofsuchtermination,lessapplicablewithholding,payableinalumpsumwithinthirty(30)daysoftheInvoluntaryTermination;(ii)two(2)timestheHighBonus,lessapplicablewithholding,payableinalumpsumwithinthirty(30)daysoftheInvoluntaryTermination;(iii)totheextenteligibleonthedateoftermination,theExecutivewillbepermittedtoconverthiscoverageundertheCompany’slifeinsuranceplantoanindividualpolicyforsix(6)monthsfromthedateoftheExecutive’stermination,atnoadditionalafter-taxcostthantheExecutivewouldhavehadasanemployee.TotheextentsuchindividualcoveragecannotbeprovidedwithoutjeopardizingthetaxstatusoftheCompany’slifeinsuranceplan,forunderwritingreasonsorotherwise,theCompanyshallpaytheExecutiveanamountsuchthattheExecutivecanpurchasesuchbenefitsseparatelyatnogreaterafter-taxcosttotheExecutivethanhewouldhavehadifthebenefitswereprovidedtotheExecutiveasanemployee;and(iv)reimbursementbytheCompanyofthegrouphealthcontinuationcoveragepremiumsfortheExecutiveandtheExecutive’seligibledependentsunderTitleXoftheConsolidatedBudgetReconciliationActof1985,asamended(COBRA)asineffectthroughthelesserof(x)eighteen(18)monthsfromthedateofsuchtermination,(y)thedateuponwhichtheExecutiveandtheExecutive’seligibledependentsbecomecoveredundersimilarplansor(z)thedatetheExecutivenolongerconstitutesaQualifiedBeneficiary(assuchtermisdefinedinSection4980B(g)oftheCode);provided,however,thattheExecutivewillbesolelyresponsibleforelectingsuchcoveragewithintherequiredtimeperiod.(b)TerminationApartfromaChangeofControl.IftheExecutive’semploymentwiththeCompanyterminatesotherthanasaresultofanInvoluntaryTerminationwithinthetwenty-four(24)monthsfollowingaChangeofControlorwithinthree(3)monthsonorbeforeaChangeofControlthentheExecutiveshallnotbeentitledtoreceiveseveranceorotherbenefitshereunder.(c)AccruedWagesandVacation;Expenses.Withoutregardtothereasonfor,orthetimingof,theExecutive’sterminationofemployment:(i)theCompanyshallpaytheExecutiveanyunpaidwagesdueforperiodspriortotheTerminationDate;(ii)theCompanyshallpaytheExecutivealloftheExecutive’saccruedandunusedvacationthroughtheTerminationDate;and(iii)followingsubmissionofproperexpensereportsbytheExecutive,theCompanyshallreimbursetheExecutiveforallexpensesreasonablyandnecessarilyincurredbytheExecutiveinconnectionwiththebusinessoftheCompanypriortotheTerminationDate.Thesepaymentsshallbemadepromptlyuponterminationandwithintheperiodoftimemandatedbylaw.5.LimitationonPayments.IntheeventthattheseveranceandotherbenefitsprovidedforinthisAgreementorotherwisepayabletotheExecutive(i)constituteparachutepaymentswithinthemeaningofSection280GoftheCodeand(ii)wouldbesubjecttotheexcisetaximposedbySection4999oftheCode(theExciseTax),thentheExecutive’sbenefitsunderthisAgreementshallbeeither:(a)deliveredinfullor(b)deliveredastosuchlesserextentwhichwouldresultinnoportionofsuchbenefitsbeingsubjecttotheExciseTax,whicheveroftheforegoingamounts,takingintoaccounttheapplicablefederal,stateandlocalincometaxesandtheExciseTax,resultsinthereceiptbytheExecutiveonanafter-taxbasis,ofthegreatestamountofbenefits,notwithstandingthatallorsomeportionofsuchbenefitsmaybetaxableunderSection4999oftheCode.UnlesstheCompanyandtheExecutiveotherwiseagreeinwriting,anydeterminationrequiredunderthisSection5shallbemadeinwritingbytheCompany’sindependentpublicaccountants(theAccountants),whosedeterminationshallbeconclusiveandbindingupontheExecutiveandtheCompanyforallpurposes.ForpurposesofmakingthecalculationsrequiredbythisSection5,theAccountantsmaymakereasonableassumptionsandapproximationsconcerningapplicabletaxesandmayrelyonreasonable,goodfaithinterpretationsconcerningtheapplicationofSections280Gand4999oftheCode.TheCompanyandtheExecutiveshallfurnishtotheAccountantssuchinformationanddocumentsastheAccountantsmayreasonablyrequestinordertomakeadeterminationunderthisSection5.TheCompanyshallbearallcoststheAccountantsmayreasonablyincurinconnectionwithanycalculationscontemplatedbythisSection5.6.LegalFees.TheCompanyshallreimbursetheExecutiveupto_________dollars($,_________)forreasonablelegalfeesincurredasaresultofanydisputebetweentheExecutiveandtheCompanyrelatingtothisAgreementandarisingfollowing,orwithinthree(3)monthsonorbefore,aChangeofControl,payablewithinthirty(30)businessdaysoftheCompany’sreceiptofawritteninvoicefromtheExecutiveforsuchincurredfees.7.Successors.(a)Company’sSuccessors.AnysuccessortotheCompany(whetherdirectorindirectandwhetherbypurchase,lease,merger,consolidation,liquidationorotherwise)toallorsubstantiallyalloftheCompany’sbusinessand/orassetsshallassumetheCompany’sobligationsunderthisAgreementandagreeexpresslytoperformtheCompany’sobligationsunderthisAgreementinthesamemannerandtothesameextentastheCompanywouldberequiredtoperformsuchobligationsintheabsenceofasuccession.ForallpurposesunderthisAgreement,thetermCompanyshallincludeanysuccessortotheCompany’sbusinessand/orassetswhichexecutesanddeliverstheassumptionagreementdescribedinthissubsection(a)orwhichbecomesboundbythetermsofthisAgreementbyoperationoflaw.(b)Executive’sSuccessors.WithoutthewrittenconsentoftheCompany,theExecutiveshallnotassignortransferthisAgreementoranyrightorobligationunderthisAgreementtoanyotherpersonorentity.Notwithstandingtheforegoing,thetermsofthisAgreementandallrightsoftheExecutivehereundershallinuretothebenefitof,andbeenforceableby,theExecutive’spersonalorlegalrepresentatives,executors,administrators,successors,heirs,distributees,deviseesandlegatees.8.Notices-General.NoticesandallothercommunicationscontemplatedbythisAgreementshallbeinwritingandshallbedeemedtohavebeendulygivenwhenpersonallydeliveredorwhenmailedbyU.S.registeredorcertifiedmail,returnreceiptrequestedandpostageprepaid.InthecaseoftheExecutive,mailednoticesshallbeaddressedtohimatthehomeaddresswhichhemostrecentlycommunicatedtotheCompanyinwriting.InthecaseoftheCompany,mailednoticesshallbeaddressedtoitscorporateheadquarters,andallnoticesshallbedirectedtotheattentionofitsSecretary.(a)NoticeofTermination.AnyterminationbytheCompanyforCauseorbytheExecutiveasaresultofanInvoluntaryTerminationshallbecommunicatedbyanoticeofterminationtotheotherpartyheretogiveninaccordancewiththisSection8.SuchnoticeshallindicatethespecificterminationprovisioninthisAgreementreliedupon,shallsetforthinreasonabledetailthefactsandcircumstancesclaimedtoprovideabasisforterminationundertheprovisionsoindicated,andshallspecifytheTerminationDate(whichshallbenotmorethanthirty(30)daysafterthegivingofsuchnotice).ThefailurebytheExecutivetoincludeinthenoticeanyfactorcircumstancewhichcontributestoashowingofInvoluntaryTerminationshallnotwaiveanyrightoftheExecutivehereunderorprecludetheExecutivefromassertingsuchfactorcircumstanceinenforcinghisrightshereunder.9.Non-Solicitation.Untilthedatethatisone(1)yearfromthedateofterminationoftheExecutive’semploymentwiththeCompany,theExecutiveagreesandacknowledgesthattheExecutiveshallnoteitherdirectlyorindirectlysolicit,induce,attempttohire,recruit,encourage,takeaway,hireanyemployeeoftheCompanyorcauseanemployeetoleavehisorheremploymenteitherfortheExecutiveorforanyotherentityorperson.UponanybreachofthisSection9,allseverancepaymentspursuanttothisAgreementshallimmediatelycease.10.Arbitration.(a)General.InconsiderationoftheExecutive’sservicetotheCompany,itspromisetoarbitrateallemploymentrelateddisputes,theExecutive’sreceiptofthecompensation,payraisesandotherbenefitspaidtotheExecutive’sbytheCompany,atpresentandinthefuture,theExecutiveagreesthatanyandallcontroversies,claims