So verhandeln Sie Ihren Executive Employment Contract Eine der größten Herausforderungen bei der Verhandlung von Arbeitsverträgen mit Führungskräften ist der konkurrierende Wunsch, die Bedingungen der Vereinbarung zu bestätigen. Unternehmen scheinen in der Regel keine schriftlichen Arbeitsverträge - manche verweigern sogar, sie zu berücksichtigen. Sie wollen das künftige Beschäftigungsverhältnis kontrollieren. Und eine ausgehandelte schriftliche Vereinbarung kann zu weniger Kontrolle führen. Aus Sicht der Unternehmen, je weniger Versprechen und Verpflichtungen schriftlich, desto besser. Führungskräfte sehen diese Vereinbarungen nach Bedarf an, um ihre Erwartungen zu bestätigen, ihre Ansprüche zu verdeutlichen und das Risiko auf das Unternehmen zu verlagern. Sie haben Erwartungen an die Macht, die Autorität und die Ressourcen, die sie benötigen, um ihre Arbeit zu erledigen, und die kurz - und langfristigen finanziellen Anreize, die sie erhalten werden. Sie wollen ihren Anspruch auf Stammaktien und Aktienoptionen, ohne Vorbedingungen oder versteckte Beschränkungen. Sie wollen auch, dass das Unternehmen das Risiko teilt, dass die Beschäftigung nicht aus Gründen außerhalb der Führungskräfte Kontrolle ausarbeiten kann. Sie verlangen nach Garantien der Entschädigung, Überschreitungen der Management-Diskretion in kurz - und langfristigen Anreizkompensationsplänen und günstigere Event-Trigger oder Vergütungspakete im Falle eines Kontrollwechsels oder Änderungen der Key-Definitionen unter anderem. Unternehmen betrachten oft die geringfügigen Änderungen, die sie an den Rändern eines vorgeschlagenen Entwurfs des Arbeitsvertrages als Verhandlungen akzeptieren, aber solche Änderungen erkennen nur die ungleiche Verhandlungsstärke der Parteien an, die sie nicht in einem wirklichen Sinn verhandeln. Aus der Sicht der Unternehmen ist das gut, aber Führungskräfte, die besser wissen wollen mehr. Für sie sind die Verhandlungen nicht real, es sei denn, sie sind materiell und engagieren beide Seiten bei der Bewertung ihrer wahren Interessen, der Alternativen zu einer ausgehandelten Vereinbarung und der Möglichkeiten für Konzession und Kompromiss. Die Unternehmen fordern große Unterschiede bestehen zwischen Verhandlungen über Führungskräftevereinbarungen und Verhandlungen über Handelsverträge, mit denen Unternehmen vertrauter sind. Verhandeln von Führungskraftvereinbarungen ist ein persönlicheres, weniger objektives Verfahren, das durch subtile und nuancierte Bewegungen und Wendungen gekennzeichnet ist. Unternehmen glauben oft, dass sie bei der Verhandlung eines Arbeitsvertrags mit einer Exekutive überlegene Verhandlungswünsche haben: Schließlich sind sie diejenigen, die die Position, die Chance und das Privileg der Arbeit für das Unternehmen anbieten. Firmen, die diesen Weg denken, sind jedoch auf mehreren Ebenen anfällig. Erstens, während ein wettbewerbsfähiger Verhandlungsstil kann das Unternehmen gut bei der Verhandlung einer kommerziellen Vereinbarung dienen, wird es kontraproduktiv bei der Verhandlung eines Führungskräfte Beschäftigungsvertrag. Zu der Zeit, in der ein Unternehmen mit einer Exekutive verhandelt, hat es bereits eine erhebliche Investition in Zeit und Energie (und oft in externen Recruiter Gebühren) in Interviews und Vergleich Kandidaten. Was das Unternehmen jedoch nicht erkennen kann, ist, dass das sich entwickelnde Vertrauen und Vertrauen zwischen den beiden Parteien zerbrechlich ist und durch unrealistische Verhandlungspositionen, die später zurückgezogen werden müssen, um eine Vereinbarung zu erhalten, leicht gefährdet werden kann. Zweitens wollen Führungskräfte glauben, dass die Firma auf sie achtet. Während der Verhandlungen muss ein Unternehmen, das eine vertrauensvolle Beziehung wünscht, Wege finden, um diesen Glauben zu stärken. Sicherlich, wenn ein Unternehmen eine Führungskraft um eine andere Position zu verlassen, muss es Sorge für die Exekutive als eine Person sowie ein Profit-Center zu zeigen. Drittens, Führungskräfte wollen, dass Unternehmen ihre Vorschläge ernst nehmen. Wenn das Unternehmen ultimative Ziel ist eine treue, engagierte Führungskraft, die die Unternehmen Interessen zuerst setzen wird, muss es empfindlich auf die Führungskräfte Bedürfnisse und reagieren nachdenklich auf seine Vorschläge. Jede Verhandlung, die die Exekutive verärgert oder Zweifel an der Gesellschaft Aufrichtigkeit und Glaubwürdigkeit ist ein Misserfolg der zukünftigen Beziehung wird nicht dauern. Viertens, Unternehmen, die ihren Generalrat allein bitten, einen Arbeitsvertrag mit einem hochrangigen Vorstand zu verhandeln, schaffen unnötige Spannungen und potenzielle Interessenkonflikte. Ein General Counsel will als vertrauenswürdiger Berater bekannt sein: ehrlich, unkompliziert und glaubwürdig. Dies kann im Widerspruch zu den Firmen wünschen, starke Positionen zu nehmen und Flexibilität zu zeigen, wenn dies unbedingt erforderlich ist. Ein allgemeiner Rat, der der Exekutive berichten wird, ist ein besonderer Nachteil. Um die Führungskräfte zu vertrauen, kann er oder sie vielleicht nicht bereit sein, die Exekutive in echten Verhandlungen zu engagieren, besonders wenn sie nicht durch eindeutige Standards, Kriterien und vergangene Praxis unterstützt werden. Die Unternehmensherausforderung Ein Unternehmen, das diese Schwachstellen versteht, wird seine Strategien und Taktiken anpassen und anpassen, um sie zu beseitigen oder zu neutralisieren. Zu der Zeit Verhandlungen schließen, sollte die Firma die Exekutive glauben, dass es seine Interessen betrachtet hat und getan sein Bestes, um sie zu befriedigen. Das bedeutet nicht, dass sie sich verpflichtet fühlen, sich an die Führungskräfte anzupassen, aber es bedeutet, dass sie in gutem Glauben verhandeln, um eine Einigung darüber zu erzielen, was die Exekutive tatsächlich braucht. Führungskräfte, die im Verhandeln erfahren haben, verstehen in der Regel ein Unternehmen, das in der Anwendung seiner vollständigen Hebelwirkung zurückhalten muss. Sie verstehen die persönlichen und immateriellen Faktoren in Verhandlungen und wie man sie benutzt. Dies gibt ihnen Hebel in Verhandlungen, aber auch sie davon abhalten, es zu benutzen. Sie wollen kein Mangel an Vertrauen in das Unternehmen zeigen oder als arrogant, egozentrisch, über-besorgt über ihre eigenen Interessen oder schwer zu handhaben wahrgenommen werden. Führungskräfte, die Verhandlungen verstehen auch erkennen, dass sie ein Prozess sind, nicht ein Ereignis, und schätzen, dass Änderungen in einem Unternehmen vorgeschlagenen Entwurf eines Arbeitsvertrages wird nur erreicht werden, nachdem ein vollständiges Verständnis der beiden Parteien braucht. Sie erkennen, dass die Firma genau so aussieht, wie die Exekutive handelt und was er oder sie in Verhandlungen sagt, wie es am Ergebnis ist. Zum Beispiel ist ein kritischer Aspekt eines Arbeitsvertrages die Fähigkeit des Unternehmens, es zu beenden, das definiert das Gleichgewicht der Macht im Arbeitsverhältnis. Die Exekutive will eine Pro-Mitarbeiter-Kündigungsdefinition und ein günstiges Trennpaket im Falle einer Kündigung ohne Grund oder Rücktritt aus gutem Grund, denn das wird das Unternehmen zweimal überlegen, den Vertrag aufgrund von Persönlichkeitskonflikten zu beenden und nicht zu sein Eine gute Passform für die Unternehmenskultur oder andere subjektive Gründe. Wenn es ordnungsgemäß fertig ist, wird das Trennungspaket auch das Recht der Führungskräfte, eine verdiente, aber nicht ausgezahlte Vergütung zu erhalten, einschließlich der aufgeschobenen Vergütung aus den Vorjahresprämien, den laufenden Jahresprämien und sogar den garantierten Prämien, die ansonsten eine fortbestehende Beschäftigung bis zu einem Ausübungstermin verlangen. Um diese Bestimmungen zu verhandeln, müssen Führungskräfte kunstvoll artikulieren Vorschläge, die sowohl ihre Interessen und ihre Hebelwirkung präsentieren. Gleichzeitig darf die Exekutive das Unternehmen nicht ängstlich machen, dass es sich um eine übertriebene oder zu besorgte Klage handelt. Eine erfolgreiche Verhandlung ist eine, bei der sowohl die Firma als auch die Exekutive als gut oder besser über die anderen nach der Verhandlung endet, wie sie es früher getan haben. Mehr von der Unternehmenssekretärin: Die Gesellschaft und die Geschäftsleitung haben zuvor eine Entschädigungsvereinbarung über die Entschädigungsvereinbarung abgeschlossen, die einige der Bedingungen für die Beschäftigungs - und Beschäftigungsverhältnisse von Executive146 für die Gesellschaft festlegt. Der Vergütungsausschuss des Verwaltungsrates (der Ausschuss 148) hat sich entschlossen, den Vorstandsaktien der Stammaktien der Gesellschaft (147Common Stock148) vorbehaltlich der hierin enthaltenen Beschränkungen gemäß der Gesellschaft146s 2010 langfristigen Vergütungsplan ( Die 147Plan148). Alle hierin enthaltenen Begriffe, die nicht anderweitig definiert sind, haben die gleiche Bedeutung wie im Plan. JETZT, für eine gute und wertvolle Gegenleistung, einschließlich der gegenseitigen Versprechungen, die in dieser Vereinbarung festgelegt sind, und die Vorteile, die die Gesellschaft im Zusammenhang mit den nachträglich dargestellten Diensten oder ihren Tochtergesellschaften durch die Exekutive, die Gesellschaft und die Der Vorstand erklärt sich hiermit wie folgt: 1.1 Auszeichnung der beschränkten Anteile. Die Gesellschaft verleiht dem Vorstand die Anzahl der oben aufgeführten Aktien der Stammaktien unter der Überschrift 147Anzahl der Restricted Shares148 (die 147Restricted Shares148), vorbehaltlich der hierin enthaltenen Beschränkungen und der Bestimmungen des Plans. 1.2 Ausübung der beschränkten Anteile. Vorbehaltlich der Bestimmungen dieses Vertrages bestehen die beschränkten Anteile nach folgendem Zeitplan: 1. Jahrestag Datum 2. Jahrestag Datum 3. Jahrestag Datum 4. Jahrestag Datum 5. Jahrestag Datum (a) Kündigung nach Gesellschaft für Ursache, durch Executive Andere als aus gutem Grund oder aufgrund von Behinderung. Wenn die Beschäftigung von Executive146 von der Gesellschaft gemäß Ziffer 3.1 (b) 2.1 des Arbeitsvereinbarungsvertrages abgeschlossen ist, ist eine Vorstandsvergütung gemäß § 3.1 (e) Abs. 2.2 oder 2.3 des Entschädigungsvertrags für Arbeitnehmerverträge oder aufgrund von Behinderung (definiert In der Beschäftigungsvereinbarung Executive Compensation Agreement) gemäß Ziffer 3.1 (d) 2.5 des Beschäftigungsabkommens Executive Compensation Agreement, wird die Ausübung der Restricted Shares am Tag der Kündigung eingestellt und alle nicht ausgeübten Restricted Shares verfällt von Executive Und zum Unternehmen zurückkehren. (B) Kündigung wegen Executive146s Tod. Wenn die Beschäftigung von Executive146 aufgrund des Todes des Todes nach § 3.1 (d) 2.4 des Arbeitsvereinbarungsvertrags abgeschlossen ist, werden die beschränkten Anteile bei einer solchen Kündigung unverzüglich ausgeübt. (C) Kündigung durch Gesellschaft ohne Ursache oder durch Vorstand aus gutem Grund. Wenn die Beschäftigung von Executive146 von der Exekutive gemäß Ziffer 3.1 (c) des Arbeitsvertrags oder von der Gesellschaft gemäß Ziffer 3.1 (a) 2.6 des Entschädigungsvereinbarungsvertrags abgeschlossen ist, sind alle beschränkten Anteile, die während des Zeitraums vorgesehen sind, geplant Bis zum Ende der Anfangslaufzeit oder der damals geltenden Erneuerungsfrist des Beschäftigungsvertrages (in keinem Fall länger als die drei in der zweijährigen Frist nach dem Datum der Beendigung des Arbeitsverhältnisses von 146) unverzüglich bestehen. (D) Kontrollwechsel. Im Falle eines Kontrollwechsels unterliegen alle ausstehenden beschränkten Anteile den Bestimmungen des § 19 des Planes, sofern jedoch etwaige Verweise auf die in § 19 des Planes verwendeten Verweise auf die Auslegung von Ziffer 19 des Plans ausgelegt werden Die Anwendung der Definitionen von 147cause148 und 147good reason148, die in der Beschäftigungsvereinbarung Executive Compensation Agreement festgelegt sind. Alle eingeschränkten Anteile, die nicht ausgeübt werden, werden vom Vorstand verfallen und der Gesellschaft zurückerstattet. Der Zeitraum, in dem die Restricted Shares nicht ausgezahlt werden, wird hierin als Restricted Period bezeichnet. 1.3 Aktionärsstatus. Vor der Ausübung der beschränkten Anteile hat der Vorstand das Recht, die beschränkten Anteile zu stimmen, das Recht, alle regelmäßigen Bardividenden zu erhalten und zu behalten, die für die eingeschränkten Anteile gezahlt oder verbreitet sind, und sofern hier nicht ausdrücklich etwas anderes bestimmt ist Rechte als Inhaber von ausstehenden Aktien der Stammaktien. Unbeschadet der vorstehenden Erwägungen ist der Vorstand nicht berechtigt, Dividenden in Bezug auf die beschränkten Anteile zu stimmen oder Dividenden zu erhalten, und zwar in Bezug auf die Aufzeichnungstermine, die nach einer der beschränkten Aktien der Gesellschaft gemäß Ziffer 1.2 vorliegen. Bis die Restricted Shares gemäß Ziffer 1.2 ausstehen, behält die Gesellschaft die Sorgerecht für die Aktienbescheinigungen, die die Restricted Shares darstellen, auf. Sobald dies nach Ablauf der Beschränkungen praktikabel ist, erteilt oder verleiht die Gesellschaft die von den Aktien vertretenen Zertifikate, abzüglich aller zur Erfüllung der Verpflichtung zur Einbeziehung von Erträgen und Erwerbssteuern im Zusammenhang mit der Ausübung von Restricted Shares. 1.4 Verbot gegen Übertragung. Während des eingeschränkten Zeitraums dürfen die beschränkten Anteile nicht übertragen, übertragen, verpfändet oder in irgendeiner Weise (ob durch Gesetzgebung oder anderweitig) durch den Vorgesetzten behandelt oder beendet werden oder einer Ausführung, einem Anhang oder einem ähnlichen Verfahren unterliegen. Jede Übertragung, die gegen diesen Abschnitt 1.4 verstößt, ist nichtig und hat keine weitere Wirkung. 2.1 Rückstellungen der Plankontrolle. Diese Vereinbarung unterliegt den Bestimmungen des Plans, deren Bedingungen und Bedingungen hierin durch Bezugnahme aufgenommen sind. Der Plan ermächtigt den Ausschuss, Interpretationen, Regeln und Vorschriften daraus zu machen, und im Allgemeinen sieht vor, dass die Bestimmungen dieses Ausschusses in Bezug auf den Plan für den Vorstand verbindlich sind. Eine Kopie des Plans wird dem Führer nach vernünftigem Antrag ausgehändigt. 2.2 Verweise auf Beschäftigungsvereinbarung Executive Compensation Agreement. Alle Verweise auf die Vereinbarung über die Entschädigung der Beschäftigungsvereinbarung beziehen sich hier auf die Entschädigungsvereinbarung über die Beschäftigungsvereinbarung am Tag der Gewährung von beschränkten Anteilen. Ungeachtet dessen, dass die Exekutive und die Gesellschaft zum Zeitpunkt der Beendigung der Beschäftigung von Führungskräften nicht mehr Vertragsparteien eines solchen Entschädigungsvereinbarungsvertrages haben oder eine solche Entschädigungsvereinbarung über die Geschäftsvereinbarung geändert haben können, so ist diese Vereinbarung so auszulegen, als ob diese Beschäftigungsvereinbarung Exekutivvergütungsvereinbarung war noch vorhanden (einschließlich etwaiger Kündigungspflichten usw.). In dem Maße, in dem die Beschäftigungsvereinbarung vor der Beendigung des Arbeitsverhältnisses abgeschlossen wurde, ist die Bewertungsdauer für die zusätzliche Ausübung von beschränkten Anteilen gemäß Ziffer 1.2 (c) dieses Abkommens die dreijährige Laufzeit nach dem Datum der Exekutive146 Beendigung des Arbeitsverhältnisses. 2.3 Steuern. Die Gesellschaft kann die Einzahlungs - oder Erwerbssteuer verlangen oder einbehalten, die sie aufgrund des Zuschusses oder der Ausübung der beschränkten Anteile oder der damit verbundenen Zahlungen oder im Zusammenhang damit zu zahlen hat, und die Gesellschaft kann die Lieferung in Bezug auf die Aktien, soweit eine für die Gesellschaft zufriedenstellende Vereinbarung in Bezug auf eine solche Verrechnungsverpflichtung erfolgt ist. In Übereinstimmung mit dem Plan kann die Gesellschaft Aktien von Stammaktien zurücknehmen, um diese Einbehaltungspflichten zu erfüllen. 2.4 Keine Beschäftigungsrechte. Die Vergabe der beschränkten Anteile gemäß diesem Vertrag gibt dem Vorstand kein Recht, von der Gesellschaft oder einer Tochtergesellschaft davon zu verbleiben. 2.5 Hinweise. Jede Bekanntmachung an die Gesellschaft im Rahmen dieser Vereinbarung wird schriftlich an die Gesellschaft in Sorge für ihre General Counsel bei Kohl146s Department Stores, Inc. gegeben werden. N56 W17000 Ridgewood Drive, Menomonee Falls, Wisconsin, 53051. Jede Benachrichtigung an An die Exekutive gerichtet werden kann, kann an die Adresse gerichtet werden, wie sie auf den Abrechnungsunterlagen der Gesellschaft oder einer Tochtergesellschaft davon erscheint. Eine solche Bekanntmachung gilt als ordnungsgemäß gegeben, wenn und wann tatsächlich von der Partei, an die sie gerichtet ist, eingegangen ist, wie durch einen schriftlichen Eingang zu diesem Zweck belegt ist. 2.6 Geltendes Recht. Diese Vereinbarung und alle Fragen, die sich hiermit oder im Zusammenhang hiermit ergeben, werden nach den Gesetzen des Staates Wisconsin bestimmt, ohne dass sie ihre Rechtsvorschriften widerrufen. ZU URKUND DESSEN haben die Parteien diese Vereinbarung zum Zeitpunkt der erstmaligen Erfassung wirksam gemacht. EXECUTIVE BESCHÄFTIGUNGSVEREINBARUNG DIESE EXECUTIVE BESCHÄFTIGUNGSVEREINBARUNG (dieses 147Agreement148) vom 21. August 2012 (das 147Effektdatum148) wird erstellt und eingetragen Von und zwischen der Symantec Corporation, einer Delaware Corporation (die 147Company148) und Steve Bennett (die 147Executive148). IN DER ERWÄGUNG, dass der Vorstand derzeit als Vorsitzender des Vorstands und Chief Executive Officer tätig ist und voraussichtlich einen wichtigen Beitrag zur kurz - und langfristigen Profitabilität, zum Wachstum und zur finanziellen Stärke der Gesellschaft leisten wird, hat die Gesellschaft festgestellt, dass entsprechende Vorkehrungen getroffen werden sollten Um die fortgesetzte Aufmerksamkeit und die Hingabe der Exekutive an seine abgetretenen Pflichten ohne Ablenkung zu fördern, und unter Berücksichtigung der Beschäftigung mit der Gesellschaft ist die Gesellschaft verpflichtet, dem Vorstand bestimmte Entschädigungen und Leistungen zu gewähren, wie sie in diesem Abkommen vorgesehen sind Zur Verbesserung der finanziellen und beruflichen Auswirkungen auf die Exekutive in dem Fall, dass die Executive146s Beschäftigung mit der Gesellschaft aus einem Grund im Zusammenhang mit einer Änderung der Kontrolle (wie nachstehend definiert) der Gesellschaft beendet ist oder nicht. JETZT, unter Berücksichtigung der vorstehenden und der gegenseitigen Vereinbarungen und Vereinbarungen, die nachstehend dargelegt werden und beabsichtigen, hiermit rechtlich verpflichtet zu sein, vereinbaren die Gesellschaft und die Exekutive wie folgt: 1. Bestimmte Definitionen. Zusätzlich zu den hierin definierten Begriffen haben die folgenden Begriffe die folgenden Bedeutungen, wenn sie in dieser Vereinbarung mit den Anfangsbuchstaben verwendet werden: (a) 147Annual Base Salary148 bedeutet die jährliche Grundgehaltsrate der Executive146s, exklusive Prämien, Provisionen und sonstige Anreizvergütung In der Tat unmittelbar vor Executive146s Kündigungstermin. Ab dem Zeitpunkt des Inkrafttretens beträgt Executive146s jährliches Grundgehalt 1.000.000. (B) 147Board148 bezeichnet den Verwaltungsrat der Gesellschaft. (C) 147Cause148 bedeutet: (i) eine vorsätzliche unerlaubte Handlung (ohne jegliche unerlaubte Handlung eines Kraftfahrzeugs), die einen erheblichen Verlust, eine Beschädigung oder eine Verletzung des Eigentums oder der Reputation der Gesellschaft oder ihrer Tochtergesellschaften verursacht (ii) eine schwere Straftat oder eine vorsätzliche, Materieller Betrug oder Unredlichkeit gegen die Gesellschaft (iii) die Begehung eines Verbrechens, die zu einem anderen als immateriellen Schaden für die Gesellschaft führt, oder die Reputation der Gesellschaft oder der Exekutive (iv) gewohnheitsmäßiger Vernachlässigung von Führungskräften (aus Gründen des Grundes) Mit Ausnahme von Krankheit oder Erwerbsunfähigkeit), die nicht innerhalb von zehn (10) Tagen nach schriftlicher Mitteilung durch den Vorstand an die Exekutive geheilt wird, v) die Missachtung der schriftlichen, materiellen Maßnahmen der Gesellschaft oder ihrer Tochtergesellschaften, die einen anderen als immateriellen Verlust, Schaden verursachen Oder Verletzung des Eigentums oder der Reputation der Gesellschaft oder ihrer Tochtergesellschaften, die nicht innerhalb von zehn (10) Tagen nach schriftlicher Mitteilung durch den Vorstand an den Vorstand geheilt wird, oder (vi) eine wesentliche Verletzung der laufenden Verpflichtung des Executive146, keine vertraulichen Informationen offen zu legen Und nicht das geistige Eigentum zu vergeben, das während der Beschäftigung entwickelt wurde, das, wenn es geheilt werden kann, nicht innerhalb von zehn (10) Tagen nach schriftlicher Mitteilung durch den Vorstand an die Exekutive geheilt wird. (D) 147Verfahren in der Kontrolle148 bedeutet: (i) jede Person oder Einrichtung, die direkt oder indirekt der Wertpapiere der Gesellschaft, die 40 (40) Prozent der gesamten Stimmrechte aller ihrer ausstehenden stimmberechtigten Wertpapiere ausmachen, Eine Verschmelzung oder Konsolidierung der Gesellschaft, in der ihre Stimmrechtspapiere unmittelbar vor der Fusion oder Konsolidierung nicht vertreten sind oder nicht in Wertpapiere umgewandelt werden, die eine Mehrheit der Stimmrechte aller stimmberechtigten Wertpapiere des überlebenden Unternehmens unmittelbar nach dem Zusammenschluss darstellen Oder Konsolidierung (iii) eine Veräußerung von im Wesentlichen sämtlichen Vermögenswerten der Gesellschaft oder eine Liquidation oder Auflösung der Gesellschaft oder (iv) Personen, die zum Zeitpunkt der Unterzeichnung dieses Vertrages den Verwaltungsrat darstellen (147Incumbent Board148) aus irgendeinem Grund aufhören, mindestens eine Mehrheit dieses Vorstandes zu bilden, vorausgesetzt, dass jeder Einzelne, der ein Direktor der Gesellschaft wird, nach dem Datum der Unterzeichnung dieses Abkommens, dessen Wahl oder Nominierung für die Wahl durch die Aktionäre der Gesellschaft, war Genehmigt durch die Abstimmung von mindestens einer Mehrheit der Direktoren, dann im Amt, gilt als Mitglied des Amtsgerichts. (E) 147COBRA148 bedeutet das konsolidierte Omnibus Budget Versöhnungsgesetz von 1986 in der geänderten Fassung. (F) 147Diszierbarkeit148 bedeutet (i) die Exekutive durch körperliche Verletzung, Krankheit oder Krankheit behindert worden ist, um dadurch daran gehindert zu werden, dass sie die Erfüllung der Pflichten des Vorstandes ausüben (vorausgesetzt jedoch, dass die Gesellschaft ihre Verpflichtungen zur angemessenen Unterbringung anerkennt Soweit dies durch das anwendbare Recht vorgeschrieben ist) (ii) diese Gesamtunfähigkeit für einen Zeitraum von sechs (6) aufeinanderfolgenden Monaten fortgesetzt wird und (iii) diese Erwerbsunfähigkeit nach Ansicht eines qualifizierten Arztes während des Restes dauerhaft und kontinuierlich ist Des lebenslebens. (G) 147Gute Begründung Kündigung148 bedeutet: (i) eine wesentliche Verminderung der Grundkapital - oder Zielprämie des Executive146s unterhalb des Betrags ab dem Datum dieses Vertrages oder wie im Laufe seiner Tätigkeit bei der Gesellschaft erhöht, mit Ausnahme einer oder mehrerer Kürzungen (Insgesamt nicht mehr als 20 im Gesamtbetrag), die für alle Führungskräfte in der Regel anwendbar sind, jedoch, dass dieser Ausschluss nicht anwendbar ist, wenn die wesentliche Verminderung der Grundvergütung des Executive146s innerhalb (A) 60 Tage vor der Vollendung einer Änderung in Kontrolle, wenn diese Änderung der Beherrschung zum Zeitpunkt des Abschlusses der Kündigungsfrist von Executive146s oder (B) zwölf (12) Monate nach dem Zeitpunkt, an dem eine solche Änderung der Kontrolle erfolgt, in Betracht gezogen wurde (ii) eine wesentliche Verminderung der Exekutivdirektoren, Pflichten oder Verantwortlichkeiten (Iii) eine Anforderung, dass der Exekutivbericht an einen Gesellschafter oder Angestellten der Gesellschaft anstatt direkt an den Vorstand zu richten (oder wenn die Gesellschaft eine Muttergesellschaft hat, eine Anforderung, dass der Exekutivbericht an eine andere Person oder andere Gesellschaft als die (Iv) eine wesentliche Verringerung des Budgets, über die der Vorstand die Befugnis behält (v) eine wesentliche Änderung an der geographischen Lage, an der der Vorstand Leistungen erbringen muss, oder (vi) jede Handlung oder Untätigkeit. Deutsch: eur-lex. europa. eu/LexUriServ/LexUri...0083: DE: HTML Dies stellt eine wesentliche Verletzung der Vereinbarung durch die Gesellschaft dar, vorausgesetzt jedoch, dass für die Exekutive, um seine Beschäftigung mit der Gesellschaft wegen des guten Grundes zu beenden, das Vorkommen des Ereignisses mit gutem Grund und seinem Wunsch bekannt zu geben hat Seine Beschäftigung mit der Gesellschaft zu beenden, und zwar innerhalb von neunzig (90) Tagen nach dem anfänglichen Bestehen der Bedingung, die einen guten Grund darstellt, und die Gesellschaft muss eine Frist von dreißig (30) Tagen nach Erhalt dieser Mitteilung haben, um die Bedingung zu heilen . Wenn die Gesellschaft das Ereignis, das einen guten Grund darstellt, innerhalb eines Zeitraums von dreißig (30) Tagen nicht heilt, ist der Kündigungstermin vor Ablauf der Frist bis zum Ende des dreißig (30) Tage, sofern die Gesellschaft einen früheren Kündigungstermin nicht vorsieht . (H) 147Target Bonus148 bedeutet die Zielauszahlung (d. H. Bei 100 Erreichung jeder der jeweils gültigen Maßstäbe), die von Zeit zu Zeit gültig sind, im Rahmen der Gesellschaft für den Vorstand ab dem Kündigungstermin. Ab dem Zeitpunkt des Inkrafttretens ist der Vorzugszertifikat des Executive146s im Rahmen des Executive Annual Incentive Plan 150 des jährlichen Grundgehalts. (I) 147Termination Date148 bedeutet den letzten Tag der Executive146s Beschäftigung bei der Gesellschaft. (J) 147Derminierung der Beschäftigung148 bedeutet die Kündigung des aktiven Arbeitsverhältnisses von Executive146 mit der Gesellschaft. 2. Kündigung ohne Bezug auf eine Änderung der Kontrolle. (A) Unfreiwillige Kündigung, die nicht mit einer Kontrolländerung zusammenhängt. Im Falle von: (i) einer unfreiwilligen Kündigung von Executive146s Beschäftigung durch die Gesellschaft aus irgendeinem anderen Grund als Ursache, Tod oder Behinderung oder (ii) Executive146s Rücktritt aus gutem Grund, und wenn Abschnitt 3 nicht zutrifft, ist der Vorstand berechtigt Zu den in Absatz (b) dieses Abschnitts vorgesehenen Leistungen. (B) Entschädigung nach Kündigung, die nicht mit einer Kontrolländerung zusammenhängt. Vorbehaltlich der Bestimmungen von Ziffer 5 ist für den Fall, dass eine Kündigung nach Absatz (a) dieses Abschnitts 2 erfolgt, die Gesellschaft den Mitgliedern vor, sofern der Vorstand die Freigabe (wie in Abschnitt 5): (i) das 1,5-fache der Summe des jährlichen Grundgehalts und des Target-Bonus, der in einem einzigen pauschalen Barausgleich am sechzigsten (60.) Tag nach Executive146s Kündigungstermin gezahlt wurde. (Für die Zwecke dieses Unterabschnitts (i) bedeutet das jährliche Grundgehalt das grösste unter den folgenden: Executive146s jährliches Grundgehalt unmittelbar vor (A) Executive146s Kündigungstermin oder (B) eine Verringerung des in der ersten Klausel beschriebenen Grundsatzes des Executive146s Des Unterabschnitts (i) in der Definition von Good Reason. Für diesen Teilabschnitt (i) bedeutet Target Bonus den größten unter den folgenden: Executive146s Zielbonus unmittelbar vor (A) Executive146s Kündigungstermin oder (B) jede Reduzierung Der in der ersten Klausel des Unterabschnitts (i) in der Definition des Guten Urteils beschriebenen Vorzugszinsen. (Ii) Für einen Zeitraum von bis zu achtzehn (18) Monaten nach Executive146s Kündigungstermin, Executive und ggf. Executive146s Ehegatte und förderfähig Angehörige, werden weiterhin Anspruch auf medizinische Versorgung unter dem Unternehmen146s medizinischen Plänen in Übereinstimmung mit den Bedingungen der anwendbaren Plandokumente zur Verfügung gestellt, dass, um eine solche fortgesetzte Berichterstattung zu solchen Zinsen zu erhalten, ist der Vorstand verpflichtet, die anwendbaren Prämien zu zahlen Der Plananbieter, und die Gesellschaft erstattet dem Vorstand innerhalb von 60 Tagen nach dem Datum, an dem die monatliche Prämienzahlung fällig ist, einen Betrag in Höhe der monatlichen COBRA-Prämienzahlung, abzüglich der anwendbaren Steuerbefreiungen. Unbeschadet der vorstehenden Erwägungen, wenn der Vorstand in diesem achtzehn (18) Monatszeitraum, der ihn und seinen Ehegatten und Anspruchsberechtigten zu einer umfassenden medizinischen Versorgung berechtigt, Vollzeitbeschäftigung erhält, muss der Vorstand die Gesellschaft benachrichtigen und keine weiteren Erstattungen werden von der Gesellschaft an die Gesellschaft gezahlt Vorstand nach diesem Unterabschnitt. Darüber hinaus, wenn Executive nicht die jeweils gültige monatliche COBRA Prämie für einen bestimmten Monat zu jeder Zeit während der achtzehn (18) Monat Zeitraum und die Deckung verloren geht, werden keine weiteren Erstattungen von der Gesellschaft an die Exekutive bezahlt werden Dieser Unterabschnitt Unbeschadet der obigen Ausführungen, wenn die Gesellschaft nach eigenem Ermessen feststellt, dass sie die vorstehenden COBRA-Leistungen nicht ohne Verletzung des anwendbaren Rechts (einschließlich, ohne Einschränkung, § 2716 des Gesetzes über das Gesundheitswesen), vorsehen kann, Eine steuerpflichtige pauschale Zahlung in Höhe der monatlichen (oder dann verbleibenden) COBRA - Prämie, die der Vorstand zu zahlen hat, um seine gesamt - gesundheitliche Deckung am Kündigungstermin fortzusetzen (wobei der Betrag auf der Prämie für die Erster Monat COBRA-Deckung). (Iii) In Bezug auf etwaige ausstehende Aktienoptionen, die der Vorstand ab seinem Kündigungstermin gehalten hat, die zu diesem Zeitpunkt nicht ausgeübt und ausgeübt werden, beschleunigt die Gesellschaft die Ausübung dieses Teils der Aktienoptionen, soweit zutreffend Hätten innerhalb des achtzehn (18) Monatszeitraums nach dem Kündigungstermin des Executive146s ausgeübt worden sein können, wobei diese Optionen (sowie etwaige ausstehende Aktienoptionen, die zuvor ausgeübt und ausübbar waren), unbeschadet irgendwelcher anderen Vereinbarungen über solche Optionen ausübbar sind Bis zum vorangegangenen Zeitpunkt (a) eine Frist von einem Jahr nach dem Kündigungstermin des Vorgangs 146 oder (B) die ursprüngliche Laufzeit der Option. Sofern in diesem Abschnitt 2 (b) (iii) und in Ziffer 3 (b) (iii) nicht vorgesehen ist, endet ein Teil der ausschließlichen Aktienoptionen, die nach Ablauf der Kündigungsfrist von Executive146 nicht ausgeübt werden. (Iv) In Bezug auf alle beschränkten Aktienanteile, die Aktien der Stammaktien (147Restricted Stock Units148), die von der Exekutive gehalten werden, die zum Zeitpunkt des Kündigungstermins nicht ausgezahlt wurden, repräsentieren, ist die Anzahl der nicht veräußerten Restricted Stock Units, die in den achtzehn Jahren angefallen wären (18) Monat nach Ablauf des Kündigungstermins des Vorgangs 146 und spätestens nach sechzig (60) Tagen nach dem Kündigungstermin. Soweit in diesem Abschnitt 2 (b) (iv) und in Ziffer 3 (b) (iv) nicht vorgesehen, werden alle beschränkten Bestandseinheiten, die nicht nach dem Kündigungstermin des Geschäftsjahres 146 betragen, gekündigt. (V) Alle Beträge, die für das Konto des Vorstands unter der Gesellschaft abgegrenzt wurden, werden dem Exekutivausschuss, soweit anwendbar, gemäß den Bestimmungen des Vorstands unter der Gesellschaft abgegrenzt. Deutsch: www. tab. fzk. de/de/projekt/zusammenf...ng/ab117.htm Wobei die Bedingungen eines anwendbaren LTIP dann unter den dort beschriebenen Umständen als unfreiwillige Kündigung außer für Ursache gelten. (Vi) In Bezug auf etwaige leistungsorientierte Restricted Stock Units (147PRUs148), die von der Exekutive gehalten wurden, die nicht gemäß den Bedingungen des anwendbaren Performance Based Restricted Share Unit Award Agreement (147PRU Agreement 148) Der Kündigungstermin wird gemäß den Bestimmungen des anwendbaren PRU-Vertrages als unfreiwillige Kündigung behandelt. (Vii) In Bezug auf alle von der Exekutive gehaltenen Performance Contingent Stock Units (147PCSUs148), die nicht gemäß den Bedingungen des anwendbaren Performance Contingent Stock Unit Agreement (der 147PCSU-Vertrag148) zum Kündigungstermin freigegeben wurden, Nach den Bestimmungen des anwendbaren PCSU-Vertrages als unfreiwillige Kündigung behandelt werden. (Viii) Der Vorstand erhält bis zu seinem Kündigungstermin, der in pauschaler Höhe zu zahlen ist, erbracht, abgegrenzt oder geschuldet, aber noch nicht gezahlt worden ist, sowie etwaige nach den Bedingungen der jeweils gültigen Leistungspläne und Programme erworbene oder erworbene Leistungen das Unternehmen. 3. Kündigung im Zusammenhang mit einer Änderung der Kontrolle. (A) Unfreiwillige Kündigung in Bezug auf eine Änderung der Kontrolle. In dem Fall, dass die Exekutivdirektion aufgrund von (i) einer unfreiwilligen Kündigung durch die Gesellschaft aus irgendeinem anderen Grund als Ursache, Tod oder Invalidität beendet ist oder (ii) der Vorstand freiwillig eine Beschäftigung mit der Gesellschaft wegen eines Rücktritts aus wichtigem Grund beendet , In jedem Fall, der (x) zur gleichen Zeit oder innerhalb der zwölf (12) Monatszeit nach der Vollendung eines Kontrollwechsels oder (y) innerhalb der sechzig (60) Tage vor dem Datum der a Change in Control where the Change in Control was under consideration at the time of Executive146s Termination Date, then Executive shall be entitled to the benefits provided in subsection (b) of this Section 3. (b) Compensation Upon Involuntary Termination Relating to a Change in Control . Subject to the provisions of Section 5 hereof, in the event a termination described in subsection (a) of this Section 3 occurs, the Company shall provide that the following be paid to the Executive after his Termination Date, provided that Executive executes and does not revoke the Release: (i) 2.0 times the sum of Annual Base Salary and Target Bonus, paid in a single lump sum cash payment on the sixtieth (60th) day following Executive146s Termination Date. Notwithstanding the foregoing, to the extent Executive is entitled to receive the severance benefit payable pursuant to Section 2(b)(i) as a result of a qualifying termination prior to a Change in Control and then becomes entitled to receive the severance benefit payable pursuant to this Section 3 as a result of the Change in Control that was considered at the time of Executive146s Termination Date becoming consummated within sixty (60) days following Executive146s Termination Date, Executive shall not receive the severance benefit payable pursuant to Section 2(b)(i) of this Agreement, but instead shall receive the severance benefit payable pursuant to this Section 3(b)(i) on the sixtieth (60th) day following Executive146s Termination Date. (For purposes of this subsection (i), Annual Base Salary will mean the largest among the following: Executive146s annual base salary immediately prior to (A) Executive146s Termination Date, (B) any reduction of Executive146s base salary described in the first clause of subsection (i) in the definition of Good Reason, or (C) immediately prior to the Change in Control. For purposes of this subsection (i), Target Bonus will mean the largest among the following: Executive146s target bonus (A) immediately prior to Executive146s Termination Date, (B) immediately prior to any reduction of Executive146s target bonus described in the first clause of subsection (i) in the definition of Good Reason, (C) immediately prior to the Change in Control, or (d) for the fiscal year preceding the year in which the Change in Control.) (ii) For a period of up to twenty-four (24) months following Executive146s Termination Date, Executive and where applicable, Executive146s spouse and eligible dependents, will continue to be eligible to receive medical coverage under the Company146s medical plans in accordance with the terms of the applicable plan documents provided, that in order to receive such continued coverage at such rates, Executive will be required to pay the applicable premiums to the plan provider, and the Company will reimburse the Executive, within sixty (60) days following the date such monthly premium payment is due, an amount equal to the monthly COBRA (or, as applicable, other) premium payment, less applicable tax withholdings. Notwithstanding the foregoing, if Executive obtains full-time employment during this twenty-four (24) month period that entitles him and his spouse and eligible dependents to comprehensive medical coverage, Executive must notify the Company and no further reimbursements will be paid by the Company to the Executive pursuant to this subsection. In addition, if Executive does not pay the applicable monthly COBRA (or other) premium for a particular month at any time during the twenty-four (24) month period and coverage is lost as a result, no further reimbursements will be paid by the Company to the Executive pursuant to this subsection. Notwithstanding the foregoing, to the extent Executive is entitled to receive the severance benefit provided pursuant to Section 2(b)(ii) of the Agreement as a result of a qualifying termination prior to a Change in Control, if Executive becomes entitled to receive the severance benefits payable pursuant to this Section 3 as a result of the Change in Control that was considered at the time of Executive146s Termination Date becoming consummated within sixty (60) days following Executive146s Termination Date, Executive shall be entitled to receive the severance benefit provided pursuant to this clause (ii) and not the benefit provided pursuant to Section 2(b)(ii). Notwithstanding the above, if the Company determines in its sole discretion that it cannot provide the foregoing COBRA benefits without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide to Executive a taxable lump-sum payment in an amount equal to the monthly (or then remaining) COBRA premium that Executive would be required to pay to continue his group health coverage in effect on the Termination Date (which amount shall be based on the premium for the first month of COBRA coverage). (iii) With respect to any outstanding Company stock options held by the Executive as of his Termination Date, the Company shall fully accelerate the vesting and exercisability of such stock options, so that all such stock options shall be fully vested and exercisable as of Executive146s Termination Date, such options (as well as any outstanding stock options that previously became vested and exercisable) to remain exercisable, notwithstanding anything in any other agreement governing such options, until the earlier of (A) a period of one year after the Executive146s Termination Date, or (B) the original term of the option. Notwithstanding the foregoing, to the extent Executive is entitled to receive the vesting and exercisability acceleration provided pursuant to Section 2(b)(iii) of the Agreement as a result of a qualifying termination prior to a Change in Control, if Executive becomes entitled to receive the severance benefits payable pursuant to this Section 3 as a result of the Change in Control that was considered at the time of Executive146s Termination Date becoming consummated within sixty (60) days following Executive146s Termination Date, any outstanding stock options that did not become vested and exercisable pursuant to Section 2(b)(iii) shall become vested and exercisable as of the date of the Change in Control provided, however, if a Change in Control does not occur within sixty (60) days following Executive146s Termination Date, any stock options held by Executive that are not vested and exercisable shall terminate as of the sixtieth (60th) day following Executive146s Termination Date or the end of the term, if earlier. (iv) With respect to any Restricted Stock Units held by the Executive that are unvested at the time of his Termination Date, all such unvested Restricted Stock Units shall vest and settle not later than sixty (60) days following the Termination Date. Notwithstanding the foregoing, to the extent Executive is entitled to receive the vesting acceleration provided pursuant to Section 2(b)(iv) of the Agreement as a result of a qualifying termination prior to a Change in Control, if Executive becomes entitled to receive the severance benefits payable pursuant to this Section 3 as a result of the Change in Control that was considered at the time of Executive146s Termination Date becoming consummated within sixty (60) days following Executive146s Termination Date, any outstanding Restricted Stock Units that did not become vested pursuant to Section 2(b)(iv) shall become vested as of the date of the Change in Control provided, however, if a Change in Control does not occur within sixty (60) days following Executive146s Termination Date, any Restricted Stock Units held by Executive that are not vested shall terminate as of the sixtieth (60th) day following Executive146s Termination Date. (v) Any amounts that have been accrued for the account of the Executive under the LTIP that have not been released to the Executive as of the Termination Date shall be released to the executive, as applicable, in accordance with the terms of any applicable LTIP then in effect under the circumstances described therein as a 147Change of Control of the Company148 (as defined therein).With respect to any PRUs held by the Executive that have not been released to the Executive pursuant to the terms of the applicable PRU Agreement as of the Termination Date shall be treated in accordance with the terms of the applicable PRU Agreement as a 147Change of Control of the Company148 (as defined therein). (vi) With respect to any PCSUs held by the Executive that have not been released to the Executive pursuant to the terms of the applicable PCSU Agreement as of the Termination Date shall be treated in accordance with the terms of the applicable PCSU Agreement as a 147Change of Control of the Company148 (as defined therein). (vii) Executive shall receive any amounts earned, accrued or owing but not yet paid to Executive as of his Termination Date, payable in a lump sum, and any benefits accrued or earned in accordance with the terms of any applicable benefit plans and programs of the Company. (c) Consequence of a Change in Control . Notwithstanding the terms of the Symantec 2004 Executive Incentive Plan (the 1472004 Plan148), if, as of the date of a Change in Control, Executive holds stock options issued under the 2004 Plan that are not vested and exercisable, such stock options shall become fully vested and exercisable as of the date of the Change in Control if the acquirer does not agree to assume or substitute for equivalent stock options such outstanding stock options. 4. Termination of Employment on Account of Disability, Death, Cause or Voluntarily Without Good Reason . (a) Termination on Account of Disability . Notwithstanding anything in this Agreement to the contrary, if Executive146s employment terminates on account of Disability, Executive shall be entitled to receive disability benefits under any disability program maintained by the Company that covers Executive, and Executive shall not receive benefits pursuant to Sections 2 and 3 hereof, except that, subject to the provisions of Section 5 hereof, the Executive shall be entitled to the following benefits provided that Executive executes and does not revoke the Release: (i) For a period of up to eighteen (18) months following Executive146s Termination Date, Executive and where applicable, Executive146s spouse and eligible dependents, will continue to be eligible to receive medical coverage under the Company146s medical plans in accordance with the terms of the applicable plan documents provided, that in order to receive such continued coverage at such rates, Executive will be required to pay the applicable premiums to the plan provider, and the Company will reimburse the Executive, within 60 days following the date such monthly premium payment is due, an amount equal to the monthly COBRA premium payment, less applicable tax withholdings. Notwithstanding the foregoing, if Executive obtains full-time employment during this eighteen (18) month period that entitles him and his spouse and eligible dependents to comprehensive medical coverage, Executive must notify the Company and no further reimbursements will be paid by the Company to the Executive pursuant to this subsection. In addition, if Executive does not pay the applicable monthly COBRA premium for a particular month at any time during the eighteen (18) month period and coverage is lost as a result, no further reimbursements will be paid by the Company to the Executive pursuant to this subsection. Notwithstanding the above, if the Company determines in its sole discretion that it cannot provide the foregoing COBRA benefits without potentially violating applicable law (including, without limitation, Section 2716 of the Public Health Service Act), the Company shall in lieu thereof provide to Executive a taxable lump-sum payment in an amount equal to the monthly (or then remaining) COBRA premium that Executive would be required to pay to continue his group health coverage in effect on the Termination Date (which amount shall be based on the premium for the first month of COBRA coverage). (ii) With respect to any outstanding Company stock options held by the Executive as of his Termination Date that are not vested and exercisable as of such date, the Company shall fully accelerate the vesting and exercisability of such stock options, so that all such stock options shall be fully vested and exercisable as of the Executive146s Termination Date, such options (as well as any outstanding stock options that previously became vested and exercisable) to remain exercisable, notwithstanding anything in any other agreement governing such options, until the earlier of (A) a period of one year after the Executive146s Termination Date, or (B) the original term of the option. (iii) With respect to any Restricted Stock Units held by the Executive that are unvested at the time of his Termination Date, all such unvested Restricted Stock Units shall vest and settle not later than sixty (60) days following his Termination Date. (iv) Any amounts that have been accrued for the account of the Executive under the LTIP that have not been released to the Executive as of the Termination Date shall be released to the executive, as applicable, in accordance with the terms of any applicable LTIP then in effect under the circumstances described therein as a termination by reason of total and permanent disability. (v) With respect to any PRUs held by the Executive that have not been released to the Executive pursuant to the terms of the applicable PRU Agreement as of the Termination Date shall be treated in accordance with the terms of the applicable PRU Agreement as a termination of employment by reason of total and permanent disability. (vi) With respect to any PCSUs held by the Executive that have not been released to the Executive pursuant to the terms of the applicable PCSU Agreement as of the Termination Date shall be treated in accordance with the terms of the applicable PCSU Agreement as a termination of employment by reason of total and permanent disability. (b) Termination on Account of Death . Notwithstanding anything in this Agreement to the contrary, if Executive146s employment terminates on account of death, Executive shall be entitled to receive death benefits under any death benefit program maintained by the Company that covers Executive, and Executive not receive benefits pursuant to Sections 2 and 3 hereof, except that, subject to the provisions of Section 5 hereof, the Executive shall be entitled to the following benefits provided that Executive146s estate executes and does not revoke the Release: (i) With respect to any outstanding Company stock options held by the Executive as of his death that are not vested and exercisable as of such date, the Company shall fully accelerate the vesting and exercisability of such stock options, so that all such stock options shall be fully vested and exercisable as of the Executive146s death, such options (as well as any outstanding stock options that previously became vested and exercisable) to remain exercisable, notwithstanding anything in any other agreement governing such options, until the earlier of (A) a period of one year after the Executive146s death or (B) the original term of the option. (ii) With respect to any Restricted Stock Units held by the Executive that are unvested at the time of his death, all such unvested Restricted Stock Units shall vest and settle not later than sixty (60) days following his death. (iii) Any amounts that have been accrued for the account of the Executive under the LTIP that have not been released to the Executive as of his death shall be released to the executive, as applicable, in accordance with the terms of any applicable LTIP then in effect under the circumstances described therein as a termination by reason of death. (iv) With respect to any PRUs held by the Executive that have not been released to the Executive pursuant to the terms of the applicable PRU Agreement as of his death shall be treated in accordance with the terms of the applicable PRU Agreement as a termination of employment by reason of death. (v) With respect to any PCSUs held by the Executive that have not been released to the Executive pursuant to the terms of the applicable PCSU Agreement as of his death shall be treated in accordance with the terms of the applicable PCSU Agreement as a termination of employment by reason of death. (c) Termination on Account of Cause . Notwithstanding anything in this Agreement to the contrary, if Executive146s employment terminates by the Company on account of Cause, Executive shall not receive benefits pursuant to Sections 2 and 3 hereof. (d) Termination on Account of Voluntary Resignation Without Good Reason . Notwithstanding anything in this Agreement to the contrary, if Executive146s employment terminates on account of a resignation by Executive for no reason or any reason other than on account of Good Reason, Executive shall not receive benefits pursuant to Sections 2 and 3 hereof. 5. Release . Notwithstanding the foregoing, no payments or other benefits under this Agreement shall be made unless Executive executes, and does not revoke, the Company146s standard written release , substantially in the form as attached hereto as Annex A, (the 147Release148), of any and all claims against the Company and all related parties with respect to all matters arising out of Executive146s employment by the Company (other than entitlements under the terms of this Agreement or under any other plans or programs of the Company in which Executive participated and under which Executive has accrued or become entitled to a benefit) or a termination thereof, with such release being effective not later than sixty (60) days following Executive146s Termination Date. 6. No Mitigation Obligation . Executive shall not be required to mitigate the amount of any payment or benefit provided for in this Agreement by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for herein be reduced by any compensation earned by other employment or otherwise. 7. Employment Rights . Nothing expressed or implied in this Agreement will create any right or duty on the part of the Company or the Executive to have the Executive remain in the employment of the Company or any subsidiary prior to or following any Change in Control. 8. PRU Agreement . Notwithstanding the provisions of the PRU Agreement, Executive146s Conditional PRU Award for the Performance Period beginning in fiscal year 2012 and ending at the end of fiscal year 2014 shall be not less than 80,000 PRUs (capitalized terms used in this Section 8 but not defined herein shall have the meanings ascribed to them in the PRU Agreement). (a) Withholding of Taxes . The Company may withhold from any amounts payable under this Agreement all federal, state, city or other taxes as the Company is required to withhold pursuant to any applicable law, regulation or ruling. (b) Parachute Excise Tax. In the event that any amounts payable under this Agreement or otherwise to Executive would (i) constitute 147parachute payments148 within the meaning of section 280G of the Internal Revenue Code of 1986, as amended (the 147Code148), or any comparable successor provisions and (ii) but for this Subsection (b) would be subject to the excise tax imposed by section 4999 of the Code or any comparable successor provisions (the 147Excise Tax148), then such amounts payable to Executive hereunder shall be either: (i) Provided to Executive in full or (ii) Provided to Executive to the maximum extent that would result in no portion of such benefits being subject to the Excise Tax whichever of the foregoing amounts, when taking into account applicable federal, state, local and foreign income and employment taxes, the Excise Tax and any other applicable taxes, results in the receipt by Executive, on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under the Excise Tax. Unless the Company and Executive otherwise agree in writing, any determination required under this Subsection (b) shall be made in writing in good faith by a nationally recognized accounting firm (the 147Accountants148). In the event of a reduction in benefits hereunder, the reduction of the total payments shall apply as follows, unless otherwise agreed in writing and such agreement is in compliance with section 409A of the Code: (i) any cash severance payments subject to Section 409A of the Code due under this Agreement shall be reduced, with the last such payment due first forfeited and reduced, and sequentially thereafter working from the next last payment, (ii) any cash severance payments not subject to Section 409A of the Code due under this Agreement shall be reduced, with the last such payment due first forfeited and reduced, and sequentially thereafter working from the next last payment (iii) any acceleration of vesting of any equity subject to Section 409A of the Code shall remain as originally scheduled to vest, with the tranche that would vest last (without any such acceleration) first remaining as originally scheduled to vest and (iv) any acceleration of vesting of any equity not subject to Section 409A of the Code shall remain as originally scheduled to vest, with the tranche that would vest last (without any such acceleration) first remaining as originally scheduled to vest. For purposes of making the calculations required by this Subsection (b), the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good-faith interpretations concerning the application of the Code and other applicable legal authority. The Company and Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Subsection (b). The Company shall bear all costs that the Accountants may reasonably incur in connection with any calculations contemplated by this Subsection (b). If, notwithstanding any reduction described in this Subsection (b), the Internal Revenue Service (147IRS148) determines that Executive is liable for the Excise Tax as a result of the receipt of amounts payable under this Agreement or otherwise as described above, then Executive shall be obligated to pay back to the Company, within thirty (30) days after a final IRS determination or, in the event that Executive challenges the final IRS determination, a final judicial determination, a portion of such amounts equal to the Repayment Amount. The 147Repayment Amount148 with respect to the payment of benefits shall be the smallest such amount, if any, that is required to be paid to the Company so that Executive146s net after-tax proceeds with respect to any payment of benefits (after taking into account the payment of the Excise Tax and all other applicable taxes imposed on such payment) are maximized. The Repayment Amount with respect to the payment of benefits shall be zero if a Repayment Amount of more than zero would not result in Executive146s net after-tax proceeds with respect to the payment of such benefits being maximized. If the Excise Tax is not eliminated pursuant to this paragraph, Executive shall pay the Excise Tax. Notwithstanding any other provision of this Subsection (b), if (i) there is a reduction in the payment of benefits as described in this Subsection (b), (ii) the IRS later determines that Executive is liable for the Excise Tax, the payment of which would result in the maximization of Executive146s net after-tax proceeds (calculated as if Executive146s benefits had not previously been reduced), and (iii) Executive pays the Excise Tax, then the Company shall pay to Executive those benefits which were reduced pursuant to this Subsection (b) as soon as administratively possible after Executive pays the Excise Tax, so that Executive146s net after-tax proceeds with respect to the payment of benefits are maximized. 10. Term of Agreement . This Agreement shall continue in full force and effect until the third anniversary of the Effective Date (the 147Initial Term148), and shall automatically renew for additional one (1) year renewal periods (a 147Renewal Term148) if Executive is employed by the Company on the last day of the Initial Term and on each Renewal Term provided, however, that within the sixty (60) to ninety (90) day period prior to the expiration of the Initial Term or any Renewal Term, at its discretion, the Board may propose for consideration by Executive, such amendments to the Agreement as it deems appropriate. If Executive146s employment with the Company terminates during the Initial Term or a Renewal Term, this Agreement shall remain in effect until all of the obligations of the parties hereunder are satisfied or have expired. 11. Successors and Binding Agreement . (a) The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to all or substantially all of the business or assets of the Company, by agreement in form and substance reasonably satisfactory to the Executive, expressly to assume and agree to perform this Agreement in the same manner and to the same extent the Company would be required to perform if no such succession had taken place. This Agreement will be binding upon and inure to the benefit of the Company and any successor to the Company, including without limitation any persons acquiring directly or indirectly all or substantially all of the business or assets of the Company whether by purchase, merger, consolidation, reorganization or otherwise (and such successor will thereafter be deemed the 147Company148 for the purposes of this Agreement), but will not otherwise be assignable, transferable or delegable by the Company. (b) This Agreement will inure to the benefit of and be enforceable by the Executive146s personal or legal representatives, executors, administrators, successors, heirs, distributees and legatees. This Agreement will supersede the provisions of any employment, severance or other agreement between the Executive and the Company that relate to any matter that is also the subject of this Agreement, and such provisions in such other agreements will be null and void. (c) This Agreement is personal in nature and neither of the parties hereto will, without the consent of the other, assign, transfer or delegate this Agreement or any rights or obligations hereunder except as expressly provided in Sections 10(a) and 10(b). Without limiting the generality or effect of the foregoing, the Executive146s right to receive payments hereunder will not be assignable, transferable or delegable, whether by pledge, creation of a security interest, or otherwise, other than by a transfer by the Executive146s will or by the laws of descent and distribution and, in the event of any attempted assignment or transfer contrary to this Section 10(c), the Company will have no liability to pay any amount so attempted to be assigned, transferred or delegated. 12. Notices . For all purposes of this Agreement, all communications, including without limitation notices, consents, requests or approvals, required or permitted to be given hereunder will be in writing and will be deemed to have been duly given when hand delivered or dispatched by electronic facsimile transmission (with receipt thereof orally confirmed), or five (5) business days after having been mailed by United States registered or certified mail, return receipt requested, postage prepaid, or three business days after having been sent by a nationally recognized overnight courier service such as FedEx or UPS, addressed to the Company (to the attention of the Secretary of the Company) at its principal executive office and to the Executive at his principal residence, or to such other address as any party may have furnished to the other in writing and in accordance herewith, except that notices of changes of address will be effective only upon receipt. 13. Section 409A of the Code . (a) Interpretation . Notwithstanding the other provisions hereof, this Agreement is intended to comply with the requirements of section 409A of the Code, to the extent applicable, and this Agreement shall be interpreted to avoid any penalty sanctions under section 409A of the Code. Accordingly, all provisions herein, or incorporated by reference, shall be construed and interpreted to comply with section 409A of the Code and, if necessary, any such provision shall be deemed amended to comply with section 409A of the Code and regulations thereunder. If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under section 409A of the Code, then such benefit or payment shall be provided in full at the earliest time thereafter when such sanctions will not be imposed. Any amount payable under this Agreement that constitutes deferred compensation subject to section 409A of the Code shall be paid at the time provided under this Agreement or such other time as permitted under section 409A of the Code. No interest will be payable with respect to any amount paid within a time period permitted by, or delayed because of, section 409A of the Code. All payments to be made upon a termination of employment under this Agreement that are deferred compensation may only be made upon a 147separation from service148 under section 409A of the Code. For purposes of section 409A of the Code, each payment made under this Agreement shall be treated as a separate payment. In no event may Executive, directly or indirectly, designate the calendar year of payment. (b) Payment Delay . To the maximum extent permitted under section 409A of the Code, the severance benefits payable under this Agreement are intended to comply with the 147short-term deferral exception148 under Treas. Reg. 1671.409A-1(b)(4), and any remaining amount is intended to comply with the 147separation pay exception148 under Treas. Reg. 1671.409A-1(b)(9)(iii) provided, however, any amount payable to Executive during the six (6) month period following Executive146s Termination Date that does not qualify within either of the foregoing exceptions and constitutes deferred compensation subject to the requirements of section 409A of the Code, then such amount shall hereinafter be referred to as the 147Excess Amount.148 If at the time of Executive146s separation from service, the Company146s (or any entity required to be aggregated with the Company under section 409A of the Code) stock is publicly-traded on an established securities market or otherwise and Executive is a 147specified employee148 (as defined in section 409A of the Code and determined in the sole discretion of the Company (or any successor thereto) in accordance with the Company146s (or any successor thereto) 147specified employee148 determination policy), then the Company shall postpone the commencement of the payment of the portion of the Excess Amount that is payable within the six (6) month period following Executive146s Termination Date with the Company (or any successor thereto) for six (6) months following Executive146s Termination Date with the Company (or any successor thereto). The delayed Excess Amount shall be paid in a lump sum to Executive within ten (10) days following the date that is six (6) months following Executive146s Termination Date with the Company (or any successor thereto). If Executive dies during such six (6) month period and prior to the payment of the portion of the Excess Amount that is required to be delayed on account of section 409A of the Code, such Excess Amount shall be paid to the personal representative of Executive146s estate within sixty (60) days after Executive146s death. (c) Reimbursements . All reimbursements provided under this Agreement shall be made or provided in accordance with the requirements of section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement is for expenses incurred during Executive146s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement during a calendar year may not affect the expenses eligible for reimbursement in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of the taxable year following the year in which the expense is incurred, and (iv) the right to reimbursement is not subject to liquidation or exchange for another benefit. Any tax gross up payments to be made hereunder shall be made not later than the end of Executive146s taxable year next following Executive146s taxable year in which the related taxes are remitted to the taxing authority. 14. Governing Law . The validity, interpretation, construction and performance of this Agreement will be governed by and construed in accordance with the substantive laws of the State of California, without giving effect to the principles of conflict of laws of such State. 15. Validity . If any provision of this Agreement or the application of any provision hereof to any person or circumstances is held invalid, unenforceable or otherwise illegal, the remainder of this Agreement and the application of such provision to any other person or circumstances will not be affected, and the provision so held to be invalid, unenforceable or otherwise illegal will be reformed to the extent (and only to the extent) necessary to make it enforceable, valid or legal. 16. Miscellaneous . No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by the Executive and the Company. No waiver by either party hereto at any time of any breach by the other party hereto or compliance with any condition or provision of this Agreement to be performed by such other party will be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, expressed or implied with respect to the subject matter hereof have been made by either party that are not set forth expressly in this Agreement. References to Sections are to references to Sections of this Agreement. Any reference in this Agreement to a provision of a statute, rule or regulation will also include any successor provision thereto. 17. Board Membership . At each annual meeting of the Company146s stockholders prior to the Termination Date, the Company will nominate Executive to serve as a member of the Board. Executive146s service as a member of the Board will be subject to any required stockholder approval. Upon the termination of Executive146s employment for any reason, unless otherwise requested by the Board, Executive agrees to resign from the Board (and all other positions held at the Company and its affiliates), and Executive, at the Board146s request, will execute any documents necessary to reflect his resignation. 18. Indemnification and DampO Insurance . Executive will be provided indemnification to the maximum extent permitted by the Company146s and its subsidiaries146 and affiliates146 Articles of Incorporation or Bylaws, including, if applicable, any directors and officers insurance policies, with such indemnification to be on terms determined by the Board or any of its committees, but on terms no less favorable than provided to any other Company executive officer or director and subject to the terms of any separate written indemnification agreement. 19. Employee Benefits . Executive will be eligible to participate in the Company employee benefit plans, policies and arrangements that are applicable to other executive officers of the Company, as such plans, policies and arrangements may exist from time to time and on terms at least as favorable as provided to any other executive officer of the Company. 20. No Duplication of Benefits . The benefits provided to Executive in this Agreement shall offset substantially similar benefits provided to Executive pursuant to another Company policy, plan or agreement (including without limitation the Symantec Corporation Executive Severance Plan and the Symantec Corporation Executive Retention Plan). 21. Survival . Notwithstanding any provision of this Agreement to the contrary, the parties146 respective rights and obligations under Sections 2 and 3, will survive any termination or expiration of this Agreement or the termination of the Executive146s employment for any reason whatsoever. 22. Counterparts . This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original but all of which together will constitute one and the same agreement. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered as of the date first above written. RELEASE OF CLAIMS This Release of Claims (147Agreement148) is made by and between Symantec Corporation (147Symantec148) and Steve Bennett. WHEREAS, you have agreed to enter into a release of claims in favor of Symantec upon certain events specified in the Executive Employment Agreement by and between Symantec and you NOW, THEREFORE, in consideration of the mutual promises made herein, Symantec and you agree as follows: 1. Termination Date. This means the last day of your employment with Symantec. 2. Acknowledgement of Payment of Wages. You acknowledge that Symantec has paid you all accrued wages, salary, bonuses, accrued but unused vacation pay and any similar payment due and owing, with the exception of the payments and benefits owed to you under the Executive Employment Agreement andor under any equity-based compensation awards. 3. Confidential Information. You hereby acknowledge that you are bound by all confidentiality agreements that you entered into with Symantec andor any and all past and current parent, subsidiary, related, acquired and affiliated companies, predecessors and successors thereto (which agreements are incorporated herein by this reference), that as a result of your employment you have had access to the Confidential Information (as defined in such agreement(s)), that you will hold all such Confidential Information in strictest confidence and that you may not make any use of such Confidential Information on behalf of any third party. You further confirm that within five business days following the Termination Date you will deliver to Symantec all documents and data of any nature containing or pertaining to such Confidential Information and that you will not take with you any such documents or data or any reproduction thereof. 4. Release and Waiver of All Claims. You waive any limitation on this release under California Civil Code Section 1542 which provides that a general release does not extend to claims which a person does not know or suspect to exist in his favor at the time of executing the release which, if known, must have materially affected hisher decision to grant the release. In consideration of the benefits provided in this Agreement, you release Symantec, and any and all past, current and future parent, subsidiary, related and affiliated companies, predecessors and successors thereto, as well as their officers, directors, shareholders, agents, employees, affiliates, representatives, attorneys, insurers, successors and assigns, from any and all claims, liability, damages or causes of action whatsoever, whether known or unknown, which exist or may in the future exist arising from or relating to events, acts or omissions on or before the Effective Date of this Agreement, other than those rights which as a matter of law cannot be waived. You understand and acknowledge that this release includes, but is not limited to any claim for reinstatement, re-employment, damages, attorney fees, stock options, bonuses or additional compensation in any form, and any claim, including but not limited to those arising under tort, contract and local, state or federal statute, including but not limited to Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Post Civil War Civil Rights Act (42 U. S.C. 1981-88), the Equal Pay Act, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Vietnam Era Veterans Readjustment Assistance Act, the Fair Labor Standards Act, the Family Medical Leave Act of 1993, the Uniformed Services Employment and Re-employment Rights Act, the Employee Retirement Income Security Act of 1974, and the civil rights, employment, and labor laws of any state and any regulation under such authorities relating to your employment or association with Symantec or the termination of that relationship. You also acknowledge that you are waiving and releasing any rights you may have under the Age Discrimination in Employment Act (ADEA) and that this waiver and release is knowing and voluntary. You acknowledge that (1) you have been, and hereby are, advised in writing to consult with an attorney prior to executing this Agreement (2) as consideration for executing this Agreement, you have received additional benefits and compensation of value to which you would otherwise not be entitled, and (3) by signing this Agreement, you will not waive rights or claims under the Act which may arise after the execution of this Agreement and (4) you have twenty-one (21) calendar days within which to consider this Agreement and in the event you sign the Agreement prior to 21days, you do so voluntarily. Once you have accepted the terms of this Agreement, you will have an additional seven (7) calendar days in which to revoke such acceptance. To revoke, you must send a written statement of revocation to the Vice President of Human Resources. If you revoke within seven (7) days, you will receive no benefits under this Agreement. In the event you do not exercise your right to revoke this Agreement, the Agreement shall become effective on the date immediately following the seven-day (7) waiting period described above. This release does not waive any rights you may have under any directors and officers insurance or indemnity provision, agreement or policy in effect as of the Termination Date, nor does it affect vested rights you may have under any equity-based compensation plan, retirement plan, 401(k) plan or other benefits plan. 5. No Pending or Future Lawsuits. You represent that you have no lawsuits, claims, or actions pending in your name or on behalf of any other person or entity, against Symantec or any other person or entity referred to herein. You also represent that you do not intend to bring any claims on your own behalf or on behalf of any other person or entity against Symantec or any other person or entity referred to herein. 6. Resignation from Board. You agree that you will offer your resignation from the Board of Directors effective upon your Termination Date. The Board may accept or reject your offer of resignation within its sole and absolute discretion. 7. Non disparagement. You agree that you will not, whether orally or in writing, make any disparaging statements or comments, either as fact or as opinion, about Symantec or its products and services, business, technologies, market position, agents, representatives, directors, officers, shareholders, attorneys, employees, vendors, affiliates, successors or assigns, or any person acting by, through, under or in concert with any of them. 8. Additional TermsTABLE OF CONTENTS Annotated Executive Employment Agreement 823082308230823082308230823082308230823082308230823082308230823082308230823082308230 1 I. Introduction823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230. 1 II. Annotated Executive Employment Agreement823082308230823082308230823082308230823082308230823082308230823082308230. 1 III. Conclusion823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230. 13 Non-Compete Agreements: Recent and Developing Trends, Traps and Strategies . 13 I. Introduction82308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230. 13 II. OLDCOS Goals in Drafting and Implementing Agreements8230823082308230823082308230823082308230 14 III. Non-Compete Agreements Must Be Necessary and Reasonable82308230823082308230823082308230. 14 IV. Reasonableness8230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230 15 V. Consideration82308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230 18 VI. Remedies that Deter Violations8230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230. 22 VII. Preserving the Non-Compete Agreement82308230823082308230823082308230823082308230823082308230823082308230823082308230. 27 VIII. Conclusion823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230823082308230. 28 This Annotated Executive Employment Agreement is intended to highlight drafting issues, practices and strategies. Sections in brackets may not appear in many agreements, depending on the parties viewpoints and negotiations. It is a sample, which has been edited and annotated for purposes of this presentation. Actual agreements need to address the specific needs of the parties and their unique factual and legal issues. This EMPLOYMENT AGREEMENT (Agreement) is made and entered into as of the day of , 2010, by and between XYZ Corporation (Company), a Minnesota corporation, and (Executive). A. RECITALS. 1 Executive has the professional and personal skills to serve Company as its Chief Operating Officer. The parties wish to establish an employment relationship, to protect Companys business and other interests, to provide protections to Executive in the event Executives employment is terminated without cause, and to provide the essential terms of Executives employment. Companys current business activities include, among other things, designing, developing, manufacturing, shipping, marketing and selling products andor providing services to . Company and Executive recognize that, in performing hisher anticipated job-related duties and responsibilities, Executive will have extensive access to Companys confidential design, manufacturing, distribution, marketing and sales information and will have opportunities to cultivate valuable business relationships with Companys employees, customers and vendors. B. AGREEMENT. In consideration of the foregoing premises, the mutual covenants and obligations of this Agreement and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: Employment. Company agrees to employ Executive, and Executive agrees to accept employment with Company, pursuant to the terms and conditions of this Agreement. It is understood that Executive will be subject to the policies and terms (as they may be amended from time to time) by Company, Companys Employee Handbook, Companys Code of Conduct and other policies in effect for salaried employees and officers of Company, except as otherwise specifically provided in this Agreement. 2 Duties .3 The services of Executive shall be exclusive to Company, except as otherwise agreed to in writing by Company. Executive will initially serve in the capacity of Chief Operating Officer. Executive will assume responsibility for the job titles, reporting responsibilities and duties, which are assigned and which may be changed from time to time, by Companys Chief Executive Officer. Executive will perform Executives obligations in a competent and professional manner, consistent with the expectations of Companys Chief Executive Officer. Notwithstanding the above obligations, Executive may serve on outside boards of directors or committees if the outside activities are first disclosed to and approved in writing by Companys (Chief Executive Officer). That approval will not be granted if the outside activities are deemed by the (Chief Executive Officer) to conflict with the provisions of this Agreement, to impair Executives ability to perform Executives duties, or to otherwise conflict with Companys business interests. Term of Employment .4 This Agreement is not intended to establish any minimum or maximum period for Executives continuing employment. Executive and Company will have an at-will employment relationship, which means that either party has the right to terminate the employment relationship5 at any time and for any reason, with or without Cause. The reason for and timing of the termination, as set forth in Paragraph 5, will determine the amount of post-termination payments and benefits, as set forth in paragraph 6. Compensation, Reimbursements and Benefits .6 Company agrees to provide Executive the following compensation, reimbursements and benefits: Signing Bonus. As an inducement to enter into this Agreement, Company will pay Executive a signing bonus in the gross amount of , less standard withholdings, payable within days of . Base Salary .7 Company will pay Executive a monthly base salary (the Base Salary), payable in accordance with Companys standard payroll practices. The initial monthly Base Salary will be in the gross amount of Dollars (). The Base Salary will be subject to annual performance review and possible adjustment by Companys Chief Executive Officer. Incentive Awards .8 Executive may will be eligible to receive discretionary annual bonuses andor long term incentive compensation (Incentive Awards) pursuant to the terms and conditions of Companys Annual Bonus Plan andor Companys Long Term Incentive Plan (jointly, Incentive Plans), subject to the following: (1) Executives eligibility to receive Incentive Awards will be determined by Companys Board of Directors. (2) The Incentive Plans are not necessarily all-inclusive because circumstances which Company has not anticipated may arise. Company reserves the right to make any changes at any time to the Incentive Plans or to terminate the Incentive Plans. (3) Any questions regarding the computation of Incentive Awards under the Incentive Plans will be conclusively determined by Companys Board of Directors, pursuant to the terms and conditions of the Incentive Plans. Discretionary Bonus. Executive may be awarded an annual discretionary bonus (Bonus). The amount of the Bonus and the timing of payment of such Bonus will be determined in the sole discretion of the Companys Chief Executive Officer. Aktienoptionen. Executive may be awarded stock options from time to time, pursuant to the terms and conditions of Stock Option Plans, which may be adopted by Companys Board. Expenses .9 Company will reimburse Executive for ordinary, necessary and reasonable business expenses that Executive incurs in connection with the performance of Executives duties including entertainment, telephone, travel and miscellaneous expenses. Executive must obtain proper approval for such expenses pursuant to Companys policies and procedures, and provide Company with documentation for such expenses in a form sufficient to sustain Companys deduction for such expenses under the Internal Revenue Code. Time Off .10 Executive will be entitled to time off with or without pay in accordance with Companys policies in effect at any particular time provided, however, that Executive shall, in any event, be entitled to () days of Paid Time Off (PTO) during each full year of employment. Executive may carry over up to () days annually of PTO. Health, Disability, Life Insurance and Other Employee Benefit Plans .11 Company will provide Executive with health, disability, and life insurance coverage and other employee benefits that are presently existing or which may be established in the future by Company for its full-time salaried employees, subject to the terms and conditions of the applicable benefit plans. Indemnification. Company will defend, indemnify and hold Executive harmless from costs, expenses, damages and other liability incurred by Executive as a result of performing services in good faith to Company, subject to the limitations and other terms and conditions of applicable Minnesota statutes and Companys Articles of Incorporation or Bylaws. Changes in Benefit Plans .12 No references in this Agreement to particular employee benefit plans established or maintained by Company are intended to change the terms and conditions of the plans or to preclude Company from amending or terminating the plans. Withholding Taxes. Company may withhold from any compensation, reimbursements and benefits payable to Executive all federal, state, city and other taxes as required by any law or governmental regulation or ruling, as well as other standard withholdings and deductions. Termination .13 Executives employment may be terminated at any time as follows: Death .14 Executives employment shall automatically terminate upon Executives death. Disability .15 Either party may terminate Executives employment at any time, upon written notice to the other party, if Executive sustains a disability which precludes Executive from performing the essential functions of Executives job, with or without reasonable accommodations, as defined, and if required, by applicable state and federal disability laws. Executive shall be presumed to have such a disability for purpose of this Agreement if Executive qualifies to begin receiving disability income insurance payments under any long term disability income insurance policy that Company maintains for the benefit of Executive. If Executive does not qualify for such payments, Executive shall nevertheless be presumed to have such a disability if Executive is substantially incapable of performing the essential functions of Executives job for a period of more than . With Cause .16 Company may terminate Executives employment at any time, with Cause, upon written notice to Executive. Cause shall mean any one of the following events: (1) Executives breach of any material obligations under this Agreement, or Executives willful andor repeated failure or refusal to perform or observe Executives duties, responsibilities and obligations to Company (2) Any breach of Executives duty of loyalty or fiduciary duties to Company (3) Use of alcohol or other drugs in a manner which affects the performance of Executives duties, responsibilities and obligations to Company (4) Conviction of Executive, or a plea of nolo contendere for a felony or of any crime involving theft, misrepresentation, fraud, or moral turpitude (5) Commission by Executive of any other willful or intentional act which could reasonably be expected to injure the reputation, business or business relationships of Company andor Executive or (6) The existence of any court order or settlement agreement prohibiting Executives continued employment with Company. Without Cause .17 Company may terminate Executives employment at any time, without Cause, upon ( ) days written notice to Executive. Company may, at its sole discretion, opt not to have Executive provide active employment services during some or all of the notice period, and place Executive on a paid leave of absence for some or all of the notice period. Resignation .18 Executive may, upon ( ) days written notice to Company, terminate Executives employment at any time. Upon receiving such notice, Company may, at its sole discretion, opt not to have Executive provide active employment services during some or all of the notice period, and place Executive on a paid leave of absence for some or all of the notice period. If Company exercises this option, it shall not convert the resignation to a termination by Company. Resignation for Good Reason. 19 Executive may terminate Executives employment at any time, with Good Reason, upon written notice to Company. Good Reason shall mean any one of the following events that is not satisfactorily explained to Executive or cured within ( ) days of written notification thereof to Company by Executive: (1) Companys intentional and material breach of Companys obligations under this Agreement (2) Working conditions created by Company, which are in violation of Executives rights under any federal or state law. Among other things, if Company materially alters the terms and conditions of Executives employment, or materially reduces or changes Executives job duties or authority in conflict with this Agreement, it shall be considered a material breach of this Agreement. or (3) . Other Reasons. .20 Payments and Benefits upon Termination .21 Upon the termination of Executives employment, Executive shall only22 be entitled to the following payments and benefits: Death Disability .23 If Executives employment is terminated due to Executives death or disability, regardless of the date of termination, Executive or Executives estate or heirs, as appropriate, shall only be paid (i) Executives Base Salary and accrued, but unpaid, PTO, prorated through the date of termination (ii) any unpaid expense reimbursement (iii) other accrued and vested benefits, if any, under any of Companys Incentive Plans or any of Companys other employee benefit plans (e. g. 401(k) plan), subject to the terms and conditions of those plans and (iv) any benefits payable under any life or disability insurance policy maintained by Company for the benefit of Executive at the time of the termination of employment, subject to the terms and conditions of such policy. For Cause Resignation without Good Reason .24 If Company terminates Executives employment for Cause, or if Executive resigns without Good Reason, regardless of the date of termination, Executive shall only be paid (i) Executives Base Salary and accrued but unpaid PTO, prorated through the date of termination (ii) any unpaid expense reimbursement and (iii) other accrued and vested benefits as of the date of termination, if any, under any of Companys Incentive Plans or any of Companys other employee benefit plans (e. g. 401(k) plan), subject to the terms and conditions of those plans. Without Cause Resignation for Good Reason .25 If Company terminates Executives employment without Cause or Executive resigns for Good Reason, regardless of the date of termination, Executive shall be paid the same payments and benefits as set forth in Subparagraph 6.b. above. In addition, if Executive signs (and does not rescind, as allowed by law) a Release of Claims in a form satisfactory to Company which assures, among other things, that Executive will not commence any type of litigation or assert other claims against Company or a copy of which is attached hereto as Exhibit A, and if Executive complies with all of Executives post-termination obligations to Company under this Agreement and Executives Confidentiality, Noncompetition and Nonsolicitation Agreement,26 Company shall pay Executive a post-termination payment in the amount of , as set forth below: (1) If the effective date of termination of employment is during the first full year of Executives employment, an amount equal to () months of Executives Base Salary as of the date of termination (2) If the effective date of termination of employment is during the second full year of Executives employment, an amount equal to () months of Executives Base Salary as of the date of termination or (3) If the effective date of termination is after the second full year of Executives employment, an amount equal to () months of Executives Base Salary as of the date of termination. The applicable payment shall be made in a lump sum on at the same intervals and amounts as Executives pre-termination Base Salary, beginning with the first payroll date after Executive signs (and does not rescind, as allowed by law) the above referenced Release of Claims, subject to appropriate withholdings and deductions, and subject to Executives compliance with all of Executives post-termination obligations to Company under this Agreement and Executives Confidentiality, Noncompetition and Nonsolicitation Agreement. No Incentive Awards, retirement savings contributions, 401(k) contributions or other employee payments or benefits will be paid to Executive by Company based on the amount of the post-termination payment. , except the following: . D. At Any Time As a Result of a Change of Control .27 If Company terminates Executives employment at any time as a result of a Change of Control, and if Executive does not receive and accept an offer of employment , which has comparable responsibilities and compensation that continues for at least ( ) months with the new controlling entity, Executive shall be paid the same payments and benefits as set forth in Subparagraph 6.b. above. In addition, if Executive signs (and does not rescind, as allowed by law) a Release of Claims in a form satisfactory to Company and the new controlling entity which assures, among other things, that Executive will not commence any type of litigation or assert other claims against Company, and if Executive complies with all of Executives post-termination obligations to Company under this Agreement and Executives Confidentiality, Noncompetition and Nonsolicitation Agreement, Company shall pay Executive a post-termination payment equal to months of Executives Base Salary as of the effective date of the termination of employment. This payment shall be made in a lump sum on at the same intervals and amounts as Executives pre-termination Base Salary, beginning with the first payroll date after Executive signs (and does not rescind, as allowed by law) the above-referenced Release of Claims, subject to appropriate withholdings and deductions, and subject to Executives compliance with all of Executives post-termination obligations to Company under this Agreement and Executives Confidentiality, Noncompetition and Nonsolicitation Agreement. The payment under this Change of Control provision will be paid in lieu of, and not in addition to, the post-termination payment referenced in Subparagraph 6.c.(1), (2) or (3) above. No Incentive Awards, retirement savings contributions, 401(k) contributions or other employee payments or benefits will be paid to Executive by Company based on this post-termination payment. , except the following: . If Executive does receive an offer of comparable employment with the new controlling entity, and chooses not to accept that employment, Executives termination of employment shall be considered a resignation, and treated as set forth in Subparagraph 6.b. above. For purposes of this provision, Change of Control means a sale or lease of the assets or a controlling interest of the stock of Company to a third party, which may come as a result of a divestiture, an acquisition, a lease arrangement, or a merger. Business Protections .28 Representations by Executive .29 Executive represents to Company that Executive has not signed andor entered into any written or oral noncompetition agreements, confidentiality agreements, or other proprietary information agreements that would prevent Executive from accepting this offer or performing the anticipated duties and services at Company. This Agreement is subject to these representations being correct. No Violations of Others Rights .30 Company does not authorize Executive to utilize any other individual or entitys intellectual or other property, confidential or proprietary information on Companys behalf. Executive will not knowingly do any of the following on Companys behalf: (4) Use any other individual or entitys intellectual or other property, confidential or proprietary information. Specifically, Executive will not bring any other individual or entitys proprietary information, customer lists, records, trade secrets, or any other property or confidential information with Executive when Executive comes to work at Company. All of that information and property should be left with the proper owner(s) (5) Contact or do business with any supplier or other individual or entity who or which has an exclusive contract or any other agreement with any other individual or entity which prevents himherit from doing business with Company or (6) Interfere with, infringe, misappropriate or violate any intellectual property rights of a third party. Protective Covenants .31 Company has many confidential and proprietary business interests and other information relating to its products, services, customers and employees, which it needs to adequately protect. Companys willingness to enter into this Agreement is contingent upon Executive simultaneously signing a separate Confidentiality, Noncompetition and Nonsolicitation Agreement with Company. The business protections in that Confidentiality, Noncompetition and Nonsolicitation Agreement will apply throughout Executives employment, and will continue to apply thereafter even if Executives employment is terminated under Paragraph 5 of this Agreement, regardless of the reason for or timing of the termination. Miscellaneous . Entire Agreement. This Agreement contains the entire agreement of the parties relating to the subject matter hereof and, except as otherwise stated32. supersedes any and all oral or written prior agreements and understandings with respect to such subject matter. The parties have made no agreements, representations, or warranties relating to the subject matter of this Agreement which are not set forth herein. Construction. Each provision of this Agreement shall be interpreted so that it is valid and enforceable under applicable law. If any provision of this Agreement is to any extent invalid or unenforceable under applicable law, that provision will still be effective to the extent it remains valid and enforceable. The remainder of this Agreement also will continue to be valid and enforceable, and the entire Agreement will continue to be valid and enforceable in other jurisdictions. Waivers. No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel to enforce any provisions of this Agreement, except by a statement in writing signed by the party against whom enforcement of the waiver or estoppel is sought. A waiver shall operate only as to the specific term or condition waived. No waiver shall constitute a continuing waiver or a waiver of such term or condition for the future unless specifically stated. No single or partial exercise of any right or remedy under this Agreement shall preclude any party from otherwise or further exercising such rights or remedies, or any other rights or remedies granted by law or any other document. Captions. The headings in this Agreement are for convenience of reference only and do not affect the interpretation of this Agreement. Modification. This Agreement may not be altered, modified or amended except by an instrument in writing signed by each of the parties hereto. Choice of Law Forum Selection .33 The laws of the State of Minnesota shall govern the validity, construction and performance of this Agreement, to the extent not pre-empted by federal law. Any legal proceeding related to this Agreement shall be brought in Minnesota in the Hennepin County District Court or the Minnesota District of the U. S. District Court, and each of the parties hereto hereby consents to the exclusive jurisdiction of the Minnesota state and federal courts for this purpose. The parties acknowledge the existence of sufficient contacts to the State of Minnesota and Hennepin County to confer jurisdiction upon these courts. Notices. All notices and other communications required or permitted under this Agreement shall be in writing and provided to the other party either in person, by fax, or by certified mail. Notices to Company must be provided or sent to its Chief Executive Officer notices to Executive must be provided or sent to Executive in person or at Executives home. Survival. Notwithstanding the termination of Executives employment with Company, the terms of this Agreement which relate to periods, activities, obligations, rights or remedies of the parties upon or subsequent to such termination shall survive such termination and shall govern all rights, disputes, claims or causes of action arising out of or in any way related to this Agreement. Successors and Assigns. This Agreement shall be binding on and inure to the benefit of Companys successors and assigns. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. In conclusion, employers like OLDCO should carefully and systematically implement reasonable policies, practices, and agreements to protect themselves from unfair competition and solicitation of their employees, and to protect their trade secrets and other confidential information. These measures will go a long way toward deterring problems, enhancing the odds of successful damage control, and, as a last resort, damage recovery. If at all possible, the best time for OLDCO to get comprehensive business protections is at the beginning of the employment relationship. 1 Recitals. Recitals are often viewed as mere boilerplate. However, recitals can provide very helpful language, in the event of future disputes. The language in this sample assumes a new employment relationship. If the Agreement is made with an existing employee, and is part of, for example, a new incentive package, the Recitals might include the following: Executive desires to become a Participant in Companys Long Term Incentive Plan. Company desires to have Executive make agreements, which will protect Companys business and other interests during the term of Executives employment and thereafter. Company is willing to make Executive a Participant in Companys Long Term Incentive Plan, in exchange for having Executive enter into this Agreement. Execution of this Agreement is a prerequisite to participation in this plan, and this Agreement is considered part of this plan. Company and Executive desire to clarify their employment relationship, pursuant to the terms and conditions of this Agreement. 2 General Terms and Conditions. It is often unclear which general policies apply to executives. Even high level executives must be aware that they are subject to company rules and requirements (e. g. policies regarding sexual harassment, ethics, legal behavior, etc.), even if they are not summarized in the Agreement unless, of course, the stated intent is to override other general terms. 3 Duties. Although it is helpful to describe the initial title and duties (perhaps with reference to a job description as an exhibit), companies should be careful about this provision. A disenchanted executive may claim breach of contract, claiming the employer changed hisher title andor duties. Generally, this section should not create the possibility of having later good faith changes constitute a breach, or otherwise give a disenchanted andor terminated executive an opportunity to claim that he or she should not be obligated to perform hisher post-termination obligations (no-compete, anti-solicitation, trade secret, etc.) It should be noted, however, that many executive employment agreements clearly do identify that the executive will serve in a particular capacity throughout the term of the agreement unless mutually agreed otherwise. Further, several executive employment agreements carefully set out in the body of the agreement, or in a separate exhibit, the exact, detailed duties that are expected. That type of specificity can create problems because detailed job descriptions are rarely kept current. If circumstances change, a company should have the right to expect its employees to be flexible, without risking a breach of contract claim. A good compromise is to have language that assures that, if the duties or titles are materially reduced, it may give the executive grounds to resign for Good Reason, as discussed below. 4 Term of Employment. There are many options here. For example: No Term at All At-Will Relationship . Some employment agreements do not contain any stated term. They state that the relationship can be terminated by either party at any time, and for any reason 8211 expressly stating an at-will relationship. That may be the only provision, with no guarantees whatsoever. Many at-will agreements, like this sample, allow either party to end the relationship at any time, but set forth post-termination rights. The agreement may change the rights, depending on who decides to terminate the relationship, why andor when. Consider, for example, an agreement that provides the executive with a substantial severance package if the employer terminates the relationship without Cause during the first year, with the size of the separation pay decreasing over time. Such a provision might adequately address an executives initial concerns (e. g. not being willing to leave a prior employer without minimum guarantees), without creating an overly generous separation package. Specific Period of Time (e. g. two years, with no reference to what happens once it expires). Presumably, once this expires, the relationship is either over or converts to an at-will employment relationship. If the employment continues without a new agreement, and if some of the provisions in the agreement continue forward, there is much room for misunderstandings and disagreements. For example, if the compensation and benefits packages continue to be in force (as they were during the term of the agreement), does that mean the post-termination compensation package continues to apply What about other provisions such as non-competes, confidentiality clauses, etc The agreement should be clear on these points. Initial Term with Anticipated Renewals . Employment agreements are often drafted to have an initial term (e. g. one year), with the expressed understanding that the term may continue into the future. If that is the desire of the parties, they should state whether the term automatically renews, absent adequate notice by one party to the other not to renew (commonly referred to as an evergreen agreement) or whether the parties must renegotiate a new agreement at the end of its term, and, absent that, the employment will terminate. Regardless which type of renewal system is used, both parties should anticipate and address the renewal period. Avoid drafting an agreement that either automatically renews itself or automatically expires because one or both parties dropped the ball. 5 Termination of Employment . From the employers perspective, only the employment relationship not the agreement should be terminated. Termination of the agreement could inadvertently terminate post-termination business protections. 6 Compensation, Reimbursements and Benefits. Executives often have unique compensation packages. In addition to base salaries and basic benefits, a compensation package may include intricate bonus plans, incentive compensation plans, separation or severance plans, stock grants, stock warrants, stock options, etc. If unique compensation arrangements are made, be sensitive to the issues that they create. For example, if a stock option is granted, or if stock is given to the executive, it should be clear in the executive agreement and in a separate Stock Purchase Agreement what will happen if the employment relationship ends. From the employers perspective, typically one would want a Stock Purchase Agreement which triggers in the event of termination of employment, regardless of the reason. Similarly, if there are unique promises for employee benefit plans that may be covered by ERISA, care should be taken to prepare proper documentation which reflects the companys ERISA obligations and desires. Critically, be sensitive to tax, SEC and Sarbanes-Oxley issues and obligations created by an executive agreement. 7 Base Salary. Executive agreements typically set the base salary for the first year, with an understanding that the salary will be subject to annual review. Some agreements state that the base salary will never drop below a certain floor during the entire course of the agreement some guarantee minimal percentage increases each year some make no guarantees whatsoever. 8 Bonus and Other Incentive Packages. Executive agreements may indicate that an annual bonus will be considered, at the discretion of the employer, or set up an objective (or combined objectivesubjective) bonus plan, which sets out criteria for achievement (e. g. percentage of sales, etc.). Alternatively, the agreement may simply refer to other bonus or incentive programs which are in existence, and state that the executive is eligible for bonuses or incentives under those programs, subject to their terms and conditions. The company should make it clear that it maintains the right to interpret, alter, or replace the bonusincentive program at its discretion, and specifically should reserve the right to add to, delete from, amend, or even cancel the program if business circumstances warrant. The agreement should not supersede the companys obligations under the bonus or incentive plan, unless that is what the parties intend to have it do (which would rarely be the case). The executive may want to set minimum expectationsobligations, or make it clear that if certain award levels are not reached, the executive has a right to resign for Good Reason, discussed below. A common source of disagreement over bonuses and other incentive packages is whether the bonus is payable if the executive leaves before a particular bonus period (e. g. fiscal year) is over. The agreement should state whether a mid-year departure will entitle the executive to a pro rata share of the annual bonus, the entire bonus, or no bonus at all. This may be written to vary, depending on the timing andor the reason for the departure. In any event, be sure that the executive agreement does not conflict with other employee benefit plans. 9 Business Expenses. Executive agreements often provide specific provisions for car expenses, plane expenses, country club expenses, and other matters 8211 some of which may or may not be deductible by the company under the Internal Revenue Code. The agreement should clearly state the various responsibilities. 10 Time Off. Executives often mix business and pleasure, and generally work while traveling. Depending on a companys policies and practices, that can lead to large and unexpected accruals of paid time off. Address all of this up front, to avoid major disputes later and make sure the companys time off and accrual policies are in compliance with recent legal developments. 11 Benefits. Agreements often summarize specific benefits available to the executive. The company should make it clear that references in the agreement to particular employee benefit plans established or maintained by the company do not change the terms and conditions of the plans or preclude the company from amending or terminating the plans. 12 Changes in Benefits. Companies often change policies or employee benefit plans, at least on a prospective basis. Particularly if the executive agreement identifies specific policies or employee benefit plans (which they often do), it is critical for the company to reserve its right to make changes to those plans. 13 Termination. The agreement should anticipate and address all likely reasons for termination of employment. The parties may have a very different view about post-termination packages and obligations, depending on the reason for and timing of the departure. It is better to have a road map for the different options than to leave items vague or open, and subject to later disputes. 14 Death of Executive. Obviously, the death of the executive terminates the employment relationship. It is necessary to state this, however, because the employer almost certainly will have a different view about post-termination payments in this situation, as compared to others. 15 Disability of Executive. An executives disability, if serious enough, should be a ground for termination. Draft the definition so the agreement does not violate the Americans with Disabilities Act or the Family and Medical Leave Act. Many agreements state that, subject to these laws, the executive will be presumed to have such a disability if he or she is substantially incapable of performing his or her duties for a particular period of time (12 weeks would be the minimum here, due to the FMLA the ADA may dictate a longer period). 16 Termination by Company For Cause. The agreement should make it clear that the company can terminate, at any time, for Cause. The parties should carefully define Cause. Various types of misconduct, illegal activities, intentional breaches of the agreement, etc. will often be included in the definition. Employers are well served if they can get the definition of Cause to include less heinous actions of the executive that would, nevertheless, justify a termination. Executives prefer to have Cause only in misconduct situations. Often, the less serious issues may be subject to a noticeopportunity to cure provision. 17 Termination by Company Without Cause. This is the situation that new executives are most concerned about. What if the employer decides to terminate the employment relationship due to a change in business plans, a down turn in the market, a mere personality dispute, or some other reason why its just not working out Employers who enter into executive agreements definitely want to reserve the right to terminate without Cause they do not want to prove Cause every time they want to part ways with the executive. Typically, this is a situation where fairness and the new executives negotiating demands dictate that post-termination separation packages are warranted. 18 Voluntary Termination by Employee. Employers cannot prevent an executive from voluntarily terminating employment. However, the agreement should state that if the executive voluntarily quits, separation payment obligations will not apply. 19 Resignation for Good Reason . This provision is rare. Employers rarely offer it, and executives often fail to ask for it. Even once it is agreed to in concept, there are often disagreements on the definition. Executives generally want the ability to trigger this provision if the job materially changes after they begin (e. g. material reduction in compensation or title, or forced and unacceptable relocation), or if there is other treatment that may not necessarily rise to the level of a constructive discharge under applicable law, but is nevertheless intolerable to the executive. Employers generally resist some or all of these, preferring to maintain flexibility and discretion. This may be a very good place to address situations where the employer and executive discuss and fully expect a situation to occur (such as a promotion from COO to CEO in one year, after the current CEO retires), but the employer cannot contractually guarantee it basically assuring the executive that if it does not occur, there will be some ability to trigger a termination package. 20 Termination as a Result of Other Reasons. Executive agreements occasionally address the possible termination of employment as a result of other reasons. For example, executive agreements often discuss terminations as a result of divestitures, acquisitions, mergers, or other changes in control. From the companys perspective, this is not necessary because these types of provisions would constitute a termination without Cause. Executives may want to see this type of provision set out separately, however, to set up a later provision for severance pay in the event of this type of separation. The executive may even want to make it a ground for a Good Reason resignation. 21 Post-Termination Compensation Packages . Many executive agreements provide a flat severance payment (e. g. twelve (12) months Base Salary) regardless of the reason for the termination, the timing of the termination, and whether the executive abides by other commitments. This may not be a logical approach from the companys perspective. Employers should not agree to pay separation pay simply because an executives employment is terminated. The reason for the termination is critical. 22 No Additional PayBenefits. There have been many claims by former executives for bonus or other incentive payments, various fringe benefits (e. g. cars, club dues, profit sharing, etc.), and even claims for bonuses based on post-termination severance pay. Not surprisingly, companies usually take the position that no such benefits or payments were anticipated. To avoid such a dispute, executive agreements should clearly state whether additional payments or benefits will result from the payment of a post-termination payment, or whether the gross payment stands alone. 23 Death or Disability of Employee . If the employment relationship terminates as a result of the executives death or disability, this is not the employers choice. Further, executives often have (usually through the employer) life and disability insurance. 24 Termination by Company for Cause Resignation Without Good Reason. If the executive truly did give Cause to terminate, and particularly if it was a serious act of misconduct, employers do not want a contractual commitment to make post-termination payments. Similarly, few employers are happy to make payments to an executive who quits through no fault of the employer. 25 Termination by Company Without Cause Resignation for Good Reason. Here, a good argument can be made for post-termination compensation. Through no serious fault of the executive, the employment relationship is ended. Accordingly, it is not uncommon for employers to agree to provide post-termination pay to executives who are terminated without Cause. This may be part of an overall benefits package or may be contained within the executive agreement. The amount of post-termination compensation might be a flat amount (e. g. one year), a formula (e. g. one month for each year of service), a diminishing amount (e. g. one year if the termination takes place within the first year, six months, if it takes place in the second year, etc.), or some other formula. If the executive is able to negotiate certain rights to resign for Good Reason, the severance sections may be similar, or even identical, to the severance for a termination by the company without Cause. 26 Contingencies. If an employer agrees to pay post-termination compensation, it should make the receipt of such compensation contingent on the executives compliance with all post-termination obligations (noncompete agreements, trade secret and confidentiality agreements, agreements not to hire or solicit employees, cooperation with litigation clauses, etc.) and a signed release of claims. 27 Change of Control. Change of Control provisions are rare. This is a simple change of control provision. Many are far more complex. The language in a Change of Control provision, as a practical matter, can make future business combinations difficult, if not impossible. There needs to be a reasonable balance between protecting executives from the sudden loss of employment and essentially making the business change impossible to achieve. 28 Business Protections. This sample assumes a separate Confidentiality, Noncompetition and Nonsolicitation Agreement. Any or all business protections could be incorporated into the executive agreement, rather than in a separate document. 29 Representations by Executive. If the new executive has restrictions from a former employer, it is critical to discovery that up front, rather than after the fact. In fact, these representations should be confirmed as part of the offer. The Company may choose not to go forward with the arrangement, to negotiate or litigate with the former employer as needed or to change the terms of the new agreement, in order to avoid violations with the existing agreements. 30 No Violation of Others Rights. Again, it is important to clearly assure, up front, that the employer does not want the executive to violate any other entitys legal rights. This language may prevent legal conflicts, or at least support good faith defenses. 31 Protective Covenants. It may be critical to the survival of a company to protect its trade secrets, prevent unfair competition, and prohibit the solicitation of its customers andor employees if a key executive departs. As further discussed in Section II below, a company can do many things to protect itself with respect to these problems. To stand the best possible chance of prevailing in litigation, the company wants to be able to prove that its trade secrets and other confidential information were truly secret that it, from day one, took steps to protect that confidential information and that the executive knew that the information was confidential, etc. Further, the fairness and reasonableness of noncompete agreements, as well as the consideration requirement, should be clear from day one. If the employer does not have a separate noncompete confidentialitytrade secret agreement, those provisions can be included in the executive agreement. Even if the employer does have a separate agreement, it is a good idea to make reference to that agreement in the executive agreement. 32 Merger Clause. The employer should be careful not to inadvertently supersede something that it wants to survive. 33 Arbitration Clause. The parties can opt to have future disputes decided in an arbitration forum in lieu of traditional litigation, and they can specially design the procedures under which arbitration will be conducted. Advantages generally include an expedited ultimate resolution, decreased protracted discovery and court procedures, and avoidance of erratic jury verdicts. However, some may perceive these so-called advantages as disadvantages depending upon the facts of the particular case. First, as to both issues of law and fact, the ultimate decisions are left to the arbitrator with limited grounds for appeal (e. g. award procured by corruption, fraud or other undue means). Thus, the threat of an appeal which faces a judge who erroneously applies the law does not have the same effect on an arbitrator who may couch technical applications of the law in order to split the baby. Also, beware of the fact that the existence of an arbitration clause in an executive agreement, trade secretconfidentiality agreement, noncompete agreement, etc. can effectively prevent the employer from obtaining an injunction with respect to violations. If an arbitration clause is vastly preferred, consider at least using compromise language between the two competing issues. For example, consider making it clear that arbitration is encouraged, but not required consider adding mediation as another voluntary alternative and, in any event, make it clear that the arbitration language does not apply to the various non-competitiontrade secrets provisions, nor does it bar the company from seeking judicial remedies to enforce them. Finally, be aware that Arbitration provisions may or may not cover traditional employment claims, depending on how they are drafted. 34 Freeman v. Duluth Clinic, Inc. 334 N. W.2d 626 (Minn. 1983). 35 Bennett v. Storz Broad. Co. 134 N. W.2d 892 (Minn. 1965) Lemon v. Gressman, 2001 WL 290512 at 1 (Minn. App. Mar. 27, 2001). 44 BDO Seidman v. Hirshberg, 93 NY.2d 382, 394 (N. Y. 1999). 45 See Davies, 298 N. W.2d at 134 Dean Van Horn Consulting Assoc. v. Wold, 395 N. W.2d 405 (Minn. App. 1986) Ikon Office Solutions, Inc. v. Dale, 2001 WL 1269994 (8th Cir. 2001) see also Klick v. Crosstown State Bank of Ham Lake, Inc. 372 N. W.2d 85 (Minn. App. 1985) (observing that courts are not required to modify non-compete agreements that appear unreasonable). 46 Id. see also Sealock v. Petersen, 2008 WL 314146, at 4 (Minn. Ct. App. Feb. 5, 2008) (observing that non-compete agreements entered into in connection with the sale of a business are subject to a more lenient scrutiny than non-competes contained in employment contracts). 47 Metro Networks Comm. v. Zavodnick, 2004 WL 73591 (D. Minn. 2004) (enforcing a one-year restriction on competition in the Twin Cities metropolitan area) Universal Hosp. Serv. Inc. v. Hennessy, 2002 WL 192564, (D. Minn. 2002) (validating an agreement restricting an employee from competing within a 100-mile radius of the employer for one year). 48 See, e. g. , Ikon Office Solutions, Inc. , 170 F. Supp.2d at 895 (reducing time period of noncompetition from five years to three years, because five years was too long, placed undue hardship on the employee, and did not serve any legitimate business needs of the former employer) Dean Van Horn . 395 N. W.2d 405 (modifying a three-year restriction to one year). 49 See, e. g. Webb Publishing Co. v. Fosshage . 426 N. W.2d 445, 448 (Minn. App. 1988) ( citing Dahlberg Brothers, Inc. v. Ford Motor Co., N. W.2d 314, 32122 (Minn. 1965)). 50 Vital Images, Inc. v. Martel, Civil No. 07-4195, 2007 WL 3095378 at 3 (D. Minn. Oct. 19, 2007) (eighteen months) Timm amp Assoc. Inc. v. Broad, Civ. No 05-2370, 2006 WL 3759753, at 4 (D. Minn. Dec. 21, 2006) (two years) Overholt Crop Ins. Serv. Co. Inc. v. Bredeson, 437 N. W.2d 698, 704 (Minn. Ct. App. 1989) (two years). 52 See, e. g., Ring Computer Sys. v. Paradata Computer Networks, 1990 WL 132615 (Minn. App. 1990). 53 See, e. g. . Dynamic Air, Inc. v. Bloch, 502 N. W.2d 796, 800 (Minn. Ct. App. 1993) (observing that a non-compete agreement with no geographical limit will often be held to be unreasonable). But see Medtronic v. Hedemark, No. A08-0987, 2009 WL 511760, at 35 (Minn. Ct. App. Mar. 3, 2009) (upholding a global restriction on competition for a multinational corporation, because the other restrictions in the non-compete were reasonable). 54 Overholt . 437 N. W.2d 698 Satellite Indus. Inc. v. Keeling, 396 N. W.2d 635 (Minn. App. 1986). 55 Cook Sign Co. v. Combs, No A07-1907, 2008 WL 3898267, at 7 (Minn. Ct. App. Aug. 26, 2008) (enforcing a non-compete agreement restricting an employee from competing in three states in which the employer does business and has customers) Salon 2000, Inc. v. Dauwalter, No. A06-1227, 2007 WL 1599223, at 2 (Minn. Ct. App. June 5, 2007) (affirming a non-compete agreement restricting an employee from working as a stylist within a ten-mile radius of the employers business on the ground that customers will seek out the stylist rather than the services of the salon if the stylist is sufficiently close geographically to the salon) Madsen v. Spectro Alloys Corp. No. C7-98-225, 1998 WL 373067, at 2 (Minn. Ct. App. July 7, 1998) (concluding that a restriction from competing in any market in which Spectro does business in the United States was not unreasonably broad). 56 See IDS Life Ins. Co. v. SunAmerica, Inc. 958 F. Supp. 1258, 1273 (N. D. Ill. 1997) revd on other grounds . 136 F.3d 537 (7th Cir. 1998) (applying Minnesota law) Commodities Specialists, Co. v. Brummet, 2002 WL 31898166 (D. Minn. 2002). 57 Natl Recruiters, Inc. v. Cashman, 323 N. W.2d 736, 740 (Minn. 1982) Davies amp Davies Agency, Inc. v. Davies, 298 N. W.2d 127, 133 (Minn. 1980) (concluding that a non-compete agreement was not ancillary to the employment contract where the employee had been made aware of its existence during employment negotiations but was not given a chance to examine it despite requesting to see it) Midwest Sports Mktg. v. Hillerich amp Bradsby of Canada, Ltd. 552 N. W.2d 254, 26566 (Minn. Ct. App. 1996) (refusing to enforce an agreement whose terms were not presented to the employee until after he began work) FSI Intl, Inc. v. Shumway, 2002 WL 334409, (D. Minn. Feb. 26, 2002) (denying motion for preliminary injunction or TRO on the basis that the mid-stream non-compete agreement was not supported by sufficient independent consideration and there was no evidence of a competing product) J. K. Harris amp Co. LLC v. Dye and ABC Co. 2001 WL 1464728, (D. Minn. Nov. 16, 2001) (denying TRO because Court found that covenant not to compete was entered into after employment began and was not supported by adequate consideration). 58 Sanborn Mfg. Co. v. Currie, 500 N. W.2d 161 (Minn. App. 1993) see also TestQuest, Inc. v. La France, 2002 WL 196287 (Minn. App. 2002) (upholding mid-stream agreement allowing the employee to continue working and obtain additional vested stock options, which constituted sufficient consideration). 59 Progressive Tech. Inc. v. Shupe, 2005 WL 832059 (Minn. App. April 12, 2005). 60 See also Tonna Heating Cooling, Inc. v. Waraxa, CX-02-368, 2002 WL 31687601, at 3 (Minn. App. Dec. 3, 2002). Disclaimer The information contained on this web site is not indented to constitute legal advice for any particular situation and should not be construed as such. If you need legal advice, you should speak to one of our attorneys. Sending an e-mail to Oberman Thompson does not create an attorney-client relationship. 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