ChangeInControl Executive Severance Agreement.docx
《ChangeInControl Executive Severance Agreement.docx》由会员分享,可在线阅读,更多相关《ChangeInControl Executive Severance Agreement.docx(36页珍藏版)》请在冰豆网上搜索。
ChangeInControlExecutiveSeveranceAgreement
CHANGE-IN-CONTROLEXECUTIVESEVERANCEAGREEMENT
ThisChange-in-ControlExecutiveSeveranceAgreement(this"Agreement"),dated
andeffectiveJuly1,2004,isbetweenAceCashExpress,Inc.,aTexas
corporation(the"Company"),andJayB.Shipowitz(the"Executive").
StatementofPurpose
TheCompanydesires,foritscontinuedsuccess,tohavethebenefitofservices
ofexperiencedmanagementpersonnelliketheExecutive.TheBoardofDirectors
oftheCompanythereforebelievesthatitisinthebestinterestoftheCompany
that,intheeventofanyprospectivechangeincontroloftheCompany,the
ExecutivebereasonablysecureinhisemploymentandpositionwiththeCompany,
sothattheExecutivecanexerciseindependentjudgmentastothebestinterest
oftheCompanyanditsshareholders,withoutdistractionbyanypersonal
uncertaintiesorrisksregardingtheExecutive'scontinuedemploymentwiththe
CompanycreatedbythepossibilityofachangeincontroloftheCompany.
Therefore,theCompanyandtheExecutiveenteredintoaChange-in-Control
ExecutiveSeveranceAgreementdatedAugust20,1998(the"PreviousSeverance
Agreement"),toassureseverancebenefitstotheExecutiveinconnectionwith
certainterminationsofemploymentuponorafterachangeincontrolofthe
Company,andtheynowwishtoamendandsupersedethePreviousSeverance
Agreement(aspreviouslyamended)withthisAgreementtoeffectthesame
purpose.
Agreement
InconsiderationofthestatementsmadeintheStatementofPurposeandthe
mutualagreementssetforthbelow,theCompanyandtheExecutiveagreeas
follows:
1.DefinitionsandInterpretation.VarioustermsusedinthisAgreementare
definedinExhibitA;eachofthedefinedtermsusedinthisAgreement
beginswithacapitalletter.Variousinterpretativemattersforthis
AgreementarealsosetforthinExhibitA.ExhibitAisanintegralpart
ofthisAgreementandisincorporatedinthisAgreementbyreference.
2.TermofAgreement.ThisAgreementwillcontinueineffectuntilthe
earlierof:
(a)TheterminationorcessationoftheExecutive'semploymentwiththe
CompanyundertheEmploymentAgreement,ortheterminationofthe
EmploymentAgreement,beforeaChangeinControl.
(b)TheCompany'sperformanceofallofitsobligations,andthe
Executive'sreceiptofallofthepaymentsandbenefitstowhichhe
isentitled,underthisAgreementafteraSeverancePaymentEvent.
3.SeveranceBenefits.UponaSeverancePaymentEvent,inadditiontoany
Otherseveranceoremployment-terminationcompensationorbenefitstowhichtheExecutivemaybeentitledfromtheCompanyoranySubsidiaryunderthetermsofanyPlanofwhichtheExecutivewasaparticipantora
beneficiaryimmediatelybeforetheSeverancePaymentEvent,theCompany
shall:
(a)PaytheExecutiveincash,withinfiveBusinessDaysafterthe
SeverancePaymentEvent,allofhisBaseSalaryandallotherearned
butunpaidcashcompensationorentitlementsduetotheExecutive
through(andincluding)thedateoftheSeverancePaymentEvent,
includingunusedearnedandaccruedvacationpayandunreimbursed
reimbursablebusinessexpenses.
(b)MaketheSeverancePaymentincashwithinfiveBusinessDaysafter
theSeverancePaymentEvent.
(c)ProvideorarrangetoprovidetheExecutive(whetherornotunder
anyWelfareBenefitPlanthenmaintained),attheCompany'ssole
expenseandfortheBenefitContinuationPeriod,WelfareBenefits
thataresubstantiallythesametheWelfareBenefitsprovidedtothe
Executive(andtheExecutive'sdependentsandbeneficiaries)
immediatelybeforetheSeverancePaymentEvent,exceptthatthe
WelfareBenefitstowhichtheExecutiveisentitledunderthis
subsection(c)willbesubjecttotheExecutive'scompliancewith
Section4andwillbereducedtotheextentthatcomparablewelfare
benefitsarereceivedbytheExecutivefromanemployerotherthan
theCompanyoranySubsidiaryduringtheBenefitContinuation
Period.(Thefactthatthecostoftheparticipationbythe
Executive,ortheExecutive'sdependentsorbeneficiaries,inany
WelfareBenefitPlanwaspaidindirectlybytheCompany,asa
reimbursementoracredittotheExecutive,beforetheSeverance
PaymentEventdoesnotmeanthatthecorrespondingWelfareBenefits
werenot"providedtotheExecutive"bytheCompanyforthepurpose
ofthissubsection(c).)
Inaddition,eachStockAwardoutstandingimmediatelybeforetheSeverance
PaymentEventandnotyetexercisedorforfeited(asthecasemaybe)will
accelerateandbecomefullyvested,exercisable,ornonforfeitableupon
theSeverancePaymentEvent,asthoughallrequisitetimehadpassedto
vesttheStockAwardorcauseittobecomeexercisableornonforfeitable.
4.NondisclosureandNoncompetition.AsaninducementtotheCompanytoenter
intothisAgreement,theExecutiverepresentstoandcovenantswithorin
favoroftheCompanyasfollows:
(a)TheExecutivehasacquiredandwillacquireduringhisemployment
withtheCompanyknowledgeorawarenessofvariousTradeSecrets.
AlloftheTradeSecretsarevaluable,special,anduniqueassetsof
theCompany,andthedisclosureofanyofthem,ortheiruseinany
manner,otherthanonbehalfoftheCompanywouldcausesubstantial
injury,lossofprofits,andlossofgoodwilltotheCompany.
(b)DuringhisemploymentwiththeCompanyandatalltimesthereafter,
theExecutiveshallnot,directlyorindirectly,discloseor
disseminateanyTradeSecrettoanyotherPersonorlectureupon,
publisharticlesconcerning,orotherwiseuseoremployanyTrade
Secret,except(inanycase)totheextentrequiredinthecourseof
hisemploymentwiththeCompanyorbyapplicablelaw,rule,or
regulation(includinglegalprocess).Inaddition,allTradeSecrets
andmaterialscontainingTradeSecretspreparedorcompiledbythe
Executiveorfurnishedormadeavailabletohimduringhis
employmentwiththeCompanyarethesoleandexclusivepropertyof
theCompany,andnoneofthoseTradeSecretsormaterialscontaining
TradeSecretsmayberetainedbytheExecutiveuponorfollowingany
terminationofhisemploymentwiththeCompany.
(c)IftheExecutive'semploymentwiththeCompanyterminates(other
thanbecauseoftheExecutive'sdeathorDisability)uponorbefore
theterminationofthisAgreement,theExecutiveshallnot,atany
timeduringthefirstyearafterthatterminationofemployment
anywhereintheRestrictedTerritory,directlyorindirectlyengage
inanyactivitywhich,oranyactivityforanyenterpriseorentity
amaterialpartofthebusinessofwhich,iscompetitivewiththe
businessconducted,orproposedduringhisemploymentwiththe
Companytobeconducted,bytheCompany.Theactivityprohibitedby
theprecedingsentenceincludesanykindofownership(otherthan
ownershipofsecuritiesofapubliclyheldentityofwhichthe
Executiveownslessthan1%ofaclassofoutstandingsecurities)in
orof,oractingasadirector,officer,agent,employee,or
consultantoforfor,anyenterpriseorentityreferredtointhe
precedingsentence.
(d)TheExecutiveacknowledgesandagreesthattherestrictionsinthis
Section4arereasonableandnotundulyburdensometohimunderthe
circumstances.
(e)TheExecutive'scompliancewiththisSection4andwiththe
post-employmentrestrictivecovenantsintheEmploymentAgreementisaconditiontotheCompany'sobligationtocontinuetoprovide
WelfareBenefitstotheExecutiveundersubsection(c)ofSection3
andtomakeoneormoreGross-UpPaymentstotheExecutiveunder
Section5;theCompanymayrefusetocontinueprovidingthose
WelfareBenefitsortomakealloranyGross-UpPaymentifthereis
anysuchnoncompliance,asreasonablydeterminedbytheBoard.For
thepurposeofthisAgreementonly,theCompanyshallhavethe
burdenofproofregardinganyquestionoftheExecutive'scompliance
ornoncompliancewiththisSection4ortomakealloranyGross-Up
Payment.
5.ExciseTaxes.
(a)IfalloranyportionoftheTotalSeveranceBenefits,determined
withoutregardtoanyadditionalpaymentsrequiredunderthis
Section5(a"Payment"),wouldbesubjecttotheExciseTax,then
theExecutiveshallbeentitledtoreceiveanadditionalpayment
("Gross-UpPayment")inanamountsuchthatafterpaymentbythe
Executiveofalltaxes(includinganyinterestorpenaltiesimposed
withrespecttosuchtaxes),includinganyincometaxes(andany
interestandpenaltiesimposedwith
respectthereto)andExciseTax,imposedupontheGross-UpPayment,
theExecutiveretainsanamountoftheGross-UpPaymentequaltothe
ExciseTaximposeduponthePayment,multipliedbythepercentage
setforthbelowcorrespondingtothePerShareChange-in-Control
Price:
PerShareChange-in-ControlPricePercentage
--------------------------------------------------
Lessthan$330%
$33tolessthan$3925%
$39tolessthan$4550%
$45tolessthan$5175%
$51ormore100%
(b)Subjecttosubsection(c)ofthisSection5,alldeterminations
requiredtobemadeunderthisSection5,includingwhetherandwhen
aGross-UpPaymentisrequired,theamountofanyGross-UpPayment,
andtheassumptionstobeusedinarrivingatsuchdetermination,
shallbemadebytheAccountingFirm,whichshallberetainedto
providedetailedsupportingcalculationstothePartieswithin15
BusinessDaysoftheAccountingFirm'sreceiptofwrittennotice
fromtheCompanyortheExecutivethattherehasbeenaPaymentor
suchearliertimeasisrequestedbytheCompany.Allfeesand
expensesoftheAccoun