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Title: |
Change-IN-Control Severance Agreement |
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Date: |
2004 |
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Preview shows 6KB of 29KB total |
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$36 |
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ID: |
#1045343 |
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CHANGE-IN-CONTROL
SEVERANCE AGREEMENT
THIS AGREEMENT, dated as of July 30, 2004, by and between SeaChange International, Inc., with its principal place of business at 124 Acton Street, Maynard, Massachusetts 01754 (the Company), and William Styslinger (the Executive).
WHEREAS, the Company considers it essential to the best interests of its stockholders to foster the continuous employment of key management personnel, and recognizes that, as is the case with many publicly held corporations, the possibility of a change in control may exist and that such possibility, and the uncertainty and questions which it may raise among management, may result in the distraction or departure of management personnel to the detriment of the Company and its stockholders; and
WHEREAS, the Board of Directors of the Company has determined that appropriate steps should be taken to reinforce and encourage the Executives continued attention and dedication to the Executives assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a change in control of the Company, although no such change is presently known to be contemplated.
NOW THEREFORE, in consideration of the mutual covenants and agreements hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1
DEFINITIONS
Except as may otherwise be specified or as the context may otherwise require, the following terms shall have the respective meanings set forth below whenever used herein:
Annual Bonus shall mean the annual bonus, or if the Executive is paid a bonus on a quarterly basis, the sum of the four quarterly bonus payments, paid to the Executive for the Companys fiscal year immediately prior to the fiscal year in which the Date of Termination occurs, or, if greater, the fiscal year immediately preceding such prior fiscal year.
Base Salary shall mean the annual base rate of regular compensation of the Executive immediately before a Covered Termination, or if greater, the highest annual such rate at any time during the 12-month period immediately preceding the Covered Termination.
Board shall mean the Board of Directors of the Company.
Cause shall mean (i) the Executives engaging in willful and repeated gross negligence or gross misconduct, (ii) the Executives breaching of a material fiduciary duty to the Employer, or (iii) the Executives being convicted of a felony, in either case, to the demonstrable and material injury to the Employer. For purposes hereof, no act, or failure to act, on the Executives
part, shall be deemed willful unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that any act or omission was in the best interest of the Employer.
Change in Control shall mean the first to occur, after the date hereof, of any of the following:
(i) the members of the Board at the beginning of any consecutive 24- calendar-month period (the Incumbent Directors) cease for any reason other than due to death to constitute at least a majority of the members of the Board; provided that any director whose election, or nomination for election by the Companys stockholders, was approved by a vote of at least a majority of the members of the Board then still in office who were members of the Board at the beginning of such 24- calendar-month period, shall be deemed to be an Incumbent Director;
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