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Document Preview Change of Control Agreement |
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Title: |
Change of Control Agreement |
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Date: |
2004 |
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Preview shows 4KB of 36KB total |
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Price: |
$43 |
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ID: |
#1156810 |
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[MTI LOGO]
MTI TECHNOLOGY CORPORATION
CHANGE OF CONTROL AGREEMENT
This Agreement (the "Agreement") is made and entered into as of NOVEMBER
17, 2004 (the "Effective Date"), between MTI TECHNOLOGY CORPORATION, a
corporation organized under the laws of the State of Delaware (the "Company"),
and SCOTT POTERACKI (the "Employee").
RECITALS
A. Employee was hired by MTI on or about NOVEMBER 4, 2004, to serve as the
Company's CHIEF FINANCIAL OFFICER.
B. The Board of Directors of the Company (the "Board") recognizes that the
possibility of a Change in Control (as hereinafter defined) exists and that the
threat or the occurrence of a Change in Control can result in significant
distractions to its key personnel because of the uncertainties inherent in such
a situation;
C. The Board has determined that it is essential and in the best interest
of the Company and its stockholders to retain the services of the Employee in
the event of a threat or occurrence of a Change in Control and to ensure the
Employee's continued dedication and efforts in such event without undue concern
for the Employee's personal, financial and employment security; and
D. In order to induce the Employee to continue employment with the
Company, as well as to remain with the Company in the event of a threat or the
occurrence of a Change in Control, the Company desires to enter into this
Agreement with the Employee to provide the Employee with certain benefits in the
event that the Employee's employment is terminated as a result of, or in
connection with, a Change in Control.
AGREEMENT
In consideration of the respective agreements of the parties contained
herein, it is agreed as follows:
1. Term Of Agreement. This Agreement shall commence as of the Effective
Date and shall continue in effect until one (1) year after the Effective Date;
provided, however, that commencing on each anniversary of the Effective Date,
the term of this Agreement shall automatically be extended for one (1) year
unless the Company or the Employee shall have given written notice to the other
at least ninety (90) days prior thereto that the term of this Agreement shall
not be so extended; and provided, further, however, that notwithstanding any
such notice by
MTI
MTI- Change of Control Agreement - S Poteracki 11-17-04
Page 1 of 12
<PAGE>
the Company not to extend, the term of this Agreement shall not expire prior to
the expiration of twelve (12) months after the occurrence of a Change in
Control.
2. Definitions.
2.1. Accrued Compensation. For purposes of this Agreement, "Accrued
Compensation" shall mean an amount which shall include all amounts earned or
accrued through the "Termination Date" (as hereinafter defined) but not paid as
of the Termination Date, including (i) base salary, (ii) reimbursement for
reasonable and necessary expenses incurred by the Employee on behalf of the
Company during the period ending on the Termination Date, (iii) accrued, but
unused vacation pay and (iv) bonuses and incentive compensation (other than the
Pro Rata Bonus (as hereinafter defined)).
2.2. Base Amount. For purposes of this Agreement, "Base Amount"
shall mean the greater of the Employee's annual base salary (a) at the rate in
effect on the Termination Date or (b) at the highest rate in effect at any time
during the ninety (90) day period prior to the Change in Control, and shall
include all amounts of base salary that are deferred under the Employee benefit
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