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Document Preview Employment Agreement |
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Title: |
Employment Agreement |
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Entities: |
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Date: |
2002 |
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Size: |
Preview shows 10KB of 40KB total |
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Price: |
$43 |
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ID: |
#1164099 |
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EMPLOYMENT AGREEMENT
THIS AGREEMENT ("Agreement") is made as of the _____ day of ________, 200_,
between JO-ANN STORES, INC., an Ohio corporation (the "Company"), and [NAME OF
EXECUTIVE] ("Executive").
The Company is entering into this Agreement in recognition of the importance of
Executive's services to the continuity of management of the Company and based
upon its determination that it will be in the best interests of the Company to
encourage Executive's continued attention and dedication to Executive's duties
as a general matter and in the potentially disruptive circumstances of a
possible Change of Control of the Company. (As used in this Agreement, the term
"Change of Control" and certain other capitalized terms have the meanings
ascribed to them in Section 17 at the end of this Agreement.)
The Company and Executive agree, effective as of the date first set forth above
(the "Effective Date"), as follows:
1. SEVERANCE BENEFITS UPON CERTAIN TERMINATIONS OCCURRING BEFORE A CHANGE OF
CONTROL. If, before the occurrence of a Change of Control, Executive's
employment with the Company is terminated (a) by the Company without Cause, or
(b) by Executive for Good Reason, Executive shall be entitled to the following
as Severance Benefits:
(a) The Company shall pay Executive an amount equal to one and one
half times Executive's Base Salary payable in consecutive bi-weekly
installments over the 18 months following the Termination Date at the same
times and in the same amounts as if Executive had remained in the employ of
the Company and had continued to earn Executive's Base Salary over that 18
month period.
(b) The Company shall continue to provide Executive with the welfare
benefits of medical insurance, dental insurance, and group term life
insurance through the end of the 18th full calendar month following the
Termination Date, except that
(i) the Company may stop providing medical insurance and dental
insurance coverage earlier if and when Executive accepts full time
employment with a subsequent employer that generally makes medical
insurance available to its executives and Executive is eligible for
that coverage with the subsequent employer, and
(ii) the Company may stop providing group term life insurance
earlier if and when Executive accepts full time employment with a
subsequent employer and that employer provides Executive with group
term life insurance coverage.
The benefits to be provided by the Company pursuant to this paragraph shall
be provided to Executive at the same cost to Executive, and at the same
coverage level,
1
<PAGE>
as is applicable to continuing executives in comparable positions from time
to time during the period the benefits are continued.
2. CHANGE OF CONTROL SEVERANCE BENEFITS UPON CERTAIN TERMINATIONS OCCURRING
AFTER A CHANGE OF CONTROL. If, after the occurrence of a Change of Control,
Executive's employment with the Company is terminated (a) by the Company without
Cause, or (b) by Executive for Good Reason, Executive shall be entitled to the
following as Change of Control Severance Benefits:
(a) The Company shall make a lump sum cash payment to Executive, not
later than ten business days after the Termination Date, in an amount equal
to two times the sum of (i) Executive's Base Salary plus (ii) the greater
of (A) Executive's average annual bonus earned over the three full fiscal
years of the Company ended before the Termination Date, or (B) Executive's
target annual bonus established for the bonus plan year in which the
Termination Date occurs. If Executive has been employed by the Company for
fewer than three but at least one full fiscal year of the Company ended
before the Termination Date, the average of the bonuses earned in the two
full fiscal years of the Company ended before the Termination Date, or the
amount of the bonus earned in the one full fiscal year of the Company ended
before the Termination Date, as the case may be, shall be substituted for
the average referred to in (A) above.
(b) If the Termination Date occurs after the end of a bonus year under
any Company sponsored bonus plan and before the bonus with respect to that
bonus year has been paid, the Company shall pay to Executive, not later
than ten business days after the Termination Date, an amount equal to the
bonus for that bonus year to which Executive would have been entitled had
the bonus plan for that bonus year remained in effect without any change
and had Executive remained in the employ of the Company through the date on
which bonuses for that bonus year were paid.
(c) The Company shall make a lump sum cash payment to Executive, not
later than ten business days after the Termination Date, in an amount equal
to the greater of (i) Executive's unpaid targeted annual bonus, established
for the bonus year in which the Termination Date occurs, multiplied by a
fraction, the numerator of which is the number of days Executive was
employed by the Company in the bonus year through the Termination Date, and
the denominator of which is 365, or (b) the bonus amount specifically
guaranteed to Executive for that bonus year under any other agreement
between the Company and Executive.
(d) The Company shall continue to provide Executive with the welfare
benefits of medical insurance, dental insurance, group term life insurance,
and split-dollar life insurance through the second anniversary of the
Termination Date, except that
(i) the Company may stop providing medical insurance and dental
insurance coverage earlier if Executive accepts full time employment
with a subsequent employer that generally makes medical insurance
available to its executives and Executive is eligible for that
coverage with the subsequent employer, and
2
<PAGE>
(ii) the Company may stop providing group term life insurance
earlier if Executive accepts full time employment with a subsequent
employer and that employer provides Executive with group term life
insurance coverage.
The benefits to be provided by the Company pursuant to this paragraph shall
be provided to Executive at the same cost to Executive, and at the same
coverage level, as in effect as of the Termination Date.
(e) In lieu of any retirement benefits provided under Articles II or
III of the Fabri-Centers of America, Inc. Supplemental Retirement Benefit
Agreement (the "SERP"), the Company shall pay to Executive, not later than
ten business days after the Termination Date, a lump sum benefit equal to
(A) times (B), where (A) is equal to the Maximum Supplemental Retirement
Benefit defined in Section 1.8 of the SERP, and (B) is a fraction (not to
exceed 1.0), the numerator of which is the number of completed months of
service Executive had with the Company as of the Termination Date and the
denominator of which is the number of months of service Executive would
have had with the Company had Executive continued to work for the Company
through Executive's 65th birthday.
3. EARNED BUT UNPAID BASE SALARY AND ACCRUED PAID TIME OFF PAY PAYABLE UPON ANY
TERMINATION OF EMPLOYMENT; TREATMENT OF LONG-TERM INCENTIVE AWARDS. Upon any
termination of Executive's employment for any reason and at any time, the
Company shall pay to Executive (or, where appropriate, to Executive's
Beneficiary), not later than ten days after the Termination Date, (a) all earned
but unpaid Base Salary through the Termination Date, and (b) an amount equal to
the aggregate dollar value of all paid time off earned but not taken by
Executive ("Accrued Paid Time Off Pay") before the Termination Date. In
addition, upon any termination of Executive's employment, all outstanding
long-term incentive awards shall be subject to the treatment provided under the
applicable long-term incentive plan of the Company.
4. TERMINATION DUE TO RETIREMENT, DISABILITY, OR DEATH. If Executive's
employment is terminated due to Retirement, Disability, or death while this
Agreement remains in effect (whether before or after the occurrence of a Change
of Control), neither Executive nor Executive's Beneficiaries will be entitled to
Severance Benefits or Change of Control Severance Benefits under either of
Sections 1 or 2 but Executive or Executive's Beneficiaries, as appropriate, will
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