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Employment and Change of Control Agreement

 

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Title:

Employment and Change of Control Agreement

Entities:

Conexant Systems, Inc.

Date:

2003

Size:

Preview shows 5KB of 51KB total

Price:

$35

ID:

#1167532

 

 

► Employment ► Change of Cont. ► Employment & Change of Control Agreements
► Technology ► Semiconductors

 

 

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                   EMPLOYMENT AND CHANGE OF CONTROL AGREEMENT


AGREEMENT by and between Conexant Systems, Inc., a Delaware
corporation (the "Company") and Mike Vishny (the "Executive"), dated as of the
14th day of January, 2002 ("Date of this Agreement").

The Board of Directors of the Company (the "Board"), has
determined that it is in the best interests of the Company and its shareholders
to employ the Executive; under this Employment and Change of Control Agreement.
The Board has also determined that it is in the best interests of the company
and its shareholders to assure that the Company will have the continued
dedication of the Executive, notwithstanding the possibility, threat or
occurrence of a Change of Control (as defined below) of the Company. The Board
believes it is imperative to diminish the inevitable distraction of the
Executive by virtue of the personal uncertainties and risks created by a pending
or threatened Change of Control and to encourage the Executive's full attention
and dedication to the Company currently and in the event of any threatened or
pending Change of Control, and to provide the Executive with compensation and
benefits arrangements upon a Change of Control which ensure that the
compensation and benefits expectations of the Executive will be satisfied and
which are competitive with those of other corporations. Therefore, in order to
accomplish these objectives, the Board has caused the Company to enter into this
Agreement.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1. Certain Definitions. (a) The "Effective Date" shall
mean the first date during the Change of Control Period (as defined in Section
l(b)) on which a Change of Control (as defined in Section 2) occurs. Anything in
this Agreement to the contrary notwithstanding, if a Change of Control occurs
and if the Executive's employment with the Company is terminated prior to the
date on which the Change of Control occurs, and if it is reasonably demonstrated
by the Executive that such termination of employment (i) was at the request of a
third party who has taken steps reasonably calculated to effect a Change of
Control or (ii) otherwise arose in connection with or anticipation of a Change
of Control, then for all purposes of this Agreement the "Effective Date" shall
mean the date immediately prior to the date of such termination of employment.

(b) The "Change of Control Period" shall mean the period
commencing on the Date of this Agreement and ending on the third anniversary of
the Date of this Agreement; provided, however, that commencing on the date one
year after the Date of this Agreement, and on each annual anniversary of such
date (such date and each annual anniversary thereof shall be hereinafter
referred to as the "Renewal Date"), unless previously terminated, the Change of
Control Period shall be automatically extended so as to terminate three years
from such Renewal Date, unless at least 60 days prior to the Renewal Date the
Company shall give notice to the Executive that the Change of Control Period
shall not be so extended.

(c) As used in this Agreement, the term "affiliated
companies" shall include any company controlled by, controlling or under common
control with the Company

<PAGE>

2. Pending Conexant Organization and Business Plans. For
purposes of this Agreement, the contemplated separation of the Conexant Systems,
Inc. business into three or more companies by means of a "spin-off distribution
to shareholders or similar methodology that results in distinct independent
public companies will not be considered a "Change of Control". Specifically, the
separation of Conexant Systems, Inc., its Wireless business in the publicly an
nounced spin-merge with Alpha Industries, Inc., and Mindspeed Technologies into
three distinct companies will not constitute a "Change of Control".

3. Change of Control. For the purpose of this Agreement,
a "Change of Control" shall mean:

(a) The acquisition by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934, as amended (the "Exchange Act")) (a "Person") of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 20% or more of either (i) the then outstanding shares of common stock of the
Company (the "Outstanding Company Common Stock") or (ii) the combined voting
power of the then outstanding voting securities of the Company entitled to vote
generally in the election of directors (the "Outstanding Company Voting
Securities"); provided, however, that for purposes of this subsection (a), the

 

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