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Title: |
Change of Control Severance Agreement |
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Entities: |
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Date: |
2006 |
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Size: |
Preview shows 6KB of 25KB total |
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Price: |
$35 |
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ID: |
#2608386 |
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OPENWAVE SYSTEMS INC.
CHANGE OF CONTROL SEVERANCE AGREEMENT
This Change of Control Severance Agreement (the "Agreement") is made
and entered into by and between _____________ (the "Employee") and Openwave
Systems Inc., a Delaware corporation (the "Company") effective as of__________,
2006 (the "Effective Date").
RECITALS
A. It is expected that the Company from time to time will consider the
possibility of an acquisition by another company or other change of control. The
Board of Directors of the Company (the "Board") recognizes that such
consideration can be a distraction to the Employee and can cause the Employee to
consider alternative employment opportunities. The Board has determined that it
is in the best interests of the Company and its shareholders to ensure that the
Company will have the continued dedication and objectivity of the Employee,
notwithstanding the possibility, threat or occurrence of a Change of Control (as
defined below) of the Company.
B. The Board believes that it is in the best interests of the Company
and its shareholders to provide the Employee with an incentive to continue his
or her employment and to motivate the Employee to maximize the value of the
Company upon a Change of Control for the benefit of its shareholders.
C. The Board believes that it is imperative to provide the Employee
with certain benefits upon the Employee's termination of employment following a
Change of Control that provide the Employee with enhanced financial security and
incentive and encouragement to the Employee to remain with the Company
notwithstanding the possibility of a Change of Control.
D. The Board has approved this Agreement and wishes to replace any
existing individual agreements or arrangements with the Employee entered into
prior to the Effective Date and that relate to severance payments or vesting
acceleration with respect to options, restricted stock or other compensatory
stock-based awards upon a change of control of the ownership of the Company,
with this Agreement which is now the Company's standard form of agreement with
its officers with respect to this subject matter.
E. Certain capitalized terms used in the Agreement are defined in
Section 6 below.
The parties hereto agree as follows:
{PAGE}
1. TERM OF AGREEMENT. This Agreement became effective on the Effective
Date and shall terminate only upon the date that all obligations of the parties
hereto with respect to this Agreement have been satisfied. Except as otherwise
expressly provided in Section 3(a) below, this Agreement supersedes and replaces
any individual agreements or arrangements, or any relevant portions thereof,
between the Company or any of its subsidiaries and the Employee entered into
prior to the Effective Date that relate to (1) any severance payments or
benefits, (2) any other payments or benefits, or (3) any vesting acceleration,
lapse of restrictions or other amendment with respect to options or restricted
stock of the Company, in each case related to a change of control of the
ownership of the Company (however defined in any such agreements or
arrangements). Any such individual agreements or arrangements, or any relevant
portions thereof addressing this subject matter (whether in the form of offer
letters, employment agreements, change of control agreements, severance
agreements, transition agreements, severance policies or plans, or otherwise)
are hereby terminated and shall no longer have any force or effect.
2. AT-WILL EMPLOYMENT. The Company and the Employee acknowledge that
this Agreement does not change the "at-will" status of Employee's employment
with the Company, as defined under applicable law. If the Employee's employment
terminates for any reason not in connection with a Change of Control, the
Employee shall not be entitled to any benefits, damages, awards or compensation
under Section 3 of this Agreement but may be entitled to payments or benefits
in accordance with the Company's other established employee plans and practices
or pursuant to other agreements with the Company.
3. SEVERANCE AND OTHER BENEFITS.
(a) Termination in Connection with a Change of Control. If the
Employee's employment terminates as a result of Involuntary Termination at any
time during the period commencing two (2) months prior to a Change of Control
and ending twenty four (24) months following a Change of Control, then
immediately after the later of (i) five (5) business days after the Employee's
last date of employment with the Company and (ii) seven (7) calendar days after
execution and delivery of an effective release of claims against the Company
and related parties that releases the Company and such parties from any claims
whatsoever arising from or related to the Employee's employment relationship
with the Company (substantially in the Company's standard form entitled Mutual
Separation and Release Agreement), 100% of the unvested portion of any stock
option, restricted stock or any other compensatory stock award granted to the
Employee by the Company and then held by the Employee (except for any stock
option, restricted stock or other compensatory stock award which by the express
terms of the grant or by express designation by the Board are expressly
excluded from the effect of this Agreement) shall automatically be accelerated
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