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EXHIBIT 10.30
CHANGE IN CONTROL
AGREEMENT
BETWEEN
AND
GENUINE PARTS COMPANY
CHANGE IN CONTROL AGREEMENT
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1 . Certain Definitions
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1
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2 . Change in Control
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1
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3 . Employment Period
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2
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4 . Terms of Employment
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3
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(a) Position and Duties
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3
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(b) Compensation
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3
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5 . Termination of Employment
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4
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(a) Death, Retirement or
Disability
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4
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(b) Cause
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5
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(c) Good Reason
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5
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(d) Notice of Termination
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6
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(e) Date of Termination
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6
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6 . Obligations of the Company upon
Termination
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6
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(a) Termination by Executive for Good
Reason; Termination by the Company other than for Cause or
Disability
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6
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(b) Death, Disability or
Retirement
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8
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(c) Cause; Other than for Good
Reason
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8
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(d) Expiration of Employment
Period
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8
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7 . Non-exclusivity of Rights
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8
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8 . Full Settlement; No
Mitigation
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9
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9 . Costs of Enforcement
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9
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10 . Certain Additional Payments by the
Company
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9
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11 . Restrictions on Conduct of
Executive
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11
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12 . Arbitration
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12
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13 . Successors
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12
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14 . Miscellaneous
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12
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(a) Governing Law
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12
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(b) Captions
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12
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(c) Amendments
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12
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(d) Notices
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13
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(e) Severability
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13
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(f) Withholding
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13
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(g) Waivers
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13
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(h) Status Before and After Effective
Date
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13
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(i) Indemnification
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13
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(j) Related Agreements
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13
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(k) Counterparts
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14
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CHANGE IN CONTROL AGREEMENT
AGREEMENT by and between Genuine
Parts Company, a Georgia corporation (the "Company") and ___
("Executive"), dated as of the ___ day of ___ 2007.
The Board of Directors of the
Company (the "Board"), has determined that it is in the best
interests of the Company and its shareowners to assure that the
Company will have the continued dedication of 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 Executive
by virtue of the personal uncertainties and risks created by a
threatened or pending Change of Control and to encourage
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 Executive with compensation and benefits
arrangements upon a Change of Control which ensure that the
compensation and benefits expectations of Executive will be
satisfied. 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 Executive’s employment with the Company is
terminated (either by the Company without Cause or by Executive for
Good Reason, as provided later in this Agreement) within six
(6) months prior to the date on which the Change of Control
occurs, and if it is reasonably demonstrated by 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 hereof and ending on the third anniversary of the date hereof;
provided, however, that commencing on the date one year after the
date hereof, 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 Executive that the Change of Control Period shall not be
so extended.
(c)
"Code" shall mean the Internal Revenue Code of 1986, as amended
from time to time, and includes a reference to the underlying
proposed or final regulations.
2. Change of Control
. For the purposes of this Agreement, a "Change of Control" shall
mean the occurrence of any of the following events:
(a) the
acquisition by any individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the 1934 Act) (a "Person")
of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the 1934 Act) of 20% or more of 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 following
acquisitions shall not constitute a Change in Control: (i) any
acquisition by a Person who is on the Effective Date the beneficial
owner of 20% or more of the Outstanding Company Voting Securities,
(ii) any acquisition directly from the Company, (iii) any
acquisition by the Company, (iv) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by
the Company or any corporation controlled by the Company, or
(v) any acquisition by any corporation pursuant to a
transaction which complies with clauses (i), (ii) and
(iii) of subsection (c) of this definition; or
(b) individuals
who, as of immediately prior to the Effective Date, constitute the
Board (the "Incumbent Board") cease for any reason to constitute at
least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the Effective Date
whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered
as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of
directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or
(c) consummation
of a reorganization, merger, consolidation or share exchange or
sale or other disposition of all or substantially all of the assets
of the Company (a "Business Combination"), in each case, unless,
following such Business Combination, (i) all or substantially
all of the individuals and entities who were the beneficial owners
of the Outstanding Company Voting Securities immediately prior to
such Business Combination beneficially own, directly or indirectly,
more than 50% of the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of
directors of the corporation resulting from such Business
Combination (including, without limitation, a corporation which as
a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or
through one or more subsidiaries) in substantially the same
proportions as their ownership, immediately prior to such Business
Combination of the Outstanding Company Voting Securities, and
(ii) no Person (excluding any corporation resulting from such
Business Combination or any employee benefit plan (or related
trust) of the Company or such corporation resulting from such
Business Combination) beneficially owns, directly or indirectly,
20% or more of the combined voting power of the then outstanding
voting securities of such corporation except to the extent that
such ownership existed prior to the Business Combination, and
(iii) at least a majority of the members of the board of
directors of the corporation resulting from such Business
Combination were members of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board,
providing for such Business Combination; or
(d) approval
by the shareholders of the Company of a complete liquidation or
dissolution of the Company.
3. Employment Period
. The Company hereby agrees to continue Executive in its employ,
and Executive hereby agrees to remain in the employ of the Company
subject to the
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terms and conditions of this Agreement, for the period
commencing on the Effective Date and ending on the second
anniversary of such date (the "Employment Period").
4. Terms of
Employment .
(a)
Position and Duties .
(i) During
the Employment Period, (A) Executive’s position
(including status, offices, titles and reporting requirements),
authority, duties and responsibilities shall be at least
commensurate in all material respects with the most significant of
those held, exercised and assigned at any time during the 120-day
period immediately preceding the Effective Date, and
(B) Executive’s services shall be performed at the
location where Executive was employed immediately preceding the
Effective Date or any office or location less than 50 miles from
such location.
(ii) During
the Employment Period, and excluding any periods of vacation and
sick leave to which Executive is entitled, Executive agrees to
devote reasonable attention and time during normal business hours
to the business and affairs of the Company and, to the extent
necessary to discharge the responsibilities assigned to Executive
hereunder, to use Executive’s reasonable best efforts to
perform faithfully and efficiently such responsibilities. During
the Employment Period it shall not be a violation of this Agreement
for Executive to (A) serve on corporate, civic or charitable
boards or committees, (B) deliver lectures, fulfill speaking
engagements or teach at educational institutions and
(C) manage personal investments, so long as such activities do
not significantly interfere with the performance of
Executive’s responsibilities as an employee of the Company in
accordance with this Agreement. It is expressly understood and
agreed that to the extent that any such activities have been
conducted by Executive prior to the Effective Date, the continued
conduct of such activities (or the conduct of activities similar in
nature and scope thereto) subsequent to the Effective Date shall
not thereafter be deemed to interfere with the performance of
Executive’s responsibilities to the Company.
(b)
Compensation .
(i)
Base Salary . During the Employment Period, Executive shall
receive an annual base salary ("Annual Base Salary") at a rate at
least equal to the rate of base salary in effect on the date of
this Agreement or, if greater, on the Effective Date, paid or
payable (including any base salary which has been earned but
deferred) to Executive by the Company and its affiliated companies.
During the Employment Period, the Annual Base Salary shall be
reviewed no more than 12 months after the last salary increase
awarded to Executive prior to the Effective Date and thereafter at
least annually. Any increase in Annual Base Salary shall not serve
to limit or reduce any other obligation to Executive under this
Agreement. Annual Base Salary shall not be reduced after any such
increase and the term Annual Base Salary as used in this Agreement
shall refer to Annual Base Salary as so increased. As used in this
Agreement, the term "affiliated companies" shall include any
company controlled by, controlling or under common control with the
Company.
(ii)
Annual Bonus . In addition to Annual Base Salary, Executive
shall be awarded for each fiscal year ending during the Employment
Period an annual target bonus opportunity in cash at least equal
(expressed as a percentage of salary) to Executive’s target
bonus opportunity for the last full fiscal year prior to the
Effective Date (annualized in the event
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that Executive was not employed by the Company for the whole of
such fiscal year) (the "Target Annual Bonus").
(iii)
Incentive, Savings and Retirement Plans . During the
Employment Period, Executive shall be entitled to participate in
all incentive, savings and retirement plans, practices, policies
and programs applicable generally to other peer executives of the
Company and its affiliated companies, but in no event shall such
plans, practices, policies and programs provide Executive with
incentive opportunities, savings opportunities and retirement
benefit opportunities, in each case, less favorable, in the
aggregate, than the most favorable of those provided by the Company
and its affiliated companies for Executive under such plans,
practices, policies and programs as in effect at any time during
the 120-day period immediately preceding the Effective Date or if
more favorable to Executive, those provided generally at any time
after the Effective Date to other peer executives of the Company
and its affiliated companies.
(iv)
Welfare Benefit Plans . During the Employment Period,
Executive and/or Executive’s eligible dependents, as the case
may be, shall be eligible for participation in and shall receive
all benefits under welfare benefit plans, practices, policies and
programs provided by the Company and its affiliated companies
(including, without limitation, medical, prescription, dental,
disability, employee life, group life, accidental death, vision,
employee assistance program, flexible spending accounts and
business travel accident insurance plans and programs) to the
extent applicable generally to other peer executives of the Company
and its affiliated companies, but in no event shall such plans,
practices, policies and programs provide Executive with benefits
which are less favorable, in the aggregate, than the most favorable
of such plans, practices, policies and programs in effect for
Executive at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to Executive,
those provided generally at any time after the Effective Date to
other peer executives of the Company and its affiliated companies.
Notwithstanding the foregoing, the Company reserves the right to
limit the Executive’s participation in any welfare benefit
plan and to take any action it deems appropriate under rules
uniformly applicable to similarly situated Executives who are also
participants in such plans, to ensure compliance with the
nondiscrimination requirements imposed by the Code.
(v)
Expenses, Fringe Benefits and Paid Time Off . During the
Employment Period, Executive shall be entitled to expense
reimbursement, fringe benefits and paid time off in accordance with
the most favorable plans, practices, programs and policies of the
Company and its affiliated companies in effect for Executive at any
time during the 120-day period immediately preceding the Effective
Date or, if more favorable to Executive, as in effect generally at
any time thereafter with respect to other peer executives of the
Company and its affiliated companies.
5. Termination of
Employment .
(a)
Death, Retirement or Disability . Executive’s
employment shall terminate automatically upon Executive’s
death or Retirement during the Employment Period. For purposes of
this Agreement, "Retirement" shall mean retirement that would
entitle Executive to normal retirement benefits under the
Company’s then-current retirement plan. If the Company
determines in good faith that the Disability of Executive has
occurred during the Employment Period (pursuant to the definition
of Disability set forth below), it may give to Executive written
notice of its intention to terminate Executive’s employment.
In such event, Executive’s employment with the Company shall
terminate effective on the 30th day after receipt of such
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written notice by Executive (the "Disability Effective Date"),
provided that, within the 30 days after such receipt,
Executive shall not have returned to full-time performance of
Executive’s duties. For purposes of this Agreement,
"Disability" has the meaning assigned such term in the
Company’s long-term disability plan, from time to time in
effect. At the request of Executive or his personal representative,
the Board’s determination that the Disability of Executive
has occurred shall be certified by two physicians mutually agreed
upon by Executive, or his personal representative, and the Company.
Failing such independent certification (if so requested by
Executive), Executive’s termination shall be deemed a
termination by the Company without Cause and not a termination by
reason of his Disability.
(b)
Cause . The Company may terminate Executive’s
employment during the Employment Period for Cause. For purposes of
this Agreement, a termination shall be considered to be for "Cause"
if it occurs in conjunction with a determination by the Board that
Executive has committed or engaged in either (i) any act that
constitutes, on the part of Executive, fraud, dishonesty, breach of
fiduciary duty, misappropriation, embezzlement or gross misfeasance
of duty; (ii) willful disregard of published Company policies
and procedures or codes of ethics; or (iii) conduct by
Executive in his office with the Company that is grossly
inappropriate and demonstrably likely to lead to material injury to
the Company, as determined by the Board acting reasonably and in
good faith; provided, that in the case of (ii) or
(iii) above, such conduct shall not constitute "Cause" unless
the Board shall have delivered to Executive notice setting forth
with specificity (A) the conduct deemed to qualify as "Cause",
(B) reasonable action that would remedy such objection, and
(C) a reasonable time (not less than 30 days) within
which Executive may take such remedial action, and Executive shall
not have taken such specified remedial action within the specified
time.
(c)
Good Reason . Executive’s employment may be terminated
by Executive for Good Reason. For purposes of this Agreement, "Good
Reason" shall mean, without the written consent of Executive:
(i) the
assignment to Executive of any duties materially inconsistent with
Executive’s position (including status, offices, titles and
reporting requirements), authority, duties or responsibilities as
in effect immediately prior to the Effective Date, or any other
action by the Company which results in a material diminution in
such position, authority, duties or responsibilities, excluding for
this purpose an isolated, insubstantial and inadvertent action not
taken in bad faith and which is remedied by the Company promptly
after receipt of notice thereof given by Executive;
(ii) a
material reduction by the Company in Executive’s Base Salary
or Target Annual Bonus, as in effect immediately prior to the
Effective Date, as the same may be increased from time to time;
(iii) any
failure by the Company to comply with any of the other provisions
of Section 4(b) of this Agreement, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith
and which is remedied by the Company promptly after receipt of
notice thereof given by Executive;
(iv) the
Company’s requiring Executive to be based at any office or
location other than as provided in Section 4(a)(i)(B)
hereof;
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(v) any
failure by the Company to comply with and satisfy Section 13(c) of
this Agreement; or
(vi) the
material breach by the Company of any other provision of this
Agreement;
Good
Reason shall not include Executive’s death, Disability or
Retirement. Executive’s continued employment shall not
constitute consent to, or a waiver of rights with respect to, any
circumstance constituting Good Reason hereunder. A termination by
Executive shall not constitute termination for Good Reason unless
Executive shall first have delivered to the Company written notice
setting forth with specificity the occurrence deemed to give rise
to a right to terminate for Good Reason, and there shall have
passed a reasonable time (not less than 60 days) within which
the Company may take action to correct, rescind or otherwise
substantially reverse the occurrence supporting termination for
Good Reason as identified by Executive.
(d)
Notice of Termination . Any termination by the Company or
Executive shall be communicated by Notice of Termination to the
other party hereto given in accordance with Section 14(d) of this
Agreement. For purposes of this Agreement, a "Notice of
Termination" means a written notice which (i) indicates the
specific termination provision in this Agreement relied upon, (ii)
to the extent applicable, sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of
Executive’s employment under the provision so indicated, and
(iii) if the Date of Termination (as defined below) is other
than the date of receipt of such notice, specifies the termination
date. The failure by Executive or the Company to set forth in the
Notice of Termination any fact or circumstance which contributes to
a showing of Good Reason or Cause shall not waive any right of
Executive or the Company, respectively, hereunder or preclude
Executive or the Company, respectively, from asserting such fact or
circumstance in enforcing Executive’s or the Company’s
rights hereunder.
(e)
Date of Termination . "Date of Termination" means
(i) if the Executive’s employment is terminated by the
Executive for Good Reason, the date specified in the Notice of
Termination, which may not be less than 60 days after the date
of delivery of the Notice of Termination; provided that the Company
may specify any earlier Date of Termination, (ii) if the
Executive’s employment is terminated by the Company for
Cause, the date specified in the Notice of Termination, which in
the case of a termination for Cause as defined in
Section 5(b)(iii) may not be less than 30 days after the
date of delivery of the Notice of Termination, (iii) if the
Executive’s employment is terminated by the Company other
than for Cause or Disability, the Date of Termination shall be the
date on which the Company notifies the Executive of such
termination or any later date specified in such notice, and
(iv) if the Executive’s employment is terminated by
reason of death, Disability or Retirement, the Date of Termination
shall be the date of death or Retirement of the Executive or the
Disability Effective Date, as the case may be.
6. Obligations of the
Company upon Termination . To the extent required to comply
with Section 409A of the Code, payments under this
Section 6 shall be delayed to the six month anniversary of the
date of Executive’s separation from service, within the
meaning of Code Section 409A.
(a)
Termination by Executive for Good Reason; Termination by the
Company other than for Cause or Disability . If, during the
Employment Period the Company s
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