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EXHIBIT 10.15
CHANGE OF CONTROL AGREEMENT
This Agreement between EOG Resources, Inc., a Delaware
corporation (the "Company"), and Timothy K. Driggers (the
"Employee") is effective as of this 31st day of August, 2004 (the
"Effective Date"). Certain capitalized terms used herein are
defined in Section 20.
WITNESSETH:
Whereas, the Company considers it to be in the best
interests of its stockholders to encourage the continued
employment of certain key employees of the Company notwithstanding
the possibility, threat or occurrence of a Change of Control of
the Company; and
Whereas, the Employee is a key employee of the Company; and
Whereas, the Company believes that the possibility of the
occurrence of a Change of Control of the Company may result in
the termination by the Employee of the Employee's employment by
the Company or in the distraction of the Employee from the
performance of Employee's duties to the Company, in either case
to the detriment of the Company and its stockholders; and
Whereas, the Company recognizes that the Employee could
suffer adverse financial and professional consequences if a
Change of Control of the Company were to occur; and
Whereas, the Company wishes to enter into this Agreement to
protect the Employee if a Change of Control of the Company
occurs, thereby encouraging the Employee to remain in the employ
of the Company and not to be distracted from the performance of
Employee's duties to the Company by the possibility of a Change
of Control of the Company;
Now, Therefore, the parties agree as follows:
SECTION 1. OTHER EMPLOYMENT ARRANGEMENTS.
(a) This Agreement does not affect the Employee's existing
or future employment arrangements with the Company unless a
Change of Control of the Company shall have occurred before the
expiration of the term of this Agreement. The Employee's
employment with the Company shall continue to be governed by the
Employee's existing or future employment agreements with the
Company, if any, or, in the absence of any employment agreement,
shall continue to be at the will of the Company, except that if a
Change of Control of the Company shall have occurred before the
expiration of the term of this Agreement and the Employee's
employment with the Company is terminated (whether by the
Employee or the Company or automatically as provided in
Section 3) after the occurrence of that Change of Control of the
Company, then the Employee shall be entitled to receive certain
benefits as provided in this Agreement.
(b) Nothing in this Agreement shall prevent or limit the
Employee's continuing or future participation in any plan,
program, policy or practice of or provided by the Company or any
of its Affiliates and for which the Employee may qualify, nor
shall anything herein limit or otherwise affect such rights as
the Employee may have under any contract or agreement with the
Company or any of its Affiliates. Amounts which are vested
benefits or which the Employee is otherwise entitled to receive
under any plan, program, policy or practice of or provided by, or
any contract or agreement with, the Company or any of its
Affiliates at or subsequent to the date of termination of the
Employee's employment with the Company shall be payable or
otherwise provided in accordance with such plan, program, policy
or practice or contract or agreement except as explicitly
modified by this Agreement.
SECTION 2. CHANGE OF CONTROL OF THE COMPANY.
A "Change of Control of the Company" 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
Securities Exchange Act of 1934, as amended (the "Exchange Act")
(an "Exchange Act Person") of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of 20%
or more of either the then-outstanding shares of common stock of
the Company (the "Outstanding Company Common Stock") or 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 clause (a), the
following acquisitions shall not constitute a Change of Control
of the Company: (i) any acquisition directly from the Company,
(ii) any acquisition by the Company, (iii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained
by the Company or any Affiliated Company or (iv) any acquisition
by any corporation pursuant to a transaction that complies with
subclauses (i), (ii) and (iii) of clause (c) of this Section 2;
(b) Individuals who, as of May 4, 2004, constitute the
Board of Directors (the "Incumbent Board") cease for any reason
to constitute at least a majority of the Board of Directors;
provided, however, that any individual becoming a director
subsequent to May 4, 2004, whose election, or nomination for
election by the Company's stockholders, 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 an Exchange Act Person other than the Board of
Directors;
(c) Consummation of a reorganization, merger, consolidation
or sale or other disposition of all or substantially all of the
assets of the Company or the acquisition of the assets or stock
of another entity (a "Business Combination"), in each case,
unless, following such Business Combination, (i) all or
substantially all of the individuals and entities that were the
beneficial owners of the Outstanding Company Common Stock and the
Outstanding Company Voting Securities immediately prior to such
Business Combination beneficially own, directly or indirectly,
more than 60% of the then-outstanding shares of common stock and
the combined voting power of the then-outstanding voting
securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting from
such Business Combination (including, without limitation, a
corporation that, 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
Common Stock and the Outstanding Company Voting Securities, as
the case may be, (ii) no Exchange Act 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,
respectively, the then-outstanding shares of common stock of the
corporation resulting from such Business Combination or 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 of Directors
providing for such Business Combination; or
(d) Approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company.
Notwithstanding anything contained in this Agreement to the
contrary, if (i) the Employee's employment with the Company is
terminated, or (ii) an event occurs which, had it occurred after
a Change of Control of the Company, would with proper notice from
Employee constitute an Event of Termination for Good Reason, and
if it is reasonably demonstrated by the Employee that such action
(A) was taken at the request of a third party that has taken
steps reasonably calculated to effect a Change of Control of the
Company or (B) otherwise arose in connection with or anticipation
of a Change of Control of the Company, then for all purposes of
this Agreement, such Change of Control of the Company shall be
deemed to have occurred on the date immediately prior to the date
of such termination or event.
SECTION 3. TERM OF THIS AGREEMENT.
The term of this Agreement shall begin on the Effective Date
and shall expire on the first to occur of:
(a) the Employee's death, the Employee's Disability or the
Employee's Retirement, which events shall also be deemed
automatically to terminate the Employee's employment by the
Company; or
(b) the termination by the Employee or the Company of the
Employee's employment by the Company.
The expiration of the term of this Agreement shall not terminate
this Agreement itself or affect the right of the Employee or the
Employee's legal representatives to enforce the payment of any
amount or other benefit to which the Employee was entitled before
the expiration of the term of this Agreement or to which the
Employee became entitled as a result of the event that caused the
term of this Agreement to expire.
SECTION 4. EVENT OF TERMINATION FOR CAUSE.
(a) An "Event of Termination for Cause" shall mean the
Employee's (i) conviction of a felony involving moral turpitude
(which, through lapse of time or otherwise, is not subject to
appeal), (ii) willful refusal without proper legal cause to
perform employee's duties and responsibilities which remains
uncorrected for thirty (30) days following written notice to the
Employee by the Company of such event, (iii) willfully engaging
in conduct which the Employee has, or reasonably should have,
reason to know is materially injurious to the Company, or (iv)
other extreme personal conduct such as, but not limited to,
deliberate infliction of bodily injury to another employee while
on duty, gross negligent lack of regard for safety rules and
customs, or engaging in business activities directly in conflict
with the Company's business.
(b) For purposes of this Section 4, no act, or failure to act,
on the part of the Employee shall be considered "willful" unless
it is done, or omitted to be done, by the Employee in bad faith
or without reasonable belief that the Employee's action or
omission was in the best interests of the Company. Any act, or
failure to act, based upon authority given pursuant to a
resolution duly adopted by the Board of Directors or upon the
instructions of the Chief Executive Officer of the Company or a
senior officer of the Company or based upon the advice of counsel
for the Company shall be conclusively presumed to be done, or
omitted to be done, by the Employee in good faith and in the best
interests of the Company. Any business activity that has been
approved by the Chairman of the Board of the Company (or if the
Employee is the Chairman of the Board of the Company, that has
been approved by a resolution duly adopted by the Board of
Directors) shall be conclusively presumed not to be a business
activity that is in direct conflict with the Company's business.
(c) The cessation of employment of the Employee as a result of
the alleged occurrence of an event referred to in clause (ii) or
(iii) of the definition of "Event of Termination for Cause" shall
not be deemed to be as a result of an Event of Termination for
Cause unless and until there shall have been delivered to the
Employee a copy of a resolution duly adopted by the affirmative
vote of not less than three-quarters of the entire membership of
the Board of Directors (excluding the Employee, if the Employee
is a member of the Board of Directors) at a meeting of the Board
of Directors called and held for such purpose (after reasonable
notice is provided to the Employee and the Employee is given an
opportunity, together with counsel for the Employee, to be heard
before the Board of Directors), finding that, in the good faith
opinion of the Board of Directors, the Employee is guilty of the
conduct described in clause (ii) or (iii) of such definition and
specifying the particulars thereof in detail. Any determination
of the Board of Directors under this clause (c) shall not be
binding on the Employee, shall not be conclusive as to whether an
Event of Termination for Cause has occurred, and shall not affect
Employee's right to contest whether an Event of Termination for
Cause has occurred.
SECTION 5. EVENT OF TERMINATION FOR GOOD REASON.
An "Event of Termination for Good Reason" shall mean, after
a Change of Control of the Company, the occurrence of any of the
following events, provided Employee serves termination by written
notice in connection with or based upon and within 90 days of the
occurrence of such event:
(a) a significant reduction in the Employee's authority
and/or responsibilities (whether or not occurring solely as a
result of the Company's ceasing to be a publicly traded entity);
or
(b) a reduction in Employee's Annual Base Salary, a
reduction in Employee's annual bonus when compared to the bonus
received for the prior year, or the failure to continue the
Employee's full participation in any employee benefit plan or
program (unless replaced by a substantially comparable plan or
program) in which Employee is eligible to participate prior to
the notification (other than as a result of the normal expiration
of such plan or program), in each case other than as a part of a
general program to reduce compensation or benefits on a
proportional basis relative to all other employees of the
Company; or
(c) a relocation of the Employee's primary place of work to
a location more than 50 miles away from the Employee's primary
place of work at the time of the notice (provided, however, this
clause (c) shall no longer apply to an employee after he has
accepted any such relocation after a Change of Control of the
Company has occurred and the above referenced 90 day period has
passed).
For the avoidance of doubt, any action referred to in clause (a),
(b) or (c) above shall constitute an Event of Termination for
Good Reason under the foregoing definition regardless of whether
the Company is permitted to take such action under any employment
contract with the Employee.
SECTION 6. NOTICE O






