Exhibit 10.8
Personal & Confidential
Change in Control Agreement
for
Deere & Company
2008
Contents
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Article 1.
Establishment, Term, and Purpose
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1
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Article 2.
Definitions
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2
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Article 3.
Severance Benefits
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6
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Article 4.
Form and Timing of Severance Benefits
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9
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Article 5.
Excise Tax Equalization Payment
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9
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Article 6.
The Company’s Payment Obligation
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11
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Article 7.
Covenants of the Executive
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12
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Article 8.
Legal Remedies
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12
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Article 9.
Successors and Assignment
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13
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Article 10.
Miscellaneous
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13
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Deere & Company
Change in Control Agreement
THIS AGREEMENT
is made and entered into as of the day of
,
2008, by and between Deere & Company (hereinafter referred
to as the “Company”) and
(hereinafter referred to as the
“Executive”).
WHEREAS, the
Board of Directors of the Company has approved the Company entering
into change in control agreements with certain key executives of
the Company;
WHEREAS, the
Executive is a key executive of the Company;
WHEREAS,
should the possibility of a Change in Control of the Company arise,
the Board believes it is imperative that the Company and the Board
should be able to rely upon the Executive to continue in his
position, and that the Company should be able to receive and rely
upon the Executive’s advice, if requested, as to the best
interests of the Company and its shareholders without concern that
the Executive might be distracted by the personal uncertainties and
risks created by the possibility of a Change in Control;
and
WHEREAS,
should the possibility of a Change in Control arise, in addition to
his regular duties, the Executive may be called upon to assist in
the assessment of such possible Change in Control, advise
management and the Board as to whether such Change in Control would
be in the best interests of the Company and its shareholders, and
to take such other actions as the Board might determine to be
appropriate.
NOW THEREFORE,
to assure the Company that it will have the continued dedication of
the Executive and the availability of his advice and counsel
notwithstanding the possibility, threat, or occurrence of a Change
in Control of the Company, and to induce the Executive to remain in
the employ of the Company, and for other good and valuable
consideration, the Company and the Executive agree as
follows:
Article 1.
Establishment, Term, and Purpose
This Agreement
will commence on the Effective Date and shall continue in effect
for two (2) full years. However, at the end of such two
(2) year period and, if extended, at the end of each
additional year thereafter, the term of this Agreement shall be
extended automatically for one (1) additional year, unless the
Committee delivers written notice six (6) months prior to the
end of such term, or extended term, to the Executive, that the
Agreement will not be extended. In such case, the Agreement
will terminate at the end of the term, or extended term, then in
progress. Provided, a notice that the Agreement will not be
extended shall not be given within six (6) months following a
Potential Change in Control, and provided further, that in the
event a Change in Control occurs during the original or any
extended term, this Agreement will remain in effect for
the
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longer of:
(i) twenty-four (24) months beyond the month in which such
Change in Control occurred; or (ii) until all obligations of
the Company hereunder have been fulfilled, and until all benefits
required hereunder have been paid to the Executive.
Article 2.
Definitions
Whenever used
in this Agreement, the following terms shall have the meanings set
forth below and, when the meaning is intended, the initial letter
of the word is capitalized.
(a)
“ Base Salary ” means the salary of record paid
to the Executive as annual salary, excluding amounts received under
incentive or other bonus plans, whether or not deferred.
(b)
“ Beneficial Owner ” shall have the meaning
ascribed to such term in Rule 13d-3 of the General
Rules and Regulations under the Exchange Act.
(c)
“ Beneficiary ” means the persons or entities
deemed designated by the Executive pursuant to Section 10.2
herein.
(d)
“ Board ” means the Board of Directors of the
Company.
(e)
“ Bonus ” means the greater of:
(a) the arithmetic mean of the bonuses paid to the Executive
pursuant to the Performance Bonus Plan, or its successor plan as
approved by the Committee, of the Company for the three complete
fiscal years immediately preceding the Executive’s Effective
Date of Termination; and (b) the target bonus amount for the
Executive for the fiscal year in which the Effective Date of
Termination occurs. For purposes of this Agreement, the term
“Bonus” shall not be deemed to include any payments
made pursuant to the Company’s Mid-Term Incentive Plan, or
its successor plan.
(f)
“ Cause ” means (a) the Executive’s
willful and continued failure to substantially perform his duties
with the Company (other than any such failure resulting from
Disability or occurring after issuance by the Executive of a Notice
of Termination for Good Reason), after a written demand for
substantial performance is delivered to the Executive that
specifically identifies the manner in which the Company believes
that the Executive has willfully failed to substantially perform
his duties, and after the Executive has failed to resume
substantial performance of his duties on a continuous basis within
thirty (30) calendar days of receiving such demand; (b) the
Executive’s willfully engaging in conduct (other than conduct
covered under (a) above) which is demonstrably and materially
injurious to the Company, monetarily or otherwise; or (c) the
Executive’s having been convicted of a felony. For purposes
of this subparagraph, no act, or failure to act, on the
Executive’s
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part shall be deemed “willful”
unless done, or omitted to be done, by the Executive not in good
faith and without reasonable belief that the action or omission was
in the best interests of the Company.
(g)
“ Change in Control ” means a change in control of a nature that
would be required to be reported in response to Schedule 14A of
Regulation 14A promulgated under the Securities Exchange Act
of 1934 (the “Exchange Act”) whether or not the Company
is then subject to such reporting requirement, provided that,
without limitation, such a Change in Control shall be deemed to
have occurred if:
(i)
any “person” (as defined in Sections 13(d) and
14(d) of the Exchange Act) (other than a Participant or group
of Participants, the Company or a subsidiary, any employee benefit
plan of the Company including its trustee, or any corporation or
similar entity which becomes the Beneficial Owner of securities of
the Company in connection with a transaction excepted from the
provisions of clause (iii) below) is or becomes the
“beneficial owner” (as defined in Rule 13(d-3)
under the Exchange Act), directly or indirectly, of securities of
the Company (not including the securities beneficially owned or any
securities acquired directly from the Company) representing thirty
percent (30%) or more of the combined Voting Power of the
Company’s then outstanding securities;
(ii)
the following individuals shall cease to constitute a majority of
the Board: individuals who on the Effective Date constitute
the Board and any new director(s) whose appointment or
election by the Board or nomination for election by the
Company’s stockholders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either
were directors on the Effective Date or whose appointment or
election or nomination for election was previously so approved but
excluding, for this purpose, any such new director 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;
(iii)
there is consummated a merger, consolidation or similar business
combination transaction of the Company (including, for the
avoidance of doubt, any business combination structured as a
forward or reverse triangular merger involving any direct or
indirect subsidiary of the Company) with any other company, other
than a merger, consolidation or similar business combination
transaction which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or any parent
thereof) at least sixty percent (60%) of the combined Voting Power
of the voting securities of the
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Company or such surviving entity or parent
thereof outstanding immediately after such merger, consolidation or
similar business combination transaction; or
(iv) the
stockholders of the Company approve a plan of complete liquidation
of the Company or there is consummated an agreement for the sale or
disposition by the Company of all or substantially all of the
Company’s assets.
(h)
“ Code ” means the United States Internal
Revenue Code of 1986, as amended, and any successors
thereto.
(i)
“ Committee ” means the Board Committee on
Compensation or any other committee appointed by the Board to
perform the functions of the Compensation and Organization
Committee.
(j)
“ Company ” means Deere & Company, a
Delaware corporation, or any successor thereto as provided in
Article 9 herein.
(k)
“ Date of Termination Share Price ” means the
average of the high and low prices per share paid in transactions
reported on the New York Stock Exchange Composite Tape at the
Effective Date of Termination.
(l)
“ Disability ” means complete and permanent
inability by reason of illness or accident to perform the duties of
the occupation at which the Executive was employed when such
disability commenced.
(m)
“ Effective Date ” means the date of this
Agreement set forth above.
(n)
“ Effective Date of Termination ” means the date
on which a Qualifying Termination occurs which triggers the payment
of Severance Benefits hereunder.
(o)
“ Exchange Act ” means the United States
Securities Exchange Act of 1934, as amended.
(p)
“ Good Reason ” shall mean, without the
Executive’s express written consent, the occurrence of any
one or more of the following:
(i)
The assignment of the Executive to duties materially inconsistent
with the Executive’s authorities, duties, responsibilities,
and status (including offices and reporting requirements) as an
employee of the Company, or a reduction or alteration in the nature
or status of the Executive’s authorities, duties, or
responsibilities from the greater of (i) those in effect on
the Effective Date; (ii) those in effect during the fiscal
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year immediately preceding the year of the
Change in Control; or (iii) those in effect immediately
preceding the Change in Control;
(ii)
The
Company’s requiring the Executive to be based at a location
which is at least fifty (50) miles further from the current primary
residence than is such residence from the Company’s current
headquarters, except for required travel on the Company’s
business to an extent substantially consistent with the
Executive’s business obligations as of the Effective
Date;
(iii)
A reduction by
the Company in the Executive’s Base Salary as in effect on
the Effective Date or as the same shall be increased from time to
time;
(iv)
A material
reduction in the Executive’s level of participation in any of
the Company’s short- and/or long-term incentive compensation
plans, or employee benefit or retirement plans, policies,
practices, or arrangements in which the Executive participates from
the levels in place during the fiscal year immediately preceding
the Change in Control; provided, however, that reductions in the
levels of participation in any such plans shall not be deemed to be
“Good
Reason” if
the Executive’s reduced level of participation in each such
program remains substantially consistent with the average level of
participation of other executives who have positions commensurate
with the Executive’s position;
(v)
The failure of
the Company to obtain a satisfactory agreement from any successor
to the Company to assume and agree to perform this Agreement, as
contemplated in Article 9 herein; or
(vi)
Any termination
of Executive’s employment by the Company that is not effected
pursuant to a Notice of Termination.
The existence of Good Reason shall not be affected by the
Executive’s temporary incapacity due to physical or mental
illness not constituting a Disability. The Executive’s
Retirement shall constitute a waiver of the Executive’s
rights with respect to any circumstance constituting Good Reason.
The Executive’s continued employment shall not constitute a
waiver of the Executive’s rights with respect to any
circumstance constituting Good Reason.
(q)
“ Notice of Termination ” shall mean a written
notice which shall indicate the specific termination provision in
this Agreement relied upon, and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for
termination of the Executive’s employment under the provision
so indicated.
(r)
“ Person ” shall have the meaning ascribed to
such term in Section 3(a)(9) of the Exchange Act and used
in Sections 13(d) and 14(d) thereof, including a
“group” as provided in Section 13(d).
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(s) “
Potential Change in Control ” of the Company
means the happening of any of
the following:
(i) the entering into an agreement by
the Company, the consummation of which would result in a Change of
Control of the Company as defined in paragraph (g) of this
Article 2; or
(ii) the acquisition of beneficial ownership,
directly or indirectly, by any entity, person or group (other than
a Participant or group of Participants, the Company or a
subsidiary, or any employee benefit plan of the Company including
its trustee) of securities of the Company representing fifteen
percent (15%) or more of the combined voting power of the
Company’s outstanding securities and the adoption by the
Board of Directors of a resolution to the effect that a Potential
Change of Control of the Company has occurred for purposes of the
Plan.
(t)
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