EXHIBIT 10.56
AMENDED AND RESTATED CHANGE IN CONTROL SEVERANCE AGREEMENT
This Amended and Restated Change in Control Severance Agreement
(the
"Agreement") is entered into as of December 23, 2008 (the
"Effective Date"),
by and between ------------------ ("Executive") and Ramtron
International
Corporation, a Delaware corporation (the "Company").
Whereas, the Board of Directors of the Company (the "Board") has
determined
that it is in the best interests of the Company and its
stockholders to
assure that the Company will have the continued dedication of its
executive
and senior officers notwithstanding the possibility or occurrence
of a Change
in Control (as defined below) of the Company;
Whereas, the Board also believes that it is desirable to
encourage
Executive's full attention and dedication to the Company and
alleviate
uncertainty, and to provide Executive with compensation and
benefits in the
event of a Change in Control and Executive's termination of
employment under
the circumstances described in this Agreement;
Whereas, the Board and the Executive entered into a Change in
Control
Severance Agreement dated August 25, 2007 (the "Prior Change in
Control
Agreement"); and
Whereas, the Board and the Executive desire to amend the Prior
Change in
Control Agreement to account for the effect of Section 409A of the
Internal
Revenue Code ("Section 409A of the Code");
Now, therefore, in consideration of the agreements contained herein
and other
good and valuable consideration, the receipt of which is
mutually
acknowledged, Executive and the Company hereby agree as
follows:
1. Definitions. The following definitions shall apply
for all purposes
under this Agreement:
(a) Affiliate. "Affiliate" shall have the meaning
assigned to such term in
Rule 12b-2 promulgated under the Exchange
Act.
(b) Change in Control. "Change in Control" means the
consummation of a
transaction or series of transactions
resulting in one or more of the
following events:
(i) The acquisition,
directly or indirectly, in one or more
transactions, by any individual, person or group of persons,
within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act (a "Person") of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act),
individually or in the aggregate, of fifty percent (50%) or
more
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of either (1) the outstanding shares of common stock of the
Company or (2) the combined voting power of the Company's
outstanding securities entitled to vote generally in the
election of directors; provided, however, that the following
transactions shall not
constitute, or be deemed to cause a Change
in Control of the Company: (A) any increase in percentage
ownership by a Person to fifty percent (50%) or more resulting
solely from any acquisition of shares directly from the Company
or any acquisition of shares by the Company that reduces the
number of shares outstanding; or (B) any Business Combination
described in clauses (A) and (B) of Section 1(a)(iii) below;
(ii) A change in the
composition of the Board of the Company as a
result of which fewer than a majority of the directors are
Incumbent Directors. "Incumbent Directors" shall mean
directors
who either: (A) are directors of the Company as of the
Effective
Date hereof; (B) are elected, or nominated for election, to the
Board of the Company with the affirmative vote of at least a
majority of the directors of the Company who are Incumbent
Directors described in (A) above at the time of such election
or
nomination; or (C) are elected, or nominated for election, to
the
Board of the Company with the affirmative votes of at least a
majority of
the directors of the Company who are Incumbent
Directors described in (B) above at the time of such election
or
nomination. Notwithstanding the foregoing, "Incumbent
Directors"
shall not include an individual whose election or nomination is
in connection with an actual or threatened proxy contest
relating
to the election of directors to the Company;
(iii) Consummation of a
reorganization, merger or consolidation 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, (A) no Person,
individually
or in the aggregate, nor any corporation resulting from such
Business Combination or any employee benefit plan (or related
trust) sponsored or maintained by the Company or such
corporation
resulting from such Business Combination beneficially owns,
directly or indirectly, individually or in the aggregate, fifty
percent (50%) or more of 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 (B) at
least a majority of the members of the Board 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
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(iv) Approval by the
stockholders of the Company of the liquidation or
dissolution of the Company.
(c) Cause. "Cause" shall mean any of the actions
relevant to Executive
committed by Executive (or omitted to be
done by Executive) that occur
on or after the Effective Date:
(i) A conviction of or
plea of "guilty" or "no contest" to a felony
under the laws of the United States or any state thereof;
(ii) Conviction of any crime
constituting fraud, theft or
misappropriation of Company property, or of any other crime
that
materially injures the Company's business or reputation;
(iii) Any material violation or
breach of the Company's Code of
Business Conduct and Ethics, as determined by the Board;
(iv) Willful or intentional
failure by Executive to materially comply
with a specific direction by the Board; or
(v) Any serious
misconduct or negligence in the course of Executive's
employment, as determined by the Board.
(d) Change in Control Period. "Change in Control
Period" means the twelve
(12) month period immediately following
the date of a Change in Control
under this Agreement.
(e) Control. "Control" shall have the meaning assigned
to such term in Rule
12b-2 promulgated under the Exchange
Act.
(f) Good Reason. "Good Reason" shall mean, without the
express written
consent of Executive, the occurrence after
a Change in Control of any of
the following circumstances, unless such
circumstances are fully
corrected prior to the date of termination
specified in a notice of
termination by Executive:
(i) the material
diminishment of Executive's authority, duties or
responsibilities, or the assignment to Executive of any duties
inconsistent with Executive's authority, duties or
responsibilities from those in effect immediately prior to the
Change in Control;
(ii) a reduction in
Executive's base salary as in effect immediately
prior to the Change in Control, or diminishment of Executive's
bonus opportunity at the Company;
(iii) a reduction by the Company in
the kind or level of employee
benefits to which Executive was entitled to immediately prior
to
such reduction with the result that Executive's overall
benefits
package provided by the Company is materially reduced;
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(iv) the Company requiring
Executive to be based at any office or
location more than 50 miles from the Company's principal
headquarters prior to the Change in Control event, except for
travel reasonably required in the performance of Executive's
responsibilities; or
(v) the failure of the
Company to obtain agreement from any successor
to assume and agree to perform this Agreement.
(g) Termination Date. "Termination Date" means (i) the
date on which the
Executive's employment is terminated by
the Company or (ii) the date on
which the Executive terminates his
employment with the Company.
(h) Total Disability. "Total Disability" of Executive
shall be deemed to
occur on the one-hundred and eightieth
(180th) consecutive, or non-
consecutive calendar day, within any
twelve (12) month period that
Executive is unable to perform the duties
commensurate with Executive's
position with the Company due to physical
or mental disability or
illness.
2. Severance Payment and Other Benefits.
(a) Eligibility for Severance Payment. Executive shall
be entitled to
receive the severance payment (the
"Severance Payment") and benefits set
forth in this Section 2 from the Company
if any of the below events
occurs during the Change in Control
Period:
(i) Executive resigns
his employment with the Company for Good
Reason, which notice must be given by Executive to the Board
within seventy-five (75) days following the occurrence of the
event giving rise to Good Reason for termination;
(ii) The Company terminates
Executive's employment with the Company
for any reason other than Cause;
(iii) In the event of Executive's
death; or
(iv) In the event of
Executive's "separation from service" (within the
meaning of Section 409A of the Code), due to Executive's Total
Disability.
Notwithstanding anything in this Agreement
to the contrary, if a Change
in Control occurs and not more than 60
days prior to the date on which
the Change in Control occurs, Executive's
employment with the Company is
terminated by the Company, such
termination of employment will be deemed
to be a termination of employment after a
Change in Control for purposes
of this Agreement if Executive reasonably
demonstrates that such
termination of employment (i) was at the
request of a third party who
has taken steps reasonably calculated to
effect a Change in Control, or
(ii) otherwise arose in connection with or
in anticipation of such
Change in Control.
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(b) Severance Payment.
(i) For all purposes
under this Agreement, upon Executive becoming
eligible for the Severance Payment as provided above in Section
2(a), the Company shall pay to Executive in cash, subject to
Sections 2(g) and 2(h), an amount equal to (A) Executive's base
salary multiplied by two (2) plus (B) an amount equal to the
greater of (1) 200% of the bonus paid to Executive for the
preceding fiscal year or (2) 200% of the target bonus for
Executive approved by the Board for the fiscal year during
which
the Change in Control occurs plus (C) an amount equal to the
difference between (1) the Company's reasonable determination
of
present value of the continuation of the benefits described in
Section 2(e) for 24 months and (2) the Company's reasonable
determination of the present value of the benefits Executive
may
receive under Section 2(e)(ii).
(ii) The Severance Payment
shall be paid, subject to Sections 2(g) and
(h), in equal monthly installments over the twelve (12) month
period commencing on the sixty-first (61st) day after the
Executive's Termination, provided that the Executive has signed
(and
not revoked) the Release.
(c) Accrued and Unpaid Compensation. In addition to the
Severance Payment
provided above, Executive will receive a
lump cash payment on the
Termination Date, of any accrued and
unpaid salary through the
Termination Date and/or bonuses earned for
any completed performance
period but not yet paid as of the
Termination Date and any earned,
unused vacation time through the
Termination Date. Any accrued and
unpaid bonuses that would be considered
deferred compensation under
Section 409A will be subject to Section
2(g) and 2(h) of this Agreement
and will be paid pursuant to the schedule
set forth in 2(b)(ii) of this
Agreement.
(d) Other Compensation Programs. A termination of
employment as described
in this Section 2 will not affect any
rights that Executive may have
pursuant to any other agreement, policy,
plan, program or arrangement of
the Company providing for benefits, which
rights will be governed by the
terms thereof. Notwithstanding any
provision to the contrary in any
applicable plan, program or agreement,
upon the occurrence of a Change
in Control, all restricted stock or other
equity incentive awards held
by Executive will become fully vested and
all stock options held by
Executive will become fully
exercisable.
(e) Health Coverage. If Executive is entitled to the
Severance Payment
under Section 2(b), the Company shall
reimburse Executive for the full
cost of any group health continuation
coverage that the Company is
otherwise required to offer under the
Consolidated Omnibus Budget
Reconciliation Act of 1986 ("COBRA") until
the earlier of the date that:
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(i) Executive becomes
covered by health coverage offered by another
employer that does not have a preexisting condition limitation
or
exclusion with respect to the Executive, or
(ii) Is eighteen months (18)
months after the Termination Date.
As long as the Company's group health plan
is fully insured, the Company
will provide coverage to the Executive on
a tax-free basis in accordance
with this Section 2(e). If the
health plan is or becomes self-insured,
the Executive will be required to purchase
the COBRA coverage in
accordance with the terms of the plan and
the Company will, subject to
Sections 2(g) and (h), reimburse the
Executive for the premiums paid in
accordance with this Section 2(e) on an
after-tax basis. Such
reimbursements will be made, subject to
Sections 2(g) and (h), within
five (5) business days after delivery of
Executive's written requests
for payment, accompanied by such evidence
of payment of the COBRA
premiums as the Company may reasonably
require, provided, however, that
any such reimbursement shall be for
expenses incurred during the period
of subsidized coverage provided in this
Section 2(e) and that such
reimbursements shall be made no later than
December 31 of the
Executive's taxable year following the
taxable year in which the
premiums were paid by the Executive.
In no event will the amount of
expenses eligible for reimbursement under
this Section 2(e) by the
Company in one year affect the amount of
expenses eligible for
reimbursement under this Section 2(e) to
be provided in any other
taxable year.
(f) Conditions. All payments and benefits provided
under this Section 2
(other than Section 2(c)) are conditioned
on Executive's continuing
compliance with this Agreement (including,
but not limited to Section 4
hereof). No payments shall be made
under this Section 2 (other than
Section 2(c)) unless the Executive, on or
before the 60th day following
the Executive's Termination Date, (a)
signs and returns the Release of
Claims and Covenant not to Sue
substantially in the form provided in
Exhibit A (the "Release Agreement") within
the number of days that the
Company determines is required under
applicable law, but in no event
more than forty-five (45) days after the
Company delivers the Release
Agreement to the Executive and (b) does
not revoke such Release
Agreement within the time period provided
therein, such time period not
to exceed seven (7) days. If the
Executive becomes entitled to payments
under Section 2 hereof (other than Section
2(c)), the Company shall
deliver to the Executive a copy of the
Company's standard form of
Release Agreement within seven (7) days of
the Executive's Termination
Date.
(g) Termination as a "Separation from Service". If the
Executive is
entitled to payment pursuant to Section
2(a)(i), (ii) or (iv) or the
last sentence of Section 2(a) of this
Agreement but has not experienced
a "separation from service" within the
meaning of Section 409A of the
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Code, the payments will not begin, subject
to Section 2(h), until the
later of (i) the payment date identified
in Section 2(b) or (ii) the
date first to occur of the Executive's
"separation from service" within
the meaning of Section 409A of the Code, a
"change of control" of the
Company within the meaning of Section 409A
of the Code, the Executive's
"disability" within the meaning of Section
409A of the Code or the
Executive's death.
(h) Delay in Payment Due to "Specified Employee"
Status. Notwithstanding
the foregoing, if the Executive is a
"specified employee" (as determined
pursuant to procedures adopted by the
Company in compliance with Section
409A of the Code) on the date of the
Executive's "separation from
service" with the Company within the
meaning of Section 409A(a)(2)(A)(i)
of the Code, and any payment,
reimbursement, or the provision of any
benefit under this Agreement is made on
account of the Executive's
"separation from service" (within the
meaning of Section
409A(a)(2)(A)(i) of the Code) and would
constitute a "deferral of
compensation" under Section 409A of the
Code, then the payment,
reimbursement, or the provision of any
benefit to the Executive (or the
Executive's beneficiary) shall commence on
the earlier of (i) the first
business day of the seventh month
following the Executive's "separation
from service" within the meaning of
Section 409A(a)(2)(A)(i) of the
Code, or (iii) the Executive's
death. The total amount of monthly
installment payments and reimbursements or
the provision of any benefit
to which such Executive would otherwise be
entitled during the six-month
period following the date of such
"separation from service" within the
meaning of Section 409A(a)(2)(A)(i)
shall also be paid on the first
business day of the seventh month
following such "separation from
service" (or, if earlier, the date of
death).
3. Certain Additional Payments by the Company.
(a) Definitions. The following terms shall have the following
meanings for
purposes of this Section 3:
(i) "Code" shall mean
the Internal Revenue Code of 1986, as amended.
(ii) "Excise Tax" shall mean
the excise tax imposed by Section 4999 of
the Code, together with any interest or penalties imposed with
respect to such excise tax.
(iii) "Parachute Value" of a Payment
shall mean the present value as of
the date of the change of control for purposes of Section 280G
of
the Code of the portion of such Payment that constitutes a
"parachute payment" under Section 280G(b)(2), as determined by
the accounting firm for purposes of determining whether and to
what extent the Excise Tax will apply to such Payment.
(iv) "Payment" shall mean any
payment, distribution or other benefit
in the nature of compensation (within the meaning of Section
280G(b)(2) of the Code) to or for the benefit of Executive to
be
paid or provided pursuant to this Agreement or any
other
agreement contingent upon a change in control.
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(v) "Safe Harbor Amount"
shall mean 2.99 times Executive's "base
amount," within the meaning of Section 280G(b)(3) of the Code.
(vi) "Value" of a Payment
shall mean the economic present value of a
Payment as of the date of the Change in Control for purposes of
Section 280G of the Code, as determined by the accounting firm
using the discount rate required by Section 280G(d)(4) of the
Code.
(b) Anything in this Agreement to the contrary
notwithstanding and except as
set forth below, in the event it shall be
determined that any Payment
would be subject to the Excise Tax, then
Executive shall be entitled to
receive an additional payment (the "Excise
Tax Gross-Up Payment") in an
amount such that, after payment by
Executive of all taxes (and any
interest or penalties imposed with respect
to such taxes), including,
without limitation, any income taxes (and
any interest and penalties
imposed with respect thereto) and Excise
Tax imposed upon the Excise Tax
Gross-Up Payment, Executive retains an
amount of the Excise Tax Gross-Up
Payment equal to the Excise Tax imposed
upon the Payments.
Notwithstanding any other provision of
this Section 3 to the contrary,
all taxes and expenses described in this
Section 3 shall be paid or
reimbursed within fifteen (15) days after
the Executive submits evidence
of the incurrence of such taxes and/or
expenses, provided that in all
events such payment or reimbursement shall
be made on or before the last
day of the year following (a) the year in
which the applicable taxes are
remitted or expenses are incurred or (b),
in the case of reimbursement
of expenses incurred due to a tax audit or
litigation in which there is
no remittance of taxes, the year in which
the audit is completed or
there is a final or nonappealable
settlement or other resolution of the
litigation, in accordance with Treasury
Regulation Section 1.409A-
3(i)(1)(v). The Executive shall be
required to submit all requests for
payment or reimbursement no later than
thirty (30) days prior to the
last day for payment or reimbursement
described in the preceding
sentence. Any expense paid or
reimbursed by the Company in one taxable
year in no event will affect the amount of
expenses required to be paid
&